Hiring Your Next Employee?… Consider These Questions

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Must ask questions for interviewing new hires.  As you begin to look at opportunities to hire your next employee consider the following questions to ask.

  • In what ways will this role help you stretch your professional capabilities?  This question drives at what the candidate will reveal as areas where they want to improve their skills.
  • What have been your greatest areas of improvement during your career?  This points to areas the candidate felt were weaknesses and how they have addressed them.  Of course, if the indicate that they don’t have any areas of improvement, then they may not be the right candidate.
  • What is the toughest feedback that you have received and how you learned from it?  This shows that a candidate can admit to mistakes and how they handled it along with what they did to use it in their learning process.
  • What would someone most likely misunderstand about you?  This can show a candidates ability to understand others and how they themselves may be misunderstood in certain situations.
  • If you were to give a user manual to you staff in order for them to get to know you, what would it include?  This shows the candidates work habits and general style.

For our company we hire for “attitude” and train for “skills.” We can always teach someone a new skill, but it is very difficult to change someone’s attitude that has been baked into them since childhood.

Here’s to asking the right questions to get you the right new employee!

Mike

Can A Controller Help You Grow Your Business?

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Hiring administrative staff is an area that can be overlooked as an opportunity to help a business grow.  Why is it so tough for a business owner to make this move?  Because hiring a controller is a big step and it’s not necessarily cheap either.  Going from having a bookkeeper or staff accountant to a controller is a much bigger shift in thinking and the expected activity that should be the result of this hire. 

Below are four ways in which a controller can help a business owner grow their business and gain better control over their finances:

  • A controller will own the financial reporting.  This person should have complete responsibility for the data inputs into the accounting system, along with how reports are formatted and distributed for effective financial analysis.  The controller will be familiar with your backlog of sales, why expenses increase or decrease and if something does not seem right in your financials.
     
  • A controller should find cost savings.  This person should look for ways to help improve your business’s bottom line.  This includes looking at vendor relationships and the price you are paying for the goods and services you need to run your company.  They look at your product profit margins to understand what levers can be pulled to help improve it.  The right person enjoys finding cost savings.
     
  • A controller is a data manager.  This person will manage the staff who enters the data into the accounting system.  You don’t want your six-figure controller entering data, but rather finding ways to enter it faster and more efficiently.  This means looking at technology and applications that can enhance the speed and accuracy of the financial data entered to your systems.  This person directs, manages, and advises in this role and makes sure action is taken where needed.
     
  • A controller is the person willing to say “No.”  You want your controller to have the confidence to say “no” and be at times with vendors and your staff as a pain.  This does not mean the person is rude or unprofessional, but rather someone who has thick skin to handle tough discussions with vendors or staff in spending or policy issues.  The controller is your partner who is watching out for the company and employee’s interests.  This sometimes requires a person to say no.

Cheers to growing your business with a controller!

Mike

Step Up Your Interview Questions

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As companies are struggling to hire qualified people these days, recruiting has taken on new challenges. That being said, are you still asking the same old recruiting questions? Do you feel that the questions you ask still don’t elicit the information that you need from a candidate? Does the interview process seem like a “show up and throw up?” If any of these or other similar questions pop into your head about your current interview process, then consider the following questions that award-winning marketing consultant Jano le Roux (https://janoleroux.com/about) asks his candidates. Some of these questions seem off the beaten path and at first you may wonder how they may be applicable to your business but think through the “why” of the question and how you can adjust it for your situation.

  1. Do you have a screen protector on your phone?. . .Why? Asking this question seems strange and may have nothing to do with the position for which you are hiring. However, for Le Roux, the answer to the question would provide insight into how careful and intentional a person is with a simple device like your phone. Protecting it shows that you are careful. If you don’t have one…. why not? This may show a lack of intentionally caring about a device that while replaceable, isn’t necessarily inexpensive to replace.
  2. How do you criticize people? As Le Roux says, it’s not easy to criticize people, even if it’s constructive criticism. How they do it shows well that they can deliver a tough message. He even asks the candidate to criticize him during the interview to see their skills at work. Can they be honest without being a jerk?
  3. Teach me something fascinating that I don’t know? This is a prompt for him to see if the candidate has done any research on Le Roux or if they are simply flying by the “seat of their pants” to see if what they say he just happens to not know. One candidate Le Roux interviewed in answering this question asked Le Roux….” What are you into right now?” Le Roux responded, “Right now, it’s productivity.” With that answer, the candidate showed Le Roux an app on their phone for enhancing productivity. He hired the person on the spot.
  4. What would you do to implement trust among coworkers in a remote setting? Given our flexible work environment today with many knowledge workers having the option to work remotely, building trust on teams can be a challenge. This question drives to the candidate’s creativity to think on the spot how to address this issue.
  5. What do you want written on your gravestone and how does this position help you get there? Everyone’s time here is short, and we spend a large part of our lives at work. Working somewhere with meaning is part of the ingredient for self-motivation. Typically, a business owner does not want an employee coming to work who feels miserable at their job and is not reaching their full potential. These are just a few interview questions that I found interesting for me to consider in my business. Recruiting good talent on our teams is more of an art than science. We can teach “skills,” but it’s difficult to teach “attitude.”

Cheers to your talent search!
Mike

The Positive Power of a Flexible Workplace

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Employers, employees and studies say remote working in many instances can result in more productivity. The past two years guarantee that an increase in remote working will be a permanent result of COVID-19.

When people work from home, they have more control over their time and working environment. Employees work when they are most productive, which is not always regular business hours. People who work from home tend to dress comfortably and can fit more exercise and sleep into their schedules.

Traditionally, extra sleep and comfy attire for staff are not high on the list of employer goals. In fact, it may seem like these factors are counterproductive. But many employers say remote work has had a direct and positive result on business. Employees are happier, healthier (more sleep and exercise), take fewer sick days and accomplish more than those who spend the entirety of their work hours in an office.  Communication by text, email, Zoom and phone is proving to be more efficient as people focus more intently on their time management with these channels.

Call center employees, for example, take more calls when they work remotely, in part due to less noise and generally fewer distractions at home (apart from slightly distracting unsupervised toddlers), as opposed to a busy office.

Job satisfaction tends to increase without a daily commute. There is the appeal of a commute-free lifestyle. Statistics show that traditional commuters suffer from high blood pressure, high blood sugar and high cholesterol, more often than those who commute from the kitchen to the office down the hall. Increased anxiety is also associated with a commuter lifestyle.

People value a remote workplace option and may opt to take a pay cut for a job that offers it.  Having the flexibility to work even with a hybrid model of home office and work office environments can add a dimension to a job that makes it attractive.  The greater acceptance of a work-from-home option has opened the opportunity to reduce geographic limitations when recruiting.  Hiring employees is not cheap and a high rate of employee retention helps both overall morale and the bottom line.

Pandemic-life has proven that working remotely, at least part of the time, is feasible and profitable. Businesses can use remote working to their advantage to pivot their company and meet the demands of a new reality.

The Art of Attracting Outstanding Employees

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We’ve all had those absolutely outstanding employees:  well-qualified, quick to learn company operations and culture, exhibit great attitudes. They do what they say they will do, on time and with high quality.

Sometimes it can feel like we just fall into this type of employee. But there are ways to make the “fall” more likely. And since a company is only as good as its employees, attracting outstanding prospective employees is worth the effort.

There are many ways to attract and find great employees. The following are some I have found effective.  Try them out to create an ideal applicant pool.

  1. Go where the best go. Use events – even online – to observe and identify qualified people. Join relevant associations, talk with your customers, look on LinkedIn or other social media sites. Approach potential candidates with appreciation and ideas.
  2. Align your hiring process with your company’s culture and vision. This may seem obvious, however, the saying goes “hire for attitude, train for skills” is important. If the person does not have the traits that align with your culture and the norms you expect of all employees, then no amount of skill can make up the difference.
  3. Hire a good recruiter or staffing agency. Recruiters often follow people through their careers and will know when people are thinking about changing companies – giving you early access to the best candidates.
  4. Participate in the community. Sponsor a nonprofit or charity event. Offer scholarships or internships to local students.
  5. Write a realistic and detailed job description. Include job title, salary range based on seniority, and responsibilities. Try to tell a story about the company so people will get an idea of the work environment and company goals.
  6. Establish relationships with trade schools, colleges, and universities. It’s a win/win for companies who want access to the best candidates entering the workforce and schools who want outstanding career services programs.
  7. Foster a positive, modern, environmentally-responsible, and attractive workspace – wherever it might be. During these days when many desk employees are working from home, that might mean investing in fresh collaboration software, encouraging a daily stretch break, or offering perks like a small home office stipend or shipping an oxygen-releasing houseplant to each employee. For employees going into the office, give some thought to amenities like access to healthy, free snacks and coffee, relaxation areas, and ergonomically correct furniture.
  8. Offer the best benefits you can afford. Many companies use their benefit offering to attract and retain their employees. This could include paid vacation and sick time, mental health days, flexible work times, job-sharing, work-from-home, 401k, profit sharing, casual days, health, life, disability, dental and vision insurance, and tax-free health spending accounts to name a few. Paid gym memberships, parental leave, and student loan and tuition assistance are also gaining popularity.
  9. Ask your highest-performing employees for referrals – because like attracts like. They have first-hand knowledge of your business, plus networks of similarly-talented friends and business contacts. Hiring employee referrals can help build morale and be an opportunity to offer a referral bonus.

This list may seem overwhelming, but there’s no need to tackle them all at once. Test one or two at a time to see which resonate with your business, industry, and the roles you hire. I expect you’ll discover happier, more effective employees – and outstanding candidates.

Questions You Should Ask Every Potential Hire

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by Michael Iverson

Interviewing job candidates can be a task dreaded by entrepreneurs.  Why?  Some have nagging doubts because of one disappointing hire.  Others don’t have patience for what they perceive to be a long, drawn-out process that may end in a compromise rather than a perfect fit.

Here are six interview questions that can help you improve your interview process.  These are the recommendations of a variety of Human Resource professionals from industry and recruitment agencies. The questions are intended to help you learn about the attitudes and thought processes of candidates, as well as the likelihood of a cultural fit with your business.  (Of course, they would have to be supplemented with questions specific to the functions of the position you seek to fill.)

  1. Why did you get into this industry/profession? This question is a good starting point in terms of understanding the candidate’s values and level of commitment to (and affinity for) your line of work.  Some very talented candidates want to plug in their skill sets to the best-paying opportunity available.  Typically, their responses to this question lack the conviction of someone who has always wanted to be in your line of work.  There should be genuine excitement about the prospect of working for you.  If it’s not evident, take a pass.
  2. Tell me about your experience dealing with unhappy customers. Whether the customer is external or internal, every member of an organization is responsible for meeting customer needs.   This question gives the prospective employee an opportunity to tell you how he or she turned lemons into lemonade.  Problem-solving skills and lessons learned should be your key takeaways from the interviewee’s response.
  3. Why are you leaving your current position? The answer to this question helps you understand the candidate’s mindset regarding career change.  You might get the sense a candidate is always looking for greener pastures.  That could be an employee unlikely to find contentment.  On the other hand, you may find an employee whose skills are under-utilized at present, or one who has been unable to progress at the current workplace through no fault of their own.
  4. Tell me about the ideal position for you. This request is open-ended for the purpose of giving the candidate a chance to express, in as much detail as he or she is willing to provide, what would make the candidate happy.  The response is likely to include a job title, expectations about daily or weekly duties, the extent of supervision deemed necessary or desirable, a salary and a description of company culture.  All this information can help you assess whether there is a likely fit.
  5. How much do you know about our company? Has the candidate given serious consideration about the prospect of working for your company?  This is a chance for the prospective employee to show you how well he or she prepared for the interview.  A lack of preparation would suggest either a low-level of interest or a lack of initiative.  In either case, there is probably a better candidate for the position.  In contrast, a candidate who knows a good deal about your company may be a keeper.
  6. Describe your best boss and explain why the relationship worked. Describe your worst boss and explain why the relationship didn’t work. The answer is likely to provide useful insights about the candidate’s personality, as well as the candidate’s maturity level and temperament.  You should get a strong sense about whether this is a person you like and how well they are likely to fit in with co-workers.

 

Are Those Contractors Really Employees?

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by Ned Lenhart

Over the years I’ve worked with many companies who use “contractors” to perform a lot of the work they do. Given the control these companies have over these so-called “independent contractors,” I’ve always been concerned that they are really “employees.”

On February 23, 2013, the U.S. Tax Court issued Kurek vs. Commissioner, T.C. Memo 2013-64 and held that a general contractor who used laborers to complete his work had improperly classified them as “independent contractors” and that they were really “employees.”

Even though the workers provided their own tools and set their own schedule, the general contractor set deadlines for the work and monitored their work on a daily basis. Further, he paid them on a weekly basis and had the ability to approve the quality of their work. The Tax Court held that these factors made these workers “employees” and not “contractors.”

The implications of this decision are extensive and include workers’ compensation insurance, unemployment insurance, FICA, and now healthcare coverage.

Over the years we have seen situations that are similar to this fact pattern, especially in the construction industry. If your company uses “subcontractors” or other laborers to complete projects, please review this ruling carefully and evaluate the potential consequences. The ruling could also have implications on state and federal income tax withholding rules. The penalties associated with these violations can be significant.

Ned Lenhart is President of Interstate Tax Strategies, a multi-state sales and use tax advisory firm based in Atlanta. To learn more about ITS, visit http://www.salestaxstrategies.com.

Don’t Gamble on Employee Selection

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by Tim Fulton

Employee selection. No two words frighten small business owners more than these two.

Why is this? Maybe it’s because the selection process can be so time consuming. Maybe it’s because the process can be so costly. Maybe it’s because we are never quite sure we know how to select the right person for the position.

I believe that the main reason so many small business owners and managers dread the thought of hiring new personnel is that they have made bad decisions in the past and the thought of duplicating such decisions brings terror to their hearts.

Why is it that despite our good intentions, we still make bad decisions in selecting new employees?

The reason is simple. We usually base our decisions on the wrong set of information. This fact became very evident to me recently in talking to a small business owner. Bill had just about sworn off hiring any more new employees as a result of the horrible experiences he had experienced recently in trying to fill several vacant positions.

Predicting future performance

Bill had owned this small retail business for five years and had always struggled in hiring new employees. I asked Bill on what basis he made a hiring decision. His response included such common factors as appearance, communication skills, and past experience. He than shared with me that his most important factor in hiring a new employee was his ability to predict their future behavior and performance in that particular position.

I was glad to hear that Bill used such a criteria for hiring. Experts tell us predicting future performance is quite normal and a good practice in the selection process.

I than asked Bill on what basis he was able to predict such future performance. He responded that he would often times ask hypothetical questions such as, “If you were getting ready to close the store and a customer entered and demanded that you stay open for the next thirty minutes while she browsed for a future purchase, what would you do?”

Bill also suggested that he tried to determine applicant’s work attitudes and moral values during the interview. That information, he felt, was important in trying to predict future work habits.

Bill felt that despite getting great information asking such questions, for some reason many of his new hires did not perform the way he had imagined during the interview. In fact, several of his newly hired employees turned out just the opposite of what he had predicted during the selection process.

Hiring is Similar to College Football?

In talking to Bill, I also found out that he was a huge sports fan. He loved college football and confided to me that he was known to place a wager on one or two games a week. In fact, he bragged to me that he had earned enough money last year from betting on football games to pay for a recent week-long vacation to Florida for his family.

I asked Bill what he contributed his betting success to.

He responded that he had become very good at predicting the outcomes of games almost to the exact point spread. He was able to do this by studying each team’s past performance in close detail. He would watch replays of their last games. He would scrutinize their statistics. He would research how the teams had played under like circumstances in past years.

In simple terms, Bill had created a science of predicting football game outcomes by looking at past performance.

I asked Bill if it was possible to draw a parallel between predicting winning football teams and predicting the future behavior of a potential employee.

At first Bill had a confused look on his face. He was having a difficult time correlating the process of picking football game winners with the selection of productive employees. Slowly, a grin emerged on his face as he realized the connection between the two processes.

“Are you saying that I should pick my employees the same way that I pick my football games?” he asked.

“Absolutely.” I responded.

A New Approach to Hiring

All of a sudden Bill experienced a huge awakening. He considered that he would never bet on a football team just because the coach talked of winning such a game. He would never pick a team to win just because of their apparent work attitude or values. In picking his teams, he predicted future performance based on past behavior under similar circumstances. It had always worked. Why wouldn’t it work in selecting new employees?

Of course it would.

Not only will it work for Bill, but it will work for any business, large or small. Research has conclusively shown that the only way that we can accurately predict an employee’s future behavior is by looking at their past behavior under similar circumstances.

Why is this so? Because behavior can be measured, it can be evaluated, and it can be changed. To the contrary, attitude is difficult to measure, evaluate, or change. Which one would you want to use to predict future performance?

If an employee has a history of satisfying customers in similar situations as your workplace would require, you can bet that that same employee would continue at that same level of performance under your supervision. Likewise, if an applicant has had negative experiences in the past, you can rest assured that he or she will repeat that behavior in a future position.

So the formula is simple: we select employees on the basis of predicting their future performance as a result of their past behavior under similar circumstances. This formula has been tested many times in many different situations and has always provided the best means to acquiring great employees.

I received a call from Bill last week. He had hired his first new employee using this new philosophy and he was certain that this young lady was going to be a star employee. In fact, in just a week’s time she was setting a new standard for outstanding customer service for the other employees.

Bill was ecstatic. He couldn’t wait to hire his next employee. He is also enjoying football this fall. He is certain that this will be a profitable season.

Tim Fulton a business coach and CEO of Small Business Matters, a leader in small business coaching and development. Learn more at www.smallbusinessmattersonline.com.