Companies in Canada are hiring again. As reported in our June 2014 survey, the American Express® Survey of Mid-sized Companies, 85 percent of decision makers in Canadian mid-sized companies surveyed said they were planning to hire over the following six months1. Adding headcount can be a welcome sign of growth, but making the wrong hires can have unintended consequences.
So what can Canadian decision makers do to make smart hiring decisions?
Communicate Your Company Culture
Before you think about your next hiring push, consider establishing a clearly defined company culture, which can be one of the most valuable assets a business can have. While some businesses may rely on buzzwords and perks, company culture goes beyond making sure employees are having fun at work or having leisurely activities in the break room. Think about how you communicate your culture, as well as how you can cultivate an environment that encourages and rewards high-performance employees.
Start by considering the components that make up a high-performance workplace. As the consultants at Grey Fox Associates Inc. suggest, "the function of work culture is to create a work environment that enables employees to be fully engaged, energized and highly productive2." And as Rob Goffee and Gareth Jones wrote in Harvard Business Review: "We contend that the employee-employer relationship is shifting in many industries from how much value can be extracted from workers to how much can be instilled in them. At heart, that’s what productivity improvement really means3.”
You may want to ask what steps you're taking to foster this kind of environment at your organization. If your company is public, are you offering stock options, which incentivize your employees to help the business succeed? Do your workers have flexible schedules and appropriate dress codes?
Check References Thoroughly
When it comes to making smart hires, checking references is a no-brainer. But do you check references yourself, or do you use a third party that specializes in reference checks? There are advantages to both, but the method you choose may impact the quality of your hires.
When checking references yourself, "speaking with [a] broad list of people should provide a rounded view of how a candidate interacts with people at different levels within and outside the organization," advises the Bridgespan Group4. When companies use third parties to check references, these "professional recruiters are able to gather information objectively that allows the organization to benchmark the candidate’s skills and personal qualities against the job description," according to Bridgespan Group4. Third party recruiters may also possess the expertise and comfort in vetting a candidate.
If a new hire is reporting directly to you, staffing service Robert Half suggests checking the references yourself: "The hiring manager will have corollary questions that may not occur to others." Robert Half adds: "Checking references yourself is a great way to gain insight from a former supervisor on how to best manage the individual5."
Screen Your Screening Process
An effective screening process doesn’t just save valuable hours of your day. It can help narrow down the field of candidates to a select few who are worth your time, and eliminate applicants who may not be a fit. But what’s a good way to do it?
Telephone screening can filter out some candidates to narrow down the field. According to an article by the Society for Human Resource Management, there are four elements of an effective phone screen: an introduction, the interviewer's questions, the candidate's questions, and the closing (which covers the next steps of the hiring process)6. Modern methods, such as camera-assisted interviews, may also help hiring managers visit with applicants without having to physically bring them on site. Video conferencing tools give both parties the advantages of a virtual face-to-face meeting while maintaining scheduling flexibility.
Explore New Ways to Recruit
If you—or the firm you're working with—have been using the same hiring methods for years, you may be falling behind in the competition for top talent. Many Canadian companies are using innovative approaches to find the perfect candidate.
New recruitment sites are redefining the recruitment model by focusing on specific skills. These sites can reduce the number of unqualified applicants by focusing on job seekers with specific competencies, and requiring them to apply in order to be listed online. In addition, these sites also offer an increased level of transparency by revealing salary and benefits information to interested candidates before they interview.
Additionally, there are creative ways to use social media to identify appropriate candidates either by direct communication or referral. For instance, a search on Twitter can show relevant users who are discussing the desired skills. And at times, a LinkedIn profile can serve as a comprehensive resume, allowing you to review a candidate's blog articles, professional website, work samples, and even recommendations from clients and former colleagues. Consider exploring how you may be able to use social media to discover candidates who otherwise may not be aware of your job openings.
As reported in our June 2014 survey, the American Express Survey of Mid-sized Companies, 59 percent of Canadian decision makers surveyed say they have more employees than they did a year before the survey7. Even if you’re not among them, it may still be worth examining your recruiting practices to determine if there’s room for improvement when adding your next employee. Hiring smart means articulating your company's objectives, defining your company's culture, reviewing your screening processes, and finding new ways to recruit top candidates.
1. The American Express® Survey of Mid-sized Companies was completed online among a sample of 200 financial decision makers in Canadian mid-sized companies, defined as having revenues of $5 million to $1 billion annually. Interviewing was conducted by Ebiquity Research between June 2 – 19, 2014.
2. Defining and Measuring Work Culture, Workplacesnapshot.com, Grey Fox Associates Inc., As of January 2015.
3. Rob Goffee and Gareth Jones, Creating the Best Workplace on Earth, Harvard Business Review, May 2013.
4. The Reference Check: More Than a Formality, The Bridgespan Group, As of January 2015.
5. How to Check References, Robert Half, As of January 2015.
6. Kathryn Tyler, Be Well-Prepared to Pre-Screen Applicants by Telephone, Society for Human Resource Management, April 1, 2014.
7. 2014 American Express® Survey of Mid-sized Companies.