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Staff SelectionSecrets to Employ the Best People

(Targeted at entrepreneurs & HR practitioners)

ByEric Alagan

Micro Mouse Business SeriesLCA Consultants Pte Ltd

Singapore

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First Published Feb 2011

Published by:LCA Consultants Pte Ltd(Company Registration No. 201008768Z)No1, Jalan Ulu SembawangThe Sensoria, # 05-11Singapore 758930

WWW.LCABOOKS.COM

ISBN 978-981-08-7538-1

Copyright @ 2011 by Eric AlaganCover artwork @ 2011 by Eric AlaganTypeset and Cover design by : Rank Books Printed in Singapore

This book is an original work by the author. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the copyright owner.

Condition of SaleThis book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out or otherwise circulated without the copyright holder’s prior consent in any form of binding or cover other than that in which it is published and without a similar condition including this condition being imposed on the subsequent purchaser.

DisclaimerThe author and publisher disclaim all liability and responsibility for loss caused to any person by any act or omission to act directly or indirectly as a result of material contained in this book.

National Library Board, Singapore Cataloguing-in-Publication Data

Alagan, Eric, 1955-Staff selection: secrets to employ the best people/ by Eric Alagan. – Singapore : LCA Consultants, 2011.p. cm. – (Micro mouse business series)ISBN : 978-981-08-7538-1 (pbk.) 1. Employee selection. 2. Employees – Recruiting. 3. Small business – Management. I. Title. II. Series: Micro mouse business series.

HF5549.5.S38

658.3112 -- dc22 OCN694134382

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To My Mentors

Ian Frank Davis (UK) – 1992 to 1995, Aerocontracts

William (Bill) Wayne Wright (USA) – 1987 to 1990, Dowty

Goh Bok Keng (Singapore) – 1973 to 1982, SGAS

Frankie Chung (Malaysia) – 1972 to 1973, SGAS

Dedication

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About the author

ERIC ALAGAN has more than 35 years of international business experience in the areas of aerospace MRO, security consultancy and services, trading and logistics and supply chain. He has held several progressive positions in multinational corporations and last held the position of managing director, Asia Pacific for a European aerospace company. He has been involved in several green field start-ups, mergers and acquisitions.

Eric has managed companies in Singapore and Australia with extensive experience in ASEAN, the Indian sub-continent and the Pacific islands.

He holds several engineering qualifications, a business degree from Royal Melbourne Institute of Technology and a master’s degree in logistics and supply chain from University South Australia.

He currently undertakes business consultancy work, writes novels and self-help books for entrepreneurs under the Micro Mouse Business Series.

The first two titles released in 2011 are:

1. Staff Selection – Secrets to Employ the Best People This book targets micro businesses, entrepreneurs and those

interested in Human Resource.

2. Increase F&B Sales – Secrets to Boost Profits This book targets existing cafes, restaurants and F&B start-ups.

Eric is married to Lisa Chew and they have three adult children pursuing business and medicine.

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prefaceThis book targets primarily micro enterprises, general managers who wish to have an overview and all those interested in the field of human resource. It especially targets entrepreneurs who do not have the services of human resource experts.

The Models and Methods contained in this book assume no prior knowledge on the part of the reader.

There are various definitions for micro enterprises but the commonly accepted is any business with 2 to 9 people and a turnover of under $2 million.

The MICRO MOUSE Business Series provide a series of simple steps to achieve measureable targets.

Micro Mouse Business Series – a play of words based on the famous Mighty Mouse, an animation superhero created by Terrytoons for 20th Century Fox. In that cartoon a mouse beats all the big boys, normally portrayed as cats. Therefore, this series of self-help management books hopes micro enterprises can hold their own against the fat cats of industry.

The Series draws on the experiences and observations of the author and presents suggestions on Staff Selection from first identifying and justifying the need for additional staff right up to selecting, employing, probation and confirmation.

However, you should always rely on your own independent professional advice, judgment and preferences. No warranties, assurances, guarantees or representations about the accuracy,

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reliability, timeliness or otherwise of the information contained in this book can be given or to be construed.

To the full extent permitted by law, LCA Consultants Pte Ltd (including the author) shall not be liable (including liability for any form of negligence, errors or omissions) for any loss or damage arising out of your use of this book.

You must always consider the appropriateness of the information in this book (as expressed explicitly or implicitly) to your relevant circumstances. By buying this book, you have agreed to the above terms.

For the sake of expedience, throughout the book, the author uses male/female genders interchangeably and where he mentions a male, it refers to a female and vice versa.

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A PHOTO FINISH WIN

I once played a video clip of a closely run 100 meters dash to a group of executives and asked if they could identify the winner. They could not, so I replayed that video and this time some of them made a few guesses but there was no consensus about who actually nosed the tape first. I replayed it but this time took it frame-by-frame and everyone saw the winner.

Competing in the business world is like that. You do not have to win by a mile. Put another way, you do not need a 100 great ideas – because most of that 100 had already been thought of, practiced by your competitors. You too probably know most of them.

What you need is one or two ideas no one else had thought of or exploited.

I hope and wish you could find one or two such ideas from the dozens contained in this book.

All you need is a fraction of a second – that nose length – to win.

Eric Alagan

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New Title By ERIC ALAGAN

INCREASE F&B SALES – Secrets to Boost Profits The secret models and methods would benefit owners and operators of cafés and restaurants, and even F&B chains and food court operators. Some of the topics covered:

1. Increase sales – not overheads.2. Convert Mistakes into Opportunities to Drive Sales.3. The most crucial staff in your F&B? (Hint – not your Chef)4. Do not rely only on the Givens – leave those to Competitors.5. What keeps the Customers coming back? (Hint – not Price)6. Discover the True Cost of Rental Expenses.7. Remove Factors Limiting Your Sales & Profits.8. Learn Better Ways to Organise Your Kitchen.9. Reduce Labour Cost.10 Build a pool of Regular Customers. 11. Implement a Ten-Action Plan to Boost Sales12. Access dozens of worked Tables and Examples

Grab A Copy And Boost Profits! Place Your Order At: WWW.LCABOOKS.COM

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contentsChapter 1: Introduction

Chapter 2: Overview of Human Resource

Chapter 3: Human Resource, Cost and Sales3.1 Why Additional Staff?3.2 How much the Cost?3.3 What Position to Fill?3.4 Setting Financial Targets

Chapter 4: Define your requirements4.1 Work Scope4.2 Hard & Soft Skills-Set4.3 Miscellaneous Requirements4.4 Job Description

Chapter 5: Recruitment Process 5.1 Staff Capability Factors5.2 Through Networks5.3 Advertisements5.4 Personal Observations

Chapter 6: Pre Interview Weeding6.1 Quick Checks6.2 Long List6.3 Hard Skills-Set Evaluation6.4 Short List6.5 Telephone Call & Email6.6 Standard Job Application Form

Chapter 7: The Interview7.1 Expectations & Soft Skills-Set7.2 Who should be present at the interview?

1

4

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7.3 Place, Pacing & Time7.4 Suggested Questions & Evaluation – Free Exchange Format7.5 Suggested Questions & Evaluation – Topography Format7.6 Soft Skills-Set Evaluation – Multi Attribute Analysis

Chapter 8: Second Interview8.1 Customer Service Executive - Scenario Painting8.2 Sales Executive – Sales Presentation

Chapter 9: The Job Offer9.1 Offer & Acceptance9.2 What if the candidate asks for better terms?9.3 How long should you keep your offer open?

Chapter 10: Employment Contract10.1 National Service, CPF, Medical Insurance, Leave Applications10.2 Asset Checklist10.3 Inform the other Candidates

Chapter 11: Probation11.1 On-the-Job Training11.2 Evaluation & Feedback11.3 Reference Checks11.4 Medical Checks11.5 Termination11.6 Confirmation

Chapter 12: Conclusion and Review of Steps

Abbreviations

Examples

Tables

70737477

868791

989999100

102106110111

113117119122126127130

135

137

138

139

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Staff Selection Chapter 1: Introduction

Introduction

Chapter1In larger organizations, there is usually an in-house human resource manager (HRM – turn to the back for a list of abbreviations used throughout this book). The HRM handles a gamut of activities including recruitment, interview and selection. Some companies engage a recruitment consultant, referred to colloquially as a head-hunter (actual term recruiter) who handles all the pre selections and provides a short list of candidates. The HRM does the final interviews with the responsible line manager.

Whatever the structure and techniques used, there are costs involved: the cost of a HRM and/or the cost of the recruiter. The HRM entails a fixed and recurring cost and the recruiter might charge anything from 15 to 20% of the annual wages of the employee whom they place with the company. Obviously, these costs come with a slew of specialized skills, knowledge and information that most entrepreneurs may not readily possess.

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Staff Selection Chapter 1: Introduction

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Staff Selection Chapter 1: Introduction

1. What happens when a small business simply cannotafford the services of a fulltime HRM, a recruiter oreventhecostofaparttimeHRM?

2. How do you handle the recruitment, interview and

selection?

3. How do you get the best for the least? In this case

‘least’ means saving on the costs of a HRM and/or

recruiter.

The author who has had more than 35 years’ experiences in international business shares in this book the techniques he had developed encompassing recruitment, interview and selection. He had interviewed people in Singapore, Australia, Indonesia, Philippines and India for a slew of jobs from blue and white-collar workers to management staff leading up to general management and company director levels.

He also reveals his secrets on the probation process, ensuring the person you selected is the right fit for your business because recruitmentdoesnotendonthedaythecandidatestartsworkbut when he successfully completes the probation.

Human Resource (HR) is a very complex and wide subject and even after a lifetime, specialists are still learning as new knowledge and techniques are growing by the day and added to the body of HR knowledge. The author therefore wishes to emphasize at the outset this book provides only the essentials in recruitment, interview and selection in a step-by-step approach and the reader is well advised to seek further professional advices as he deems appropriate to his requirements.

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Staff Selection Chapter 1: Introduction

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Staff Selection Chapter 1: Introduction

Human Resource Manual

This book will help you to develop a comprehensive human resource manual tailored for your particular operation. Henceforth, we shall refer to it as HRManual in bold.

This HRManual will contain all the financial computations, tables, forms and samples you would ordinarily require in recruitment, selection and probation of staff.

This HRManual would be flexible enough for you to modify and expand as your business grows. Even when you finally employ a fulltime HRM, this manual would form a solid foundation to build up your HR procedures and policies.

This book will take you through the steps to develop the manual. Pleasepayattentionwheneveryoucomeacrosstheicon .

It means you need to add another piece of the jig saw to completing your very own in-house HRmanual.

0HRM Manual

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Staff Selection Chapter 2: Overview of Human Resource

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Staff Selection Chapter 2: Overview of Human Resource

Chapter2Overview of

Human Resource

Let us first have an overview of the HR discipline so we can better appreciate the very narrow aspect this book addresses.

The following are some of the key activities:

1. Develop work scope and job description2. Plan manpower needs3. Recruitment and selection of staff4. Training and development5. Compensation and benefits6. Liaison with relevant parties, example Ministry of

Manpower, Unions, etcetera

Each of the above activities can be further broken down into several sub topics. For example, compensation and benefits is by itself a very specialized and involved area covering issues such as:

(i) Performance appraisal and feedback

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Staff Selection Chapter 2: Overview of Human Resource

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Staff Selection Chapter 2: Overview of Human Resource

2 (ii) Fixed pay plans(iii) Variable pay plans (bonus schemes)(iv) Non-financial benefits, examples medicals, insurance,

etcetera

Obviously, the above is not exhaustive but the intention is to highlight the complexity and scope of the field of HR.

All these activities have to complement and promote corporate strategies and goals, the HRM has to work with both senior management and line managers to formulate and implement the activities.

This book focuses on the recruitment, selection and probation of staff by micro enterprises comprising two (2) to nine (9) people. Usually these organizations do not have the services of a HRM and the owner, spouse or a clerical officer doubles as the defacto HRM.

It assumes that when the staff strength increases beyond ten people, the company would either engage a full time HR-cum-Admin manager or at least have a part time HRM.

It is the author’s belief people are the key to any business success.

It therefore makes sense HR management is arguably the most important of all the business disciplines.

This book takes the person tasked with the recruitment, interview and selection in an easy systematic process. It does not guarantee one will succeed in getting the best candidate every time but would certainly eliminate most of the common mistakes and obvious pitfalls.

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Staff Selection Chapter 2: Overview of Human Resource

SummaryThe field of HR is vast, complex and ever growing. No one book can do justice in addressing the myriad issues involved. This book is a quick self-help guide for business owners who fall under the OMO and micro enterprise categories. There are also snippets that professional managers and even HRM in larger corporations might find useful.