When a Bad Hire Gets Worse – Lessons Learned
We’ve all seen the data on the cost of replacing a bad hire. But what about the damage the bad hire does in the meantime? And how do you prevent it from happening again?
Consider this actual scenario. A client called me in to investigate complaints that an account manager was bullying coworkers. Through my investigation I discovered that the behavior had been going on for some time and, in fact, a couple of sales people had left because they did not want to work with this individual. Others were threatening to leave. Additionally, customers at two key accounts had stopped returning the account manager’s phone calls because they didn’t want to deal with him. At my recommendation, the client hired an attorney and they were able to terminate the employee. The process took a year and a half and nearly cost the company two major clients.
So how did this happen? It began with a broken hiring process. When the account manager was interviewed, two of the interviewers followed the structured process and asked questions directly tied to the job requirements. The other two interviewers merely had conversations with the candidate, and based their opinions on his charisma and the rapport developed during those conversations. During the interview debrief, charisma and rapport won out over job requirements and fit. Red flag number one was doubts expressed (but ignored) during the interview process. Red flag number two was that none of the candidate’s references would give any information beyond the standard, factual, previous job confirmation.
Lessons learned?
- Use a consistent, structured interview process. Always. Prepare behavioral questions in advance and pre-determine who will ask what. The interview should be conversational, but should result in concrete examples of how the candidate has demonstrated the job requirements.
- Consider the input of ALL interviewers. Look for patterns. Be sure you are evaluating the candidate and his/her qualifications objectively, rather than on a “gut” feeling or the “sell” factor.
- 3. Listen for what isn’t being said when you check references.
- Deal with bad behavior immediately. Even if your hire meets all the requirements and performs the job as expected, don’t ignore behavior that is negatively impacting those around them. The fallout will be costly indeed.
6 Tips for Making Good Hiring Decisions
Making good hiring decisions is essential to keeping your business productive and your team happy and harmonious. We’re all familiar with the direct costs of replacing “bad hires” but we often overlook the indirect costs such as employee morale, client relationships and, in some cases, company image.
Here are 6 tips for making sure that your hires are good hires.
- Know what you want and don’t want. Develop a detailed job description, including both job specific and transferable or “soft” skills required for the role. What are the skills and competencies that have helped a “star” in that role succeed? What experiences and characteristics will help the ideal candidate succeed in your environment and culture? Also, consider the characteristics that would make a candidate less than ideal for the role or for your organization. A clear definition of what you want and don’t want will help you be more objective in your candidate assessments.
- Create and use a structured hiring process. Developing a repeatable process makes life easier for everyone – interviewers, candidates and those who are coordinating the meetings. It ensures objectivity (which will keep you legal!) and provides a good first impression for potential employees. Remember, you are “selling” the company to them as much as they are “selling” themselves to you.
- Ask behavioral questions. Getting the candidate to describe a specific example of how they demonstrated a skill or behaved in a certain situation will give you more insight than hypothetical “how would you…” questions. Build the questions around the skills and competencies defined in the job description. And ask the same questions of every candidate for the role so you have a consistent basis of comparison. There are plenty of books and websites that provide canned answers for behavioral questions so follow up with some probing questions for more detail.
- Train your interviewers. Too often interviewers are handed a resume and asked to interview a candidate without any preparation or training. That’s unfair to both the interviewer and the candidate, and could lead to legal issues if the interviewer asks an illegal question or treats one candidate differently than the others. No one should interview candidates unless they’ve been trained in interviewing best practices and legal/illegal questions. Also, each interviewer should be prepared, in advance, to ask specific questions of each candidate for the role. That prevents candidates from being asked the same questions by five different people! After the interviews, convene the interviewers to share input on the candidates.
- Check references. How many stories have we read about credentials that were fudged or experience that was bloated? Yes, checking references takes time, but may save you money and/or embarrassment in the long run.
- Embrace diversity. It’s a well-known fact that people tend to hire people that are like them. In theory, that would accelerate the acclimation process, but in practice it may not be the best solution for the team. A better option is to look for diversity of thought, skills and experience that will complement existing viewpoints, skills and experience to achieve organizational success. Someone once said, “if both of us think exactly alike, one of us is unnecessary.”
Deadlines and Delays for the Affordable Care Act
The Affordable Care Act has been back in the news lately, and there are several changes and deadlines you should be aware of.
First, the employer mandate has been delayed until January, 2015. This component, originally set to go into effect January 1, 2014, requires employers with more than 50 fulltime employees to provide health insurance or be fined up to $3000 per uninsured worker. Although the delay gives you a bit of breathing room, it’s a good idea to begin planning now for how you will meet the requirement. Providing healthcare coverage is one of the best ways to attract and retain your top talent.
Another delay is the requirement for state run exchanges to verify whether individuals have employer-sponsored healthcare insurance. Those without employer-sponsored coverage can get tax credits to purchase individual plans. Exchanges will have until 2015 to develop their individual coverage verification process.
The individual mandate, requiring all individuals to have healthcare coverage, is still set to go into effect January 1, 2014, although there is some push to delay this mandate in light of the employer mandate delay.
Mark October 1, 2013 on your calendar. Starting that day you must provide information to all current and newly hired employees about the availability of health exchanges, using the Model Notice to Employees of Coverage Options.
We will continue to keep you posted as new changes and clarifications about the Affordable Care Act are released.
Tips for Implementing a Safety Committee/Program
In my last blog I wrote about the key requirements for an Injury and Illness Prevention Program (IIPP). Once the plan is developed, many employers form a safety committee to help implement the program. This fosters more employee participation, broader communication channels and thereby the foundation for an organizational culture of safety. Here are some tips for successfully implementing your team and program.
- Be sure team members have a health and safety mindset. Whether you ask for volunteers or assign someone from each department, be sure they represent your health and safety vision. Encourage the team to develop creative ideas for involving all employees in the focus on health and safety. Some examples are a health/safety suggestion box, safety awards, or a safety poster contest.
- Walk the talk. Ensure that the entire leadership team consistently demonstrates the safety best practices outlined in the IIPP and participates in the communication and education elements of the plan.
- Communicate consistently. Hold safety committee meetings at least quarterly. Hold general employee safety meetings semi-annually or annually. More frequently if you are in a high safety risk business, such as construction. Use posters, newsletters, emails and department meetings to reinforce your commitment to safety and drive the safety culture.
- Reward safe behavior. Establish a safety awards program whereby individuals or teams who have made suggestions for improving safety or have a clean safety record for a specified period of time are recognized.
- Review and reinforce your safety plan regularly. Be sure that it always reflects the current needs of the organization.
Once your IIPP has been created and your committee is in place, hold an employee meeting with your entire company. Make sure they are aware of the safety plan. Introduce committee members so employees know who to contact when reporting a workplace injury or other issues.
For more information on safety and injury prevention visit your local OSHA website. In California, you can visit: http://www.dir.ca.gov/default.html.
Developing an Injury and Illness and Prevention Program (IIPP)
According to the Occupational Safety and Health Administration (OSHA), lost productivity from injuries and illnesses costs companies $60 billion annually.
In California, every employer is required by the state to have an effective Injury and Illness Prevention Program (IIPP). It is your responsibility to provide a safe and healthful workplace for your employees. Once you reach 10 employees, the plan must be in writing.
The IIPP must be a written plan that includes policies and procedures on topics such as safe work practices, periodic inspections, what to do in the event of an accident, safety training, and recordkeeping. There are 8 specific elements that must be included in the plan:
- Management commitment/assignment of responsibilities
- Safety communications systems with employees
- System for ensuring employee compliance with safe work practices
- Scheduled inspections /evaluation system
- Accident investigation
- Procedures for correcting unsafe/unhealthy conditions
- Safety and health training and instruction
- Recordkeeping and documentation
If you employ fewer than 10 employees, you can:
- Communicate to and instruct employees orally about safe work practices.
- Choose to maintain records of inspections only until the hazards identified are corrected.
- Document training by maintaining an instruction log that you provide to a new employee or to an employee reassigned to new duties.
Seasonal employers can use a model program designed specifically for seasonal employers, available at the Division of Occupational Safety and Health (Cal/OSHA) website. Additional IIPP requirements apply to specific industries, such as the construction and petroleum industries.
Keeping accurate, timely records is an essential part of an effective IIPP. The Cal/OSHA recordkeeping system requires that you record each injury, fatality or illness that is work related on the Cal/OSHA Log of Occupational Work Related Injuries and Illnesses (Form 300) and prepare an Injury and Illness Incident Report (Form 301). You also need to annually review and certify the Cal/OISHA Form 300 and post the Summary of Work Related Injuries and Illnesses (Form 300A) no later than February 1 and keep it posted where employees can see it until April 30. Records need to be maintained in your files
for 5 years.
If you need help developing your IIPP plan, please contact me at Michelle@connecttohr.com.
Near the Half-Way Mark…Time to Check Progress on Goals!
It probably seems like just yesterday that you laid out your goals for the year. And now the year is nearly half over. Have you taken the time to assess progress on your goals? More importantly, have you communicated that progress to your employees?
As I mentioned in my previous blog, keeping your employees informed – whether good news or bad – is key to keeping them engaged and motivated. Also, remember that communication is a two-way street. Provide ample opportunities for your employees to ask questions and provide feedback. And demonstrate that you are listening to their feedback, even if you are not able to act on it. Many companies conduct employee surveys and then never do anything with the resulting information. Communicate those results to your employees and let them know what actions you are and are not able to take in response to their feedback.
In his book The 8th Habit, Stephen Covey shared the results of a survey of 23,000 employees drawn from various companies and industries:
- Only 37% said they have a clear understanding of what their organization is trying to achieve and why
- Only 1 in 5 was enthusiastic about their team’s and their organization’s goals
- Only 1 in 5 said they had a clear “line of sight” between their tasks and their team’s and the organization’s goals
- Only 15% felt that their organization fully enables them to execute key goals
- Only 20% fully trusted the organization they work for
Make ongoing, two-way communication a habit!
Want to Keep Your Employees Engaged? Keep Them Informed!
If you’ve been reading any articles about leadership or employment recently you know that employee engagement is a hot topic. And for good reason. Companies with engaged, loyal employees have been shown to have higher profit margins and less turnover than their counterparts with low engagement scores.
Although there are many factors that contribute to employee engagement, ongoing, open communication is a common thread among them. Communication between the direct supervisor and the employee. Communication from upper management to employees. Team and intra-organization communication.
As a result of the economic downturn over the past several years, many employees are feeling less than confident about their jobs, the stability of the organization they work for, and the sense of loyalty their organization feels to them. In fact, various studies show that about one in three employees is searching for a new job.
Giving your employees a sense of connection to your organization by keeping them informed will improve their engagement and loyalty. Here are some tips for doing that.
- Provide regular, effective feedback. Employees need to know how they’re doing. Don’t wait until the annual performance review to praise their accomplishments or address opportunities for improvement.
- Communicate company goals and objectives. Let each employee know how he or she contributes to achieving those goals. When employees see a direct correlation between what they do and company results they feel more connected and valued.
- Share good news…and bad. “We’re doing fine,” will most likely be met with skepticism. Share as much detail as you can. If there are problems, enlist your employees’ support and ask for – and listen to- their ideas for turning things around.
- Provide – and communicate – growth opportunities and a clearly defined career path. Let employees know that you see a place for them with the organization for the long term.
- Say “thank you.” Loud, clear, early and often.
Hiring Summer Interns – Be Sure You Follow the Law
School will be out soon, and many ambitious students will be looking for ways to earn some money and/or expand their experience during the summer break. If you plan to hire paid interns, the same minimum wage and overtime laws apply to them as apply to your fulltime employees.
If, on the other hand, you are considering hiring unpaid interns, note that in California the Department of Labor considers the following 6 criteria when determining whether an intern is entitled to wages in exchange for his or her services:
- The internship is similar to training that would be given in an educational environment
- The internship experience is for the benefit of the intern
- The intern works under close supervision of existing staff and does not displace regular employees
- The employer derives no immediate advantage from the activities of the intern, and, on occasion, its operations may even be impeded
- The intern is not necessarily entitled to a job at the end of the internship
- The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship
The more you can structure your internship program like that of an academic experience versus the intern engaging in your company operations, the more likely it will be viewed as part of their education and thereby meet the criteria. Job shadowing, for example, where the intern observes various functions under close supervision but performs minimal or no work, can be considered training. Again, the experience must be for the benefit of the intern, not the employer.
For more information, refer to the California Department of Labor Fact Sheet #71.
If you have questions of a general nature regarding this topic, please feel free to contact me. For specific legal advice, contact a California employment law attorney.
Regional Commuter Benefit: What it Means for Employers
Under SB 1339, signed by Gov. Jerry Brown last October, the Metropolitan Transportation Commission (MTC) and the Bay Area Air Quality Management District (BAAQMD) are authorized to establish a commuter benefit policy aimed at reducing traffic and improving air quality.
The four-year pilot program would require employers with 50 or more full-time employees to offer their employees at least one of the following benefits:
- The option to pay for their transit, vanpooling or bicycling expenses with pre-tax dollars, as allowed by federal law;
- A transit or vanpool subsidy of at least $75 per month;
- A free shuttle or vanpool operated by or for the employer; or
- An alternative program, approved by the MTC and BAAQMD, that provides similar benefits in reducing single-occupant vehicles
Although the bill authorized adoption of the policy on or after January 1st of this year, an effective date has not yet been determined. Employers will have six months to comply with the policy once the effective date has been established. The policy will cover employers in the following counties: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo and Santa Clara as well as the southwest portion of Solano County and the southern portion of Sonoma County.
In addition to contributing to a cleaner environment, the policy will offer economic benefits to both employers and employees. Employers can reduce payroll taxes (approximately 9 percent of subject wages) and employees can lower their commute costs by up to 40 percent.
For more information, visit http://rideshare.511.org/employers/.
Best Practices for New Hire Onboarding
You’ve worked hard to recruit, interview, and hire the right fit for a key position. Your job is done, right? Wrong! Too often new hires are thrown into the workplace with little or no company knowledge or resources to help them succeed. This is one of the main reasons as many as 42% of new hires leave their jobs within the first year.
Providing new hires with a positive, memorable experience during their first few months, and providing them with tools, knowledge and resources to help them succeed is essential to their engagement and retention. Here are some best practices for doing so.
Start the process when they accept the offer. There’s usually a time lapse between when they accept the offer and their start date. Time to change their mind. Send them a warm welcome letter and a small gift (something with your company logo on it) and follow up with a phone call. Include an agenda for the first day, and what to expect during their first week. Advise them about parking and any other logistics that will help them get started.
Be ready for them. Make sure their workspace and technology is set up and ready to go on the first day. First impressions do count. Put together a starter packet of supplies. Have a welcome sign on their desk.
Plan for a 30-90 onboarding process. Onboarding is more than just filling out forms and learning about the company. An Orientation class is just part of it. Onboarding is a structured process that helps the new hire understand their role and how it fits into the big picture; the company culture; how to navigate through the various company processes; what’s expected of them; who’s who, etc. Include check-in points along the way to gather feedback and an overall evaluation of the process at the end.
Get a head start on the paperwork. If appropriate, send some of the paperwork out to the employee ahead of time. If you send them benefits information, for example, they can begin the discussion with family members to accelerate the decision process. In the welcome letter, include the items they need to bring in with them, e.g., two forms of ID for the I-9 form.
Make it fun. Plan some activities during the onboarding period that will help new hires get to know other employees. Have a theme. Create a treasure hunt to help them learn about other departments or master the company intranet.
Involve others. Assign each new hire a “buddy” for the first 30 days to help orient them. In the new hire announcement ask all employees to be welcoming and helpful. Invite department managers or long term employees to speak at the Orientation class about their areas and/or their (positive) experience at the company.
Set some short term goals. The hiring manager should meet one-on-one with the new hire during their first few days to talk in detail about the role, the department, expectations, his or her leadership style, etc. Set a few specific short term goals at this point to provide focus and the opportunity for early success.
Need some help developing your onboarding process? Send me an email at connecttohr@yahoo.com
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