best practices for the auto industry how to improve your hiring process
TRANSCRIPT
Best practices for the auto industryHow to Improve Your Hiring Process
Speakers
Moderator Presenter
Becky RossMarketing Manager
John PatePresident/CEO of LS Screening
512-275-1130 [email protected]
Questions
• If you have questions during the presentation, please submit them using the “Questions” feature
• Questions will be answered at the end of the webinar
Another Drinking from a
firehose webinar
How do I know what I know?
• Trial and error
• Lots of practice making bad hiring decisions.
• Became sick and tired of being sick and tired.
Famous words about hiring
“If you always do what you always did, you'll
always get what you always got.”
Mark Twain
Today’s discussion
• The mindset of hiring
• My definition of an effective hiring process
• One sample process
• How to start revising your process
For the next 40 minutes
• Please suspend your “common sense”.
• (My opinion) It doesn’t exist. What we consider
“common sense” is actually learned behavior.
• Example: Everyone knows you’re supposed to be “on
time” for work. That’s “common sense”.
Really? Any chronically late employees at your
workplace?
Imagine…
• If you could spend less time on people problems
• If you didn’t have to hire someone every week
• What else could you do?
A successful hiring process has a large, positive ripple
effect.
What does that have to do with my hiring
process?
EVERYTHING
The #1 mistake made in the hiring process is
assuming (anything).
You must think in terms of specifics.
Why Hiring Processes Fail
Hiring processes
fail, primarily, because of a series of
“disconnects” between the Employer’s
and and Applicant’s expectations.
In hiring, you’re negotiating
expectations.
What you say
What they hear
$16.00
The
position
pays
$13.00 -
$16.00 an
hour.
Your
benefits
will start
in 90
days.
Free
benefits!
You’re
eligible for
a review
in 90
days.
A raise in
90 days!
This is a
casual
workplace
.
I can wear
jeans and
a golf
shirt.
“Great Expectations”
Employers
We expected you to be dependable.
We expected you to show more initiative.
We expected you to be more experienced.
We expected you to be happy.
We expected you to act respectfully.
Applicants
I expected more money/better benefits.
I expected more responsibility/authority.
I expected more opportunity.
I didn’t expect the work to be this hard.
I expected to be treated with respect.
How to Bridge the Gap
Set the expectations and address specific issues in
writing before you make the hiring decision.
More about this in a few minutes.
DefinitionAn effective hiring process:
• Is collaborative;
• Combines discipline with measurable results;
• Integrates objective and subjective criteria with your
organization’s values and standards;
• Includes checks and balances to resolve issues quickly
and admits its errors without blame or regret.
Is collaborative and combines discipline with
measurable results
• Collaborative: Who owns your applicants? If it’s not
everyone in your organization, you’re being set up to
fail.
• Each stakeholder (the Supervisor, HR Leader, GM &
Owner) must be vested in the process. They must also
feel empowered and accountable.
Is collaborative and combines discipline with
measurable results
• The process must be “choreographed”; the same thing
happens every time.
• An unwavering, step-by-step process; organized so each
participant knows their “steps”.
• A communication/documentation plan that allows for
auditing during and after the process i.e. the hiring post
mortem.
• Note: Choreography doesn’t mean inflexible; it leaves
room for “improvisation”. But there must be “rules”.
Is collaborative and combines discipline with
measurable results
• Important metrics: Why/When are people leaving?
• You’ve got to “keep score”. It’s the only way to measure
the effectiveness of your hiring process.
• What’s your turnover? Turnover = W2s/Average
Headcount
• What’s your “H (Hiring) Score”? H-Score = The number of
applicants hired who stay to your minimum retention goal.
Integrates objective and subjective criteria
with your organization’s values and
standards.• There’s a successful profile for every position. Sales
people are different than mechanics (duh) but what
makes them so?
• Work style/Skill assessments: How does your
applicant “feel” about people, customers, Can they
really do [blank].,?
• Background checks: Who you allow into your
company tells EVERYONE who you are.
• All of the above are extremely cost effective.
Psychological Factors• Attitude towards people - Do they like to be around
people; high level of interaction or low?
• Energy level - each position is unique; hint: sales = high
energy
• Intelligence - It’s as much about how quickly they learn
rather than how much they know.
• Coachability - Can they take direction?
• Take charge - Do they want to “drive the bus”?
• Moods/Emotions - You’d prefer to see the same person
each day.
• Assertiveness/Take Charge - Will they speak up? Try to
close?
Integrates objective and subjective criteria
with your organization’s values and
standards.• “FEEL” plays a huge role in your hiring process. That’s why
interviewers should be the poster children of the organization.
Their values and standards shape their intuition so they should be
most aligned with the company’s.
• Unbreakable rule: Never let a malcontent hire.
• What are your expectations for interviews? Verbal
skills, appearance, experience?
• Do you actually like this person? Will they fit in? Can they
communicate? How do they “look”? Does their experience match
your needs?
• Trust the “force” - but investigate/verify as much as possible.
A Few Words About
Interviews
• Remember: This is as good as your applicant is ever
going to be. It’s all downhill from here. Don’t sanction
mediocrity.
• Have an interview plan and goal.
• Remember “The Duck Rule” - Denial is one of the
deadly hiring sins.
Integrates objective and subjective criteria
with your organization’s values and
standards.• Make a good first impression. Your hiring process
begins when the applicant walks in. That’s when your
values and standards are on display.
• What does your organization stand for? If you don’t
know, who does? Find out and make sure everyone
knows.
• Every company has values and standards. But, like
super powers, they can promote good OR evil.
Values
• We believe in treating everyone with respect.
• We believe in honesty - in all things.
• We believe in promoting a healthy lifestyle for our
employees.
• We believe in treating people fairly.
• We believe an educated workforce is an asset to our
company.
Includes checks and balances to resolve
issues quickly.
• What types of communication are used during your
hiring process i.e. shared docs, intranet tracking, etc.?
How is your process monitored?
• What are your “unbreakable rules”?
• How are applicants rated/evaluated while in process?
• What “stops” are in place? How are stops resolved?
Who can stop the process?
Admits its errors without blame or regret.
• Every company has to hire and no one gets it right
every time.
• Effective hiring is a system. If your hiring process isn’t
working, it is a system failure.
• There is “no crying in hiring”. Acknowledge your
mistakes, accept them, learn from them and move on.
Sample Process1.Give your applicant a list of your expectations. Have
them sign it.
2.Give the applicant the application. If possible, review
it with them in person to fill in gaps, missing
information; if not in person, review then contact the
applicant to fill in gaps. Remember: the application is
an agreement. The time to get the details right is at
the beginning.
3.After the application is approved, administer a work
style, cognitive skills and/or personality assessment(s).
4.Order and review their MVR.
Sample Process
5.Review results; if acceptable, schedule the first
interview.
6.Review results and get feedback from 1st interview
7.If acceptable, schedule/conduct 2nd interview
8.Review results and get feedback from 2nd interview
9.If acceptable; initiate background check
10.If needed, conduct 3rd Interview; review BI results
Sample Process
11.Make your decision
a.If yes, prepare and deliver written job offer; offer
should be signed or accepted in writing; all
changes documented
b.If no, send TNT (Thanks but No Thanks) letter with
Notice of Adverse Action/Summary of Rights*
*This can be done at any point in the process.
Offer Letters• Should document position, salary, start date and name
of immediate supervisor.
• Should outline benefits eligibility and their effective
date.
• Should document any additional agreements i.e. relocation, date of next possible raise/review, time off, etc.
• The Applicant’s acceptance should be documented.
Strategies
Having Problems? SLOW DOWN the process. If you’re
making your decision in one day, you’re in full blown
crisis mode.
The goal of your process is to hire the best candidate,
properly prepare him/her for employment and position
your company to address any problems.
Myths1. “It takes too long. We’ll lose applicants.”
A symptom of crisis hiring. What takes too long is hiring the wrong
person; at the current unemployment rate, it’s still a “Hirer’s
market” and will be for awhile
2. “It costs too much money.”
•Let’s do the math. Hiring and Training the wrong person costs (at
least) $3000. (wages, taxes, time, etc.) 10 bad hires = $30,000.
•You might spend $150 per applicant (if they make it through the
whole process).
•That buys you 20 applicants. Even at 50% H-Score, you save
money.
How to Begin
Sample Talking Points
• What is your turnover? Compare 2010 to 2011 and
YTD
• What is your retention goal? One year? Two? How
does your reality compare? It varies by position.
• Who should be involved in your process and what role
should each person play?
• “Begin with the end in mind”. Where do you want to be
when you’ve accomplished your goals?
Unbreakable rules
• No Kings/Queens - Once established, the process is
followed until the group decides to change it.
• No verbal commitments; everything is in writing.
• Honesty is the only policy; no “rose colored glasses”;
questions that can’t answered honestly and fully -
aren’t answered.
• Add your own.
Patience
• Developing and implementing an effective hiring
process is challenging and difficult work. It takes time.
• Start with an analysis of where your company “is”.
• Have a conversation with your leaders, share the
analysis and your vision.
• Set some preliminary goals and get started.
The Bottom Line
You’re already spending the money.
How much are you leaving on the table?
Then...
Begin working on your orientation and training process.
More About Hiring
www.lsscreen.com
www.fantastichr.com
(512) 275-1130
Got a Question? Ask our Expert!
Contact Information
www.kpaonline.com
Becky Ross
866-356-1735
A copy of the recorded webinar and presentation slides will be emailed to you today.