HR is nor my specialty, but it is a crucial part of any growing business. I don’t like talking about how to retain people because, in my crusty opinion, if you hire well and are mindful of the culture of the company, people will stay. Problem employees are usually either bad hires (not neccesarily bad people) or great hires in bad situations.
I think you can learn half of everything you need to know about who to hire by reading Jim Collin’s Good to Great. Resume’s, as far as I’ve have seen, can help you weed out people who are clearly inappropriate for a position but, even in this task, I suggest caution. 60% of all people hired find their position based on some personal connection. Part of this is nepotism, but just as often it is really based on persoanl endorsement. I have worked for clients in market segments where I had no previous knowledge, by their definition, and where my resume would have led them to believe I could not be helpful…BUT I was. I get excited about learning new markets and I’m very good a figuring out what I don’t know…and then learning it. Even if I have a strong background in a business model or market segment, I follow many of the same processes to achieve a victory. Ultimately, people hire me because they believe I can bring them a victory (what ever shape that may take). My resume shows that I have had victories (√) but referals are what brings in new clients.
The most common mistake I see is when people try to hire expertise. Expertise is fine and all but we tend to want to hire expertise in an area where we don’t have expertise…which makes it a bit challenging to recognize. There are a number of tests that can now be given to potential new employees to see if they are a good match for a position…but they tend to rely on you already having someone successful in the position to compare to….and the test look more for personality traits than anything you would put on a resume. Industrial Engineers who administer these tests tell me that the reason for this is that the context of a position tends to overshadow the task-oriented aspect of most positions. Being a successfull salesperson in one company doesn’t mean you’ll be a successful employee in another. The impact of the sales program and the nature of the leadership and the personalities that end up in sales support, etc. end up being the driving factors that determine how well the salesperson performs. I have seen this play out far too many times.
My favorite story around this topic comes from a Packy Highland, Jr. I saw him speak to a crowd of entrepreneurs in a town not known for entrepreneurship. The average age in the audience was mid 50s. Packy was in his mid 20s. Packy was already a very successful entrepreneur growing his OnBase product. During Packy’s presentation he mentioned some statistics about the technical certifications of his staff that were very impressive. He talked about how important this stat was to the company’s success. During Q&A someone asked where he found all those highly trained people. Packy said, “We hire people, not certifications. Most of these people didn’t have these credentials when they arrived.”
When asked if he was nervous about training people that leave once they are more valuable he said, “If people are leaving because they don’t feel properly valued and appreciated, then we have bigger problems than employee retention.”