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The reduction in birth rates in most of the developed
world that started two to three decades ago is creating a shortage
of near-crisis magnitude. This shortage is of people in the prime
working ages of 25-44 years of age, and will be with us for the
next 20 years because population-driven demographic problems are
created and altered over long time frames.
The links below highlight some of the solutions for finding and
keeping good employees:
Conducting Interviews
Your best source of insightful information from potential job hires
is to ask questions that seek attitudinal responses, not just quantitative
answers. Although it’s very important to assess each candidate’s
skills and knowledge in relation to job responsibilities, you also
can obtain some valuable perspectives on candidates' personality
and work ethics by asking what they "liked" and "disliked" about
their current and previous jobs, as well as previous supervisors
and employers.
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Employee Retention
Retention of current good employees is a major HR priority. To do
this, you must show them what career opportunities exist for them,
and then give them the chance to pursue these and be rewarded properly
along the way (both with recognition and money and/or perks). Since
the pyramid of top organizational jobs narrows rapidly, cross-functional
moves with associated pay and recognition are increasingly necessary
and help in two ways. Cross-trained people are more productive,
and their personal worth is enhanced.
Slowing the movement of qualified people to early retirement by
creating classes of "working retirees," who work flexible
schedules and less than full-time hours, will help further retention.
Obviously, using technology to the fullest is necessary and this
entails keeping the entire workforce -- young and old alike --trained
in the latest tools and techniques. Creating an involved, committed
and empowered workplace for people will both help retention and
encourage referrals to fill new needs.
High-achieving people tend to enjoy working together and become
the best recruiters for the company they truly believe in. While
the Internet is a cheap and an easy place to look for people, it
is in its infancy with regard to how well it works for different
kinds of jobs. Learn about it, try it and use it in situations to
assess how it works for your company. But realize that for the next
few years you will still have to depend largely on traditional recruiting
techniques -- internal job posting, relationships with colleges
& universities, networking, referrals, advertising, etc. --
to bring in many of the best people.
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Hourly & Clerical Hiring
This group as a whole works to earn a living -- and gain the psychological
rewards in the process -- not vice-versa. That means that their
families and personal time demands are major elements in their work-life
balance. Structuring jobs that are meaningful and involve them but
permit some work-time flexibility will make these people more loyal
and harder for competitors to steal.
It is wise to use professional screening and assessment tools for
hiring all employees but especially for this group. The tendency
is to "bring in a bunch of bodies" to fill needs, which
usually results in high turnover, poor morale for those who stay
and poor quality, productivity, etc. in the meantime. Once you have
hired a person who is likely to fit the job, then it is wise to
invest in training them and provide support (funding) if they wish
to pursue further education on their own. These kinds of programs
can be structured as "golden handcuffs" of a sort for
hourly & clerical, with a tuition payback provision if an employee
leaves the company in less than a specified time frame after payment
for the educational costs.
Show employees that there are real internal paths to career advancement
by looking first internally (and posting jobs) to fill entry-level
management jobs from this group -- and then do it whenever you can.
This means the candidate will be someone you know more about than
a resume, an interview and a few tests. Don't let "familiarity
breed contempt" -- look at their strengths first, then shortcomings,
and consider how those could be overcome. A loyal, dedicated person
can learn new skills and some new habits, too. Once this kind of
internal promotion becomes prevalent, the workers will help do the
recruiting of new people because they will feel good about the company.
The best way to assure a good supply of workers is to be a great
place to work!
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Succession Planning
In its simplest form, a succession plan -- as far down the organization
as those jobs reporting to V. P. level -- requires a simple organization
chart. Add 2 or 3 lines under each box (position), and then write
in who would fill that position if the incumbent were gone. Code
these names three ways:
- Ready now
- Requires development for the next 12-24 months
- Lateral move
People in other similar level jobs might make "lateral moves"
to be successors, but then you have "moved a hole;" albeit
the person may have "ready now" successors in the other
job that makes that hole easier to fill. Then consider what must be
done for development of those who were marked "requires development
for the next 12-24 months" and make a 1-page written development
plan. These people must receive special attention to get them ready
for the next promotion -- and to not lose them to someone outside
who has the promotion they might want ready for them "now."
Discuss these confidentially among senior management at first. Later
on, the succession plan can be shared with those on it -- but just
their own position. Caution: Assume someone will find out the contents
of the succession plan and people who don't "make the list"
will be upset and at risk of leaving! Be prepared to tell them honestly
what they must to do to "make the list."
If your chart is bereft of names or has the same few names filling
many spots (more than 3 listings of the same person is not desirable),
it is time to start bringing new talent into the organization. Recruit
these people specifically based on jobs they might hold upon entry
and jobs they might be promoted into. A little time and thought up
front on this area will pay big dividends later. Inevitably, some
people will leave the company unexpectedly, so you had better plan
on it -- and what you will do when it happens.
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Temporaries & Contract Employees
The proper use of this class of employee is a critical skill in today’s
labor-short, rapidly changing environment. Choosing the temp agency
you deal with is a critical decision -- there are good ones and there
are bad ones. Building an open communications process with clear descriptions
of what kind of skills are needed and what kinds of workers are to
be avoided are the next steps. If the agency will work out any kind
of productivity-sharing compensation plan (assuming you have the measures
in place to support it), that is a win-win proposition. Some expectations
of turnover must be discussed up front, including what to do to avoid
massive turnover, which is a lose-lose proposition.
Temporary employees are intended to be just that. Use them that way
-- for peak demand, to relieve excessive overtime, to add seasonal
capacity, etc. Don't expect the cream of the worker crop -- those
already have jobs. Keep the work simple, easily taught and monitored,
and set firm standards for acceptable behavior and enforce them. Work
this out with the temp agency up front too!
Contract employees may be around for an indefinite time, and thus
require somewhat different management. If you plan to make contract
employees a regular part of your workforce (or your entire workforce),
then you must manage as if they were your employees, and all of the
practices of good employee relations management apply: communications,
measures, feedback, teamwork, etc. The only difference is that you
are, in effect, hiring the contract agency (if there is one) to perform
most of your administrative duties. If there is not an agency, be
sure you know the prevailing laws and regulations in your area about
what is a contract employee vs. a regular employee. You may find just
when you want to lay off a group of "contract employees"
that you can't -- or that you incur separation costs as if they were
regular employees.
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Picking the Right Ones
Screening and hiring, then retaining the best people is critical.
Then keeping them trained in current/new technology and not losing
them to competitors is the next challenge. There are many time-proven
screening and assessment tools that are both legal and very useful
to use in hiring. Don't use the "mirror test" (if they breathe
on a mirror and it fogs up, you hire them!) Do as many background
checks as you can (legally). Look for problems in prior jobs, with
the law, credit problems, and for patterns of repeated changes of
jobs. Get help developing good, legal but penetrating interview questions.
Learn what you can't ask them too (i.e., questions that would violate
their civil rights -- for example, their age).
There are also tests, which are legally appropriate, that help assess
how the person fits specific job needs (i.e., lifting a given weight),
if they have claimed skills (dexterity, or know-how) and if they will
fit the company culture (personal traits -- i.e., avoid "chronic
malcontents who will usually reveal this under good interview questioning).
Many experienced and respected companies can provide these kinds of
testing regimens.
Check applicants' references and consider the source of how they found
you or vice versa. Use caution in hiring relatives of current employees.
This can be a two-edged sword -- you can get some really good people
-- or you can get some really sticky problems. Employee theft and/or
malicious mischief can be a real problem. Do a good, basic orientation
for all new hires: company history/purpose, goals and objectives,
rules and practices, who to see for what, and provide them an employee
manual or equivalent outlining the basics for their reference (and
your protection).
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Education & Training
There are pervasive problems in public education. The result is unprepared
young people entering the work force, and the need for employers to
complete their education. Work cooperatively with the secondary or
high schools and junior colleges, trade schools or community colleges
in your area. Sharing with them what your needs are, and helping them
develop the curriculum they provide for students can make a big difference
in the quality of your incoming workers. Providing employees to help
teach courses or do guest lecturing is a valuable service both to
the community and the company.
For management hiring needs, it is smart to form a partnership with
a few nearby universities who specialize in areas that match your
needs. Interns and coops are inexpensive, talented short-term help
and provide for an extended interviewing process before hiring them.
This is a good way to "grow your own" people on a continuing
basis. Special needs can be fulfilled by sponsoring classes, either
in-house or at a nearby location -- or via distance education and
using Internet-based interactive media. Proactive companies control
much of their own destiny in this area.
We cannot solve the problems of the educational system here, but the
best, most effective things to do is "get involved" and
influence the outcome in your own area or community.
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Teams & Collaboration
There are reams of information about this topic. The most important
point to remember is that true collaboration is at the heart of teamwork.
Collaboration is an act of shared creation or shared discovery. At
the heart of collaboration is the desire to create something or discover
something, solve some sort of problem or get something done. The phrase
to always keep in mind is "what’s in it for me?" That’s
what employees will be thinking. Answer that question satisfactorily
and most people become willing members of collaborative teams.
Don't assume that being part of a team or leading a team is a natural
skill. Train people how to lead teams and how to participate as team
members. There are many consulting organizations that help companies
with this and many good books on how to do it effectively.
One challenge is how to involve and empower a workforce where 20%
of the people probably don't want to be empowered. The best way to
do this is a combination of "peer pressure" and "the
bandwagon effect." When it becomes the socially acceptable thing
to be part of teams and a collaborative, participate effort, others
who were initially reluctant will join in. When the movement really
gets going, all but the staunchest holdouts will "jump on the
bandwagon" for fear of being left on the outside. There will
always be a small minority (<5%) of cynics and skeptics who will
ultimately opt to not get involved or go elsewhere to work.
Making people feel they want to contribute innovative ideas and that
there will be a return for such contributions is another challenge.
This goes back to the "what’s in it for me?" issue. Remember
Maslow’s hierarchy of human needs. After survival, personal needs,
and security, comes the need for affiliation (with some group), positive
recognition/self-esteem and ultimately, self-actualization. Just get
part way up that hierarchy and ideas will start to flow -- people
love to give their ideas if they are recognized and appreciated.
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Performance Appraisals
Performance appraisals identify how an employee’s performance has
measured up against previously agreed-on objectives, pinpoint areas
requiring improvement, and identify an action plan with a new set
of objectives. The appraisal form should note the employee’s name,
department or division, job title, appraisal period, and date of the
appraisal meeting.
Instructions for completion and use of the form should be clearly
written, including an explanation of the rating terms (e.g., outstanding,
above average, average, below average, and unsatisfactory). Ratings
should always be supported by specific examples. Most forms also have
an overall rating. The evaluation portion of the form should encompass
the categories relevant to a given job or job level. In this respect,
some companies have separate forms for exempt and nonexempt positions.
Generic categories applicable to any performance appraisal form include
areas of responsibility, knowledge of the job, demonstrated skill
level, communication, quality of work, quantity of work, and attendance
and punctuality.
In addition to evaluating past performance, appraisal forms should
call for agreed-on steps for improving performance. Accordingly, sufficient
room should be made available for the evaluator’s comments. Employees
should be encouraged to comment on the contents of the evaluation.
The type of form used depends largely on the organization’s performance
appraisal method. The commonly used methods for evaluating standards
of performance are management by objectives, essay evaluation, graphic
rating scale, weighted checklist, behaviorally anchored rating scale,
forced choice, critical incident, ranking, and paired comparison.
The choice of many companies over the past few years is the 360-degree
performance appraisal, consisting of feedback from a number of people
who deal with an employee on a regular basis. The form for this method
is generally one or two pages with five to fifteen questions and room
for additional remarks. The data and perspectives are then pooled,
resulting in a final evaluation.
At the end of the form, leave room for the signatures of the appraising
manager, employee, next level of management, and human resources.
Because of the space required in performance appraisal forms, such
forms should have an appealing look that is easy to follow. This can
be accomplished through the use of such design elements as heads,
boldface type, and list formats.
Bear in mind that a well-designed appraisal form is worthless if the
appraising manager is not well prepared for the face-to-face meeting
with the employee and fails to practice effective communication skills
during the evaluation.
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Job Descriptions
A job description is a formalized document of factual and concise
information, descriptive of the identity of a job, its responsibilities,
and the work it entails. This multipurpose tool can be used in virtually
every aspect of the employment process: recruitment, interviewing,
selection, job posting, training and development, performance appraisal,
promotion, transfer, disciplinary action, demotion, grievance proceedings,
employee orientation, work flow analysis, salary administration structuring,
clarifying relationships between jobs and work assignments, exit interviews,
and outplacement.
Since job descriptions can be used for so many different purposes,
care should be taken to make them as comprehensive as possible. Initially,
this task will require a fair amount of time but will prove well worth
the effort.
The exact contents of a job description will be dictated by the specific
environment and needs of an organization. The following list provides
the 12 basic categories of job information required for most positions:
- Date prepared
- Name of the job analyst
- Job Title
- Division and department
- Reporting relationship
- Location of the job
- Exemption status
- Salary grade and range
- Work schedule
- Job summary
- Primary duties and responsibilities
- Job requirements
Additional categories may be relevant:
- Physical environment and working conditions
- Equipment and machinery used
- Other (such as customer contact or access to
confidential information)
The format of a job description should include
a well-spaced listing of duties and responsibilities, beginning
with the task requiring the greatest amount of time or carrying
the greatest responsibility. Accompanying this list should be a
column with corresponding percentages that represent the estimated
amount of time devoted to each task. In addition, each duty should
be labeled E or N, for essential and nonessential
functions, respectively.
Most job descriptions run from one to three pages.
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Making the New Hire
Feel at Home
One of the most effective ways to make a new hire feel at home is
to provide him/her with a fully equipped office, including nameplate
and business cards. Make sure you personally introduce your new
hire to everyone in the office, particularly those who will be interacting
with this new person on a regular basis. A welcome lunch provides
a congenial touch.
But most important, make sure you conduct an honest and open welcome
meeting with your new employee. Discussion should focus on outlining
near-term objectives and goals to ensure an immediate action plan.
Discuss, too, any skill defaults that your job interview identified
and develop an employee development plan to fill identified gaps
in "know-how" and ability. If you don't want to schedule offsite
training, assignment of an experienced job buddy can help.
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Employee Retention/Counteroffers
Management experts generally are divided over whether or not to
make counteroffers to employees. Some say they are necessary, particularly
when an individual will be difficult to replace. Others warn that
counteroffers can cause bad feelings among other employees or managers
and actually do not guarantee that the employee will stay for long.
So be careful. If a person has decided to leave and accept another
job offer, chances are he or she cannot be talked out of it. Making
a monetary offer could change the person’s mind, but it also could
backfire in terms of creating resentment among other employees.
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Termination
for Cause
An employee is difficult to work with and you want to terminate
him or her. Be careful. When not handled correctly, the termination
process can put you -- and your company -- in major liability. Consult
your company’s HR department and explain your concerns. Make sure
that you have documented all instances of difficulties encountered
with this employee. To justify your actions, you will need to show
that you conducted meetings with the problem employee to discuss
the performance issues.
If you haven't done so yet, HR likely will ask you to get together
with the employee to work out a plan to improve performance based
on measurable goals. Be sure to document these discussions as well.
Documentation should identify both failures and improvements to
demonstrate an objective assessment. If there is a continuation
of interpersonal difficulties or other problems, then consult again
with HR. They likely will support your decision to terminate the
employee. Don't worry about legal repercussions. Even if the employee
chooses to take the decision to court with a wrongful-discharge
claim, your documentation can be used to support the termination
decision.
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