Recruitment and Retention in Today's Economy

This is a blog about successfully recruiting staff. The consequences of the global recession and related economic upheavals will be felt for years to come. In this new economy, hiring the right people for your business has never been more important. My job is to help you do just that.



PSYCHOMETRICS ... WHO NEEDS THEM?

This article by Sean Hutton, Managing Director of Human Capital Development, introduces psychometric testing and explains its value to business large and - especially - small. In future editions of this blog, Sean will be providing more detail about this aspect of recruitment.

For 20 years I was a psychometric cynic, believing that ‘gut instinct’ was all I needed to make reliable hiring decisions. Then a meeting with a highly respected profiling expert changed my mind: a  five   minute questionnaire and he had me down to a t. The shock was he talked about the man behind the façade, my strengths, my weaknesses, my timescales … he talked about me! The penny dropped - this was so much better than intuition; it added reliable information to recruitment decisions. That day I literally bought into the company.

Who needs them?  

If truth be told, every company from the biggest PLC to the smallest SME should be using psychometric tools to help them in their selection process. It could be argued that the SMEs need them the most because a poor recruitment decision can have catastrophic results for a small company, but be an expensive inconvenience for a larger company.

What Exactly Are Psychometric Tools? 

The term covers a raft of business aids based around candidates completing a questionnaire that can measure everything from honesty to sales ability, literacy to numerical skills and, of course,  personality.  Some tools are classified as ‘tests’ which means people can fail them; others - particularly those that evaluate personality -  are often measurements, so there is no pass or fail judgement as such.

Do They Have Any Greater Validity Than Astrology? 

In short, yes. They are normally well researched by psychologists and have been reviewed by their peers to establish that they are ‘valid and reliable’. That is to say, they give accurate information.

When Should They Be Used? 

Ideally, prior to interview so you have all the necessary information before you meet a candidate and can discuss any issues that have arisen.

Do I Need To Be Trained To Use Them?

Not necessarily. Many reputable test publishers offer a bureau service where they help you interpret and understand the results.

Can I Afford Not To Use Them? 

Generally, it's a good rule of thumb that the cost of a failed hire is a minimum of one year’s salary, once disruption, training and all the other hidden costs are taken into account.  On the other hand psychometric tools are relatively inexpensive, typically costing around £100 per candidate.

Do They Eliminate The Interview? 

In a word, no. These tools should give you additional information and should not replace any part of a professional selection process.


When you next start planning a recruitment process, add a little science to the process - add some psychometric tools …You will be surprised how the additional information they provide makes the final selection so much easier.

Next Time:

The new Agency Workers Regulations and what they might mean for you.


About Sean Hutton.

Sean has over 25 years experience in sales, marketing and people development.  After a successful career within Encyclopaedia Britannica's executive management team and head of a subsidiary company, he left in 1997 to join the board of a successful group who specialized in HR business tools and consultancy. 

As group Sales Director he played a major role in reorganising their marketing and product strategies, working with companies such as Bristol Myers Squibb, IBM, BT, N Power and British Gas to improve their sales selection and management processes.

Sean has over 25 years experience in sales, marketing and people development. In 2003, Sean set up a training and development company with its own range of business tools, to help businesses recruit the right staff and realise the full potential of their existing staff.

HUMAN CAPITAL DEVELOPMENT
t: 01264 861031
e: info@human-capital-development.com
w: www.human-capital-development.com

INDUCTING YOUR NEW STAFF (PT 2)

In this edition I will continue to look at how to ensure you induct your new recruit successfully.

What Should Be Included As Part Of A Simple Induction?

Create a short first morning induction plan which can be run-through by you or a member of staff who has been properly prepared. This is easy and quick to write and helps to bed the person in. It should include the following:
Welcoming the new employee, offering them a drink to break the ice and showing them where the office facilities are - things such as toilets, the kitchen area and anything else which they will need.

Formal introductions to each existing member of the team, in the course of which you should explain - in outline the roles of both the new employee and the existing team members.

There is written information which has to be made available to new employees, which should be (briefly) run through:
  • Health and Safety information which relates to your particular environment
  • Details of your Disciplinary Procedures
  • Details of your Grievance Procedures
  • Details of your Appeals Procedure
These are all statutory requirements in the UK. Once they are in writing they can form part of your staff handbook and this can be added to as new processes are formalised within the business. Over time the handbook will form the bulk of the induction literature.

After the formal introductions etc, the employee can be taken to their desk or office and shown how any systems and IT works and given any passwords or login instructions they might need to carry out their role.

Next, it is useful then for their role to be explained in detail by someone who is trusted within the organisation and who complies with the company processes, so that the new employee can be shown how your organisation carries out its tasks, reports-back and so forth. In virtually all cases, there will either be documentation in existence that will help the new member of staff get up to speed on the project or work that they are being employed for, or there will be someone who can sit down with the new employee and show them what to do in practice. Either way, it is crucial that the new employee is carefully looked-after at this point - they must never be allowed to feel they've been thrown in the deep end and left to sink or swim.

What Is Your Specific Role In The Induction?

Ideally the information detailed below should be presented by you to the new employee so that they feel that they can approach you in the future. This will help ensure issues can be picked up early and addressed rather than allowed to fester with the new employee feeling they have nobody to raise the problem with.

(However, time is not always permitting and many larger organisations have an HR department that will take on some of these tasks.)

A 60 to 90 minute conversation with you, ideally on day one of their employment, should include:
  • A personal welcome from you.
  • Running through the expectations of the role. This can be taken from the job and behaviour specification that you created at the start of the hiring process.
  • Talking about your career with the organisation and why you joined and have stayed.
  • Reinforcing the options available to the new employee if they perform ahead of expectations.
You should be friendly and authoritative and let them know that you have an open door policy so that if they have concerns or issues they should feel free to come and discuss them with you. You need to make sure they know they are important to you and your business, that you want to ensure that their move was the right one and that you want to help them develop their career.

Do bear in mind that the best time to ask a new employee for referrals of other people to work with your business is during the induction and the first couple of days of employment. Assuming the employee has been looked after well they will be thinking highly of the business, be keen to impress and will have very few concerns. Consequently, they will be most likely to provide names of people who could work well within your business.

Other areas which can be included by you or managed by HR include:
  • Detail the salary and the individual aspects of the package such as pension contributions and how they work, medical cover and any of the other benefits that were provided in the offer.
  • Run through the key points in the contract so that they clearly understand what is required - issues such as discipline through to booking holidays etc.
If HR are involved they can also discuss the Disciplinary, Grievance and Appeals procedure.

In Summary:

Having spent time and money ensuring that you recruit the right member of staff, it is important that sufficient time and effort is put in to ensure that they feel welcome, wanted and expected, especially in the first few days of employment. This attentiveness to their needs, coupled with ensuring that they know what is expected of them, will produce great dividends down the line in terms of productivity, morale and future loyalty.

Next Time:

In future articles we will look at different aspects of the induction process in greater detail. During the next couple of editions, however, I will be introducing a couple of guest writers who I have worked closely with for many years and who are renowned in their fields. They will be providing articles within their specialisations so the full breadth of the recruitment process is comprehensively covered.

The first of these will be an article introducing psychometric testing by Sean Hutton, who will explain why it should be seriously considered as part of the recruitment process.

INDUCTING YOUR NEW STAFF (PT 1)

Over previous issues we have analysed building a solid platform upon which to recruit the best possible candidate - someone who will be able to make a substantial difference to your business. We have looked at running the process right up until the job offer, and staying in touch until they actually start with you.

Having come this far, the next key issue in their success (and consequently your success) is the impression they receive in their first few days with you and hence how well they settle in.

Are Inductions Necessary?

Most of us can look back through our own careers and recall an experience when we have joined a new business or department, not knowing anyone or anything and, quite frankly, been very nervous. Imagine being in that state and discovering that you are not expected, there is no desk and nobody knows who you are.

It is always worth remembering that the first couple of hours at a new employer are intimidating for almost everyone, and disorganisation and lack of warmth at the outset will exacerbate the nerves and discomfort. If this happens to a new employee, their subconscious minds will be saying “I don’t like this and I'd much rather not be here.” Of course, over time they will get to understand the company and their role but that initial feeling of “I don’t like this” will linger and their new place of work will never feel quite right, irrespective of what happens subsequently. As a result, the 100% commitment proffered during the interview just doesn’t quite materialise and a few months later they will be considering their job options and feeling that the grass turned out to be not so green when they moved employer and joined you.

My advice is to always remember how you have felt in the past on your own 'first days in the job'. With that in mind, it is vital that the first few days are positive for a new employee because first impressions stick and are difficult to change if they are not particularly good. You should view the induction as not just a necessary chore but something of real importance that will help ensure your new employee settles in, is happy with their decision and works to the best of their ability for you.

With that in mind, below I will look at how to conduct an induction and what to include within it but I will also be realistic. I know it is also important to minimise the time that you have to spend on it so there isn’t a major impact on your own workload whilst they settle in.

Experience has shown me that the larger the organisation, the more detailed the induction tends to be and this is also true in environments where health and safety issues are at their highest. However, a good induction should be viewed as vital for all companies, large and small. So, how do we create a simple induction?

First - Ensure The New Employee Is Expected.

This is the most basic of things and you would think that this was obvious but I am writing it because recruitment usually occurs due to time pressures within a business and it is amazing how often the employee turns up to find everyone running around trying to work out what is happening and what they are there for. Further, it's not unusual for the manager not to be around at the appointed time, which only adds to the confusion.

So, the absolute basics to ensure a smooth start are:
  • Ensure that the new employee knows who to ask for when they arrive, that this nominated person is aware of their role, and also that there is a back-up person to contact in case the original nominee is late or ill. Provide contact numbers too, so that the new employee can get in touch if they are running late or delayed. They will realise that being delayed is not a good start but there is no need to compound their trepidation by not providing them someone who they can let know.
  • Let your staff know the name of the new employee, where they will be sitting or based, the role of the new employee and their start date and time. In a large team this can be conveyed via an email and takes very little time. However busy an environment and however low staff morale may be, new employees will be looked after if they are expected and they will feel more comfortable.
  • Ensure that the new employee has a desk and the tools for their role so that the first impression is of friendly efficiency. This includes a workstation they can access and a business email address. The number of complaints I have taken from new placements about not having anywhere to sit or a PC, or that after a week or so that they can still not log on to the new employer's system. This definitely undermines all the work that went into making the hire in the first place.

Next Time:

What to include in the induction, and your role.

ENSURING THE NEW EMPLOYEE ACTUALLY DOES JOIN YOUR COMPANY

Even though the job offer you've made has been accepted, there are still potential risks which may mean that the candidate will not actually start with you. The key risks are:

  • The contract of employment not being acceptable.
  • The candidate accepting a counter-offer from their existing employer.
  • The candidate accepting your offer but continuing to look for 'better opportunities'.

The Unacceptable Contract Of Employment:

In my experience this happens very rarely. Normally, the employer is aware of parts of the contract or expectations which may be troublesome and will cover them during the interview so that the employee is expecting and accepting-of the requirements.

For instance, many IT consultancies require that the employee is flexible on where they will work, meaning they could spend several months at a time working away and coming home at weekends only. For many this is acceptable and for those for whom it is not, it should have been made very clear at the outset of the process so they will not have even been interviewed.

If the contract is an issue and cannot be resolved by an amendment by the employer or an explanation to the candidate, it is, in my experience, generally because the candidate is not too keen on the role and the issue with the contract is being used as the reason not to take the role.

Accepting A Counter-Offer From Their Existing Employer:

If the candidate is going to be a key employee for you then it is very likely that they will be a key employee for their existing employer. Thus, it will be a surprise and an issue for the employer when they resign.

The typical thought process for the existing employer will be along the lines of: “how will I manage these activities and replace the employee?”, followed by “how can I keep them?”

The existing employer will have a very good idea about how to keep the employee because they will have worked with each other for some time and the employee will probably have been open about the reasons for moving when handing in their resignation. If the employer offers some more money and a change of role and plays on the loyalty that will have been engendered over time, there is a high risk it will result in the employee opting to stay with their existing employer and you having to carry out the search all over again.

To try and prevent this happening it is worth talking about the potential of a counter- offer in the interview and actively helping the candidate resign.

The time to talk about a possible a counter-offer is towards the end of the interview. The candidate will be comfortable with you by then and you will have been running through the opportunities for their personal development within your business and the goals for the business overall. Talking about the risks of accepting a counter-offer at this point can be the most effective way to dissuade the candidate from taking such an offer if it arises.

It is difficult to script this type of conversation because each circumstance is different but the chronology of the conversation would be as follows:

  • Ask about what happens to staff at the candidate’s current employer when someone resigns? Depending on the company it could be that 'they are escorted from the premises immediately' (this often happens within a sales environment), through to 'they work their notice period'.
  • Next, ask what happens to key employees when they resign? The answer may well be 'they work their notice' or 'the employer tries to persuade them to stay'.
  • Even if the candidate does not talk about counter-offers, this is the time to discuss it and a statement similar to the following will work well to make the candidate realise that once he/she has resigned they should not take the counter-offer:
"I want this to be the right decision for both of us and it's important, if we both agree to move forward, for it to work out well. Of course, you can decide at any stage during the process that this is not the right job option for you but if we make an offer and you accept it then I would like us to both be clear that we are agreed that you are starting and there is no changing your mind. Is that okay?

"Another thing I want to cover, more for your benefit than anything else, is that as a key employee your existing employer may well make a counter-offer to you to stay as they will have been caught on the hop and will have problems if you leave, whether it's to work with me or somewhere else. To keep you, changes will probably be promised, a new role offered and maybe more money too. What I have seen time and time again in the past is that people who accept these counter-offers are looking again six months later, when the changes haven’t actually materialised. And, of course, by this time the opportunity they originally wanted will have gone - as will any trust from their existing employer because they tried to resign in the first place. You may have come across situations like this before? Anyway, I’m mentioning it now, more for your benefit so that you're aware of this kind of situation than any specific reason."
Dealing with the issue openly and pro-actively at this stage can save you a lot of trouble later.

The Candidate Accepting Your Offer But Continuing To Look For 'Better Opportunities':

With the best will in the world this will happen from time to time.

When you look back later and ask yourself what else you could have done, you will invariably remember having a gut feeling that everything didn’t feel quite right but you weren't able to put your finger on why. Your lesson will be to listen to this gut feeling and explore it further.

This is another reason not to make a job offer there and then at the end of an interview but to sleep on the decision overnight. When the niggle arises you can then replay events whilst they are fresh and you'll be able to pin down why they did not feel right.

It will usually be because the candidate was non-committal on a point or hesitated at the wrong time. Basically, it means they were not convinced about your opportunity. Unfortunately, if they accept the offer and continue looking at better opportunities there is little that you can do other than be slightly relieved because this is a reflection on the candidate’s integrity and may well have saved you from problems further down the road.

A caveat to the above statement is that sometimes the candidate will have multiple opportunities when accepting your offer and yours may not have been their first choice. Your questions at the end of the interview should have established this but that the candidate felt the favoured opportunity was dead because there had been no feedback. If the favoured opportunity subsequently comes back to the candidate then they will have a dilemma and they might well have a difficult decision.

The difference this time is how you find out about the other role being taken.

The candidate who was actively searching may not let you know that they are taking the other role or at best will send an email and will become difficult to contact. The candidate who has been presented with the tough dilemma will probably call you and talk you through the situation and why they are making the decision they are making. Neither particularly helps you but you would still be prepared to talk to the latter candidate in the future if a further opening arose and the timing was better.

The KEY Element To Ensuring That The New Employee Starts:

This is very easy: stay in touch! Don't receive the acceptance, send the contract out and ignore them until they start because they may not. Stay in touch throughout their resignation period, right up until they start.

Your aim should be to maintain their enthusiasm for joining you and you can do this by checking they have received the contract, regularly updating them on what is happening, telling them about day-to-day aspects of their new job such as where they will be sat, asking how they would like to be addressed on their business cards and what they will need to do their work (e.g. specific software or whatever), outlining what they will be doing when they start, and so on..

Next Time:

It is vital that the first few days with you are positive for a new employee as this is their first impression of you and your business and these impressions are difficult to change if they are not particularly good. Therefore, the induction is important and can be set up and run so that your new employees settle in and are very happy with their decision.

MAKING THE JOB OFFER (PT 2)

In the previous issue we looked at what to do prior to making the offer so that you've ensured you've established all the aspects of the package,  so that the offer you can make is as attractive as possible.

We then looked at how best to make the offer and manage the acceptance and also how best to ensure that your offer is accepted if it is below the candidate’s expectations.

In this issue, we carry on with the steps involved in make a job offer, right through to the candidate starting with you.

Confirm The Offer In Writing:

Once the candidate has said 'yes' it is important to follow up with the written confirmation of the offer and the contract of employment.

Most candidates accept a position on the proviso that it is subject to contract and therefore the letter and contract must be sent quickly to prevent the hire unravelling. If you run your own department or business this should be very straightforward. In larger organisations it can take a couple of weeks to send out the paperwork via the official channels and this provides plenty of time for the candidate to become disillusioned with the new employer and - potentially - to therefore continue to look at other options in the market place. I have seen numerous appointments not happen because of the delay in issuing the offer letter and contract and my firm advice is to avoid this at all costs!

The Offer Letter:

The offer letter is a positive document that welcomes the candidate to the team and provides a summary of the package and expectations as detailed in the verbal offer you've already given.

It should detail all the benefits that come with the job - that is, all the aspects that you brought together prior to contacting the candidate to make the offer: annual holiday entitlement, guaranteed bonuses and annual bonuses, allowances and so forth. (All the points detailed in the previous edition of this blog.)

And, of course, the offer letter also needs to detail the expectations that come with the job - again, as you pulled together earlier. (Things such as working hours, dress code and so on.)

The offer letter should also have two copies of the contract of employment enclosed.

The Contract Of Employment:

This section has been written specifically to help people who are just starting their own businesses and those who do not have contracts of employment. Larger / established employers will have a standard contract of employment with a schedule to add the salary, holiday entitlement and any special conditions.

For anyone reading this who is just starting out - of course it is important to be legally compliant but it is also vital to conserve money wherever possible and paying solicitors for an employment contract is an expense which you may want to put off until it is absolutely necessary.

Employees are entitled to be given a Written Statement Of Particulars within two months of their starting date. Below, please find a link to a sample of a Written Statement Of Particulars, provided by BERR and Business Link:

BERR / Business Link

What's The Difference Between A Contract And A Written Statement Of Particulars?

A contract of employment exists as soon as an employee starts work. Starting work proves that they accept the terms and conditions offered by the employer. Both employer and employee are bound by the terms offered and accepted. Often the contract is verbally agreed and not written down.

However, employees are entitled by law to be given a written statement setting out the 'main particulars' of their employment within two months of their start date. The Business Link tool linked-to above enables you to meet your legal requirement to provide these statements.

There are other optional contractual terms that you may need for your business, for example covering who owns the intellectual property created by your employee, or confidentiality agreements. If this is the case, you may want to consider including these within a written contract.

If employers want to change the terms of an employee's contract of employment, they need to get his or her prior consent to the changes. Employers are not required to issue a new written statement each time one or more of these particulars change. However, they are required to give employees written notification of any changes within one month of the change occurring.

It is important to understand that the Written Statement Of Particulars is not a contract of employment. However, a standard contract of employment template can be purchased from about £15.00 on Internet - for example from this site.

Rejection Letters:

Once you've succeeded in filling the vacancy, then you should either phone the rejected candidates and/or write to them to let them know that they have not been successful. You should approach this in a similar way to the way we rejected unsuccessful candidates at CV stage in Issue 10 of this blog (Protecting your Reputation and Setting up Interviews (Pt1). The conversation/letter should be polite and constructive, so that the unsuccessful candidates remain positive about your business and would entertain looking at you again in the future if applicable, or recommend your business to other people as potential customers or employees.

Next Time:

Taking steps to ensure that the new employee actually does join your company.