In just 60-seconds, we’ll show you how to identify and attract the best people to your small business.

0:60 Define the Duties…

To find promising employees, you must first determine what you want them to do. Carefully consider all direct and associated responsibilities and incorporate them into a written job description. Be careful with general titles such as typist or sales clerk, as they have different meanings to different people.

0:49 …and What it Takes to do Them

Fulfilling these responsibilities will require some level of skill and experience, even if it is an entry-level position. Be reasonable about your expectations. Setting the bar too high may limit your available talent pool; setting it too low risks a flood of applications from those unqualified for the job.

0:37 Make it Worth their While

Likewise, you don’t want to be overly generous or restrictive about compensation. State and local chambers of commerce, employment bureaus and professional associations can help you determine appropriate wages and benefits. Scanning descriptions of comparable jobs in the classified ads and other employment publications will also provide clues about prevailing wage rates.

0:30 Spread the Word

How you advertise your job opening depends on who you want to attract. Some positions are as easy to promote as posting a “help wanted” sign in your store window or placing an ad in your local newspaper. For jobs requiring more specialized skills, consider targeted channels such as trade magazines, on-line job banks and employment agencies (though these may require a fee). And don’t overlook sources such as friends, neighbors, suppliers customers and present employees.

0:25 Talk it Over

Because you have clearly defined the role and requirements, you should have little difficulty identifying candidates for interviews. Make sure you schedule them when you have ample time to review the resume, prepare your questions and give the candidate your undivided attention. After the interview, jot down any impressions or key points while they’re still fresh in your mind. This will be a valuable reference when it’s time to make a decision.

0:12 Follow-up on Interviews

You want to believe your candidates are being honest, but never assume. Contact references to make sure you’re getting the facts or to clear up any uncertainties. Professional background checks are a wise investment for highly sensitive positions, or those that involve handling substantial amounts of money and valuables.

0:03 You’ve Found Them; Now Keep Them

Now that you’ve hired ideal employees, make sure they stay with you by providing training and professional development opportunities. The small business experts at SCORE can help you craft human resource policies and incentive plans that will ensure your company remains the small business employer of choice.

Brought to you by SCORE, America’s small business mentors, at www.score.org.

Be sure to connect with the local Billings Montana SCORE Chapter for face to face or online business mentoring.

Two of the greatest challenges for any business are hiring the right people and keeping them. Employees, and more importantly their contributions, are a business’ most important assets. A vibrant economy and low unemployment makes the competition for top performers an imposing challenge. So how do you go about finding, selecting and retaining the best people?

# 1 – Decide What You Want

Before beginning your hiring efforts, know what you want. One way to list the skills, experience, and other attributes you are looking for is in categories of:

• Must Have - skills you do not have the time, money or desire to teach but which are absolutely necessary to the job.
• Should Have - sets of skills in which the candidate should have some degree of knowledge or skill
• Nice to Have - what you’d love to have but can live without

# 2 – Search in the Right Places

Basically, the harder it is for you to find the skills you need, the wider the net you must cast. You may choose from local media, the District’s employment center, and using the Internet. View any employment ad as a marketing tool for your company, making it as appealing as possible. Put a headline on your ad that describes the absolutely best benefit you can offer. Be sure to add your must-have list of skills, experience, and education. To get qualified people without having to weed through a pile of applications, be specific about what you say and very selective about where you place the ad.

Don’t underestimate the value of networking. You may choose to ask your best employees if they know someone who would fit into your organization and might be interested in joining or use your network in the community to find employees.

# 3 – Conduct a Thorough Interview

Give the applicant a complete and accurate picture of your business. In today’s tight job market, you have to sell both yourself and your company. Through your questions, cover the job’s must-haves, should-haves, and nice-to-haves and be sure to obtain a clear picture of where the candidate is in relation to these attributes. Remember, good questions lead to good answers – the more you learn about each applicant’s experience and skills, the better prepared you are to make your decision. If you find yourself talking as much or more than the candidate, stop – you only learn about the candidate when you are listening. Don’t be afraid to press a candidate for more information – it is then that you may learn important information.

# 4 – Hire the Right Person

Some tips for choosing who to hire are:

• Go with your gut !
• Accomplishments are what really matter.
• Attitude counts.
• Be objective.

The three critical elements in hiring the right people for the job are skills match, company fit, and job match. Be objective in determining which candidates have the best overall fit.

# 5 – Hang on to Good Employees

Retention of employees is as important as the initial hire. An individual’s suitability to a particular job is the single most important factor in job performance and retention. Be sure to provide people jobs that fit with their personality and then take the time for a proper orientation. Listen to them and continue to provide training and skills development opportunities. Set clear expectations, show concern for employees, and treat them fairly.

Your business’ reputation is a key element in retaining employees and attracting new ones. Make sure that you know how your business is perceived in the community and do whatever it takes to make that perception a positive one.

*One final caveat:  In terms of wages, try to be a leader in your market – think about the cost of paying a little more versus the cost of turnover (roughly 25% of salary and benefits).

Source:  www.score.org

Connect with the local SCORE Chapter in Billings, Montana.

Whether you are already in business, or just thinking about it; one of your key resources should SCORE.org

But what is the SCORE Association?

SCORE, America’s premier source of free and confidential small business advice for entrepreneurs and small businesses, is a nonprofit association with 354 SCORE offices across the country offering free business mentoring and low-cost workshops. For 47 years, SCORE’s more than 13,000 working and retired business professionals have volunteered to support the success of small business nationwide. SCORE business mentoring is free and confidential. SCORE is a resource partner with the U.S. Small Business Administration (SBA).

What kind of mentoring does SCORE provide?

SCORE’s experienced business mentors provide general business advice on every aspect of business planning, start-up, management and growth. SCORE provides both in-person and online mentoring to entrepreneurs just getting started or in need of a seasoned pro as a sounding board for their existing businesses.

Does SCORE offer services other than business mentoring?

Yes. SCORE chapters provide business workshops and seminars on topics customized to the needs of the local business community. In all communities, SCORE offices advocate the need for business planning and offer an introduction to the fundamentals of a business plan. Workshop and seminar fees generally range from $20 to $75, depending on the type of materials included and program length.  For established businesses, SCORE offers in-depth training on topics such as customer service, hiring practices, using the Internet for business, marketing, home-based business operations and many other issues.

What qualifies SCORE volunteers to give business advice?

The key qualification SCORE mentors bring is real-world business experience. They are working and retired business owners, executives and managers who have been through the same challenges and decisions that many entrepreneurs are facing today. In addition, SCORE business mentors offer valuable expertise in specific industries. All SCORE volunteers receive specialized training offered by the association.

Are business secrets safe with SCORE?

Yes. All SCORE mentors honor the client’s right to proprietary and confidential information. All discussions and documents remain confidential. Each year, SCORE mentors reaffirm their commitment to protecting the privacy of client information by signing the association’s code of ethics.

What is the SCORE Small Business Web Site?

Since 1997, SCORE has offered a leading online business resource for entrepreneurs: www.score.org.

This site is a comprehensive small business resource, including Ask SCORE─SCORE’s 24/7 email mentoring service.  Entrepreneurs can use Ask SCORE to search a database of more than 1,200 SCORE online counselors with a combined knowledge of more than 600 business backgrounds. SCORE’s Web site also offers “how-to” guides, small business quizzes and a business toolbox with information and practical solutions for overcoming business obstacles.

How can I contact SCORE for business assistance?

1. Call 1-800/634-0245 and ask for the phone number of your nearest SCORE office.

2. Visit www.score.org to search for a mentor by specialty that can provide online advice.

3. Visit www.score.org and click “Find Your Local Chapter” to enter your ZIP code in the search field for the nearest SCORE offices.

4. Email contact.score@score.org with your location or ZIP code, and SCORE will reply with local contact information.

5.  Or connect with the Billings Montana chapter via their Synergy Station business directory listing.

That represents a major shift from what’s been happening. In 2011, for example, about 22 percent of business owners surveyed reported cutting jobs, while only 13 percent said they had added jobs, full-time, part-time or temporary.

When they do hire, small businesses have a strong desire to get the best people possible in the most cost-effective fashion. When asked what type of workers they’d hire if they could, 72 percent said they’d prefer to add temps, independent contractors or part-time workers, while only 26 percent said they’d bring on full-time employees.

If hiring does pick up, finding qualified employees could become a bigger issue. Even now, 53 percent of small businesses say they have trouble finding employees who fit their needs. While that’s down from 65 percent in 2005, it could become a bigger problem in the months ahead as competition for talented employees gains steam.

When you do hire, either for new or existing positions, it’s more important than ever to make the right choice. Hiring a bad employee can end up costing your business a bundle. Not only is it difficult and expensive to fire and replace an employee, it means that others have to pick up the slack along the way.

The key to cost control is to hire people who are the best overall “fit” for your business. Most companies hire based on skill, but end up firing for bad fit. That’s the wrong way to approach it. Start by creating a detailed “definition” of the job. Most employers write job descriptions that are just laundry lists of tasks and duties. A true job definition includes detailed information such as:

• What it takes to be successful in this particular job.
• How success will be defined and how it will be measured.
• Goals for the position, including different time frames.
• How the position is linked to other parts of the business.

Also realize that the traditional job interview is a poor predictor of future employee success. That’s why many employers are moving to performance-based interviews that use a standard list of questions and may involve skill or psychological testing. The goal is to get at the things that don’t usually come out in an interview, such as how someone will approach their work, how they cope with high demands and what types of activities motivate them.

Compensation – another key cost component – should include financial and non-financial incentives. Here are some to consider:

• Pay-for Performance: Set clear and reasonable goals that promise to put more cash in an employee’s pocket for reaching them.
• Flexible Schedules: Many employees today prefer flexible schedules and more time off over higher pay. Some small companies even offer every second Friday off as an incentive for everyone to work harder on the other days. Flexibility also translates into greater loyalty, which saves money on turnover.
• Alternative Rewards: These include small, informal spot bonuses for a job well done, gift certificates, luncheons, golf outings and parties or happy hours to celebrate work-related successes.

Avoid the Independent Contractor Trap

As business owners think about hiring, however, there’s a strong desire to keep costs down. Many have been optimistic about hiring before, only to scrap those plans when the economy failed to improve. When they do hire, small businesses have a strong desire to get the best people possible in the most cost-effective fashion.

One of the biggest money-saving moves you can make is to avoid the legal pitfalls of hiring independent contractors. Many business owners get burned each year thinking they’ll save money by paying people as 1099-based independent contractors when both the state and the IRS consider them employees.

The risks are high. Not only can you be slapped with back payroll taxes plus penalties, but if a worker is injured and files a workers’ comp claim, you could be forced to pay out of your own pocket, plus fines.

Copyright © 2000-2012 BizBest® Media Corp. All Rights Reserved.

Daniel Kehrer is Founder of BizBest (www.bizbest.com), an independent information service for small business and startups. © 2012 BizBest Media

Published February 10, 2012, www.score.org – “How To Articles”

Connect with the Billings Montana Chapter of SCORE for either local, face to face business mentoring or online counseling.            

]]> http://synergystation.com/business/score/how-to-keep-hiring-costs-in-check/feed/ 0 http://synergystation.com/business/youll-always-miss-100-of-the-shots-you-dont-take-wayne-gretzky/ http://synergystation.com/business/youll-always-miss-100-of-the-shots-you-dont-take-wayne-gretzky/#comments Sun, 01 Apr 2012 01:44:25 +0000 Laura McRae http://synergystation.com/?p=4682 With the tsunami of oil development in the Bakken oil field, many Montanans and North Dakotans are taking their shot at entrepreneurship.  While it’s true that there are over 18,000 unfilled, well paying positions in the oil patch; opportunities abound for individuals to launch their own businesses, and supply the ever increasing marketplace needs being fueled by the energy wave from Billings to Bismarck to the Bakken.

But where do you start?  How do you evaluate the quality of your business idea?  Who’s there to help you get through the start up bumps and bruises?  How do you cash flow your business? How do I obtain financing?  Where do I find the most profitable customers?

These are just a few of the many questions existing and aspiring entrepreneurs ask.  What complicates the issue are the unique obstacles and challenges business owners face in the Bakken.

Fortunately, there exists an organization to not only help you “take the shot”, but to help you SCORE !

SCORE is a nonprofit association dedicated to helping small businesses get off the ground, grow and achieve their goals through education and mentorship.   They have been doing this for nearly fifty years.  Because their work is supported by the U.S. Small Business Administration (SBA), and thanks to a network of 13,000+ volunteers, SCORE is able to deliver their services at no charge or at very low cost.

They can provide:

• Volunteer mentors who share their expertise across 62 industries.
• Free, confidential business counseling in person or via online.
• Free business tools, templates, and tips – online and on DEMAND
• Inexpensive or free business workshops locally or online webinars (24/7)

Start with SCORE.org