Hire The Right People

Many consultants agree that good employees can play a major role in your business's success. Very often the image and reputation of your company depend on how customers view your employees. An employee's attitude, appearance and skills can make or break your business.

"One of the toughest parts of starting my furniture sales business," says one owner, "was finding good, trustworthy employees. The other tough part was managing them. Although good employees are one of a company's greatest assets, all employees need to be motivated."

The hiring process should not be haphazard. Before you begin, you need to define the job, the experience or education level required and what you are willing to pay--salary and benefits. If you haven't formulated a personnel policy, now is the time. You need to consider the number of hours to be worked each week, the number of days per week, holiday work and the time and method for overtime pay; fringe benefits; vacation and sick leave; time off for personal needs; training; retirement; a grievance procedure; performance review and promotion; and termination.

Employment and training procedures should be established so that you have a better chance of hiring the right employee for the right job and that you hire employees to fill in on those areas where you may be weak.

There are a number of sources to which you can turn for job candidates: classified advertising, employment agencies, temporary agencies, state employment agencies, unions, schools, community organizations, former employees or friends and family.

Rather than making your selection based on intuition, you need to follow a process that enables you to determine the candidate's worthiness for the position. Review the candidate's resume, application and work samples; test the applicant if appropriate for the position; interview the candidate; and check his or her work references.

When interviewing, don't make the common mistake of asking what the candidate has done; rather, ask how the candidate did it. Interview the candidate, not his or her resume. Moreover, don't neglect to assess three essential factors you won't find on anyone's resume: intellect, interpersonal skills and motivation level.

When interviewing, it is also important to know the laws related to job discrimination. According to one expert, there are two simple rules to test whether or not to ask a question: (1) Is it job related? If it isn't, don't ask. (2) Is the question presented only to a specific type of candidate? If it is, don't ask.

When it comes time for the hiring decision, undoubtedly your sense of people will come into play; your ability to separate "good" employees from "bad" one. However, a few words of warning: All too often, consultants say, employers hire people they believe will turn around, only to find a difficult battle on their hands. Time is too precious to waste on anyone who cannot contribute 100 percent.

Once you have carefully selected your new employee, it is important to create a good working relationship. Open-mindedness, patience, communication skills, willingness to listen and other human relations skills play a vital role in the development of such relationships. "Be aware of individual personalities," says Ed Lohlein, owner of Budget Copy. "We maintain an 'open door' policy by talking to our employees as human beings."

Says another owner, "Hiring good people, developing appropriate relationships and making them part of the operation are the keys to a successful business.

And although you have been careful to hire the right person for the job and are working hard to form rewarding relationships with your employees, you can still be subject to problems. That is the nature of business. Very often the problems you experience mirror those of society in general.

Currently, employers are faced with the problem of drug abuse and drug testing and with adhering to the new regulations set down by the 1986 immigration law.

Substance abuse costs American business about $100 billion a year in lost production, according to the federal government. In 1980, a government-sponsored study revealed that about 10 percent of the nation's workforce was impaired by alcohol abuse.

While many large businesses have set up substance abuse programs, such programs are too expensive for the small business owner. One consultant recommends writing out a policy statement concerning drug and alcohol use at work and coming to work in a drug or alcohol-induced state. He advises that the policy should state that the use of drugs or alcohol on the job are unacceptable and grounds for disciplinary action, including dismissal.

Another consultant suggests that the small business owner investigate outside employee assistance programs as a way of offering help to troubled employees at a relatively low cost. If no such provider is available in the area, you may want to join with other local companies to create an employee assistance program together.

The other major societal issue--hiring illegal immigrants--can have significant impact on the operation of a small business. Under the Immigration Reform and Control Act of 1986, employers must hire only U.S. citizens and aliens authorized to work in the United States. Violators can face stiff fines. The Immigration and Naturalization Service (INS) requires that you ask each new person hired the following questions: Are you a U.S. citizen? Or, are you an alien lawfully authorized to work in the United States? Their answers should be noted on your employment records.

The employer must attest under penalty of perjury--on a form provided by the U.S. Attorney General--that he or she has verified by examining the documents specified in the law, that each new person hired is authorized to work in this country.

Documents that satisfy the verification requirements include a U.S. passport, certificate of U.S. citizenship, certificate of naturalization and certain foreign pass-ports and resident alien cards. Documents such as a Social Security card or birth certificate also are acceptable if examined together with approved identification such as a driver's license.

Employers must keep the verification forms on file for three years from the date of hire or for one year following the employee's separation from service, whichever is later.

For further information on the new law, the INS has produced a "Handbook for Employers," document number M274. Contact your local INS office to receive a copy.