The US Bureau of Labor Statistics confirms that the average turnover rate is approximately 3.7% per month, or that two-thirds of all hiring decisions fail within 36 months, and that is everyone from senior level executives to entry level laborers. You could say that one-third of people are in the wrong jobs, or are not a cultural match for their company, and more than one-half of employees are not properly trained for their current position, or for the company’s future needs.
In times when, globally, we have to become more productive in order to dig ourselves out of a planet-wide recession and find a better future, we could be doing a better job of simply ‘Working’.
So, how have we reached this situation within the hiring process? Let’s start with workload: Human Resources – along with all other Managers – are over-worked, with the hangover of working with new technologies adding to daily stresses rather than decreasing them. They have relied more and more on other people’s input to filling positions, rather than relying on their own skills, and tend to fall into the same traps repeatedly when hiring employees.
Let’s get back to basics and follow a few simple rules:
- Know exactly what you want in an employee. And don’t settle for anything less than exactly what meets your needs.
- Does the candidate have a value system similar to yours? Cultural conflicts and value differences are the leading causes of employee failure. If you highly value quality don’t hire someone that depends on speed to get the job done.
- Hire the ‘Best and Smartest’. We have gotten used to ‘hidden potential in employees. But – really – If you want your business to improve you need better, smarter people and – probably – people smarter than you.
- Don’t JUST trust the resume. Verify and, if you can’t (Be Honest), hire someone to do it. Eliminating one hiring mistake will more than pay for the professional interviewing.
- Use high quality assessments to get at the core issues. They are predictors of peoples’ behaviors, motivators, skills, and natural talents. In the hands of a skilled professional the use of assessments can greatly improve the quality of new hires. In most cases the cost for the assessment products will be less than the weekly salary of the person you seek to hire.
So, hire the people you want, make sure they can do what you want – both now and in the future – and ensure that they can fit into your corporate culture now, and lead it into new fields, check they a retelling the truth, and assess them properly. As for staying longer, this article doesn’t only mean employees will be relied upon to stay with you for a longer time period. If they fit the points laid out below, they will be the type to stay late, voluntarily after 5.00pm, too.
It’s a worthwhile exercise to ask yourself if your life has turned out the way you expected it to – especially in your entrepreneurial life. If you ask yourself “How is my Business really doing?”, then how do you measure it? Turnover, Service, Employee number, growth, competition, money, your life-style? Nowadays we are expected to look at all of these as parts of the same equation. So, let’s start with an easier way to ask the question. Here are three choices, which one does your business most closely resemble?
Has your Business failed spectacularly?
Is your business a runaway success?
Is your business an ‘everyday’ business?
You probably answered the third choice, and you have a business in The Everyday Box. However, because you recognize that fact, there are very simple ways for you to change it.
The Everyday Box is what your business gets caught in when you are ploughing forward, simply paying the bills. If you answered either of the first two, you may be in a better position. To have flamed out as a business owner, you have strived to get too far, too fast. You have made some choices that weren’t right at that time, or with those customers and prospects, or your staff couldn’t follow through for you.
If your business has – eventually – taken off, you have probably done the same things as the failure mentioned above, and they have worked. Chances are you have been through failure before, and it has resulted in a success this time. Of course, the answers aren’t simply to do with timing, but it could be something equally as glaring, or a combination of other simpler components that, when put together, made the choice. However, the education that you had been through before, made you do something a little different, or at a different time, or with a different purchaser profile, and, when put together, worked.
If you are ‘in between’ these two states, you are in the Everyday Box – and you may not know it. You are making excuses based on outside influences: The economy, the weather, the entrenched competition. You qualify your decisions as doing what you need to do to pay the bills, keep the staff happy, and keep everything ‘ticking over’ until this current negative situation clears up, miraculously. Of course the chances are that it will be replaced by another negative situation. As your business lurches toward the failure you are scared is going to happen, you become immobile, and continue on as if this is ‘business as usual’. If it is, you are really in trouble. So, how do you get out of it?
The first step, as with any difficult decision is to recognise that you are in the Everyday Box, and what you need to do to get out of it. That is remarkably easy: Go back to the reason why you started this thing in the first place, and what you were going to do to make it a success. Take a critical look at your entire chain, from prospecting to returning customers, and figure out how they differed from what you thought they were going to be. How do you change either them, their habits, your goods and services, or your marketing. Look at your staff. Are they in it for the long haul? They have to be entrepreneurial, too. Are they? Tell them what you are going to do, what changes are going to come up, how long it’s going to take. Will they follow you? Chances are, they will. Trim the dead wood, move forward, set yourself a goal and hit it. In other words, change.
One of two things will happen…and you know what they are. On the way to that place though, your business will change. Everyone will be more energized: Employees, contractors, suppliers and prospects will see how energized everyone has become. Everyone will be focussed on the new goal, and you will be enjoying life once again.
You will pick up renewed interest from old contacts, and some new ones, too. Your drive to make this thing a runaway success is not only infectious – it is required. The way to get out of the Everyday Box is exactly the way to move your business toward success: Your enthusiasm. If you fail, you will have learned more about how to make it work next time. Your gutsy moves will mean more investment money next time, because nothing breeds enthusiasm in others like your own enthusiasm.
No business should be ‘just good enough’, it should be an unqualified success…or it should die trying. In either case, you will have gotten out of the Everyday Box.