549: Human Resources with Claudia St. John
The How of Business - How to start, run & grow a small business.
Deep Dive
What is Claudia St. John's philosophy on HR for small businesses?
Claudia believes that HR has evolved from viewing employees as dispensable to recognizing them as valuable resources. Her philosophy focuses on creating a workplace where employees feel engaged, safe, and productive. She emphasizes the importance of clear job and culture requirements, making employees feel welcome, and providing resources for growth. She advocates for leaders to prioritize employee well-being and satisfaction as part of their core responsibilities.
Why is flexibility a key factor in employee retention today?
Flexibility has become a critical factor in employee retention because modern workers, regardless of their role or industry, prioritize the ability to balance work with personal life. This shift was accelerated by COVID-19, which highlighted the importance of work-life balance. Employees now seek roles that allow them to work when and how they need, and businesses that fail to offer flexibility risk losing talent to competitors who do.
What are the three criteria businesses need to consider when struggling to fill a position?
The three criteria are: 1) the level of experience required for the role, 2) the compensation offered, and 3) the geographic availability of the labor pool. If a business is struggling to hire, they must evaluate whether they need to adjust the experience requirements, increase pay, or expand their search to other geographic areas.
Why does Claudia St. John recommend behavioral testing in the hiring process?
Claudia recommends behavioral testing because it helps identify candidates who are a good fit for the role and company culture. Behavioral testing provides data that interviews alone cannot reveal, such as how candidates handle conflict, their communication styles, and their emotional intelligence. She cites a significant improvement in employee retention rates—from 30% to over 90%—after implementing behavioral testing in her own company.
What is the biggest weak link in businesses when it comes to managing employees?
The biggest weak link is the lack of training for supervisors and managers in essential leadership skills. Many managers are not equipped with skills like emotional intelligence, empathy, conflict resolution, and giving positive feedback. Claudia emphasizes that people often leave jobs because of poor management, not the job itself, making it crucial to invest in training frontline leaders.
What is the HR support plan offered by Claudia St. John's company, and what does it include?
The HR support plan costs $139 per month and includes creating employee handbooks, policies, and procedures, compliance documentation, and unlimited access to HR experts for questions and challenges. It also tracks legislative changes and offers discounts on additional services like recruiting and compensation. For listeners of the podcast, the first month is free with the promo code HOB.
Why does Claudia St. John advocate against using probationary periods for new hires?
Claudia argues that probationary periods can create a false sense of security, implying that after 90 days, employees are fully vetted. Instead, she suggests a six-week learning objective protocol, where clear expectations and feedback are provided weekly. This approach ensures employees are supported and evaluated continuously, rather than waiting for a probationary period to end.
What is the key takeaway for small business owners regarding hiring and retaining talent?
The key takeaway is that the workforce has fundamentally changed, and businesses must adapt to attract and retain talent. Employers should focus on creating a culture of value and flexibility, as employees now prioritize meaningful work, growth opportunities, and work-life balance. Additionally, investing in training supervisors and managers is crucial, as poor management is a leading cause of employee turnover.
- The labor market is much shorter and tighter.
- Happy workforce is a critical asset.
- Finding the right people is about being clear about job and cultural requirements and making them feel welcome, belonging, and supported in their growth.
- Most business leaders don't view employee engagement and support as their job, but they should.
Shownotes Transcript