October
28 - November 3, 2002
What you’re about to read flies in the face of current management
practices. In fact, I may be asked to leave the Society for Human Resources
Management just for promoting this idea. But entrepreneurs challenge
conventional wisdom every day and recognize that traditional methods
don’t always work in the entrepreneurial business model.
Before reading further, please note this caveat: the process that I’m about to describe is meant for new businesses (started by one or two individuals) that are currently in the first stage of measurable growth. So, if you’re actually booking revenue with real customers and you need more help, this article is for you!
Hiring methods
When my firm works with young companies, we find that their hiring methods fit into one of three, general categories that I call ad hoc delegation, HR recruiting and chief’s choice.
In the ad hoc model, whoever gets stuck with the job winds up making all of the hiring decisions. Generally this individual has no particular background in recruiting and has become the company’s hiring expert by default. The HR recruiting method means that early in the start-up phase, the founder(s) saw a need to bring in a professional human resources manager to oversee employee-related activity. Inevitably, recruiting new employees becomes part of this job. |
The last category, chief’s choice, is demonstrated by the company’s founder making all of the hiring decisions. Whether the open position is a senior management role, or an entry-level support job, the entrepreneur has the final say in hiring each new employee. Ready for a shock? This last option is probably the most effective hiring method for entrepreneurial organizations.
Early stages
An entrepreneur assumes a high degree of risk in order to pursue her own vision. By transforming the vision into a tangible product or service, she creates a business. In the early stages, it is the entrepreneur (alone) who shoulders the responsibility of turning that vision into reality. When she adds employees, they will share responsibility for carrying on the original vision through their work.
As a new venture matures and begins to hire employees, it is natural for the founder to delegate various functions of the business. This usually begins with tasks such as answering the phone and keeping the books. As the list of non-core activities grows, the hiring function often gets placed in the pile. This can be risky for a young business.
In our service-oriented marketplace, employees’ attitudes directly reflect the quality of a business. If its employees lack commitment to the company’s original vision, the fledgling enterprise will quickly become just another name in a wide field of competitors. This may sound a bit “touchy-feely”, but there are plenty of examples across the Lehigh Valley. According to data compiled by the LVEDC in 2001, there are over 12,000 local businesses employing between 1 and 25 people. However, only a miniscule number of them stand out among their competitors. |
Carrying on the vision
Successful entrepreneurs recognize that their ultimate business goal is to carry their vision to the marketplace. New employees should be selected based upon their potential to contribute to that goal. Who can better determine that potential than the founder himself?
The recruiting function can be delegated. Recruiting is a process of combining several tasks such as posting open positions, screening resumes and assessing skills in order to identify the most likely candidates. With proper training, these tasks can certainly be performed by someone other than the entrepreneur.
What cannot be learned – what is impossible to duplicate – is the entrepreneur’s own instinct. Provided that a candidate possesses the skills and background required for the job, the determining factor becomes personality. A well-matched personality compliments the culture of the company, which is derived from the founder’s own vision and personality. The best judgment of a person’s potential fit, then, lies with the one who developed the culture.
In a more noble interpretation, entrepreneurs create a world based on their own ideas and dreams. They sacrifice the security of a regular paycheck for the belief in their ability to generate income on their own. If you’re going to make your own world, shouldn’t you choose the people who get to work in it?
By Kevin F. Flemming,
Director of Sales & Marketing
INTEGRITY Personnel, Inc. |
