The challenges that the hiring process brings about affects people from a variety of business backgrounds, from the average business owner to the people with multi-million-pound portfolios. There is no shame in admitting that at some point we all make mistakes.
The primary purpose of this article is to offer advice for hiring tradespeople and contractors (For the novice property developer). The principles discussed however can (cross over to a variety of sectors) be applied to various sectors. The article aims to provide a step by step guide that will help to create key boundaries and procedures to follow during the hiring process.
Plan, plan, and plan
The man who is prepared has his battle half fought. -Miguel De Cervantes
As tedious as it can be, it cannot be stressed enough as to how important this first step is. If you begin with a well thought out plan, you will already be making steps in the right direction for a successful project.
The best place to begin planning is to first get S.M.A.R.T, which is an acronym that stands for specific, measurable, attainable, realistic and timely. For examples of how to use this acronym I recommend looking it up after reading this article.
It is important to be clear about the work description before you offer the work to anyone. Failing to be clear on this will lead to the worker doing as they please and you with not much authority over them as to what they are supposed to be doing.
Have in place a time frame in which tasks should be completed by, particularly when working with multi-trades. Failing to keep to targets can lead to a domino effect on the other tradespeople involved, costing everyone time and money. Always allow for additional time for the unexpected.
Not an expense but an investment
“All intelligent investing is value investing, acquiring more than you are paying for. You must value the business in order to value the stock.”- Charlie Munger
Treat your potential employee/contractor as an investment and give this investment the respect it deserves. Reframing your mind in this regard will allow you to trust you are making the right decision for the needs of the business. You putting your hard-earned cash in for a return of work that will be adding value to your project, this is your investment. Once you have reframed your mind with this principle, it is time for the next step.
Put it out to tender
In other words, you are now seeking offers to carry out the work. This step requires patience and a lot of thought. You can begin with putting an ad on sites such as checkertrader.com which have a review system set up and allows people to apply for the position. Use search engines for companies that specialise in the field or trade you are looking for. Ask colleagues and peers within your network for recommendations.
Do not limit yourself to just one person or company, find as many potentials as you can. Do not forget to background check your potential investment. Simply search their name/company name/nicknames to see if you can find reviews or comments from other people. Bear in mind that one bad review does not necessarily reflect them as a whole. Look for reoccurring themes or key words such as fraud, con-man, prison etc, if you find any of these, it should be indicative of a red flag.
Shortlisting for interviews
By now you should be creating a short list consisting of a minimum of 10 potentials, depending on the project. When calling a candidate in for an interview, you can make the potential aware that they are on a list that includes many deserving potentials. This tactic also known as The Scarcity concept, which creates competition and removes complacency, by letting them know that they need to work hard if they want this contract. Always remember that there are always people looking for work so they should be competing for your business. Don’t ever allow yourself to feel it is the other way around.
In the interview do not hesitate to ask questions. In doing so your knowledge will increase in that particular field, you will learn their industry norms and have a better idea of what to expect. This time will also allow you to get an idea of what price range you should be looking for, but never let your choice be made on price alone. Consider quality of work, materials, guarantees, payment terms, time scales, references, reputation etc just to name a few.. making them aware that there will also be a contract to be signed before any work commences. Don’t be shy to question past jobs and references, even if they are in the form of negative reviews. Now is the time to address any uncertainties, do not wait until it is too late to bring them up.
Tasks to carry out
The interview time/ trial period is a good time to test what your potentials are capable of.
These tasks will demonstrate whether your potential can meet deadlines, complete paperwork and follow instructions. These qualities are essential and should be a cut off point for anyone who is unable to meet these basic skill requirements.
I always ask for insurance certificate, a detailed written quote and contact details of individuals who they have done similar work for. You will be surprised how many are unbale to get past this stage. Once you do have this information go through it in detail, check insurance is in date. If they belong to a particular trade body then check that their registration number is real and in date.
If you will be doing these projects repeatedly then I recommend you create a spreadsheet of all the people you have worked with including their insurance renewal dates and accredited body registration. This will make future recruitment much simpler. (templates for this are available on request)
Personality matters
It is important that your potential has good rapport, there should not be any barriers for communication. If your potential seems arrogant and aggressively confident, then it is best advised to keep a distance, as this can lead to unnecessary power struggles. On the other hand, if your potential is prompt with responding, it is a good sign, but this should not be the only defining quality. Anyone can be the best thing since sliced bread, before you have given them any money or got the contract.
Go with your gut instinct, when it comes to the final decision. Remember, once you have set the seal, you do not want your successful candidate to leave the job halfway. The consequences will cost you your time, energy and money.
Beware of excuses
There is no room for excuses. Your successful candidate should be ready to take responsibility for all of their actions and duties. They are being payed to take full responsibility of their new role. As boss you are entitled to ensure the work is done to the highest standard
Keep your relationship with the successful candidate strictly professional. That means no expecting or allowing favours of any kind or else you may find yourself feeling obliged to offer a concession.
Never assume
Never assume as it makes an ASS out of U and ME” - My mentor
You might assume that because you have found the right person or that the company has a shiny logo and an established name, they will always know what they are doing, but you should never assume. A good rule of thumb would be to go with the saying “they are useless until they prove otherwise”. This would be applied by creating milestones and reviewing their work on a regular/ day to day basis. Ask them what they are doing and why in a way that is not patronising. For example, you could ask out of curiosity or act as if you don’t know any better. Remember you are hiring them for the expertise and don’t want to undermine their work.
Payments
The difference between you and your successful candidate is that you are paying them money. This relationship gives you that much leverage over them, so make sure that you use this advantage wisely, whilst also being fair. An industry norm within construction and property development is to break down payments into three instalments and keeping an additional 10% on hold for after reviewing the work that has been done. This is known as snagging, whereby you can withhold that amount of money for up to six weeks after the job contract has been completed, which allows you time to inspect and review their work, creating a list of things that might need amending or re-doing or pending documentation e.g. building regulations certificate. If you find that you do not receive the documentation or there are poor standards, then the 10% should be sufficient to cover the costs of damage or hiring another professional to complete the task. If you find that the successful candidate objects to this, it can be indicative of them not being willing to take full responsibility for their work. This should not have to be compromised.
Finally
The average working relationship with a tradesman or builder/contractor is approximately 18months. It is natural to assume (please refer back to the previous advice) that once you have found the right people for the job, they will remain focused on the task at hand. In reality people and their circumstances change, so it is advised to review and repeat the above process in order to maintain the level of professionalism you began with. The process will be less intense if you have previously worked with people, therefore you should have a database of trusted workers you can refer back to.
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