Smart Business - March/April 2006

Don’t let hiring get you down. Help is here

 

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Five steps to avoiding hiring mistakes.
By Renee M. Covino

There is a cry for help, hired help, that is, inside many tobacco outlet stores; most owners know they can’t run their businesses alone, but many are tempted to—rather than face the consequences of a bad hire. Some have experienced too much turnover to expect anything but—which results in low expectations and general pessimism about employees.

So how do you find the right employees for your store? Perhaps even attract some that will stay for awhile? First recognize that you can develop a systematic way to find—and keep—good people. We’re offering five steps to help you get to a higher hiring ground:

1. Consider everyone you meet a potential employee.
If you’re looking for help, look everywhere, especially at competing local businesses or places you shop. When you’re impressed with someone you meet, don’t be afraid to try and steal them away for your own business. Just be ready to offer them some incentive to jump (and it doesn’t have to be with a higher salary, see No. 4, below).

2. Take the interview process seriously, and take your time. Don’t be so anxious to hire someone that you hire the first warm body. Streamline the process by categorizing your screening criteria into such categories as: personality, cultural fit, skills/knowledge, and education /experience. This will help you stay organized and focused. If you have a store manager, get him/her involved in the interview process—but also in a systematic way. By taking the interview process seriously, you will show the candidate you expect him/her to take the job seriously. Even part-time help should be approached this way. Once you do find the right person, that’s the time to act quickly and hire them!

3. Get the training rolling. First, help a new employee understand your business and even the industry by giving them the big picture. Discuss what has happened to tobacco over the years and how it has affected your business. Explain how customers need a friendly place to buy tobacco. Act as a mentor for categories you are stressing—OTP and otherwise. From the beginning, let new employees see where they fit in to your business plans and culture. If you have other stores, allow other employees/managers to cross-train him or her. Otherwise, do it yourself. Then, give the newbie immediate feedback on how he is doing. If you’re wise, you’ll do this with all employees, frequently—especially if you want them to stay.

4. Blast the benefits. Just because the industry is hurting, and you can’t afford to pay an employee an enticing salary—or perhaps even provide health benefits—doesn’t mean you don’t have benefits to broadcast. Think of what you can do for employees that they would value—and offer it to them up front. Take the time to find out what their personal situation is—do they have kids in school, a sick mother, are they crazy about NASCAR?—and figure out a way to care about them personally. This is the beauty of a small business—let them know you can be flexible. Most of all, make the environment fun and comfortable to work in. Hold internal parties and contests. Treat them with respect and they will respect your business.

5. Keep some in reserves. Expecting that there will be turnover is a realistic way to run a small business; therefore, be prepared. Never throw away the resume/phone number of a promising individual. Keep prospects and contact information on file. And never stop looking for a good employee—ever.


The Legal Angle

Employee litigation can be a small business owner’s worst nightmare, but it’s a reality that smart ones deal with before it hits. Even with the best of hiring methods, legal claims by applicants, employees, and even former employees are sometimes inevitable these days; so it pays to be prepared in two key ways:

Employment Law 101—Don’t be so intimated by legal terms that you avoid education in the subject entirely. If you hire people, you need to fundamentally know the employment laws. Basic knowledge can be found on web sites of government agencies such as the U.S. Department of Labor (see “elaws Advisors”), the Equal Employment

Opportunity Commission, and the National Labor Relations Board (see their FAQ’s). Web sites of law firms, bar associations and human resource organizations, especially in your state(s) are also good for scoping out valuable employment law and HR basics.

Line up a Legal Advisor—Realize there are aspects of the law you won’t be able to handle on your own, especially if you get sued. Be ready to retain a local attorney for all legal aspects of your business; try to find one who specializes in employment law. Ask other local business owners who they trust. Figure this into your business expenses now if you haven’t done so already.

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