Checklist for Hiring Employees

1. Determine the need for a new or replacement position.
2. Think creatively about how to accomplish the work without adding staff (improves processes, eliminate work you don’t need to do, divide work differently, etc.).
3. Hold a recruiting planning meeting with the recruiter, the HR leader, the hiring manager, and, potentially, a coworker or internal customer.
4. Develop and prioritize the key requirements needed from the position and the special qualifications, traits, characteristics, and experience you seek in a candidate. (These will assist your Human Resources department to write the classified ad; post the job online and on your Web site; and screen resultant resumes for potential candidate interviews.)
5. With HR department assistance, develop the job description for the position.
6. Determine the salary range for the position.
7. Decide whether the department can afford hiring employees to fill the position.
8. Post the position internally on the “Job Opportunities” bulletin board for one week. If you anticipate difficulty finding a qualified internal candidate for the position, state in the posting that you are advertising the position externally at the same time.
9. Send an all-company email to notify staff that a position has been posted and that you are hiring employees.
10. All staff members encourage talented, qualified, diverse internal candidates to apply for the position. (If you are the hiring supervisor, as a courtesy, let the current supervisor know if you are talking to his or her reporting staff member.)
11. Interested internal candidates fill out the Internal Position Application.
12. Schedule an interview, for internal candidates, with the hiring supervisor, the manager of the hiring supervisor or a customer of the position and HR. (In all cases, tell the candidates the timelines you anticipate the interview process will take.)
13. Hold the interviews with each interviewer clear about their role in the interview process. (Culture fit, technical qualifications, customer responsiveness and knowledge are several of the screening responsibilities you may want your interviewers to assume.)
14. Interviewers fill out the Job Candidate Evaluation Form.
15. If no internal candidates are selected for the position, make certain you clearly communicate with the applicants that they were not selected. Whenever possible, provide feedback that will help the employee continue to develop their skill and qualifications. Use this feedback as an opportunity to help the employee continue to grow their career.
16. If an internal candidate is selected for the position, make a written job offer that includes the new job description and salary.
17. Agree on a transition timeline with the internal candidate’s current supervisor.
18. If you’ve created another internal opening, begin again.
19. End the search.
20. If no qualified internal candidates apply, extend the search to external candidates, if you didn’t advertise the position simultaneously. Develop your candidate pool of diverse applicants.
21. Spread word-of-mouth information about the position availability in your industry and to each employee’s network of friends and associates.
22. Place a classified ad in newspapers with a delivery reach that will create a diverse candidate pool.
23. Recruit online. Post the classified ad on jobs and newspaper-related websites including the company website.
24. Post the position on professional association websites.
25. Talk to university career centers.
26. Contact temporary help agencies.
27. Brainstorm other potential ways to locate a well-qualified pool of candidates for each position.
28. Through your recruiting efforts, you’ve developed a pool of candidates. People are applying for your open job. Whether you have developed a candidate pool in advance of the job opening or you are searching from scratch, the development of a qualified pool of candidates is crucial.
29. Send postcards or emails to each applicant to acknowledge receipt of the resume. (State that if the candidate appears to be a good match for the position, relative to your other applicants, you will contact them to schedule an interview. If not, you will keep their application/resume on file for a year in case other opportunities arise.)
30. Once you have developed a number of applicants for the position, screen resumes and/or applications against the prioritized qualifications and criteria established. Note that resume cover letters matter as you screen.
31. Phone screen the candidates whose credentials look like a good fit with the position. Determine candidate salary requirements, if not stated with the application, as requested.
32. Schedule qualified candidates, whose salary needs you can afford, for a first interview with the hiring supervisor and an HR representative, either in-person or on the phone. In all cases, tell the candidates the timeline you anticipate the interview process will take.
33. Ask the candidate to fill out your official job application, upon their arrival for the interview.
34. Give the candidate a copy of the job description to review.
35. Hold screening interviews during which the candidate is assessed and and has the opportunity to learn about your organization and your needs.
36. Fill out the Job Candidate Evaluation Form for each candidate interviewed.
37. Meet to determine which (if any) candidates to invite back for a second interview.
38. Determine the appropriate people to participate in the second round of interviews. This may include potential coworkers, customers, the hiring supervisor, the hiring supervisor’s manager and HR. Only include people who will impact the hiring decision.
39. Schedule the additional interviews.
40. Hold the second round of interviews with each interviewer clear about their role in the interview process. (Culture fit, technical qualifications, customer responsiveness and knowledge are several of the screening responsibilities you may want your interviewers to assume.)
41. Candidates participate in any testing you may require for the position.
42. Interviewers fill out the candidate rating form.
43. Human Resources checks the finalists’ (people to whom you are considering offering the position) credentials, references and other qualifying documents and statements.
44. Anyone who has stated qualifications dishonestly or who fails to pass the checks is eliminated as a candidate.
45. Through the entire interviewing process, HR, and managers, where desired, stay in touch with the most qualified candidates via phone and email.
46. Reach consensus on whether the organization wants to select any candidate (via informal discussion, a formal discussion meeting, HR staff touching base with interviewers, candidate rating forms, and so on). If dissension exists, the supervising manager should make the final decision.
47. If no candidate is superior, start again to review your candidate pool and redevelop a pool if necessary.
48. HR and the hiring supervisor agree on the offer to make to the candidate, with the concurrence of the supervisor’s manager and the departmental budget.
49. Talk informally with the candidate about whether he or she is interested in the job at the offered salary and stated conditions. Make certain the candidate agrees that they will participate in a background check, a drug screen and sign a Non-compete Agreement or a Confidentiality Agreement, depending on the position. (This should have been signed off on the application.) If so, proceed with an offer letter. You can also make the job offer contingent on certain checks.
50. If not, determine if negotiable factors exist that will bring the organization and the candidate into agreement. A reasonable negotiation is expected; a candidate that returns repeatedly to the company requesting more each time is not a candidate the company wants to hire.
51. If the informal negotiation leads the organization to believe the candidate is viable, HR will prepare a written position offer letter from the supervisor that offers the position, states and formalizes the salary, reporting relationship, supervising relationships, and any other benefits or commitments the candidate has negotiated or the company has promised.
52. The offer letter, the job description and the Company Non-Compete or Confidentiality Agreement are provided to the candidate.
53. The candidate signs the offer documentation to accept the job or refuses the position.
54. If yes, schedule the new employee’s start date.
55. If no, start again to review your candidate pool and redevelop a pool if necessary.

The 6 critical things you need for Success

Here are some of the qualities necessary for success.

Character.

Build a good character. Character is what you are when there is no one else around. Character is how you behave when no one can see what you are doing. Character is the real you. It is important to build your character.

Commitment.

Most successful people were committed. They set themselves goals and then set about working to achieve those goals. They were focused and they had a plan. Commitment means putting ‘that thing’ at the top of your priority list until you have succeeded in it.

Motivation.

Most successful people are self motivated. They are motivated by the thrill of achieving so they find it easy to get out of bed in the morning. You need to build this motivation up so there is a driving force behind you that will enable you to overcome difficulties and challenges that come along.

Stability.

Develop emotional stability because this is a trait that successful people have to enable them to cope with pressures. Try not to be an up and down type of person, don’t get carried away with every suggestion that is put to you but sit down calmly and quietly assess the proposal or situation before making a choice of the direction you will go. Build a good support team around you of family and associates because that will contribute to stability.

Health.

Successful people tend to take care of their health. Unfortunately too many people, especially those in business, sacrifice their health in order to get wealth. If you are not eating properly and exercising you will not be at your peak health wise. Illness can cause many problems including jeopardizing a business deal or curtailing your competing in an important event. There is no doubt that good health is great wealth.

Never Quit.

Successful people are those people who refuse to give up. They will never quit. They stay focused and work at achieving their goals, come what may. You need to have a never quit attitude in your life if you are to succeed. Many highly successful business men and women today have succeeded to where their businesses have become multi million dollar operations but this has come about after failing two, three or even four times along the way.

Too many people give up at the first sign of trouble or if a minor problem raises it head so it is important to ‘build a bit of steel’ into yourself so you can handle these situations when they arise. Learn to believe in your abilities and tell yourself continually that others have been able to do it so there is no reason why you cannot.

It was Winston Churchill who uttered those famous words – ‘We will never surrender’.

© Copyright 2005 StartRunGrow

COST OF EMPLOYEE TURNOVER

The firstly, Costs Due to a Person Leaving – there are eleven items can be listed, those items are as follows:
1. Calculate the cost of the person(s) who fills in while the position is vacant. This can be either the cost of a temporary or the cost of existing employees performing the vacant job as well as their own. Include the cost at overtime rates.
2. Calculate the cost of lost productivity at a minimum of 50% of the person’s compensation and benefits cost for each week the position is vacant, even if there are people performing the work. Calculate the lost productivity at 100% if the position is completely vacant for any period of time.
3. Calculate the cost of conducting an exit interview to include the time of the person conducting the interview, the time of the person leaving, the administrative costs of stopping payroll, benefit deductions, benefit enrollments, COBRA notification and administration, and the cost of the various forms needed to process a resigning employee.
4. Calculate the cost of the manager who has to understand what work remains, and how to cover that work until a replacement is found. Calculate the cost of the manager who conducts their own version of the employee exit interview.
5. Calculate the cost of training your company has invested in this employee who is leaving. Include internal training, external programs and external academic education. Include licenses or certifications the company has helped the employee obtain to do their job effectively.
6. Calculate the impact on departmental productivity because the person is leaving. Who will pick up the work, whose work will suffer, what departmental deadlines will not be met or delivered late. Calculate the cost of department staff discussing their reactions to the vacancy.
7. Calculate the cost of severance and benefits continuation provided to employees who are leaving that are eligible for coverage under these programs.
8. Calculate the cost of lost knowledge, skills and contacts that the person who is leaving is taking with them out of your door. Use a formula of 50% of the person’s annual salary for one year of service, increasing each year of service by 10%.
9. Calculate the cost impact of unemployment insurance premiums as well as the time spent to prepare for an unemployment hearing, or the cost paid to a third party to handle the unemployment claim process on your behalf.
10. Calculate the cost of loosing customers that the employee is going to take with them, or the amount it will cost you to retain the customers of the sales person, or customer service representative who leaves.
11. Subtract the cost of the person who is leaving for the amount of time the position is vacant.

The secondly, Recruitment Costs – there are eight items can be listed, those items are as follows:
1. The cost of advertisements (from a $200.00 classified to a $5,000.00 or more display advertisement); agency costs at 20 – 30% of annual compensation; employee referral costs of $500.00 – $2,000.00 or more; internet posting costs of $300.00 – $500.00 per listing.
2. The cost of the internal recruiter’s time to understand the position requirements, develop and implement a sourcing strategy, review candidates backgrounds, prepare for interviews, conduct interviews, prepare candidate assessments, conduct reference checks, make the employment offer and notify unsuccessful candidates. This can range from a minimum of 30 hours to over 100 hours per position.
3. Calculate the cost of a recruiter’s assistant who will spend 20 or more hours in basic level review of resumes, developing candidate interview schedules and making any travel arrangements for out of town candidates.
4. The cost of the hiring department (immediate supervisor, next level manager, peers and other people on the selection list) time to review and explain position requirements, review candidates background, conduct interviews, discuss their assessments and select a finalist. Also include their time to do their own sourcing of candidates from networks, contacts and other referrals. This can take upwards of 100 hours of total time.
5. Calculate the administrative cost of handling, processing and responding to the average number of resumes considered for each opening at $1.50 per resume.
6. Calculate the number of hours spend by the internal recruiter interviewing internal candidates along with the cost of those internal candidates to be away from their jobs while interviewing.
7. Calculate the cost of drug screens, educational and criminal background checks and other reference checks, especially if these tasks are outsourced. Don’t forget to calculate the number of times these are done per open position as some companies conduct this process for the final 2 or 3 candidates.
8. Calculate the cost of the various candidate pre-employment tests to help assess a candidates’ skills, abilities, aptitude, attitude, values and behaviors.
The thirdly, Training costs – there are five items can be listed, those items are as follows:
1. Calculate the cost of orientation in terms of the new person’s salary and the cost of the person who conducts the orientation. Also include the cost of orientation materials.
2. Calculate the cost of departmental training as the actual development and delivery cost plus the cost of the salary of the new employee. Note that the cost will be significantly higher for some positions such as sales representatives and call center agents who require 4 – 6 weeks or more of classroom training.
3. Calculate the cost of the person(s) who conduct the training.
4. Calculate the cost of various training materials needed including company or product manuals, computer or other technology equipment used in the delivery of training.
5. Calculate the cost of supervisory time spent in assigning, explaining and reviewing work assignments and output. This represents lost productivity of the supervisor. Consider the amount of time spent at 7 hours per week for at least 8 weeks.

The fouthly, Lost Productivity Costs, as the new employee is learning the new job, the company policies and practices, etc. they are not fully productive. Use the following guidelines to calculate the cost of this lost productivity:
1. Upon completion of whatever training is provided, the employee is contributing at a 25% productivity level for the first 2 – 4 weeks. The cost therefore is 75% of the new employees full salary during that timeperiod.
2. During weeks 5 – 12, the employee is contributing at a 50% productivity level. The cost is therefore 50% of full salary during that timeperiod.
3. During weeks 13 – 20, the employee is contributing at a 75% productivity level. The cost is therefore 25% of full salary during that timeperiod.
4. Calculate the cost of coworkers and supervisory lost productivity due to their time spent on bringing the new employee “up to speed.”
5. Calculate the cost of mistakes the new employee makes during this elongated indoctrination period.
6. Calculate the cost of lost department productivity caused by a departing member of management who is no longer available to guide and direct the remaining staff.
7. Calculate the impact cost on the completion or delivery of a critical project where the departing employee is a key participant.
8. Calculate the cost of reduced productivity of a manager or director who looses a key staff member, such as an assistant, who handled a great deal of routine, administrative tasks that the manager will now have to handle.
The fifthly, New hire costs – there are two items can be listed, those items are as follows:

1. Calculate the cost of bring the new person on board including the cost to put the person on the payroll, establish computer and security passwords and identification cards, business cards, internal and external publicity announcements, telephone hookups, cost of establishing email accounts, costs of establishing credit card accounts, or leasing other equipment such as cell phones, automobiles, pagers.
2. Calculate the cost of a manager’s time spent developing trust and building confidence in the new employee’s work.
The fifthly, Lost Sales Costs – there are two items can be listed, those items are as follows:

1. For sales staff, divide the budgeted revenue per sales territory into weekly amounts and multiply that amount for each week the territory is vacant, including training time. Also use the lost productivity calculations above to calculate the lost sales until the sales representative is fully productive. Can also be used for telemarketing and inside sales representatives.
2. For non-sales staff, calculate the revenue per employee by dividing total company revenue by the average number of employees in a given year. Whether an employee contributes directly or indirectly to the generation of revenue, their purpose is to provide some defined set of responsibilities that are necessary to the generation of revenue. Calculate the lost revenue by multiplying the number of weeks the position is vacant by the average weekly revenue per employee.

The original article can be found in here

The 5 Big Secrets of Top Performers

They say that success in sales or any other profession is due to luck, chance and hard work. There is nothing further from the truth.

Many people work incredibly hard and put in long hours, but they are not successful. Hard work certainly contributes to success, but hard work alone will not make you a “top dog” in your trade or profession.

So, what is the secret of success? Is it due to luck or chance?

Many experts consider that success is an absolute science. That is, there are exact principles of thought and action that all the top performers consistently exhibit.

Here are the 5 main secrets that top performers always have:

Top performers believe in themselves and their abilities.
Winners always believe in advance that they will win and this becomes a self-fulfilling prophecy. One of the mistakes of would-be achievers is the notion that “if I become more skilled in my profession I will succeed”. How many skilled people do you know who are not winning every single day? Two people may go through the same training course and acquire the same skills, yet one becomes a huge success and the other one fails. Could it be due to the individual belief system that each had and the unshakeable conviction that he or she would win.

Top performers take action as if they had already achieved their goal.
These people think, work, talk, play and take action like the person they want to become. This means looking past current results and focusing, believing and acting as if they had already achieved what they were trying to achieve. Don’t go by your current results, because they will distract you and direct your attention away from your goal.

Top performers visualise their desired results.
The world’s most successful entrepreneurs see themselves winning every single day. This applies to business as well as to any other endeavour, such as athletics, sport etc. Top performers, such as Tiger Wood in golf, Michael Jordan in basketball, Roger Federer in tennis or David Beckham in soccer, all have this common trait. They were able to visualise their desired result and achieved their goals because they focused totally on it. Visualising, therefore, is one of the keys to realising your goals.

Top performers build partnerships.
No one in the world knows everything that there is to know, and no one can make it alone. There is just too much to learn and too many things are moving so rapidly that one cannot hope to catch up on their own. Top achievers spend time with other top achievers, because like attracts like. They attend the same events, they eat at the same restaurants, they join the same churches and clubs and they think identically. They say that business and social environment is more important than genes, so choose your relationships and partnerships wisely.

Top performers know how to give.
High achievers always ask; “How can I provide more value?” “How can I give to others?” “How can I help my team mates?” “How can I satisfy my employees?” “How can I meet the needs of my clients?” “What can I do to make it all better?” Winners always give 100% more than they ask for in return. They have learnt that to achieve they must also be great at giving.

Success comes to those who operate under the universal laws and timeless principles that have been there from Day 1. Top performers will always be those who understand and utilise these principles better than their competitors. It means that they will win every time.

Source:http://www.startrungrow.com/information/business/1,7237,the-5-big-secrets-of-top-performers.htm
© 2006 Copyright StartRunGrow

Compensation in Indonesia

The wages policy that protects workers/laborers as mentioned under subsection (2) shall include:
a. Minimum wages;
b. Overtime pay;
c. Paid-wages during the absence;
d. Paid-wages because of activities outside of his job that he has to carry out;
e. Wages payable because he uses his right to take a rest;
f. The form and method of the payment of wages;
g. Fines and deductions from wages;
h. Other matters that can be calculated with wages;
i. Proportional wages structure and scale;
j. Wages for the payment of severance pay; and
k. Wages for calculating income tax.

“ (UU No. 13 2003, Section II, article 88, Verse 3)