Lesson 4: If promises are made – keep them!
Like the small bird that puffs up his chest and flares his feathers to attract a mate, business owners can often be tempted to make promises at interview they may not be able to keep. Comments about potential profit share and career progression are common and while the business owner may forget - the employee will not. Chances are they will become increasingly de-motivated each day the promise is not delivered.
Small business competes with big business and while they may not be able to offer regular promotions or share options, they may be able to offer other attractive benefits such as a friendlier work environment, more flexibility, greater responsibility, a parking space or some family oriented policies. It can be worthwhile for the business owner to consider ahead of time what unique incentives they can offer in order to get the right staff.
In the early days, we used to mention profit share and management positions that never eventuated. We hoped to be able to provide these benefits and they were genuine proposals at the time of interview but as the business developed and grew in a different direction it simply wasn’t possible. In most cases the employees in question understood and as a group they were rewarded in other ways. However when we corrected our employment procedures we ensured that no promises outside of what we could guarantee on the day of interview were ever offered. It is better to under-promise and over deliver then to over promise and under-deliver.
Lesson 5: Don’t count your chickens before they hatch.
I have been in the situation where I have interviewed several people for a role, short-listed the candidates and selected the person I believed was right for the job. Once the candidate had accepted my formal offer, the other interviewees were advised in writing that they were unsuccessful. On a small number of occasions, the successful candidate then called at the last minute to advise that they had gotten an offer elsewhere, putting me back to square one!
It is important and respectful to advise applicants, particularly those that you have interviewed when they have been unsuccessful. For those that have clearly not met the grade it is good practise to tell them as soon as possible. However if you are lucky enough to have a number of candidates that are suitable, make your formal offer to your chosen candidate and inform the ‘stand-by’ candidates when they will be contacted. That way you only inform them of the final decision when your chosen candidate is on board and sitting at their desk.
There have been occasions where our business needed only one person to fill a role and yet I couldn’t choose between two. In this scenario I would hire them both. If they both worked out then it was a great result if not I already had a back-up so it was cheap insurance. The salary for one month cost the business less than a recruiter’s fee and training two people cost the same as training one so it made sense. This is an especially pertinent strategy when recruiting sales staff.
Lesson 6: More money does not mean higher quality.
Many business owners believe that the higher the salary they are willing to pay, the better the standard of candidate they will attract. This is not always the case. Business owners sometimes make up salaries based on what they think someone deserves and this doesn’t work either. When deciding on what to pay, look at current job advertisements or salary surveys and see what other companies are offering for a comparable position. You’ll need to match or beat the market rate to attract the right staff.
Candidates are much more likely to negotiate salaries than they used to be so it’s advisable to be flexible and explore alternative ways of rewarding staff. Few people are motivated by money alone. By finding out what your chosen candidate truly values you can make your offer more attractive. For example say your chosen candidate has a young family, he may value flexible work hours or a car space above an extra $2,000 a year.
Lesson 7: Mutual respect is essential.
The relationship between an employee and employer needs to be mutually respectful. You have agreed to pay a certain amount of money in return for a service and they have agreed to carry out that service to the best of their ability but it does not end there. An employee does not owe an employer their private time just because they receive a wage. Annual and sick leave payments are entitlements – they are an employees right not a privilege.
If you find yourself resenting the payment of entitlements or requests for leave then you will probably find it very difficult to retain staff and those that do stay are likely to be unproductive. Remember these people are helping you to realise your dream of business success. Treat them well and you may get there faster than you ever dared wish.
Make sure everyone knows the rules and what is expected of them. Have a policy in place to deal with people that do not meet those criteria so action can be swift and consistent. If you are unsure how to put that together a good business coach, experienced in human resource issues will be able to help.
Previous Page Table of Contents Next Page
Copyright © Owen Joyce Australian Business Review. May not be reproduced without permission.
Note there is no substitute for professional, customised advice. If you would like to know more about founding, growing or selling a business, consider talking to a business coach today. Call us on 1800 632 907.
Services available Australia wide. Sydney NSW, Melbourne VIC, Canberra ACT, Brisbane QLD, Adelaide SA, Perth WA, Launceston TAS, Darwin NT