Timing is Everything! Hiring the Right People at the Right Time Greg Benua October 20, 2011

Timing is Everything! Hiring the Right People at the Right Time Greg BenuaOctober 20, 2011

Timing is Everything! Hiring the Right People at the Right Time Overview • Why Hiring the Right Candidate is So Important • Managers Role in the Recruiting Process • Tips for the Selection Process • How Do We Minimize Hiring Errors? • How Do We Know When to Start Recruiting?

How much do hiring mistakes cost? • Cost of Termination (out-processing) • Cost of Replacement (hiring/orientation) • Cost of Vacancy (the calls you can’t run due to vacancy) • Learning Curve Productivity Losses

Why is hiring the right people so important? • Turnover costs A LOT OF MONEY! • 80% of turnover comes from hiring mistakes

Managers Role in the Recruiting Process • Learn What Great Looks Like • Network • Tap Into Your Employee Networks • Use Your Company Website • Maintain Contact With Good Candidates • Make a Good Impression During The Recruiting Process • Use The Internet! • Find Out Where Your Ideal Candidates “Live” • Your Role Does Not Stop On Their Hire Date

Tips for the Selection Process • Understand the Job • Be Legal • Build a Standardized Hiring Process & Use It • Understand that Hiring Top Talent Means More Profit • Interviewing, By Itself, Does Not Work

Do Not Ask The Following Questions 1. Have you ever been arrested? 2. You mentioned being active in your church. What church do you attend? 3. You don’t sound like you are from this country. What country are you from? 4. Can you provide a photograph for your application? 5. Do you have any disabilities? 6. How old are you?

How Do We Minimize Hiring Errors? • Select the Correct Interview Questions • 3 Interview Process w/ Multiple Managers • Background Check • Driving Record Screening • Pre-Employment Drug Screen • Reference Checks • Testing Testing Testing

Favorite Interview Questions 1. What do you know about our company? 2. Which would you prefer: The customer is with you while you work on the equipment or to be left alone while you are working on the equipment? Why? 3. What are your 2 biggest weaknesses? 4. How did you define success in your last position?

The Hiring Process 3 Interview Process 1st Interview – Complete application & interview with Hiring Manager 2nd Interview – In-depth review of operating procedures, compensation, advancement opportunities, tool requirements, performance expectations (i.e. callback rate, average ticket price, sales leads, etc.), in addition to anything that is unique to your company (i.e. attendance policy, benefit summary, etc.) as well as testing 3rd Interview – Committee interview with management (this committee should consist of a few key individuals in your company---those whose judgment you trust and/or key individuals who will interact with the candidate if he/she is hired)

Testing Done During 2nd Interview 1. Technical Test 2. Personality Test • Benchmarked against the personality of your top performers---measures things like attitude, manageability, sociability, assertiveness, etc.) 3. Honesty/Integrity Assessment

Technical Test 1. On an 80° day, what would you expect the freon pressures to be on an average 5-year old condenser? 2. How can you tell if a compressor is shorted to ground? 3. What temperature differential might you expect from an A/C that is functioning properly? 4. How would you check a condenser fan motor that is working but you suspect is not working properly? 5. What is a crank case heater? 6. How can you tell if the contactor is bad? 7. With the contactor closed you are getting 115 volts from each leg to ground, but 0 volts when testing L1 & L2. What is the likely problem?

Some Personality Test Behavioral Traits • Energy Level “Tendency to display endurance and capacity for a fast pace” • Sociability “Tendency to be outgoing, people-oriented and participate with others” • Manageability “Tendency to follow policies, accept external controls and supervision and work within the rules”

Sample Personality Test Results

Employment Tests Personality Test (Profile XT) & Honesty/Integrity Test (Step One Survey) • Jeff Summers, Muno Summers & Associates • www.munosummers.com • (866) 562-3487 Technical Test • Compilation from mixed group members Caliper Profile • Lori Brenner, Caliper • www.caliperonline.com • (609) 524-1200

Items to Consider for When to Start Recruiting • Budgeted Number Of Technicians By Month • Turnover Expectations • How Many Ads Need To Be Run Before A Qualified Technician Responds? • How Long Does The Interview/Hiring Process Take? • How Long Will I Have To Train Before They Are Productive?

2012 Budgeted # of Service Techs

Example of When to Recruit for Sample Company • How Many Ads Need To Be Run Before One Qualified Technician Responds? (Based on averages, 2 weekly ads need to be run) • How Long Does The Interview/Hiring Process Take? (2 weeks + any notice the candidate needs to give) • How Long Will I Have To Train Before They Are Productive? (4 weeks) • Budgeted Number Of Technicians By Month (It is Feb. 1 and we have 9 technicians and we need to have 11 techs up and running by June 1) • Turnover Expectations

Turnover of Service Technicians

What Makes It Hard To Plan? • Turnover is Unknown • Timing of Ads is Everything • Weather-driven Industry

WHAT IS THE SOLUTION FOR ALL OF THIS UNCERTAINTY? ALWAYS RECRUIT!

Questions?

Timing is Everything! Hiring the Right People at the Right Time Greg Benua October 20, 2011