ben baldwin meshu; may 17 2010

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Hiring Mistakes: A How-To Guide! Ben Baldwin, Co-Founder

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Do you like making hiring mistakes? Of course not; they’re not fun. Getting the right (or wrong) people on your team can make (or break) your business, but it’s tricky to get this right. In fact, all the innovation over the past 30 years (job boards, hiring software) hasn’t impacted employee hiring success in a material way. Average employee tenure has been dropping like a stone and employee turnover rates continue relatively unchanged. Hiring mistakes are so accepted that “money-back guarantees” have become table stakes for any recruiter. But there IS a better way. In this session, we’ll review some epic hiring mistakes and how to avoid them ... also how you can hire great people who will stick around a long time and help increase the value of your business.

TRANSCRIPT

Page 1: Ben Baldwin meshU; May 17 2010

Hiring Mistakes: A How-To Guide!

Ben Baldwin, Co-Founder

Page 2: Ben Baldwin meshU; May 17 2010

Hiring Mistakes: A How-To Guide!

Ben Baldwin, Co-Founder

Page 3: Ben Baldwin meshU; May 17 2010
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Blog | MakeHiringEasy.com

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Hiring is not a problem … right?

Technology has !xed it … right?

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On average, 45% of new hires leave in the !rst 6 months and 15% of new hires are !red within the !rst year*

* Charles A. Handler, Ph.D. (2009) Using Technology to Support Informed Decision Making Within the Hiring Process

Page 11: Ben Baldwin meshU; May 17 2010

Employee turnover costs range from 1/2 to 5 times an employee's annual wages*

* Charles A. Handler, Ph.D. (2009) Using Technology to Support Informed Decision Making Within the Hiring Process

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Average employee tenure has been dropping like a

stone and employee turnover rates

continue relatively unchanged

* Employee Bene!t Research Institute, 2006 ; HR.com, All-Time Low Employee Tenure Draining Knowledge.

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Money-back guarantee!

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Yes

You are screwed

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Agenda

1.! Your time is too valuable to waste on preparation!

2.! If you build it, they will come!

3.! Hire !rst, ask questions later!

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1.! Your time is too valuable to waste on preparation!"

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Why invest your time with hiring? "

Your strength is managing weak employees … right?

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1.! Enjoy spending 100% more time hiring! "

2.! You get to !re 15% more people

3.! Relish expanding your costs 50-500%! "

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Hiring smart people has been the single most important thing

- Bill Gates

The di#erence between an A team and an A+ team is $1 billion

- Paul English, Co-Founder of Kayak.com

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1.! What do you need?

2.! What don’t you need?

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Expe

rien

ce

Personality

Job Fit Experience AND Personality

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Can they bootstrap?

Will they part with their expense budget?

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1st in the American League West with a record of 96 wins and 66 losses ...

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You can predict

who will succeed

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How?

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Ask what business you are in … really?

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Ask what is success

for your job?

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Ask what type of person do you need?

" ! Take leadership

" ! In$uence others

" ! Driven

" ! Recover from setbacks

" ! Tolerate risk

" ! Take Leadership

" ! Team-Oriented

" ! Service-Oriented

" ! Self-Regulating

" ! Learn & Problem Solve

Job A Job B

Page 32: Ben Baldwin meshU; May 17 2010

" ! Take leadership

" ! In$uence others

" ! Driven

" ! Recover from setbacks

" ! Tolerate risk

" ! Take Leadership

" ! Team-Oriented

" ! Service-Oriented

" ! Self-Regulating

" ! Learn & Problem Solve

Ask what type of person do you need?

Sales Rep Manager

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2. If you build it, they will come!

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When someone mentions the name of a person that they think is exceptional, I give myself seven days to track them down, make an o#er and have them accept it.”

- Paul English, Co-Founder, Kayak.com

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1.! What is their job acceptance criteria?

2.! What is their job search process?

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*CareerXroads 9th Annual Source of Hire Study – www.careerxroads.com

Job boards can be tricky for small business!

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Give > Get

2 ears, 1 mouth

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Halo e#ect

Diagnostic bias

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Attractiveness in$uences interview

results*

*Richard Ilkka, Business Communication Quarterly (1995) 11-18. "

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The predictive

value of traditional recruiting methods is

about 14%*

*Robert P. Tett, Douglas Jackson and Mitchell Rothstein, Personality Measures as Predictors of Job Performance, Personnel Psychology, Winter 1991, Michigan State University’s School of Business

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EEOC

OFCCP

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… !re quickly

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1.! Everyone processed/assessed using the same tools (even if they’re your friend)

2.! Interview template with questions that work

3.! Multiple interviewers

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1.! It’s predictive

2.! It’s faster

3.! It’s fair

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Men wanted for hazardous journey. "Small wages, bitter cold,

long months of darkness, constant danger, safe return

doubtful. Honour and recognition in case of success.

(Ernest Shackleton's 1914 ad in the London Times for his expedition to cross Antarctica from sea to sea, via the pole)

Page 51: Ben Baldwin meshU; May 17 2010

Shackleton received more than 5,000"applications*

*!"#$%%&'()*+*#&,*-(./0%)*+*%1/'&2345!-6+7&3.'8

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$2,000 to leave after

training

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3. Hire !rst, ask questions later!

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*CareerBuilder.com survey, 2006..

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1.! Open-ended questions

2.! Based on candidates’ strengths/weaknesses

3.! Pause …

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Dig deep

Ask:

“Please think about your most signi!cant accomplishment. "Now,

could you tell me all about it?”

*Lou Adler. "

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Can they set goals?

Ask: “What important target dates did

you set to reach objectives on your last job? "How did you set the

dates? "Exactly what were they, and what were your results?”

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Can they lead?

Ask: “Individuals vary in their ability to use power or

persuasion to in$uence others. "Give me an example of a time when you used either

power or persuasion to guide another person to a worthwhile objective. Be speci!c. "Exactly what did you do, and what were your results?”

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Use references to minimize exaggeration

Ask: Who was your last boss?" What will they tell

me about your strengths and weaknesses when I call them this afternoon?" Outcome:

more honest discussion of weaknesses.

*Scott Armstrong interview on MakeHiringEasy.com blog. "

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1.! Neck touching

2.! Rubbing !ngers together

3.! Shoulder up

*Joe Navarro. "

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Have others interview them:

1.! On di"erent days

2.! In a social or other setting

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1.! Problem-solving interview

2.! Salary negotiation

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Invest yourself in hiring …

… to avoid spending even more of yourself in managing and !ring

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1.! Focus on what’s important and what’s NOT important

2.! Hiring is sales not just marketing, stupid

3.! Interview for !t, in addition to technical ability

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Follow these steps …

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… and your wildest dreams will come true

Thank you! Email | ben@clear!t.com

Blog | www.MakeHiringEasy.com