Owning a franchise comes with a myriad of decisions that can be intimidating as well as liberating.
As the boss, employees look to you to set standards and protocols that make sure your franchise is in line with the brand’s standards and comply with its system. Within that system, hiring qualified and loyal employees is key to achieving your business goals. Yet, in order to be successful at hiring, there needs to be a clearly defined and repeatable process that mitigates risk.
The Risks of No Process
Hiring process is the way by which your business can define, source, select and verify candidates. Without a hiring process, the risks to a business are increased. Consider for example that the cost to replace an entry-level employee is between 30-50 percent of their annual salary and for a mid-level employee, that rate is 150 percent. Additional risks related to lack of hiring process include loss of revenue, wasted time, disruption to company culture and damaged reputation with customer and employees.
The process can be hijacked by a number of factors that combine to result in a poor hiring decision. The most common ways managers make harmful hiring decisions include:
Too Quick to Hire – There is pressure in any business to find a quick replacement for an open position but at what cost to the overall business? A more deliberate process will give hiring managers more time to assess whether a candidate is qualified and legitimately interested in the position.
Ignoring Background Checks – Although not necessary for every position, properly vetting candidates will protect your company’s reputation and save you from being held liable for an employee’s actions in the future.
*The infographic included on employee-screening shows why franchises aren’t doing enough to properly screen employees.
Poor Job Descriptions – Think of a job description as a mini-advertisement for the company. In order to attract a higher caliber of applicants, the posting on a job board should include the job responsibilities, desired qualifications, criteria for measuring success and convey to applicants the company’s culture.
Poor Interview Questions – Asking the wrong interview questions can scare away candidates and fail to fully identify a candidate’s suitability for the job. Hiring managers need to do their due diligence on the types of questions that are appropriate and relevant to the specific position.
Overlooking Culture Fit – Hiring managers should be able to assess whether a desired candidate will fit in seamlessly to a workplace’s culture. When a person’s credentials are a good match but their personality clashes with the culture, it’s more likely the person won’t stick around in the long run.
Defining A Role
Part one of the hiring process is defining the role of the open position. Before interviewing begins, a hiring manager should be thinking about the ideal experience they want to set for candidates throughout the entire hiring process. That means laying out what the job will entail and how the future employee will impact the business. Narrow the ideal fit down to experience, job responsibilities, expectations for customer interaction and required skills. Beyond laying out basic job requirements, incorporate company culture and information on the organizational structure of the business.
The second component in building a better process is being better able to source a more diverse pool of applicants. There can be several reasons why the business isn’t attracting quality candidates – from where the job posting lives to the ease of the application process. The future of applying to jobs is here and it’s more mobile-friendly. Nearly 4 in 10 people are now using their phones to search for jobs and apply, so consider a more mobile-friendly approach when setting up the application process.
In order for a job opening to find the right pool of applicants, it’s necessary to publish jobs in the most effective job boards and utilize social media to reach a larger audience. Current employees are also a great resource for referrals – accounting for almost 50 percent of hires. Consider establishing a referral program in the business as a small investment in achieving future success.
A hiring manager, who is sorting through a mountain of resumes for an open position, will have better success if there is a process in place to track, evaluate and ultimately select the candidate that is the best fit.
It’s important that candidates are evaluated on an even playing field. One of the ways to avoid bias in fully evaluating a candidate is basing those evaluations on key success indicators: attitude, a sense of accountability, past related job success and culture fit. These types of behavioral assessments take the guesswork out of determining how a candidate’s personality will mesh with your existing employees and ensure a smoother onboarding process.
Verifying the Candidates
As the final step in a four step hiring process, verification gives the new employer access to information about the candidate that will be helpful in evaluating vital information about their past that would indicate future success. Verification can include past performance in similar jobs that is cross-referenced with previous colleagues and managers. The verification process can – and should in some cases – go a step further in the form of background checks.
A well-defined hiring process starts with the job description and ends with the onboarding of a new employee that is confident and ready to work. Employees will see the benefits of well-followed hiring process reflected in a more positive workplace. And, as a business owner, the implementation of this process allows more time and energy to be redirected where it matters – growing the business.
Adam Robinson is the co-founder and CEO of Hireology. Founded in 2010, Hireology has become the go-to hiring platform for over 70 franchise clients and more than 1,500 franchisees.