As the economy expands, many builders face a workforce shortage. Survivors of the Great Recession made it through by making painful cuts, including layoffs. The pain of letting people go remains a vivid reminder of the enormous personal commitment an employer makes to employees-for many of us, employees become family.
This is why some savvy (and maybe gun-shy) business types, like Ellen Somers, Controller at Wagner Homes, suggested in a recent post on LinkedIn that the wisest builders outsource critical functions that ebb and flow with demand, and would not repeat the mistake of hiring again. But another post reminded Somers that subcontractors have also reduced resources to match revenue, and somewhere along the line somebody has to start hiring if we’re going to get anything built. And maybe that’s you. Or will be. So let’s consider ways to make hiring easier and more likely to succeed.
Hiring Right
Write a job description: Before doing any hiring, part or full time, it pays to create a job description. Every person in your company should have one, including you. A job description defines the roles and responsibilities of a position. It does not have to be complicated (we’ll get into some examples next post), but with a description in hand you can more easily determine the qualifications required and a fair wage.
This document later becomes a part of the employment contract when you do hire, and will serve as an impartial basis to determine if an employee fulfills the duties required or not.
Interview at least five candidates before making a hiring decision, and never make that decision on the spot. Your hunches about people reveal a lot about the chemistry between you, but this does not always provide the best guide to a good employee. I have hired on this basis and regretted the decision, even when I truly liked the employee. Gut feelings should represent no more that 50% of your hiring decision, the other is based on two concrete questions: 1. Can the prospective employee do the job, and 2. Will he do it?
Based on the job description, you have a good sense of the qualifications required. You can determine whether a candidate has these qualifications by interviewing and asking about their education and training, employment experience, and tools owned, as this often provides a good insight to an employee’s level of commitment to the trade. Finally, you can ask your two best candidates, the two finalists to come on the job for a day as part of a paid, working interview.
This working interview will tell you a lot about an employee’s attitude, helping answer the question, “Will he do the work?” I have hired very well qualified candidates that failed on the job because of personality hazards, such as trouble taking orders, or inconsistent work habits, lack of social graces, or overwhelming personal problems that consume the employee’s energies and mental focus. These issues are difficult to tease out in an interview, although you can probe a candidate regarding their ambitions, interests, what they hope to gain from employment with you, besides a paycheck), and most important, what they liked and disliked about a prior job, and why they moved on.
Check references: You can learn a lot about a candidate talking to an old boss. Stress the importance of this hiring decision to the person you interview, and ask for candid, honest answers. Press for specifics. Listen carefully to tone as well as content. Find out why the employee left the old job, and see how the bosses reply compares to what the candidate told you. I always wrap up this employee reference interview by asking, “Would you hire this fellow again?” Ex-employers often hedge and won’t provide a derogatory recommendation, but lukewarm and terse responses may signal a problem.
Once you have chosen a candidate, the job offer should be made over the phone and then followed up by a formal letter. You’ll often have to negotiate salary or other terms. Never rely on only one candidate, always have a runner-up, as well-qualified individuals often receive multiple offers during a job hunt. They are interviewing you, as much as you are interviewing them.
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