Recruiting and Selecting Employees
for the Small Business
BUS 207 _ Session 2
Spring 2006 copyright,
Use the OUCH Test
Small Business owners can use the Ouch Test as a guideline for their
Does it Omit references to race, religion, color, sex
or national origin?
Does the question Unfairly screen out a
particular class of people?
Can you Consistently apply the question to every
Does the question Have job-relatedness and
Questions You Want to Ask
• Develop a series of core questions and ask
them of every candidate. Many of these
questions are “character” questions assessing
the candidate’s personality.
• Ask open-ended questions instead of yes or no
questions. These may include on-the-job
scenarios. Try to get them to talk about their
• As questions to describe a recent success and
failure and how they dealt with it.
• As hypothetical-situation questions on how they
might respond to an encounter on the job.
• Probe for specific example in the candidate’s
work experience by asking follow-up questions
on their experience.
Final Step: Checking References
• Succumbing to the pressure to hire fast
is a common error for small business
• Managers need to take the time to do
the follow-up reference check on all
• Checking references can help
employers uncover false or
exaggerated information and also verify
what the candidate stated in the
• Experienced employers talk to the past
immediate supervisor of the candidate
to get a clear picture of their job
performance, character and work
According to the
Society for Human
than half of all
exaggerate or falsify
(Source: “Of Resumes and
Rap Sheets”, Maxwell, 27,
What Employers Want
• Suitability and qualifications for the job
– Right functional skills
– Right technical skills
• Good fit with organization
– Right personality and style
– Appropriate level of maturity
– Common interests
• High emotional intelligence
Test Your EQ
Do You Have a High EQ?
Think clearly and stay focused while under pressure
Admit to your own mistakes
Meet commitments and keep promises
Hold yourself accountable for meeting your goals
Seek new ideas from a variety of sources
Handle multiple demands and changing priorities
Make sacrifices to meet important organizational goals
Cut through red tape and bend outdated rules
Seek fresh perspectives
Take on projects to seek success rather than avoid failure
Set challenging goals and take calculated risks
Sense of humor
Building the Best “Culture” for Your
• When you are hiring you are taking a
BIG step, for the employer and for
• It is just as important to consider how
the candidate will “fit” into your
business culture, as their skills to do
• Creating a culture is defined by
“leadership” of the company…Culture
arises from your consistent and
relentless pursuit of a set of core
values that everyone in your company
can believe in.
“ People are
From, First Break
All the Rules
Why have an Employee Policy Manual
• In order for an organization to function
properly it needs to have rules to follow
and policies to help proceed.
• An Employee Policy Manual is the guide
for the employee and the owner.
• Your Employee Policies & Procedure
Manual should describe the basic
attributes of employment at your
company that need to be known in
advance before an employee agrees to
accept your position.
Outline of Major Points that Should Be
Addressed in An Employee Manual
Employee Travel Policy
• Hours of Work, Work
• Trade Secrets and
• Employee Privacy
• Employee Performance
• Employee Suggestion
• Employee Termination
• Non-discrimination &
• Employee’s Use of
Discipline Your Employees
If you have any workplace rules or policies there’s a good
chance that eventually they will be broken. Enforcing those
rules and policies is disciplining.
Discipline DOES NOT mean terminating. (In fact, it is important
to show this step if you do terminate later).
Follow your employee policy manual and don’t make rash
decisions. Use the “D” steps to guide you.
Dig…. for information on what has occurred
Discuss…the issues with the employee and listen to their side
Deal…with the employee and make a Decision on whether to
penalize the employee
Document… All disciplinary actions to protect yourself.
Firing and Termination: Avoiding the
Terminating an employee is at best unpleasant.
To make it worse there is a growing number of
lawsuits against former employees due to unfair
The best way to “win” a lawsuit is to avoid it in
the first place and over the long run.
Set up a situation that has a clear step-by-step
procedure in your Employee Policy Manual.
Make sure you follow the procedures and
What NOT to DO when Terminating
• The very worst thing you can
do is FIRE on the spot. This
opens you up to a bounty of
• Do not “terminate” anyone in a
fit of rage or emotions - cool
down and wait.
• Don’t get caught trying to
(like changing performance reviews)
• If you DON”T PLAY FAIR, the
courts will see that and side
with the employee