QuintEssentials: A Weekly Look at Leadership
Special to the Asheville Citizen-Times

Smart Hiring Practices Save You Big Bucks

Let’s say it’s time to hire a new employee for a pivotal position. (Yes, folks are still hiring, even in a shaky economy!) How do you proceed? Do you do everything possible to find the right person and—like a gardener transplanting a flower—help her get her roots firmly established in your organizational soil?

Too many leaders don’t. Maybe they hire a Negative Nelly because they’re dazzled by her employment pedigree. Or they’re so desperate to fill a vacancy that they take the first “warm body” that comes along. Or they find a great candidate but throw him in to sink or swim.

In tough economic times, you simply must have the right people in place. You must make good hiring decisions every time. That doesn’t just mean hiring smart, talented people. It means hiring smart, talented people who fit your company culture. And it means nurturing them once they’re on board.

I am going to share two simple hiring practices that will help you a) select the right people for your organization and b) start retaining them right away. (My book providesmore details on both.)

1. Let your employees choose.

That’s right. No one is better equipped to make a hiring decision than the men and women who will work with the new employee every day. That’s why I’m a huge advocate of peer interviewing. 

Basically, a peer group of high performers interviews candidates who have passed an earlier screening process. The group looks for previously agreed-upon attributes and captures them in a Decision Matrix, a tool that helps you evaluate candidates more objectively and consistently.

Peer interviewing creates a great beginning for your new hire. Not only does it ensure a good fit, culture-wise, it inspires coworkers to take a personal interest in the new person’s success. They chose him, so naturally they want him to do well!

2. Make the first 90 days count.

Did you know that more than 25 percent of employees who leave positions do so in the first 90 days of employment? It’s true. And it’s why you as a leader must keep the lines of communication open during this critical time.

That doesn’t mean asking “How’s it going?” as you pass your new employee in the hall. It means scheduling two one-on-one meetings in which you ask a series of specific questions aimed at retaining her.

At the 30-day mark, ask:

How do we compare to what we said we would be like?
Tell me what you like. What is going well?
I noticed you came to us from __________. Are there things you did there that might be helpful to us?
Is there anything here that you are uncomfortable with? Anything that might make you want to leave?

Then at the 90-day mark, re-ask these questions, plus two more:

Is there anyone you know who might be a valuable addition to our team?
As your supervisor, how can I be helpful?

Want to hear something amazing? Holding 30- and 90-day meetings can reduce your first-year departures by 60 percent or more!
 
Follow this practice, along with peer interviewing, and you’ll dramatically reduce turnover and save big money. One organization my company coached reduced turnover from 20 percent to 12.6 percent in two years, for a savings of $1.2 million!

Not only will you save time and money on training, you’ll create a workplace filled with employees who feel that their voices are being heard. Satisfied employees.

These are the people who go the extra mile for customers, who attract other high performers, who come to work full of zest and creativity. They’re the ones who will get you through the recession—and help you come roaring out on the other side, stronger than ever!