Bringing the Right People on Board

Marcia Simmering Dickerson, Ph.D.Associate Professor of Management

Louisiana Tech University

The Human Resource Management Process

Recruiting

Selection

Attracting QualifiedEmployees

Determining HumanResource Needs

Job Analysis & Human Resource

Planning

Compensation

Employee Separation

Keeping QualifiedEmployees

Developing QualifiedEmployees

Training

Performance Appraisal

You can’t do it all yourself…

Utilizing your time effectively What is your comparative advantage? Why are you in

business? What in your business can only YOU do? What can you

do, but it would be better for your business to hire someone else to do?

Delegate effectively…let go! What can’t you do as well? What do you need help with?

You can’t do it all yourself…Utilizing Outsiders

Advisory council/Board of directors May be unpaid, or paid on retainer Meet once or twice per year Provide objective & professional advice to owner/manager Clearly establish expectations (advice/vote?)

Professional Business Consultants Legal advice Financial advice Business expertise (marketing, HR, PR) Technical expertise (CIS)

You can’t do it all yourself…Outsourcing services

What can you delegate? (Either because you don’t have time or don’t have the expertise) Janitorial services Landscaping services Marketing/advertising/PR Bookkeeping/financial planning/taxes Recruitment/HR

http://www.doleta.gov/business/SolutionsToBuild.cfm

Determining Human Resources Needs: Job Analysis Job analysis allows you to create:

Job descriptions Tasks, duties, and responsibilities of the job What is the job? What are the essential functions the employees will

need to perform successfully? Consider asking new hires to create their own job descriptions

Job specifications Knowledge, skills, and abilities needed to perform the job Consider the importance of experience in start-ups Hiring criteria should be related to job performance or they may get

you in legal trouble (EEOC laws)

O*Net is a good resource (http://online.onetcenter.org/)

Determining Human Resources Needs: Organizational Chart Pictorial representation of the organization Establishes chain of command & reporting

relationships Encourage potential funder’s confidence that

you can & will staff with qualified employees

Small Home Construction Business Owner

Rental PropertiesManager

DraftsmanConstruction

Manager

Assistant

On-Site Supervisor –Property #1

On-Site Supervisor – Property #2

On-Site Supervisor – Property #3

Bookkeeper

Determining Human Resources Needs: HR PlanningHow do you know how many employees (and with

what skills) will you will need for the future?

Forecasting Demand and Supply Internal factors (e.g., expected sales, number of

clients, number of items manufactured) External factors (e.g., labor supply, level of

unemployment, changing demographics of workforce, strength of competitors)

Attracting Qualified Employees: Recruitment

Where will you recruit? Walk-ins Referrals Newspaper ads State employment agencies University recruitment fairs Internet sites Search firms

Flypaper approach or realistic job preview?

Attracting Qualified Employees: Selection Application forms (make sure they ask only

job-related information, not age, gender, ethnicity, etc.) http://www.officedepot.com/renderStaticPage.do?context=/content&file=/BusinessTools/tools/emplap_m.jsp

Use selection tools to differentiate between applicants http://apps.opm.gov/ADT/ADTClientMain.aspx

Attracting Qualified Employees: Selection through Structured Interviews Before the interview:

Identify and define the KSAO needed for job Develop key behavioral questions for each KSAO For each KSAO, develop a list of things to look for in

applicant’s responses

After the interview: Review your notes immediately

Evaluate the applicant on each KSAO

Determine each applicant’s probability of success and make a hiring decision

KSAO: Knowledge, skills, abilities, and other characteristics

Developing Qualified Employees: Training Providing company-specific skills upon hiring Renewal of skills, keeping up with new technology &

regulations Ways to train:

On-the-job training: coaching, shadowing, apprenticeships Off-the-job training: courses, online training, videos, role-

plays Training resource:

http://www.doleta.gov/business/TrainingEducation.cfm

Developing Qualified Employees: Performance Appraisal Objective performance measures

quantifiable outcomes (output, scrap, waste, sales, customer complaints, or rejection rates)

Subjective performance measures trait rating scales behavioral observation scales (BOS)

Performance Appraisal Scales

Developing Qualified Employees: Sharing Performance Feedback Managers often fail to effectively give

employees performance feedback Informal versus formal feedback 360-degree feedback

boss, subordinates, peers, and the employee best for employee development

Keeping Qualified Employees: CompensationHow much should I pay? Job evaluation is used to determine the

worth of jobs Wage surveys indicate “going wage” see

http://www.laworks.net/LaborMarketInfo/LMI_wagedata.asp

Should workers be paid at, below, or above current market wage? Paying above “going wage”… attracts a larger, more qualified pool of applicants increases the rate of job acceptance decreases the time it takes to fill positions increases the time that employees stay

Keeping Qualified Employees: Compensation

How can I use pay to motivate? Linking Pay with performance

Enhances motivation and performance Retains high performers while low performers are more

likely to leave Examples of performance-contingent pay

Piecework Commissions Profit sharing Employee stock ownership plans (ESOPs)

Keeping Qualified Employees: CompensationWhat Benefits should I offer? Benefits = Compensation other than direct wages Some employee benefits are legally mandated:

Social Security Worker’s compensation Unemployment insurance Family & medical leave (if company is > 50 employees)

Health care is not mandated (but highly desirable for motivating & retaining employees)

Survey employees to find out what benefits would encourage them to stay with the company

Survey competitors to find out what others offer

Keeping Qualified Employees: Separation Voluntary (“quits”) Involuntary

Avoiding Wrongful discharge http://www.morebusiness.com/running_your_business/legal/how2fire.brc

Unemployment insurance http://workforcesecurity.doleta.gov/unemploy/uifactsheet.asp

Keeping Qualified Employees: SeparationEncouraging Retention Exit Interviews: ask why they are leaving to prevent

same problem in the future Potential reasons for voluntary turnover:

Compensation (31% leave for more $) Management skills (29% leave because they don’t like or

respect management) Communicate your goals, performance expectations

and especially your appreciation!

Other useful sites

Legally mandated posters for worksitehttp://www.laworks.net/Downloads/Downloads_Posters.asp#Federal

Using Microsoft word to create formshttp://content.techrepublic.com.com/2346-10877_11-92379.html

Developing interview questions http://hiring.monster.com/resourcecenter/interview_preparation.aspx?

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