Monday, September 15, 2008

Would I Pay This Person?

“Would I pay this person’s paycheck before my own mortgage?”

As an employer, I’ve had plenty of opportunities to make awful hiring mistakes. I can’t really blame the individuals and their weaknesses, because I feel like it’s my responsibility to properly vet those issues during the interview process. But I’ve recently had an epiphany that I actually chose to act on and it’s made all of the difference in the world. This recommendation applies to both the employer AND the employee.

To Employers, if you are not in love with them, don’t hire them. This is your business, your livelihood we’re talking about here. As a small or even a medium sized business you’re susceptible to financial volatility. Clearly things do not always go rosy and there may be a time when you get paid last, or even not at all while you keep your staff on so that you can get to the next paycheck. So there are two issues that you need to consider here. One of them you need to consider before you hire them and the other you need to consider after you hire them.

1) Before you hire them, you’ve got to look at their attributes and literally ask yourself the question, “Would I pay this person’s salary before my own mortgage?” Why? Because frankly such a decision may need to be made at some point in the future. Even if you never have to make such a decision (and let’s hope that you never do) you still should only reward your unique risks and responsibilities as a business owner with quality individuals who enhance your work path, not detract from it. And if you aren’t able to see how they would be an attribute to the financial strength of your business and the tasks that you need accomplished, then don’t hire them.

Don’t run your business like a popularity contest. You are the president/CEO/Owner of a business, not the President of Please Like Me, Inc. You owe it to the rest of your team members to ensure that you do not bring on anyone who compromises the strength of your company’s financial standing, because if your company isn’t profitable everybody suffers. If you aren’t in love with them when they are supposed to be putting on their best behavior and only have to “fake it” for a few interviews, then for crying out loud, what makes you think it’s going to get better when they are in the midst of the daily business stresses and handling critical responsibilities?

Remember, the enemy of best is good. Don’t go with the “good” prospective employee just because you need to fill a position. That will cost you a lot of money and headaches in the long run. Be patient. Wait for the “best” person to manifest your wish list requirements to you. In today’s economy, being able to offer someone a job is an asset that should be appreciated by any prospective clients.

2) After you’ve hired them, you have every right to expect them to proactively contribute to your bottom line. In other words, each employee you have on board should be a revenue generator in some way or another for your business. If not, you cannot afford to have them.

So how does this apply to employees? Well for starters it gives you great insight into the thought process of successful business owners. And after all, isn’t that the kind of company you want to work for? Keep in mind that you’re obligated to work and then get paid. Your employment should only be contingent on your value to the company for which you work. This does not mean you have to be perfect. Plenty of businesses aren’t and they still manage quite well. But you do need to realize that for every task you slough off or perform incorrectly you are costing your employer money. And if they didn’t have to pay for your errors or inefficiencies, they just may be able to pass some of the wealth on to your salary. The question is does your work ethic and capabilities merit you being paid prior to your owner’s own mortgage? The answer is only a “yes” if they can’t afford to do without you.

Copyright 2009 Kellene Bishop. All rights reserved. You are welcome to repost this information so long as it is credited to Kellene Bishop.

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A Worth-While Cause...

A Worth-While Cause...
Kellene with Marie Osmond, Co-Founder of The Children’s Miracle Network and Creator of the beautiful Marie Osmond Dolls. (Be sure to catch Donny and Marie’s Show in Vegas beginning Sept. 9, 2008!)