Join Eddie Davila for an in-depth discussion in this video Recruiting, hiring, and training employees, part of Business Foundations.
- Why do companies decide to bring on new people? Perhaps they need to grow a department. Maybe they need to replace a person that left. It's possible the company requires a new type of employee to fill a modern need. Whatever the reason, to make a good hiring decision, the company needs to be able to describe the position to be filled, what type of employee they want to fill that position, and also how much it will cost to effectively fill that position.
Let's say we want to hire someone to re-develop our website, and then to manage and grow the website in the future. How would you describe the position so that it sounds interesting, so that we can attract the very best candidates, motivated professionals? Let's look at a generic job description. Okay, not that interesting. How about if add this? A little daunting for a novice. That's a good thing. This is a good job.
We wanted to seem exclusive. But for a person with a bit of experience and for someone motivated to develop a strong career, this particular web development job sounds exciting. They're interested. They like us. That's good. But do we like them? Let's tell them what we expect. Hopefully, the unqualified have now moved on, and the best candidates are now working on their resume. Look, we can't interview everyone, so we need to do our best to find great candidates and entice them to apply for the job.
Communicating a job description and job requirements and then being sure that the best people know about the job is only the first phase of finding a great person to join our company. Now that we have applicants, we need to figure out which candidate is the best fit for that job and our company. So how do companies figure out who to hire? Well, let's consider what we might want from our web developer. They need to talk to executives. They need to have the ability to develop creative content.
They need to have technical skills. They have to understand our culture and our ethics, and they have to be trustworthy. How could you see if the candidates have everything it takes to be successful in this job? Interviews? Sure. But how could you test their ability to develop creative content? How about asking to see some of their past work? Do they have a portfolio of work? How about technical skills? Perhaps we can have them take a test.
Maybe we can give them some homework that they could bring to the interview. Are they trustworthy? Nowadays, most companies will also do some sort of background check with law enforcement and perhaps, also with past employers. And once the interviews are over, you'll also need to consider some other issues. What happens if no one is fully qualified? Will you be willing to take someone that is mostly qualified? Also, are your hiring practices legal and ethical? Is diversity for your company government-mandated, or part of a plan for corporate excellence? And who gets to make the final hiring decision? Their new boss, a top executive, the person that interviewed them, or perhaps someone in human resources.
And even when you find the best candidate, and decide to make them an offer, there is still the question of whether or not they will accept the offer. The best candidates often have lots of options to choose from. Offers, counter-offers, negotiations, and signing a contract may be all part of the hiring process. Once they accept the position, you will need to gather their personal information for company records, and sign them up for a benefits package. Once we have them in the system, the new employee might go through a corporate orientation, and then they might get trained on equipment or business processes.
Imagine going through all of that. All that time, all those resources, and then finding out you hired the wrong person. Great people are the key to a great work environment and excellent customer satisfaction. Recruiting, evaluating, hiring, and training employees is extremely expensive. Companies that do not take these processes seriously waste lots of time and money and are then stuck with a sub-par workforce.
He also reviews the basics of the people side of business: managing employees and developing customer relationships. Last, he covers the financial and information management aspects of business and provides a basic explanation of economics, so that you can understand the relationship of your business to the bigger picture.
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- Understanding business goals, stakeholders, and resources
- Developing a product or service
- Selling a product or service
- Raising capital
- Managing employees
- Managing customer data
- Understanding finances
- Managing resources
- Understanding economics