Selecting and Hiring

If the screening process is thorough, selecting the best applicants for the job is easy. However, before making the final selection, one last step should be taken: the top candidate’s references should be checked for accuracy. You should be aware of the tendency of references to give a rose-colored picture of applicant’s character and ability. A careful check with former employers and other references can be most constructive. Checking can determine whether or not the applicant was truthful about his or her employment history.

Orienting New Employees

An employee handbook gives important information about the company to the employee. The handbook should cover topics such as pay rates, working conditions and fringe benefits.

When an individual is hired, he or she should receive a comprehensive orientation on the specific nature of the job. Rules should be explained in detail, and any questions answered before the new employee begins work. New employees should be introduced to other employees and made to feel welcome.

Compensation Issues

Compensation takes two forms: (1) direct compensation (wages and salaries) and (2) indirect compensation (fringe benefits).

Direct Compensation – Wages and salaries are the compensation people receive on a regular basis (monthly, biweekly or weekly). Workers are paid on the basis of time (by the hour, day, week or month) or on the basis of output (an incentive plan).

Indirect Compensation – Fringe benefits are an important part of the overall compensation in most small businesses. Employee benefits now account for about 40 percent of payroll costs. The profitability of the small firm is one of the primary factors of benefits offered by the firm.

3.20. Define whether the following statements are true or false. Correct the false statements.

1. Hiring an overqualified person is not as harmful as hiring an underqualified person.

2. The application form is the first means of comparing the applicant with the job description.

3. The personal interview is the first step in the screening process.

4. The interviewer should ask questions related to the job.

5. The applicant’s qualifications should meet the specifications for the job.

6. Interviewing determines if the applicant meets the health standards.

7. You shouldn’t check the candidate’s references with former employers.

8. An employee should receive a comprehensive orientation on the specific nature of the job.

Comprehension.

3.21 Answer the questions:

1. What information is necessary to determine whether the applicant is suited to the position he/she wants?

2. What an interview with the applicant should be?

3. What techniques of conducting an interview help to select the right applicant for the job?

4. What topics should an employee handbook cover?

5. What are the two forms of compensation for work? Describe them.