1. BUS 207 _ Session 2 Spring 2006 copyright, sjh Recruiting and Selecting Employees for the Small Business Part II

2. Use the OUCH Test Small Business owners can use the Ouch Test as a guideline for their interview questions O Does it Omit references to race, religion, color, sex or national origin? U Does the question Unfairly screen out a particular class of people? C Can you Consistently apply the question to every applicant? H Does the question Have job-relatedness and business necessity?

3. Questions You Want to Ask Develop a series of core questions and ask them of every candidate. Many of these questions are “character” questions assessing the candidate’s personality. Ask open-ended questions instead of yes or no questions. These may include on-the-job scenarios. Try to get them to talk about their experiences. As questions to describe a recent success and failure and how they dealt with it. As hypothetical-situation questions on how they might respond to an encounter on the job. Probe for specific example in the candidate’s work experience by asking follow-up questions on their experience.

4. Final Step: Checking References Succumbing to the pressure to hire fast is a common error for small business owners. Managers need to take the time to do the follow-up reference check on all possible candidates. Checking references can help employers uncover false or exaggerated information and also verify what the candidate stated in the interview. Experienced employers talk to the past immediate supervisor of the candidate to get a clear picture of their job performance, character and work habits. According to the Society for Human Resource Management, more than half of all candidates exaggerate or falsify information about their previous employment. (Source: “Of Resumes and Rap Sheets”, Maxwell, 27, 2000)

5. What Employers Want Suitability and qualifications for the job –Right functional skills –Right technical skills Good fit with organization –Right personality and style –Appropriate level of maturity –Common interests High emotional intelligence Test Your EQ

6. Do You Have a High EQ? Think clearly and stay focused while under pressure Admit to your own mistakes Meet commitments and keep promises Hold yourself accountable for meeting your goals Seek new ideas from a variety of sources Handle multiple demands and changing priorities Make sacrifices to meet important organizational goals Cut through red tape and bend outdated rules Seek fresh perspectives Take on projects to seek success rather than avoid failure Set challenging goals and take calculated risks Sense of humor

7. Building the Best “Culture” for Your Business Environment When you are hiring you are taking a BIG step, for the employer and for your business. It is just as important to consider how the candidate will “fit” into your business culture, as their skills to do the job. Creating a culture is defined by “leadership” of the company…Culture arises from your consistent and relentless pursuit of a set of core values that everyone in your company can believe in. “ People are NOT your greatest asset! The “right” people are your greatest asset!” From, First Break All the Rules

8. Why have an Employee Policy Manual In order for an organization to function properly it needs to have rules to follow and policies to help proceed. An Employee Policy Manual is the guide for the employee and the owner. Your Employee Policies & Procedure Manual should describe the basic attributes of employment at your company that need to be known in advance before an employee agrees to accept your position.

9. Outline of Major Points that Should Be Addressed in An Employee Manual Employee Compensation Employee Benefits Employee Travel Policy Reimbursement of Expenses Hours of Work, Work Schedules Trade Secrets and Confidentiality Employee Privacy Employee Performance Evaluation Procedures Employee Suggestion Policy Employee Termination Policy Non-discrimination & Sexual Harassment Policy Employee’s Use of Equipment Policy

10. Discipline Your Employees If you have any workplace rules or policies there’s a good chance that eventually they will be broken. Enforcing those rules and policies is disciplining. Discipline DOES NOT mean terminating. (In fact, it is important to show this step if you do terminate later). Follow your employee policy manual and don’t make rash decisions. Use the “D” steps to guide you. Dig…. for information on what has occurred Discuss…the issues with the employee and listen to their side Deal…with the employee and make a Decision on whether to penalize the employee Document… All disciplinary actions to protect yourself.

11. Firing and Termination: Avoiding the Lawsuit Terminating an employee is at best unpleasant. To make it worse there is a growing number of lawsuits against former employees due to unfair termination practices. The best way to “win” a lawsuit is to avoid it in the first place and over the long run. Set up a situation that has a clear step-by-step procedure in your Employee Policy Manual. Make sure you follow the procedures and document EVERYTHING!

12. What NOT to DO when Terminating an Employee The very worst thing you can do is FIRE on the spot. This opens you up to a bounty of legal issues. Do not “terminate” anyone in a fit of rage or emotions - cool down and wait. Don’t get caught trying to reconstruct documentation ( like changing performance reviews ) If you DON”T PLAY FAIR, the courts will see that and side with the employee