Are you hiring the right employee for your business?

July 13th, 2015

Hiring the Right Person | LP Solutions

Your employee can be an asset or liability for your company. Can you account for an employees contribution to the profit your business makes? Do your employees have the right training to diligently perform their work in sales and in their trade? Unproductive employees can result in wasted resources, which will be evident in the profit and loss statements

Are you hiring a salesman or tradesman?

A salesman’s objective is to sell your company to potential customers while that of a tradesman is to provide quality craftsmanship in their work. Any company will be looking for 100% of both, but that is not possible to find, at least not in the real world. You may end up with 25% salesman and 50% tradesman with ongoing training in both fields.

Most contractors are impatient in finding the right employee. This sort of desperation ends up in hiring an unskilled employee who will not give your business the right boost. You may have to wait up to 3-4 months in order to find the right employees with skills that you need.

Are you investing in sales techniques for your employees?

You need to harness their sales skills to make them even more profitable to your company. Equip them with skills that are strictly in line with your business. Look at it from these terms. What good is an employee who is 0% salesman and 100% tradesman or 100% salesman and 0% tradesman? Neither one is useful to your service company. How does 75% salesman and 75% tradesman look? An investment in knowledge pays the best dividends.

Are you sending employees to sales and trade seminars to better their craft or trade?

Sending your employees to trade schools or seminars would mean that you might incur the cost. However, you want to maintain these employees after they have completed their training in order to get value for the cost incurred. You don’t want to send an employee to a costly seminar or trade school only for them to quit and get another job before you can reap the benefits.

If the company incurs the cost, then they need to sign a work contract with your company. You can also opt to make them pay for their training and offer to reimburse them over a period of 3-6 months, this will guarantee their stay in the company, as if in any case they quit, they will lose money.

Are you shooting from the hip when you hire?

Every owner expects to add value to their company when they hire. Do you put your top hiring prospects through any scenarios for sales and their trade? Are they confident, shy or bold? Are you listening to their mannerisms as they speak? Did they show up on time, do they smell good did they properly shake your hand? How does it fell shaking someone’s hand that feels like a wet noodle?

How do you know how much a new employee will cost you?

When determining the cost of a new employee, you should base your calculations on the cost of the existing “top” employees. The cost of a new employee should be outweighed by the income they bring to the company. The profit generator app can help you to make this a decision.

How do you know the hourly rate they are asking will not affect your profit?

What makes you decide to give an employee a raise? When they ask for a raise do you give it to them because you are in a good mood? The profit generator app not only gives you the overall profit you get by charging a certain hourly rate but also what each employee will contribute to your revenue and profit in general. Giving a casual $1 raise will take away over $2,000 of your profit. Start out low on your hourly rate and work your way up. If an employee has a problem starting low for the first month, they may only be there for the money. A confident employee will have not problem with it and will prove that you are not paying them enough.

You should practice patience, before hiring, to find the right fit for your company. Also, make sure that your company can afford their hourly rate. Just because your potentially new employee owned other businesses or ran larger companies than what you have, may be an indicator as to why they are looking for work. Don’t base your hourly rate on your competitors’ as their rate WILL NOT apply to your company. Use the Profit Generator app to determine which practices are right for your company.


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