How Many Duds Do You Hire?

While much attention has been given to the importance of hiring talented employees, issues around the cost of bad hires are of increasing importance to both HR professionals and their organizations. What strategies could you use to improve the performance of new hires and how can you reduce the likelihood of their early departure?

With the best screening process and interviewing of candidates, it’s still possible to have a very high on-the-job success rate even if major errors occurred in the screening process. This may sound counter-intuitive, but there is a reason for this.

Tips for minimising new-hire early turnover
For the purposes of this article, the definition of a new hire ‘failure’ includes a new hire that: must be given major training or retraining during the first six months; voluntarily quits within six months; must be redeployed during the first year; is given performance management counselling during the first year; must be terminated within one year, or is a finalist who refuses your job offer.

Involve employees. If you have a less-than-perfect screening process, as we all do, the best way to minimize the impacts of any errors is to ensure that the new hire gets additional help once they start the job. In other words, even if the candidate does not have a perfect set of skills, they can still succeed if other employees want them to succeed and a buddy system is created. If other employees want them to succeed, they will provide the new hire with whatever special help, mentoring and guidance they need.

The best way to ensure your employees are willing to provide this extra help after the candidate starts the job is to involve the employees early on in the hiring process. Involving employees works because if they feel they are responsible for the new hire and that they own the hiring process, employees will invariably find a way to help the new hire succeed on the job. The best ways to increase employee involvement include paying special attention to employee referrals, providing peer-to-peer interviews, and, whenever possible, letting employees make the final selection from the group of finalists you have approved.

Here is a big one....avoid misleading the candidate.... giving them a realistic job preview. A major reason for candidate failure and early turnover is that the candidate was misled about the job, the manager, or the company during the recruiting and interviewing process. It’s important to not only provide the positive attributes of the job, but if you over-glamourize, many new hires quickly become disillusioned, disappointed, or even angry when they find out after starting that their real job compares little to the one outlined in the interview. This can result in poor early job performance or early resignations.

A realistic job preview should include both positive and negative aspects of the job. It can be a video, a site walk-through, or merely a list of the positive and negative aspects of the job. You can develop a list of positive and negative job features through an anonymous survey of recent hires and people currently in the job. It generally includes not just the types of bad and good things that occur, but also their frequency of occurrence.

Ask candidates what they require for success. Many candidates fail on the job not because they don’t have the required skills, but because they are not provided with the right information, tools, or guidance. That’s why it’s important to ask finalists, “If you’re hired, what would you require in order to be successful?” By identifying candidates’ key success factors and needs, you can determine if those are even possible before you hire them, and you can provide that list to the direct supervisor, who can utilise the list to ensure that new employees’ needs are met so that they can get off to a fast and successful start. The goal here is to create a win-win by taking care of your new hire's needs.

Make sure you have a solid orientation program in place. Even a great hiring process can’t guarantee that you won’t end up with low performers and high turnover rates. This is because the selection process is only the first step to success. The seeds of on-the-job failure can begin the very first day on the job if the new hire’s orientation experience goes awry.

For example, if the new hire starts and on their first day their manager is nowhere to be found, it can confuse and disorient them. During the first week, frustration and other problems can occur if the new hire has no uniform, work schedule, or training manual. The absence of managers and the frustration of not having the necessary tools might lead a new hire to develop poor habits that will permanently affect their productivity. In addition, poor orientation might cause candidates to develop such a negative attitude about the firm that they may prematurely quit.

Avoid ‘candidate abuse’, high offer - rejection rates and early turnover

Even if you accurately assess the candidate, you are likely to lose candidates if you mistreat them during the interview and hiring process. In fact, several companies have found that the highest reason for offer letter rejection is ‘candidate abuse’ during the hiring process. Some of the ways to decrease candidate abuse, and subsequently increase offer acceptance rates, include:

Stop doing stupid things during interviews. Sometimes interviewing managers can be the cause of high offer rejection rates. By taking phone calls during interviews, cancelling and rescheduling interviews, appearing disorganised, or even asking illegal or silly questions, interviewers can easily scare away top candidates.

Remember, great hiring only starts with effective skill assessment. If you disillusion or discourage top candidates, they will simply make up an excuse to drop out of the running or say no to your offer. Incidentally, you can only find out the real reason why they rejected your offer by asking them six months later.

Stop ‘death by interview’. Many companies avoid the use of testing candidates due to possible liability and have become increasingly conservative in how they screen candidates. As a result of this fear, companies have increased the number of interviews to make up for the absence of other screening tools. In some cases, interviews have proliferated like rabbits. Where one or two interviews used to be common, now multiple interviews are frequently the norm.

The net result of this trend is that candidates must endure a large number of interviews that are generally spread out over a painfully long time period. From the candidate’s perspective, attending a large number of interviews on different days is expensive and time-consuming. The long delays and the uncertainty stress candidates and their families. The burden is even worse, however, because in a down economy, the odds of all that time and effort actually resulting in a job offer are actually pretty small. By reducing the number of interviews, holding them at night, and even trying to have them all completed on the same day, can reduce top candidate dropout rates and increase offer acceptance rates.

Stop ‘death by repetition’. In a related matter, when candidates are subjected to multiple interviews (at the same company) it is quite common for different interviewers to ask exactly the same questions in back-to-back interviews. This tedious repetition is often because interviews by different managers are not planned or coordinated. It is also partially caused by interview training manuals, which, by suggesting appropriate questions to use in an interview, can inadvertently cause interviewers to use the same questions over and over.

From the candidate’s perspective, having to answer duplicate questions over and over is frustrating and confusing. Lack of preparation can cause some managers to ask questions whose answers are clearly right on the resume, wasting valuable time and frustrating the candidate even further. By reducing the total number of interview questions and then assigning the appropriate interview questions to individual managers (based on their knowledge area), you can reduce repetition, candidate frustration, and offer rejections.

Don’t keep candidates in the dark. Another all-too-common abuse of candidates occurs when managers keep candidates in the dark about the interview process and what is expected during it. Candidates are not told about what will occur during the interview and what skills will be assessed. In addition, they are frequently not told who will be there during the interview and what the role of each interviewer is.

This lack of information leads to confusion and frustration on the part of the powerless candidate – all for no reason. There is no legal regulation that prohibits companies from telling candidates upfront about the process and what is being assessed during it. Failing to educate the candidate may cause candidates to over-prepare in unimportant areas and under-prepare in important ones. Not knowing who will participate in the interview prevents the candidate from doing research on the background of the interviewers. By telling the candidate more, you can limit their frustration and increase the likelihood that they will provide the information you need to make an accurate hiring decision.

Reduce interview overload by discouraging less than qualified applicants from applying. You are less likely to waste time and be fooled by less-than-qualified or uninterested candidates if you work with a recruiter. Also, you might consider these approaches:

• Put automated self-assessment company culture and skill assessment tools on your website so that candidates can pre-screen themselves in or out of the process before it formally begins.

• Make a list with specific numbers of the disqualification factors that will significantly lower or eliminate their chances of getting the position. Put them on the website, along with the job description, as a pre-warning that they will not qualify if they meet any of the disqualification criteria.

• Post your average job acceptance/failure rate (in percentages) for applicants, so that people know upfront that the odds of anyone (other than the most qualified candidates) of getting the job are very low.

• Be highly selective in where you advertize your jobs, and create links to your website. Don’t place them in general interest publications. Instead, study the demographics of the most qualified people and place ads or job openings exclusively where it is highly likely that only the most experienced and qualified individuals will read them.

• Post frequently asked questions and their answers on your website. By providing these questions and answers, you can discourage individuals who would have not applied had they known in advance the answer to their specific question.

In the end, tt’s essential that recruiters and managers take a more realistic and critical view of the traditional interviewing and selection process. Rather then assuming that it’s perfect, they should instead examine it closely to identify its many nearly fatal flaws.

In fact, if you look at the validity and reliability of interviews as a scientist would, you’ll find the accuracy of the process to be appallingly low. Why managers and recruiters consistently ignore these facts is confusing, but such ignorance is unacceptable because weak hiring systems and bad hires cost firms millions of dollars.

The average cost of a bad hire is two times salary and when customer contact is involved, the costs can easily exceed half a million dollars. Instead of being complacent, managers and recruiters need to take a fresh look at the process and the metrics or measures that they use to calculate the percentage of ‘duds’ that they hire.

The approaches outlined above can dramatically improve new hire success rates. Because they include less freedom and subjectivity than the traditional interview process, they will produce higher offer acceptance rates as well as new hires who are productive and faster, who stay longer, and who are more satisfied with their jobs.

Hospitality Hiring Trends

I came across an interesting article yesterday touching on employment trends in foodservice, from fastcasual.com. They've quoted senior executives in the industry as seeing improved revenue and profitability in this year and next but that job seekers will only see gradual improvements in opportunities into 2011.

Many see a full recovery over the next couple years and suggest new product innovations and merchanising schemes to be the driving factors. They also found that increasing their outsourcing of technical and business procedures - yeah, recruiters! - will spur along the recovery.

Some are suprised that outsourcing recruitment will accelerate the recovery, but to a long-term recruiter in the hospitality industry, it seems quite obvious. A recruiter can take on much of the HR function for a client company, and a good recruiter will lighten the finanaical investment for executives tapping into their established networks and resources. Let's face it, an executive has an important role that largely does not include recruitment or the time to develop the resources a good recruiter will have secured.

The overall outlook, according to the majority of executive respondents in the KPMG survey: revenue and profitability is better now than a year ago. That’s in marked contrast to KPMG's survey of the sector last summer, when less than one-third thought these business measures were better than the previous year.

For those who are looking for work or planning on making a move, "39 percent of respondents were more optimistic about employment in their sector over the next year, which is seven percentage points higher than last summer's survey."

The executives that noted an increase in planned hiring, a mere 23% of respondents, marking a tough market for prospective employees that will need to be well prepared for interviews and scrutinizing of their references and credentials, not to mention their social networking behaviour!

Resume Blunders

From screening job applications to conducting interviews, hiring practices have undergone a dramatic transformation over the past decade. Despite all the changes, common resume blunders continue to plague job search practices at all levels. This article attempts to overcome some of these errors.


#1: It's all about the number of pages
The one-page rule is probably the most common myth about a resume. Candidates, even senior executives, use microscopic fonts, leave off important information, use 0.1 inch margins, and resort to a myriad of unhealthy practices -- all in an attempt to restrict their resume to just one page.

Many well-meaning college counsellors advise their students to be concise and limit their resume to one page. That was important when you were a student with little or no experience, but why subscribe to the same wisdom after rising to the ranks of upper manaegment or a senior executive role?

There is an opposing viewpoint. Some job seekers mistakenly believe that if they can somehow balloon their resumes to four or five pages, they will probably be considered for higher-paying positions. What? Will someone offer me $250,000 simply because my resume is ten pages and redundant to the point of boredom?

Content rules. The quality of experience should influence the length of the resume, not hearsay. If you have held only one job, then don’t try to create a five-page resume, but if your background merits a lengthier resume then don’t use eight point fonts in a desperate attempt to fit everything on one page.

If you are too concerned about the length of your resume, consider creating a one- or two-page resume with additional pages serving as an appendix or addendum.

#2: Make up that degree - no one will know
Lying on a resume is the worst mistake a candidate can make. Even if you pass the background check (very unlikely considering how sophisticated background checks have become), a savvy employer will discover the deception within days, if not sooner.

Apart from the legal ramifications, we live in a professional world that is influenced by social media. At the touch of a button, HR managers across the country can discuss their experiences. Maintaining a good reputation is more important than ever.

#3: Your resume must have an objective
“Seeking a position that will be beneficial and mutually rewarding … and will make use of my experience and education ....” If that is your idea of an objective, don’t bother using one. Every inch of resume space is precious. Don’t waste it on generic information that can be found on almost every other resume. Every word, every character that appears on your resume must position you as the perfect candidate for the job.

In place of objectives, use what many experts call “branding statements” or “headers”. The concept can be explained with the help of an example.

In the case of a clinical researcher, for example, a generic objective would be as follows:

“Seeking a mutually beneficial position that will make use of my 10+ years’ experience in hotel management.”

An improvement would be:

Hotel Manager with Hospitality Degree and 10+ Years’ Professional Excellence

Worked with top two global hotel chains. Leveraged hospitality expertise to manage three multi-billion dollar projects from ground 0 to financial growth.

The generic example does almost nothing to position the candidate but the refined version, in addition to serving as an objective, brings out three to four prominent strengths and an overall value proposition.

Whether you decide to use an objective or a positioning statement, refrain from presenting generic arguments.

#4: Your references must be listed on the resume itself
Normally, a separate page is used as a reference sheet. This not only protects the privacy of your references (imagine posting their contact information on every job board), but also makes the screening professional’s job a little easier.

#5: I can use the same resume for multiple job targets
If your current resume focuses on your hotel housekeeping background, please don’t send the same resume for marketing positions. It is understandable that you may qualify for multiple positions or be interested in pursuing alternate careers. If so, try to create a customized resume for each job target.

When it comes to a resume, never follow the “one size fits all” approach.

Salary Negotiations

SALARY NEGOTIATIONS

Talking about money during the hiring process can feellike being in a contest on a nerve-wracking game show. Job candidates who prepare before the interview and adhere to some specific principles during the negotiation will eliminate much of the guesswork in the equation and come out of the interview feeling like you handled it professionally and have a better idea of what the position offers.


Before the Interview

For most hospitality management roles, the salary negotiation will take place at the last interview. That can be the 2nd or 5th interview, depending on the process with the hiring company. You can expect an offer on the spot at the end of the interview or sent to you in writing the next day should you be the chosen one. In any event, get your ducks in a row - know what you want and prioritize what's most important to you in your next role --money, more responsibility, work/life balance, a shorter commute, corporate culture-- before you begin interviewing.

Use a salary calculator, ie www.payscale.com, or locate an industry association contact that can provide you with relevant compensation information. This will also help you know that jobs you apply for pay well enough for you. Remember, however, that variables such as company size, economic conditions, and availability of qualified candidates in the market need to be factored into your information-gathering process.

Keep in mind that companies typically have salary ranges budgeted for specific roles within the organization. Exceptions aren't all that common. The only flexible items in a job offer may come down to things other than salary -- a signing bonus, moving up your review date, additional vacation time -- and could be an alternative to a higher salary.

Be prepared. You should be ready to convince the recruiter that you are worth the dollar amount at the higher end of the salary range. The easiest way to do this is to provide very specific examples of how you can add value to this organization -- just like you've done throughout your entire career.

Be upfront. When asked about your compensation requirements during the initial telephone interview, let the recruiter know where you stand. "I'm looking at opportunities in the $60-70,000 range, but can be flexible for the right opportunity." It's acceptable to ask if you're in the correct range for the position, and important to know so that both parties can make an informed decision about moving forward without wasting time. Remember, the role of the recruiter differs at each organization, so don't underestimate the influence this person has on the decision-making process.

Be respectful. If an offer is presented that is lower than what you hoped, thank the presenter. Ask if there is any flexibility in one or two of the areas that you've identified as being a priority for you. Regardless of the answer, always say you need time to consider the offer. Don't start negotiating new terms immediately.

Be firm. If there is no flexibility in the offer, you can accept it as is, or politely refuse and walk away. If the company is flexible on your terms, agree on all the new details in one conversation so that you can move forward with the next step in the process -- signing and returning the written offer letter.

Above all, be professional. Your actions during the negotiation process will be remembered by everyone involved long after you're hired, and may be helpful when it comes time to ask for a raise. As before, early preparation is the key to success in getting the salary you want.

Avoiding the "Overqualified" Label

Most hospitality candidates preparing for a job interview worry about whether they'll be able to come off as experienced, educated, and a personality "fit" enough to make a positive impression on hotel and restaurant corporate managers. But job seekers with substantial schooling or a lengthy work history often face the opposite problem.

Highly qualified candidates in the industry are sometimes forced to grapple with the stigma of being labeled “overqualified.” Often, hiring managers who encounter an applicant with a bounty of education or experience fear that they will be unable to meet the candidate’s salary requirements or other job expectations.

Having recruited in the industry for many years, I've come to understand people have various life/work factors where an "overqualified" candidate will apply for a less senior role with full awareness of a change in salary, work hours, work expectations, and work environment. These various factors, such as a new child in the home, relocation to a smaller community, downsizing to have more free time, are motivating factors that come to outweigh the step down.

According to human resources and staffing consultant Ken Gaffey, the phrase “overqualified” is often a code word that hiring managers use to express concern about a candidate’s fitness for the position. In order to get past the “overqualified” stigma and land your dream job, you have to be able to discern the true source of the hiring manager’s hesitation -- and then move in to neutralize it. These tips can help you move past the overqualified label and sail to success in your next interview:

1. Address the situation directly.
If there’s a special reason why you’re in the market for a lower-level position, it might help to discuss it upfront. For example, if you’re looking to establish yourself in a new field, or if you want to reduce your work schedule, let the hiring manager know.

2. Put your skill set front and center.
A great way to dodge the overqualified label is to take the focus off of your career path as a whole, and instead emphasize the skills and abilities you’ve picked up along the way. The functional résumé format – which job search gurus often recommend to recent grads and inexperienced jobseekers – may be the best option for highly qualified candidates, as well.

3. Signal your flexibility on salary.
One of the major reasons hiring managers shy away from highly experienced candidates is the perception that their salary expectations will be out of line with the position. If you recognize the difference in salary for the position you're applying, let the hiring manager know from the get-go how your expectations fit their range. Emphasize your unique value to the organization.

4. Make it clear that personality won’t be a problem.
The hiring manager may be worried that you won’t be able to work effectively alongside less-experienced peers. To allay these concerns, choose answers that will help you cast yourself as a humble team player who can get along well with people from all walks of life.

5. Let them know you’re in it for the long haul.
It’s often assumed that highly qualified candidates are just looking for a temporary job to tide them over until something better comes along. Leave no doubt that you intend to dedicate yourself long-term in your new role and that the company values speak to your professional goals and how you can help them achieve sucess.

Like many obstacles you’ll face in your job search, being “overqualified” is only a problem if you don’t take the opportunity to turn it around to your advantage! By carefully highlighting your skills and thinking strategically about ways to minimize the potential for problems, you’ll be able to turn this perceived liability into a strength.

For those "overqualified" candidates that have been on a long-term career path and now searching for a new position, you might want to hone your interview skills with our free Online Interview Prep Course. Email us to set up access at info@targetprofessionals.com.

Ready for the Interview?

When an "economic downturn" becomes a reality in the minds of candidates and clients in the hospitality industry, one thing becomes a primary issue: interview behaviour.

Apparently candidates that have good management backgrounds, are educated, and present themselves well can disconnect somewhere along the line in their interviews with clients. Not good when clients are in a position to be selective about who they hire.

In any event, candidates looking for work need to be mindful of their interview skills. When you prepare for a marathon, you must wear the proper gear, know your strengths and the track, study the prize, stretch your muscles, etc. Likewise, for an interview, be aware of your appearance in dress and personal grooming, your demeanor, resume presentation and references, knowledge of the prospective employer. As well, it's going to work in your favour to acknolwedge the current market situation and how it affects your current and future aspirations with the company you join.

If you take the time to prepare for an interview as you would for a marathon, for example, you'll avoid some of the tragic pitfalls I've encountered as a recruiter. For instance, one candidate showed up for a restaurant management position wearing a baseball cap, another man didn't shave for an interivew for an Area Manager position, while another rambled on with chatter due to nerves. They were all politely declined by my clients.

Perhaps in a booming economy, with a small pool of qualified candidates, these mishaps by candidates would be overlooked, but not now. Candidates now need to ensure their interview behaviour is top notch and they're fully prepared because you really can't afford even one disconnect along the way. As a recruiter, I can sometimes help candidates in putting their best foot forward, ie: a free interview prep program online to stretch those interview muscles. Candidates need to use all their resources to be a successful candidate in difficult economic times. Good luck!

Interview Prep Program - Interview Ease

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