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Finding, Hiring and Engaging Superstar Employees for Your Small Business

Featuring Speaker From:

•The workforce is changing•Technology is changing•Expectations are changing

Meet the speakers…

Andres ThomasCustomer SuccessKabbage, Inc.

Moderator

Helgi HermannssonCEO & Co-FounderSling

•What is HR management?•Hire for job performance•How to provide and get feedback

Asta Bjarnadottir, PhDPartner & HR ConsultantCapacent

Helgi HermannssonCEO & Co-FounderSling

The workforce is changing

More than one-third of the U.S. workforce is between the ages of 18 and 34

Technology is changing

75% of mobile phone subscribers in the U.S. now own smartphones

Communication at the workplace is becomingeven more important

Expectations are changing

Research shows

Lack of communication is interpreted as lack of respect

Reality

Managers are lacking tools to get information to non-desk employees

Results

§ Low levels of employee engagement§ High employee turnover§ Inferior customer experience

Solution

Take advantage of technology to create a more connected organization

Sling

Sling is a free communication and shift scheduling software for non-desk industries

Sling – www.getsling.com

Asta Bjarnadottir, PhDPartner & HR ConsultantCapacent

Best HR practices

1. Elevating the standards of whom you hire2. Emphasizing (first-cycle) training3. Making feedback your way of life and

management style4. Linking pay to performance5. Over-communicating with your staff

What is HR management for anyway?

Costs

Results today

+ =Better people management

Output / Income

Quality

Results in the future

The basic people processes- Defining the job - Recruiting candidates- Selecting among them- Contracting

Reception (the first daynewcomer training)

- Training and development- Performance measures and feedback- Pay management, other rewards and benefits- Information flow up and down the organization

chart

Departure (voluntary, involuntary, retirement)

Best practice in people

management• What usually works• Based on research

Best practice 1: High threshold for entryEach hire matters a lot more proportionately in a small firm• Look closely at the job• Should you make a change? • What requirements are there?• GET MORE APPLICANTS!• Evaluate applicants carefully

Hire for job performance!

Knowledge Knowing Facts, rules, goals, self-knowledge…

Skill Being able to do

Cognitive skills, decision-making, interpersonal skills, self-management...

Motivation Choosing to do

Choosing a direction, choosing a level of energy, choosing how long to do it...

Job performance has only three direct determinants:

Performance = ƒ [ knowledge * skill * motivation]

Best practice 2: Invest in as much training as you possibly canIn a small company you may not have a lot of in-house training, but training can give you a distinct advantage

Prioritize training the newcomers• Ask more senior people to mentor them• Use outside training

Train frontline managers• Use internal promotions

Selling a stint at your company “the Alliance way“The old style • Lifetime employment: “Become like me in 25 years”• “We are like one big family here”A better way•Make 2-4 year alliance agreements• Clearly defined goals and tasks (OJT)• Employee gets: Growth and increased market value• Employer gets: Tasks completed and objectives met

Best practice 3: Provide regular performance feedback

Lack of feedback is a key demotivator for many workers– Feeling underappreciated– Confusion about expectations– Reading too much into the wrong

signals

A simple way to provide (and get) feedback

Employee Manager

Keep doing?

Start doing?

Stop doing?

Ideas on goals for next period

Always allow for discussion of past, present and future

Best practice 4: Connecting employee outcomes to performance• It is estimated that the best people produce

2-14 times (depending on the job) more than the average person

• Often easier in a small firm to create the “line of sight“ • Everyone matters more

• But small firms are often terrible about managing pay

Get really good at managing paySome do‘s• Positive reinforcement• Explain your decisions• Be aware of comparison group• Rehearse!• Use flexible pay to minimize

your fixed costs• Incentive systems tied to key

outcomes (can often increase the right behaviors by 15-40%)

• Spot bonuses

Amy Gallo, 2014

Some dont’s:• Talking money only

once a year• Combining money

talk with a performance review

Why transparency about pay?Dave Smith, 2014

Best practice 5: Lots of communication

• Best communication: face-to-face. Often easier in small firms• The two goals of communication:

1. Getting the message across2. Building trust

• Tell everyone as much as you safely can • Tell about your thoughts, show them you

trust them• Listen carefully to staff as often as possible

Use technology that they like

Why do people leave?Survey of HR managers– Opportunity to

further career – Better pay– Personal reasons– Poor management– Poor relationships at

work

Survey of employees who had left

–Lack of appreciation–More responsibility at another job

–Better pay–Lack of recognition–Poor relationship with boss

Andres ThomasCustomer SuccessKabbage, Inc.

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