Welcome to the May edition of the Hire Score Newsletter. There are lots of changes going on in the employment market right now so it is the perfect time to talk about some fundamentals. When I was growing up, one of my idols was John Wooden the great basketball coach at UCLA. He always said if you master the fundamentals, the rest will take care of itself.

Well, fundamental to hiring good people is to understand the essence of the relationship. I am talking about the relationship between you (the employer) and the person you hire (the employee). The best way to view this relationship is as a "Behavior Rental Agreement". You don't really hire a person, you simply rent their behavior.

If the arrangement you are entering into is a behavior rental agreement, you should treat it like any other agreement. When you purchase a product or service, you enter into contract that clearly spells out each party's obligations. When we at Selecting Winners work with a client, we have a contract that spells out what we will do, when we will do it and the results the client can expect. The other side of the contract spells out what the client must do, what an how they will pay for the services and a strong guarantee.

I am sure this sounds very familiar. So why then should hiring a person be any different? You need to have a very similar agreement with the person you hire. Let's start with the new employee's obligations in the agreement. If you have followed my Selecting Winners process you know we create a Performance-based Success Profile that includes short, medium and long-term expectations. This document represents exactly what you want done and are willing to pay for (your side of the agreement).

The best way to create a Performance-based Success Profile is to think about the business problem you are trying to solve. Next, decide what the new person needs to accomplish to satisfy that business problem. This list of accomplishments does triple duty. It forms the basis of your Performance-based Success Profile that you use to make you hiring decisions. Second, it represents the requirements for your Behavior Rental Agreement that you negotiate with the person when you hire them. And finally, it represents the scorecard against which you will measure performance and the success of the Agreement. This is obviously a very useful document.

Now we have to look at the other side of the agreement. How much should you pay for the results the person is going to deliver. Do you notice how I said "pay for results" as opposed to paying for the person? By starting with the business problem you want solved, it makes it easier to put a value on the solution. You are going to want to provide three things to meet your side of the agreement. First is some financial compensation. Second is some form of benefits or other non-cash compensation. And finally, you need to provide the tools and environment so the person can be successful.

This is a pretty straight, forward arrangement. Both parties' duties and responsibilities are clearly outlined and specified and as a result compliance is easy to monitor. We are talking about fundamentals and this is a fundamental way to look at the hiring process.

The second fundamental I want to talk about this month is money. How much does it cost to make a hiring mistake? If you have been reading this newsletter you know I recently released my How To Hire The Perfect Salesperson product (if you haven't gotten it yet you should at www.perfect-salesperson.com). As part of that promotion I created something called the Real Cost Calculator for hiring mistakes. You can try it out at www.salesrephire.com. In addition to the calculator, I outline nine categories of costs associated with making a poor hiring decision. You should check it out.

So in turbulent times when you are paying attention to every penny, it is fundamental that you don't make a hiring mistake. One hiring mistake can undermine every other cost saving activity. Given this situation too often your response is not to hire at all. Why not just stick you head in the sand instead? The right response is to hire right using my Selecting Winners process. For months I have been telling you that this is the perfect time to improve the quality of your staff. Do it!

I delivered four different presentations last month to a variety of groups. As I spoke with CEOs, Business Owners and Managers, the message I got was optimistic. Most people think the worst is over and the business economy is improving. As this attitude picks up, there is going to be more and more competition for the best talent. This window of opportunity is going to close and as I like to say, Snooze and you Lose.

Last month I told you I would spend this month telling you how to avoid the Kool-Aid. Sorry, we will have to wait until next month for that discussion. I really wanted to get you back on the road with fundamentals this month.

Finally, I wanted to share with you the single best way to improve the bottom-line results of your organization. The one action that has the quickest and longest lasting effect is … hiring a good salesperson. There is no reason not to add a good salesperson to your staff. And, now you can do it with absolute confidence. Just visit www.perfect-salesperson.com to get started. (Yes that is me under that paper bag!)

Have a great month recruiting! Aloha from paradise!

Barry Shamis

PS.We still have a couple of weeks free this fall at our house in Hawaii on Kauai. Check it out at www.ehokulele.com Mention that you are a subscriber to the Hire Score Newsletter and receive a 5% discount.

PPS. As always, if you have any suggestions, questions or comments, please contact us by e-mail at staff@selectingwinners.com