Dear Friend:
Last month, while writing my article, I was looking out the window at huge piles of snow. Not today. Spring is here and it’s time for all of us to make our way out of our winter dens and get back to work. This time of year, people are thinking about sprucing up their homes which means an increase in demand for remodeling services.
If you’re thinking about hiring new people to meet the spring rush, this month’s article is for you. Any business is only as good as the quality of its employees. That’s why it’s critical to hire the best people and keep them.
Many of you have told us how important this topic is to you. So, we are planning a series of articles to address the issues of Hiring, Motivating, and Compensating your employees. This month’s article will focus on Hiring.
Read on for some practical tips and techniques to help you attract and hire the best employees for your business.
I’m also very excited to announce that we have expanded our newsletter to include a few new sections. Be sure to take a look at "In This Issue" below so that you don’t miss any of the great information.
Good Luck and Happy Spring!
- Walt Stoeppelwerth, HomeTech Information Systems, Inc.
P.S. How do you like this newsletter, so far? We want to know so we can make it better. Just write to us and tell us what you think at feedback@hometechonline.com.
In This Issue
- Feature Article: Simple Steps to Successful Hiring
- HomeTech ADVANTAGE Tip
- Did You Know This Remodeling Industry Fact?
Simple Steps to Successful Hiring
A company is not an entity in itself. It is the employees that make a company what it is. Any team is only as strong as its weakest player. This is why it’s so important that you make the best decision possible when hiring a new employee.
Preparation and Planning
As with any important business decision, the best way to approach hiring is by planning ahead and being prepared. Here are four simple steps that you can take to help ensure that your next hire is a successful one.
1. Review your business plan and organizational goals.
Think about where you want to take your business over the next year and the next several years. Then, ask yourself if hiring this employee will help you reach these goals, and determine how this individual will help to meet those goals.
2. Update your organization chart.
Your organization chart is a living, evolving document which shows all of the roles in your business, who is responsible for them and how they are inter-related. Each member of the organization should be familiar with this information to help ensure that work flows properly. When hiring a new employee, first consider whether you are replacing an existing employee or adding a new position. If you are replacing someone and the job will remain the same, it is clear how the new employee will fit in. But, if it is a new position, it is important to think carefully about how this new person will fit into the work flow of the business. You should then create an updated organization chart to reflect this change and share it with the rest of the employees once the hire is made.
3. Write an accurate job description.
An accurate job description is important for many reasons. Initially it will help you to determine the skills and qualities that your candidates will need and should be used to help guide your hiring decision. It will also help your candidates to determine if the job is right for them. After the hire, the job description will be the new employee’s guide for completing the job. It should tell them exactly what they need to do to be successful. Some general areas to include in a job description are: dress code, hours, equipment required (if applicable), responsibilities and specific duties.
4. Prepare for the interview.
Prior to any interviews, you should take a few minutes to jot down some open-ended questions. By preparing in advance, you will ensure that you keep the interview on track during the time allotted. Remember that during the interview you should only talk for 20% of the time, allowing your candidate to do 80% of the talking. For a list of sample interview questions, click here.
Recruit Creatively
Recruiting can be one of the most difficult parts of the hiring process. The challenge is that the best people are already employed. So, if you simply place an ad in the newspaper, you are probably not reaching the most desirable candidates. Therefore, you need to consider other ways of recruiting in addition to the classifieds.
You may want to leave flyers on trucks parked at the lumberyard or set up interviews at the local high school, vocational school or carpentry school. You could also host a career night and invite prospective employees to meet and talk with present employees, offering light refreshments to make it worth the time. Another option is to check with your local trade associations to see what they might offer. The ideas for recruiting are only limited by your creativity.
Hire Carefully
When interviewing your applicants, you will need to learn about their specific skills and education. But, of equal importance is the applicant’s attitude toward work. You will need to make an assessment of how you think they will behave in the workplace and how you think that they will fit in to the culture of your organization. Be sure to ask plenty of open ended questions about what they liked and did not like about previous jobs and what they hope for in this new position. It is also important that you be familiar with all of the “Interview No-Nos.” These are questions that are illegal to ask during a job interview.
For a list of possible interview questions and “Interview No-No’s”, click here.
Check References
After you’ve chosen a candidate, be sure to check references. This is a critical step that should never be skipped. Just remember that any job candidate will be on his or her best behavior during the interview. You will need to talk to their previous employers to find out what they are really like on the job. Many previous employers will be hesitant to make negative comments about an employee so you will need to ask careful questions and be prepared to read between the lines. Click here for a list of possible questions to ask when checking references.
You may also want to consider running a pre-employment screening on any new employee. In today’s world we can never really be sure about anyone. That is why this type of check can be valuable. For about $150, you can receive verification of an applicant’s driving history, criminal record, educational background, social security number and even worker’s compensation history. There are many companies that specialize in this type of work and often the turnaround is only 24 hours. A pre-employment screening test can save you from a lot of potential problems.
Be an Attractive Employer
The final key to hiring the best people is to make your company an attractive place to work. Working for your company should be rewarding and enjoyable for all employees. This will not only attract the best people but retain them as well. We will cover more on this topic and other issues in an upcoming article about motivating and retaining your employees.
Article Resources
More information relating to this article is available on our Web site.
Much of the content for the article above was taken from: Mastering the Business of Remodeling by Linda Case and Victoria Downing and was provided courtesy of:
Remodelers Advantage, Inc. TM
Flag Open Items in Your Estimate
When creating a new estimate within HomeTech ADVANTAGE, sometimes you don’t have all the information you need right away. How can you be sure that you don’t forget to add in these items later? The answer is, don’t wait. Add all your items now. Then, “flag” the open items to be sure that you remember to address them later.
For specific instructions on how to “flag” items in a HomeTech ADVANTAGE estimate, click here.
To learn more about how HomeTech ADVANTAGE can help you create accurate estimates quickly and easily, visit our Web site at www.hometechonline.com/advantage/advhom.htm. Or, call us at 1-800-638-8292.
Did you know that your cost for basic materials has, in many cases, changed dramatically over that last year? In fact, some costs have changed as much as 50% or more!
The table below provides a summary of some of the costs that have changed the most over the past year.
Percent Change in Materials Costs
Over the Past 12 Months (Apr 2006)
Central
Coast
As a contractor, it’s critical that you keep up to date with these cost changes or your profits will suffer. HomeTech Information Systems tracks materials costs by region and updates this data quarterly. This information is published in book form (HomeTech Remodeling and Renovation Cost Estimator) and is provided in electronic form to HomeTech ADVANTAGE users. For more information about these products, visit our Web site at www.hometechonline.com.
Let us know how you liked this article by writing to us at feedback@hometechonline.com. We also want to hear about your greatest challenges and successes. If you've got a great story to share, send it to us. And, we'll all learn something.
HomeTech Information Systems, Inc. - 5161 River Road - Bethesda Maryland 800-638-8292
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