By Jeff Thill & Pat Connelly, Wipfli LLP

Hiring in today’s labor market requires standard approaches, as well as more strategic ones. It’s not unusual to hear employers talk about the challenges of hiring. Finding employees is the easy part. Finding qualified employees who perform well and fit the corporate culture is the real challenge. Manufacturers have a particularly tough time getting the skilled workers they need.

Companies can improve their hiring efforts by first consistently applying a few fundamental practices. With the basics in place, it’s then possible to pursue more strategic ways to find and attract good employees.

Hiring 101

Organizations with more effective hiring systems rank higher in financial performance, productivity, quality, customer satisfaction, employee satisfaction, and retention. A reliable system starts with these basic principles.

Develop a job description before beginning a search

A written job description targets what you’re looking for in a candidate. It provides a clear definition of the role and the skill sets required for the job. Without a job description, you may be interviewing and hiring the wrong applicants, which will eventually result in higher turnover rates. Use the job description to specify the knowledge areas and abilities the ideal candidate should possess, and define the job’s core competencies. The more specific the language, the better.

Ask valid, consistent, and open-ended questions

Create questions to ask all candidates. Make them specific and measurable—the kinds of questions that go well beyond yes or no answers. For instance, ask behavior-based questions (i.e. “Tell me about the most difficult problem you’ve faced on the job.” “What did you like about your last job?”) Behavior-based interviews help predict future performance by generating specific information related to past performance.

Evaluate corporate fit, as well as skill sets

Since most job turnover is the result of an inability to “fit in,” personality traits should be equally considered alongside skills. No matter how talented a person is, fitting into a corporate culture can’t be taught or forced. Part of determining a good personnel fit requires defining your culture. Is your culture one with little room for flexibility? Your focus should be on employees who are rule-followers. Have a fast-paced environment? Avoid laid-back personalities. Is teamwork a workplace essential? Allow team members to interview applicants to ensure the right fit.

Hard-core hiring efforts

You’ve laid the groundwork for selecting good employees. Now it’s time to consider more strategic hiring factors.

Review compensation plan to ensure competitive pay structures

While it’s prudent to have a compensation philosophy, it should also be regularly scrutinized against the market. If you’re experiencing hiring difficulties because of location issues or can’t seem to fill those more challenging positions, get creative. Consider a hiring bonus or a higher rate of pay. Likewise, compare your benefits and adjust them if necessary. This includes nonmonetary benefits such as flexible work schedules and job sharing. Something as simple as offering four ten-hour shifts instead of the usual five days a week at eight hours each can be an attractive draw.

Cultivate relationships with schools and other labor sources

By developing relationships with educational facilities that train the labor pool, your company can establish itself as the preferred employment destination upon graduation. Work closely with instructors and placement directors. Consider an internship program. Try tuition reimbursement for talented employees who are willing to take on the special training your organization requires.

Establish an employee referral program

Employees are great resources for potential new hires. Provide them with bonuses for any referrals who become duly employed. Payments can be dispensed over a period of time with an initial sign-on bonus and subsequent payouts throughout the first year (at six-month or one-year marks).

Try the temporary route

A temporary employment agency can be a wellspring of workers. You can “try out” applicants, observing their productivity and quality, and applicants can “try on” the job and the company. Strive to develop good relationships with one or two agencies so they become familiar with your requirements. The more familiar they are, the better the matches will be. As the labor market tightens, step back and review your hiring processes. Be willing to initiate new programs that can attract the kinds of applicants you need to successfully compete.

Jeff Thill is a Wipfli partner who serves manufacturing, wholesale, and retail clients ranging in size from large widely owned companies to smaller family-owned businesses.  Please contact Jeff at our St. Paul office at (651) 766-2862 or e-mail him at jthill@wipfli.com.

Pat Connelly is a people systems consultant at Wipfli. Please contact  Pat at our Minneapolis office at (952) 548-3403 or e-mail her at pconnelly@wipfli.com.