The Great Resignation is happening, proof that we’ve moved into an employee’s market and away from the traditional employers market. While most trades are considered ‘essential’ and kept working throughout the pandemic, it doesn’t mean that they haven’t felt the impact of the Great Resignation.
In fact, Fortune explained that the trade industry in the US experienced the second highest resignation rate in 2021, a trend being reflected throughout the world.
So, with life starting to get back to a new normal and hiring resuming, it’s important to hire the right people for the job. And I’m not just talking about filling your business with the people that are the right fit for the job but those for whom the business is the right fit for them, too.
Why is Hiring the Right Person Important?
While we can get caught up thinking that an unsuccessful hire is simply frustrating and a nuisance to our team, the main issue with hiring the wrong person is how it impacts your cash flow! Every side effect of hiring the wrong candidate such as time taken to train, or bad habits that they bring to the rest of the team, end up costing you in the long run.
According to the U.S. Department of Labor, the price of a bad hire is approximately 30 percent of an employee's first-year earnings. Just think how much that could cost your business?!
Take a moment to think about what you could spend that money on instead. When you hire well, you don’t have to pay for employee churn and ongoing job advertising, training and onboarding until you find the right person. Instead, if you make the right hire the first time, you can use money you would otherwise spend backfilling positions on infrastructure, equipment and revenue-generating activities like marketing.
How Do You Spot the Wrong Fit Before You Hire Them?
I’ve done a lot of hiring in my time and managed a lot of people who have hired many people too. The common mistakes I see in the hiring process is that employers hire based on:
- Individual contributor skills
- Technical depth
- Ability to interview well
- Forced enthusiasm for the job despite little insight about it
On the surface, these things seem pretty legit, right? But, they don’t look at what the employee will be like in the context of the job.
During interviews, candidates sometimes become a ‘yes-person’. Meaning they’ll often say ‘yes’ to a part of the job that may not actually fit with their criteria list. For example, taking out of hours meetings. Many people during the interview process will say this is completely fine; however, when they are in the job, they realize it isn’t a great fit for their lifestyle even though they can flex their hours to suit. This is no one's fault. But, having the right processes in place to help both employee and candidate realize it’s not a great fit before a new hire starts is key.
How to Successfully Hire the Right Person For Your Field Service Business
1. Mix questions between behavioral, cultural fit and experience
Of course, you need to know whether a potential employee will have the right skills and experience to fit the job. However, getting the job done is only part of the role. The other is being on the same team as their workmates, the company and their manager.
If someone’s idea of a workplace doesn’t fit what you’re offering, then it’s best for both parties to move on. Similarly, these questions help uncover your candidate’s soft skills - how they will interact with others in different scenarios.
Here are some example questions to get you started:Behavioral - Think about a time when you were confronted with a challenging situation and how you responded.
Cultural - Describe the work environment in which you feel most productive and positive.
Experience - Explain one achievement in a past job you're most proud of.
2. Decide if you are willing to compromise
Consider the job you’re hiring for - what’s the most important aspect for that new employee to cover? And are you willing to compromise for the right person?
For example, say a candidate applies, and they don’t have as much experience as you’d like, but they’re a great fit for the team and are really motivated. Would you be willing to train them? Or, do you need someone to start straight away as a contributor?
Knowing what you are willing to compromise on will allow you to ask the right questions throughout the interview, no matter who you’re speaking to.
3. An interview should be a conversation
Having more of a conversational style interview will allow you to see if you and your candidate interact well. While they should be answering your questions, they should also be asking you questions.
This will help you gauge how interested they are in the job and understand their ability to process information and ask questions when facing difficult situations. If a candidate doesn’t ask questions, consider why they might not have asked them and if they are indeed the right fit for your business.
4. Talk about your amazing company!
As I mentioned at the beginning of this blog, we’re going through the Great Resignation, meaning potential candidates have a choice about where they’re going to work. This means that now, more than ever, candidates need to see the benefit of working for your business. This helps them choose between accepting your job offer or that of another company.
For example, at simPRO, we already know we have a great work culture and innovative spaces and new offices. But, we understand we still need to sell ourselves to attract the best candidates for the job. Check out our Careers page to see how we sell simPRO to potential employees!
Want to find out more ways to improve cash flow in your business? Check out our tips to boost recurring revenue.