THE CHALLENGE To make the high-quality hires that Mr. Sims needs to continue building his business — without the benefit of a human resources manager.
THE BACKGROUND Mr. Sims acquired the Puget Sound business from his parents after they retired in 2003. At the time, the company had just five employees. With his passion and talent for sales, Mr. Sims expanded, opening a branch in Portland in 2007.
Heading into 2010, he knew he needed help. He planned to hire an office administrator, two route drivers and a warehouse worker. Beginning in the third quarter of 2009, he toyed with the idea of hiring an operations manager who could handle some of the day-to-day tasks that were starting to drain him professionally and personally. “There was no one to take work off Mark’s plate,” said Dan Price, who is founder of Gravity Payments, a credit card processor, and has served as an informal adviser to Mr. Sims through their chapter of Entrepreneurs’ Organization. “A first senior hire is daunting for an entrepreneur,” Mr. Price said.
In fact, the prospect of carving out time to make hires was daunting to Mr. Sims. He recalled spending three days sorting through résumés when he could have been out getting business. With the unemployment rate high, the number of job applicants has surged, making screening all the more time-consuming. “I get résumés for driver positions from applicants who don’t even have a license,” he said.
In addition, Mr. Sims conceded that he did not have the best track record when it came to hiring. Last year, for example, he brought on employees who seemed “fine” but did not last. A driver he found on Craigslist wrecked a new vehicle. A new office staff member spent up to 30 percent of her workday on personal social media use, distracting others.
“Despite the economy, we aren’t attracting the quality candidates we’d hoped for,” said Mr. Sims, who lamented a “deteriorating work ethic” and said many candidates did not seem committed to building a career. “I want to get people excited about working here — even if we do sell toilet paper and Dumpster deodorizers.”
THE OPTIONS To find his operations manager and to fill the lower-level positions, Mr. Sims considered running ads and browsing résumés posted on state employment agency Web sites. At first glance, this seemed the least expensive way to go (Fikes can post ads on Washington State’s career and employment site free of charge). But after factoring in the time for culling résumés, Mr. Sims was less convinced that this was the best way to find candidates, particularly a strong No. 2.
His other option was to hire a recruiter, at least to find the operations manager. But Mr. Sims was not enthusiastic about spending that kind of money — typically 20 to 30 percent of the hire’s six-figure salary. He had worked previously with a recruiter who had charged much less ($1,500 per placement), but offered little value.
THE DECISION In consultation with Mr. Price, who had taken his own company to 53 employees, from 10, in the previous four years, Mr. Sims decided to use a recruiter to find his operations manager, beginning the process last November.
The agency began by interviewing Mr. Sims, who said he was surprised to realize during the conversation just how much he disliked operations. Once the agency understood his needs, it sent him the résumés of 12 candidates. Of those, Mr. Sims selected six and spent a day interviewing them back-to-back. He then ranked them and scheduled second interviews with the top two — a former chief financial officer and a former tech entrepreneur who had built a business from three to 35 employees before selling it.
Mr. Sims, Mr. Price and a human resources employee from Gravity Payments conducted second interviews at the agency. The process took half a day. Mr. Sims interviewed one candidate, while Mr. Price and his colleague interviewed the other, and then they switched.
Mr. Sims said the most valuable part of the process came when he and Mr. Price sat down afterward. “I think I might have made the wrong choice if left to my own devices,” Mr. Sims said. While both applicants were highly qualified, Mr. Sims said he was inclined to hire the tech entrepreneur who possessed strengths similar to his own, a person more focused on vision than tasks.
“I felt strongly that Mark needed day-to-day help with the financial and operational aspects of the business and not with management and strategy,” Mr. Price said.
link: http://www.nytimes.com/2010/10/28/business/smallbusiness/28sbiz.html?pagewanted=1&ref=management