hiring from within - advantages

7/30/2019 Hiring From Within - Advantages

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Hiring employees is a process crucial to the success of a business, and as most successful

small business owners know, the hiring process does not begin with the interview and

end with the job offer. Rather, it involves planning and considering the job prior to an

interview, recruiting and interviewing wisely to bring in the right person, and providing

new workers with an orientation that enables them to get off to a strong start with the

company.

WHEN AND WHO TO HIRE

Prior to advertising a position, interviewing, or making a selection, the manager must

consider several key aspects of the open position and the person they will seek to fill that

staff opening.

CONSIDER THE JOB Any employee selection process must take place within the context

of the larger business enterprise. An open position is an invitation to make positive

changes in workforce structure. Does the job need to be created or filled? Does it need to

be reorganized? These are questions that should be considered before beginning the

hiring process.

First, consider the position itself. Prior to the employee hiring process, business owners

should determine what tasks need to be addressed by the work force, and gauge how many people will be needed to accomplish that task. Consider the ideal functions and

responsibilities of the job itself, not the person or persons who last held the position. At

this point, it is beneficial to compose a job description and a job specification. The job

description lists the duties and responsibilities of the job, and can include a ranking of

the importance of each of these tasks. A job specification includes a listing of critical

skills those skills that are necessary for an individual to perform the job effectively. The

job description and specification are tools which can not only aid the employer in

finding the appropriate person to fill a job opening, but can also help guide the

employee during his or her time with the business.

If the job exists and has been adequately defined, there is still opportunity to make

changes to the position. Consider whether the position needs to be restructured. Are you

asking that the job encompass too much responsibility? Are you asking too little? Small


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business owners might also want to consider whether the tasks associated with a

position can be incorporated into one or more already existing positions. Often, it is not

necessary to hire another employee, but only to re-evaluate present positions and re-

design the work flow.

CONSIDER THE CANDIDATE After making sure that the position is thoroughly defined,

consider the person that you want to fill the position. What skills, knowledge base, and

personal traits will allow someone to successfully perform these tasks? Should the

candidate have an advanced degree? What kind of personality would compliment the

team? By consulting the critical skills in the job description, the manager will be able to

get a solid idea of the type of candidate who will be most likely to successfully meet the

challenges of the position.

A hiring manager should be careful, however, that they not become unduly idealistic in

determining employment criteria. Few small businesses have the luxury of biding their

time until the perfect prospective employee comes along. A would-be employee may not

embody every single desirable trait on a business owner's wish list, yet still provide a

fundamentally sound performance. Ultimately, each business owner needs to determine

for him or herself whether a prospect's positives are sufficient to outweigh any negatives

(in lack of experience, personality, or training) that they may carry with them.

RECRUITING

When creating a bank of candidates for the position, small business owners and

entrepreneurs can look either within or without the company. There are advantages and

disadvantages to both methods.

HIRING FROM WITHIN The advantages to hiring employees from within the company

are a greater company knowledge base, continuity, and improved morale. An employeealready in a business is likely to know more about the company's needs and will be able

to approach a new position with the added perspective of his or her previous position.

Hiring from within also brings continuity to a company the talent of the individuals

remains within the company, and therefore is "re-invested." Finally, employees

generally feel good about a company which promotes from within. It signals a


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company's belief in their people and in the quality of work that they do, and provides

them with tangible evidence that their own efforts can bring about career advancement.

The disadvantage of hiring from the existing employee base is that it means a limited

pool of qualified candidates. Within the current employee bank, especially if that bank is

relatively small, there may not be a person qualified to fill the position, or there may not

be a person who wants to fill the position.

HIRING FROM OUTSIDE Ultimately, every employee comes from outside the company

at some time. Sometimes, bringing someone in from outside of the company is difficult

because of the high learning curve. Often, though, external sources are necessary and

desirable. People within the organization may not have a specialized skill or a specific

level of education or experience necessary for a position's demands. Moreover, when

hiring from within is practiced to exclusion, any company runs the risk of growing

stagnant in its ideas and methods. Though they might be challenged by a new position,

people from inside a company approach things in a way that has always worked for

them. Sometimes, a fresh outlook can bring new vitality to an enterprise.

METHODS OF RECRUITING A small business can turn to several different methods of

recruiting to secure external applicants. Newspaper advertising is by far the most

popular and well-known of these methods. A well-written advertisement can bring in

many candidates. Generally, the more specific the advertisement about the job and

qualifications sought, the better qualified the applicants will be. But as Peggy Isaacson, a

Florida-based human resources consultant told Lynn, "[Small business employers] can't

just place a help-wanted ad in the newspaper and expect to be flooded with top-notch

candidates. While advertising has its place in the hiring process, it's not enough. In this

market, good people won't just come to you; you have to aggressively look for them."

In recognition of this reality, Isaacson recommended to Lynn that companies consider

the following methods of recruitment:

Utilize personal and professional networks This encompasses everything from

neighbors to fellow community/business association members.


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Establish an employee referral program Companies that offer cash bonuses for

referrals that result in hirings sometimes enjoy success with these programs. Utilize school placement offices Establish a presence at job fairs. Post notices at senior citizen centers. Contact area employment agencies. Post job openings with job banks Many professional associations maintain job

banks for their members. Offer competitive compensation packages. Instill a positive, attractive work environment.

Any or all of these methods may be used simultaneously to draw the best selection of

applicants.

CANDIDATE SELECTION

Once a bank of potential candidates is established, the manager must select candidates

and begin the interview process.

CHECKING REFERENCES Checking references, though time consuming, is an important

step in the hiring process. Prospective employees will often provide professionalreferences, if not on the resume itself, then at least on request. A manager may choose to

check references before the interview with a candidate if they are provided, or may opt

to check references between a first and second interview. In any event, a manager

should always request references and make the calls.

Chances are good that a previous employer will not provide more information about the

employee than their name, the dates of employment and the positions the person held.

This is because a company, or any person within a company, which provides falseinformation can be held legally liable for that misinformation. This potential liability

does not, however, prevent a hiring manager from asking about the employee's work

habits, performance or attitude. It is possible that someone may comment further on the

employee, especially if the person is not a member of the Human Resources

Department, but is a former manager. If this kind of additional information about the


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employee is made available, never discuss it with the employee directly. Rather, use it as

a guide for probing questions about the person's previous work experience with that

company.

EMPLOYMENT TESTING Thousands of companies use employment testing of some kind

to evaluate candidates prior to employment. Employment testing is an area fraught with

legal pitfalls, however, so it is best to seek the advice of a professional employment

testing service or an attorney experienced in labor law before implementing such

requirements.

MAKING A DECISION AND AN OFFER

After the interviewing process has taken place, it is not always easy to come to a finalhiring decision. Sometimes a business may be forced to choose among a number of

highly qualified, attractive applicants. This is obviously a nice problem to have.

Conversely, on other occasions a business may undertake a time-consuming search, only

to find themselves with candidates who are notably flawed in one respect or another. In

such instances, the company leadership needs to determine whether the business can

afford to extend the search, or whether business realities require that they fill the

position with the best of the candidates before them.

THE OFFER The hiring manager should personally extend an offer of employment to the

selected candidate as soon as possible after the interview. This begins the

employee/manager relationship. Define the amount of time the candidate has to

consider the offer a few days to one week is usually enough. The offer can be extended

in person or over the phone. It is important to note that an offer, even verbal, may be

construed as a contract between the employee and the company. Therefore, construct

the offer carefully.

An offer should include the following:

Confirmation that you are speaking with the right person. Offer of the position, including title and reporting relationship. Starting salary for the position.


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A suggested date for the candidate's response Proposed starting date for the position. Indicate necessary follow through by you and/or the candidate

A manager should note that the position itself may dictate how to offer the starting

salary. If the person is being offered an exempt (salaried) position, consider offering the

salary in terms of bi-weekly earnings, or the smallest possible increment in which they

are paid. If you are offering a person a non-exempt (hourly) position, you might offer

the salary as an hourly wage. This could be important because the offer may be

construed as a contractual agreement. If a yearly salary is offered, this may imply

employment for one year. If the person is employed for a shorter period of time they

could conceivably sue for the full, offered salary. By offering the salary in smaller

increments, you avoid the possibility of any misunderstanding.

NEGOTIATING TERMS Every candidate offered a position has the option to either accept

or reject the job offer and may want to negotiate terms, usually salary or benefits.

Though the company may not be able to consider alternate terms of employment, it is

often wise to hear a candidate's proposal. If the candidate is truly the best qualified

person for the job, there may be some room for compromise on both the part of the

candidate and on the part of the company. Listening to a proposal also establishes the

manager's willingness to hear out other suggestions, a practice which is well received by

any employee.

LAWS IMPACTING THE HIRING PROCESS

The hiring process is subject to legal guidelines set out by both federal and state

government defining the boundaries for discriminatory hiring practices. Companies

may not discriminate in hiring on the basis of sex, age, race, national origin, religion,

physical disability, or veteran status. These are called protected classes. A hiring

manager may not screen out any applicant because of membership in a protected class,

nor may any interview questions address topics pertaining to the protected class. The

main acts and laws which define these classes and the hiring practices based on them

are:


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I. The Civil Rights Act of 1964 (Title VII) II. Age Discrimination in Employment Act of 1967 (ADEA) III. Americans With Disabilities Act of 1990 (ADA) IV. The Uniformed Services Employment Reemployment Rights Act of 1994

(USERRA) V. Immigration Reform and Control Act

Anti-discrimination laws do not require any company to hire an applicant because of

membership in a protected class. A manager is not required to hire applicants from any

protected class in proportion to their numbers in the community. A manager is required

to select the best qualified applicant for the position, based on the critical skills of the

job, and is required to make that selection irrespective of whether or not that applicant

belongs to a protected class. To be sure that hiring practices do not violate any of these

laws, focus on the candidate's capabilities based on the critical skills of the job. Any

questions about the legal aspects of hiring should be directed to a capable employment

lawyer.

NEW EMPLOYEE ORIENTATION

Once the hiring decision is made and the offer is accepted, a manager needs to prepare

to welcome a new employee. An employee orientation program should produce good

will and provide education about the company; a poorly planned program can increase

confusion and even hasten turnover. Employee orientation is more than a paperwork

session it is the new employee's first impression of the company.

One of the first things the manager should review is the job description, along with the

specifics of the position, its goals, and the critical skills. After this has been

accomplished, the new employee can be introduced to the company at large.

REQUIRED FORMS All new employees are required to fill out specific forms on the first

day of employment. These include federal and state forms such as:

VI. Federal Tax Withholding Form (W-4) VII. State and/or Local Tax Withholding Forms


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VIII. Employment Eligibility Verification Form (I-9)

The company may also have specific forms for emergency notification and other critical

information. Be sure each form and its purpose is explained to the employee and that

the employee is given sufficient time to complete them.

COMPANY SPECIFICS New employees need to know more than where their desk is. They

need to know the way to operate on a daily basis within the company. An orientation

session should address any of the following topics pertinent to the workplace:

IX. Areas for public information (bulletin boards, etc.) and private information

(mailboxes, etc.)

X. Entrance and exit for the building XI. Introduction to managers and co-workers XII. Location of departments XIII. Location of restrooms and breakroom XIV. Location of secured area for personal belongings XV. Operation of the phone system XVI. Parking XVII. Training schedule

COMPANY POLICIES Specific company policies should be thoroughly reviewed with

every new employee, so that all employees understand the guidelines under which they

work. Though these might be discussed during the interview, they should be reiterated

in an employee's orientation. Policies to review can include the following:

XVIII. Company Mission Statement, history and future XIX. Company benefits and payroll policies

XX. Company dress code, office hours XXI. Company communications and open door policies XXII. Company policies against harassment and discrimination

Employee manuals containing this information are typically distributed during the

orientation process. Employers should make sure that they receive written


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documentation from the new employee when they receive their manual, for this

paperwork conveys significant legal protections in the event of future employer-

employee difficulties.

Read more: Employee Hiring - type, benefits, disadvantages, When and who to hire,Recruiting http://www.referenceforbusiness.com/small/Di-Eq/Employee-Hiring.html#ixzz1vNUNOGMG
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