While today’s unemployment rate, due to the ongoing pandemic, is significantly higher than it was three months ago, it is sure to fall as the economy comes back and small businesses work to restore payroll and headcount in order to conform to Paycheck Protection Program (PPP) loan forgiveness parameters. Rest assured there will, once again, be more job openings than available candidates. And the cost of hiring will continue to rise as the candidate talent pool shrinks.
According to the Society for Human Resource Management (SHRM), it now costs over $4,000 to hire and onboard a single employee. When you consider the additional cost of employee churn (fees, onboarding, downtime, training, morale, etc.) it becomes easy to see that to have, and maintain, a successful business, you need to be competitive in your quest for hiring top talent (if you don’t hire the best, your competition surely will). COVID-19 has moved the goalposts, but the rules of the game remain the same.
If you received a PPP loan then you may need to hire staff quickly in order to restore payroll and headcount by December 31, 2020. Resist the temptation bring in additional staff to, merely, fill empty seats. If your PPP loan is not entirely forgiven then you are left with, at worst, a low interest loan that you have plenty of time to pay back. Careless hiring decisions in the service of getting 100 percent loan forgiveness should be avoided. As hard as it may be in these uncertain times, you should do your best to adhere to sound business strategies. Especially when it comes to hiring.
A good place to start when building a plan for hiring is with your culture. It’s “who you are.” It’s how your community, your customers, your employees, and your competitors perceive you. And it does not happen by accident. It’s best reflected by the team that you’ve assembled; for better or for worse. Think about your culture and whether it’s the one that you want? Now, think about what you have and think about controlling it.
The first step in creating the right culture is hiring the right people.
Many of us first consider an applicant’s skills when hiring. That makes perfect sense…or does it? There are biases at play when we make decisions. Confirmation bias and the “Halo Effect” can impact how we value skills and traits. And when we overvalue strong skills and undervalue troublesome traits, we could be setting ourselves up for failure (a bad hire).
A recent study on “Hiring for Attitude” suggests that most new hires fail NOT because of technical competence (skills), but because of other factors related to emotional intelligence, work ethic, coachability, self-motivation, and temperament. Remember that skills are relatively easy to develop while traits, attitudes, and attributes are not. And traits, attitudes, and attributes are what contribute to your culture—for better or worse.
When vetting a candidate for hire, make sure you’re looking at the following traits which are predictors for high levels of Emotional Intelligence (EQ):
During interviews, ask candidates a question relating to conflict resolution (for example: Can you tell me about a time that you had a disagreement with a co-worker and how you resolved it?) and then consider the following:
- Did they know what they did wrong (self-awareness)?
- Did they control their emotions/anger (self-regulation)?
- Did they really understand the other side (empathy)?
- Why did they seek to resolve the conflict? Did they engage for the right reasons?
- Did they exhibit a certain social grace in solving the issue? Were they mindful of the outcome or social cost?
This exercise will give you a strong indication of the candidate’s EQ, covering many of the most important traits that contribute to a great culture. As you build your team around these traits, you’ll be rewarded with the culture that you deserve. The result: you become an “employer of choice” and have “brand champions” who will help curate your culture because:
- They enjoy their job and don’t merely do it for the money
- They look for opportunities to mentor
- They demonstrate the behaviors of leaders
A key thing to keep in mind as you evaluate or create your ideal culture is that the ideal work environment is one built on respectfulness, transparency, and fairness. And always remember: while people may ultimately come to work for you because of money, they will stay—or leave—because of your culture.
CQ’s experienced recruiters can help you attract, vet, and develop a team that will define the company culture you’ve always strived for. Talk to your Account Manager today or contact our Recruiting Department at email@example.com.