I was recently speaking with the president of a company who has been having some challenges with employee recruitment and retention. I thought it might be helpful to share Dave Ramsey’s thoughts on hiring.
The smaller the team, the more important your hiring decision.
From Dave Ramsey’s EntreLeadership 1 day seminar
12 steps to a proper hire:
Please send the exact person You want on our team, a person who needs employment, and will do the job well.
Please keep the crazy people away.
2. Key Results Area – (KRA)
This is a JOB DESCRIPTION for the ROLE that you need to fill.
This defines the expectations you have for them.
3 Roman numerals covering the job area
4-5 sentences that explain the job –
This provides an understanding of what “succcess” looks like for the person in that role.
You must have this – a written job description for the role.
These are almost useless, but they can be a simple filter to eliminate
candidates who cannot be bothered to do a good job creating one.
4. Personality test
Dave uses DISC as a basic test to help identify whether the person
is a fit for the role.
I like to use DISC with my clients because it is simple to understand, and we can determine action plans which can give immediate results.
Want to know more? Here’s a quick video overview of DISC!
5. Do you like them personally?
- It takes more than talent. Chemistry and personality are important.
- You should plan to interview the candidate several times.
5 interviews would not be inappropriate.
- Take your time making this decision.
You will spend a lot of time with this person after hiring them. Don’t rush through the hiring.
Making it “harder to get in” by finding the right person the first time is will save you countless headaches and will save you money in the long run.
6. Do they “light up” when they talk about this position?
You want people who are delighted to be in this role on your team.
If they do not, it’s a red flag!
7. Compensation calculation, policy and benefits review
So that they know what they are getting in return for their efforts.
8. Personal budget review – Really – on paper, on purpose
Leaders at Dave Ramsey’s organization actually work out a personal
budget with the candidate to confirm that s/he can live on what they
will be paid.
Dave tells the story of a woman who worked for him for $13K but actually needed $30K to live. It didn’t work out.
Dave feels responsible for his team members and wants to make sure
that they can make it on their income.
This may not be appropriate for you and your team, but it’s an interesting point – what questions SHOULD you be asking of your potential team members?
Dave says that these, too, are almost useless – it’s a “stupid check” to see if the candidate is “stupid enough” to give references who will say bad things about them.
Sometimes they do. Call the references. Eliminating just one bad hire makes it worth doing every time!
10. Spousal interview
Dave says “If [his wife] Sharon gets a ‘feeling‘ that the person is not a fit”
Dave does not hire the person. He says ignoring Sharon’s “feelings” has cost him tens of thousands of dollars over the years, so he listens now.
The hiring manager, and the hiring manager’s spouse take the candidate and the candidate’s spouse to dinner.
This less formal interview helps provide an independent evaluation of the candidate.
11. Mission statements (company and personal)
Does the candidate’s personal mission statement line up with the mission of your organization?
If not, don’t hire them!
- Do you have a mission, vision, values and goals – on a single sheet of paper that everyone can understand?
- If not, or if yours needs a tuneup, I can help you with that so that you can QUICKLY put that together.
- It doesn’t have to be complicated – in fact, if it is, it probably isn’t working for you.
- Email me below for my one pager – 6 questions to ask to engage your team on Mission, Vision, and Values
12. 90 day probationary period for the company and the person.
I’m not looking for the ‘best’ players, I’m looking for the ‘right’ ones
— Dave Ramsey
A person hired properly will perform better, will not cause problems, and will be more likely to stay.
Hiring the right way is a critical part of building your team.
I’m happy to offer you a free “Clarity and Focus” coaching session to help you identify your priorities and develop the action plan to bring on a great team member.
Give me a call!
Questions? Want my Mission/Vision/Values resource? Use the contact form below!