PRO-vocative IDEAS from PRO
President's Resource Organization
 
Here is your new edition of the PRO-vocative IDEAS e-letter. Each issue will bring you a Thought PRO-voking Idea designed to help you run your business better. If you don’t want to receive these monthly emails, just click the Remove button below.

These ideas don’t come out of an Ivory Tower, but from the real-life experience of entrepreneurs like you. At PRO, Presidents’ Resource Organization, the owners of small businesses gather monthly to share problems, and work towards solutions, based on their own lessons learned. PRO members move their companies to the next level, through this peer group interfacing.

Here’s an example of a PRO-vocative idea and the discussion leading to it: 

What Should You Do 
When Your New Hire Leaves?

Member Problem: 

A PRO Board member recruited a highly qualified candidate to become part of his organization. This person received the maximum compensation, in the industry, for the position and responsibility, and then, before a year was up, gave notice (but no reasons) and left the company. How could this have been avoided? What could the member learn from this experience?

PRO Advisory Board Recommendations:

Susan -- You paid this person above average for the position and responsibility and nonetheless they left. I have found compensation is not a motivator, but it is a satisfier. Most people are not motivated to do stay solely because of compensation.
 
Joe -- When we hire we always have a discussion with the candidate about our comparative values. We want to make sure we are both on the same page concerning our culture and beliefs.
 
Roger -- As you are aware, we are professional recruiters. We find that all candidates must fully satisfy two out three of the following criteria:
       Location: The job site must be one that is agreeable.
      Compensation: We make sure the candidate is fully satisfied with the starting compensation and what he or she can expect in the near future. 
       Position: There is a mutual agreement and understanding of the job, its responsibilities and authority. During the interview we strive to search and determine the candidate’s position on these criteria. As I said, two of the three must fully be met. If they are taking the job only for compensation, there is a high probability they will move on.

Lois -- When an employee leaves our company we always conduct an exit interview to learn about their perspective of our company, its culture, etc. In theory, the individual has nothing to lose by being candid since they have already given notice. We also try to make the separation on a good note in case we may wish to have them back some time in the future.

Roger -- We don't like to lose good employees, but we look upon this as an opportunity. This is a good time to try to improve our staff by hiring an even better person. It is also an opportunity to learn more about ourselves through the exit interview. This process has improved our company and has made us a better employer.

Facilitator's Comment:

Mark's comment about delving into the criteria of what satisfies the candidate is critical. In key positions, small businesses do not want to have turnover. Hiring for skills is only the base level of the hiring activity. The hiring process should also include a matching of culture, values, beliefs, personality, sense of humor, location, job description and compensation.

It is also a good idea to try to conduct an exit interview thirty days after the person has left the company. If there is any ill will it gives them the opportunity to "level out." They may also find the grass is not as green on the other side of the fence. PRO Board members also discuss whether they would hire back an individual who has left the company. The answer to this depends on what terms they left. It is always advantageous to bring back good employees, providing they have left on good terms. When employees return, your employee group also learns the strength and benefits of your company.

The Spring 2004 issue of the PRO print newsletter, covering such topics as making time, measuring risk,
and planning your estate, is now available at www.propres.com/PRO3-04.pdf --
or email Ray Silverstein to request a hard copy.

 

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Just because you’re in business for yourself doesn’t mean you have to be in business by yourself!