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Effective Hiring Procedures Pay Big Dividends

Systems are only as good as the people who use them. You can have the world’s best customer service and warranty programs, back-office procedures and production schedules, but they won’t benefit your business without dedicated, hard-working employees to implement them and strive for constant improvement in every part of your operations.

Selecting the right people for the right jobs goes a long way towards boosting company profitability and increasing employee productivity and retention. Effective hiring procedures enable you to attract qualified candidates, interview them and bring them aboard without tearing your hair out or running afoul of the law.


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Here are some pointers on hiring smart:

  • Do a job analysis. If you’re cooking up a new position, first figure out what essential duties and functions the person will perform. What experience, skills and education are necessary to do the job? How does the position fit in with existing positions and with the company as a whole? How will this new position help you reach the goals outlined in your business plan?

  • Develop job descriptions. The Americans with Disabilities Act of 1990 doesn’t require employers to develop or maintain written job descriptions. However, it does prohibit discrimination on the basis of disability. That’s why it’s in your best interest — and that of your employees and job candidates — to use written job descriptions. Knowing what’s expected of them upfront gives all candidates a fair crack at applying for jobs in your company.

  • Interview candidates. You wouldn’t think of selling homes or remodeling jobs to prospective customers without meeting with them. You need to see if your product can meet their expectations and if the prospects are a good fit for your company. Likewise, you can’t hire employees with job descriptions alone. It’s important to meet with candidates to assess their experience and interpersonal skills and to make sure they’re a good fit for your company and vice versa.

  • Check references. If a prospective superintendent tells you he handled 12 houses at a time at his last company and completed each one without a glitch, are you going to take his word for it? Heck no! Call his previous employers to see if he’s as good as he says he is. Some home builders also do credit, driving record and criminal background checks and drug testing on prospective employees. While it costs more and takes longer, it’s a good way to screen out bad eggs.

  • Bring ’em aboard smoothly. Determine where new employees will be sitting or working before they show up for their first day. When they arrive, give them a tour of your offices, a copy of your employee manual if you have one and introduce them to your employees. See to it that they fill out all human resources forms. Explain the nuances of your company’s culture (e.g., dogs are allowed in the office on Wednesdays) if you haven’t already.

  • Evaluate performance. A good evaluation system motivates employees to perform at a higher level of achievement and provides insight for improving performance. Once you’ve written your job descriptions, create an evaluation system by establishing standards for each function, responsibility or task. Then identify how performance will be measured.


BuilderBooks.com Offers 'Job Descriptions for the Home Building Industry, Third Edition'

Even if you only have one employee, you’ll want a copy of "Job Descriptions for the Home Building Industry, Third Edition." It contains 40 job descriptions for home building industry employees, plus sample company organization charts, job description forms, electronic documents on CD and other tools to help you with your hiring procedures. To view or purchase this publication, click here, or call 800-223-2665 to order.

BuilderBooks.com also offers a variety of other publications about business management. To view or purchase these publications online, click here.

Want More Information About Effectively Managing Your Business?

NAHB’s Business Management Department offers a variety of online resources to help you run your business better and more profitably. Click Business Management Tools for articles about human resources, financial management, sales, production, technology, customer service and other business-related topics. In addition, visit the NAHB Software Users Network Discussion Forum (SUN) to ask technology consultants and other builders what they think of various software packages and applications.

Subscribe to NAHB’s Business of Building e/Source

NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, click here on the members only side of www.nahb.org.

University of Housing Offers Courses on Customer Service and Business Management

The NAHB University of Housing offers a course on business management designed to help builders improve their business and profitability. For a list of current offerings, click here.


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