Hire for Value or Price?

Friday, January 29 2016

When you make a purchase do you:

  • Determine the purpose of the item and why you want or need it?
  • Consider how long you want your purchase to last or consider it disposable after a year?
  • Decide you are willing to pay more for quality or choose the cheapest?
  • Take care of your purchase so you get the greatest value for money?

These questions are just as important when you are hiring and retaining people.

1. In the hiring process you should state;

  • your expectations and the results you want
  • the position title
  • the responsibilities of role you are asking an individual to undertake

A position may have several roles; for instance, a CEO may have the role of strategic leader, coach to the senior team, spokesperson for the organization, client relationship contact for key clients, and board member.

Responsibilities are not just a list of tasks. They are the key elements that must be achieved in order to create the desired results.

Clearly identifying roles and responsibilities ensures the best ROI.

2. Is this a role that will be stable for a long while?

If so, hire people who thrive on routine and like to know what is expected on a daily basis. For those who thrive on change, consider the opportunities for promotion in the future and how the role will diversify. Different candidates are required for these positions.

In addition, ask:

  • Are you concerned about retention?
  • Will you have better results with a full time or part time individual?

3. Do you know what competencies are needed for meeting the responsibilities, both now and in the future? Will the role change, for instance, if new software is introduced? Do you need people who are capable of learning and adapting on the job? Finding out too late that the person you have hired is incapable of managing change devalues your investment.

4 .What salary will you pay? Salary will influence your results. Are you prepared to pay market value for the right person?

Although salaries should be confidential, people talk. It is destabilizing and demotivating to the current team if you hire someone new at a higher rate of compensation. Ensure that you review and update salaries when necessary.

5. Coaching provides motivation and fosters engagement. It allows individuals to air and address their concerns; and provides an opportunity for positive feedback and discussion about what is necessary for future success.

The key to balancing value versus price in the hiring process is in knowing what you want. Hire the right person at the right price. Coach them to success. It may cost more in the short-term, but the results of hiring and retaining the right person are exponentially greater.