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Brent Stephens
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One of the most crucial factors in the success of a business is in the ability of the owner or manager to hire the “right” people. We put it slightly differently in our management development workshops “the measure of your success as a manager is in your ability to duplicate yourself.” So how do we hire the “right” person?

Before we can answer that question we need to know · Why do we need that person? · What exactly will they be doing? · Who will they report to? · How will we measure whether they succeed or fail? Typically, our yard owners have built their facility by “gut instinct”. They have brought on family members as they were convenient and “trustworthy” (as a cousin in South Africa puts it – “if they are going to steal from you, at least you are keeping it in the family!”) When it comes time to hire a new person it could be because it is a new position as the owner relinquishes some of their duties, or a replacement of someone who has left.

Before we can hire the new person, we need to check for the existence of a functional organization chart. The term “functional” here is crucial. It defines HOW the organization operates. Some yards feel they are too small for a structure – which is the beginning of the problem. No matter what the size, 4 crucial areas exist: The Manager, the Sales Manager, the Operations Manager, and the Administration/Financial/Office Manager. Even if it is a one-person operation, these functions exist. The sales person makes the sale, the operations person fulfills the sales, and the office person keeps track of the paper and money while the Manager overseas them all. The fact that one person does them all is not important, what is important is that they recognize what roles they fulfill. When the time comes to grow, they can relinquish one of these roles.

When we have identified which position we are filling, according to the organization chart, we will also know who they will report to. The owner of manager might screen or suggest individuals for the position but THE PERSON THEY REPORT TO MUST MAKE THE ULTIMATE DECISION. The reason for this is – we will hold that person accountable for their department. If WE select the people who work for them, they have their “first line of excuse” – “I could not meet my goal as I did not hire that person and THEY are the reason I did not meet it.”

If the department head has standards set that they must accomplish, they can similarly set the standards for the new hire to accomplish. Any goals set must be SMART. Specific, Measurable, Achievable, Realistic and Tangible. If for example, a salesperson is hired, their goals should be to make X number of dollars by the end of week one, Y number of dollars for week 2, Z number of dollars for week three, and so on. Here the ability of the manager to assess their staff comes to play. Some of the most successful salespersons we have come across took SIX MONTHS to meet their target. Their department head stood by them and defended them for the whole period on a “gut feel” that they would work out. Now they have a firmly established client base and consistently produce $80,000 a month. This is clearly not the norm but shows that the “science” needs a fair amount of “art” included, it is not a stand-alone issue.

Where to find the people? They exist, even in a market with a national 4% unemployment rate. The best source is through internal referrals – 70% of all positions come through this avenue. A further 20% come through advertising, and the remaining 10% through personnel recruiting firms. If you understand the “bell Curve” scenario, 20% of people are entirely happy with their position, 60% are not entirely happy or unhappy, 20% are unhappy and will knock at your door unsolicited looking for a position. The most successful candidates come from the 60% pool. They are gainfully employed, proven workers, who you might have to wait 2 weeks for as they serve out their notice. They will prove themselves worth the wait.

Some other critical factors:

· Mr. / Ms. “Right” do not exist – choose “trainable” employees
· Each candidate comes with their own set of “baggage”
· However much we might try to make the selection process a “science” it remains an “art” – some people have a better “feel” for it, than others. Use these people to “screen” for less successful managers
· A whole lot of experience carries a whole lot of baggage, the effort of training someone to “do it right” often pays off more in the long term.
Your people remain your single biggest asset. Choose right, train right and treat right and they will be with you a long time!

Brent W. Stephens is a project manager with a Masters Degree in Social Sciences. He worked for George S. May International Company and International Profit Associates, Inc. prior to opening his own management consulting company, CE Corporation in 1996, incorporating as Consulting Expertise Corporation in 1999. When the business was closed in 2001 due to personal circumstances, close to 80% of their client base were auto recycling facilities. He was a freelance contributor to the Premium Parts magazine.