Category Archives: Hiring & Firing

The 2% rule; Only 2% of companies are worth hiring

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Unfortunately, it seems to be a rule of thumb that service providers worldwide provide mediocre service as a rule. To find people who are above average is like finding a needle in a haystack. What I learned is that across national borders, my experience has been that 2% of service providers are good enough to be happy with. Those are bad odds. Now, with reputable professions like Attorneys or Doctors, the 2% rule would not apply. But, with software developers, notaries, plumbers, and other professions that I have had experience hiring, this rule seems to be realistic.

My experience with custom software development companies is that 1% get an A, 1% get a B, 10% get a C, and the rest get a D or F. That means that 88% are getting a failing grade. How does the world go around? Most of these bad companies don’t even answer their phone or answer emails. How can you run a business when you refuse to communicate?

The next part of the problem is that the top 2% of providers who actually are reliable, honest, and do a good job are generally busy and expensive. It seems hard to win as a buyer of software development services these days. Honestly, the only way to win is to have a big company and to have your own employees who you can control.

You might ask what the list of bad things that bad companies do would consist of. Here is the short list:
(1) General Dishonesty
(2) Padding hours or inefficient work
(3) Lying about whether their staff really works for them or are independent contractors or offshored labor. Lying about how many employees you have.
(4) Not giving the amount of hours of service promised
(5) Not meeting deadlines
(6) Not answering the phone
(7) Not responding to emails
(8) Answering correspondences, but refusing to give good answers to questions
(9) Inability to speak English, or the language that is being used
(10) Sloppy or dysfunctional work.
(11) Failure or refusing to follow directions
(12) Handing off your project to a less experienced worker

The problem is that there are twelve very common ways to screw up an outsourcing relationship. If an outsourcing company does even a single one of these bad things on the list on a regular basis, they might get a D or F in my book. To get a passing grade, you have to do everything right at least most of the time. Very few companies seem to have it together.

You might also like:

Should you annoy people on purpose to test them out?
http://bpo.123outsource.net/2013/09/03/should-you-annoy-people-on-purpose-to-test-them-out/

The 2nd interview, why is it so important?
http://bpo.123outsource.net/2013/09/02/the-2nd-interview-why-is-it-so-important/

Don’t hire an employee, hire 5 and keep the best one!

Categories: Hiring & Firing | Tagged , , | Leave a comment

Smart companies realize that their strength depends on having great workers. Good workers don’t grow on trees though. Good people normally already have a job. Those looking for work are usually not the best workers, otherwise they would be already employed. If you sort through the bunch, you find a few good ones — or ones that you initially think are good. But, you don’t really know if someone is good unless you have seen them work for a few months through good times and bad.

You can not see how well a marriage would work after the first date any more than you can see how an employee would function after the interview. In an interview they tell you what they think you want to hear.

So, it is good to try a few people out with the intention of getting rid of most of them. Of course, MAYBE you could keep two of your newbies if you loved them so much.

Do you ever ask yourself:

What would I do if I were Donald Trump?

I believe that if you ask this question to yourself regularly, you will tune into Trump’s consciousness and become a much better businessman. I have seen Trump on his TV show “The Apprentice”, and he takes business to a very sophisticated level. He seems to think of everything and can see all of the angles while the rest of us are just in a very deep fog of confusion.

I can try to guess how Trump would handle this hiring situation. He might initially interview two dozen people and pick six contestants. Then, he would have them work on test projects to see how they functioned. He might have them work in small teams to see if they worked well with others. He might analyze their final work and then ask more questions and assign them a grade of some sort. If you didn’t do a good job, then he would definately point at you and say:

“YOU’RE FIRED”

I love it when he says that!

Do you put your new workers through a few tests and tribulations and then subject them to analysis?

Are you even paying attention? No? Well, that is how you end up with lousy workers that cost you your reputation. It is your own fault!

You might also like:

Steve Jobs watched his programmers carefully, so should you!
http://bpo.123outsource.net/2013/10/10/steve-jobs-watched-his-programmers-carefully-so-should-you/

To micromanage or not to micromanage, is there a question?
http://bpo.123outsource.net/2013/09/13/to-micromanage-or-not-to-micromanage-is-there-a-question/

Would you pay extra to have a better employee?

Categories: Hiring & Firing | Tagged | Leave a comment

Many companies are simply cheap. They want to save a little here, and save a little there. Let’s get office space in the worst part of town and save a few dollars. Let’s hire some workers that don’t charge much, so that we can keep our costs down. If your office functions and nobody minds being in the ghetto, then go ahead! Never mind what type of feng-shui your office will have, and how that will effect your future — you are saving a few bucks and that is what matters (for now). If your workers get the job done for less, that is great.

But, in the real world it is not always that simple to just pay less, and save a few dollars. You usually lose something when you pay less, unless you really know how to scour a market, or are really lucky, or blessed. I personally love the art of market scouring. Some people scowl at the art of scouring, but it is a critical task to have in the labor commodity business. The problem is, that when I assess a company’s value to me, it takes months to find out, and the equation is very complicated, and always seems to change over time. Whatever company I liked in September seems to be on their bad behavior in October and vice versa!

Paying a little more also doesn’t guarantee anything. There are plenty of people who charge a bundle who deliver unsatisfactory service. So, what is the secret?

Billionaire investor Warren Buffet looks for the intrinsic value of a company before purchasing shares of stock in it. When I invest in labor, I look at (try to look at because it is deceptive) the intrinsic value of a worker. I look at the price last since it is deceptive. Prices are hourly, but I don’t know how much they get done in an hour, and how good the output will be.

Advice: Look at the value of a prospective worker before you look at anything else.

If you find someone who is so good that they will be like a magnet attracting clients, your company will probably grow even if your sales department is missing a few screws (and perhaps bolts as well). You will also keep your clients very happy if you have someone good. What client will want to leave when they are getting the best service in town?

I personally have many people who I work with who offer outstanding service to me. I do not leave them. I stay with them for years or decades . Sometimes I have to go through a lot of people to find those good ones, but when I find quality, I stick with it.

Advice: When you find your star employee, offer them more than what you would offer an average or underaverage employee.

If you have amazing staff, your business has a big chance to grow. If you hire lousy staff members, they could put you out of business in a few years — slowly. Be careful. Your company is only as good as your worst staff member.

You might also like:

The 2nd interview: why is it so important?
http://bpo.123outsource.net/2013/09/02/the-2nd-interview-why-is-it-so-important/

The emailed question technique as a hiring technique
http://bpo.123outsource.net/2013/08/30/a-hiring-technique-similar-to-2nd-interviews-the-emailed-question-technique/

Should you annoy people on purpose to test them out?

Categories: Hiring & Firing | Tagged , , | Leave a comment

I have learned in business that if people hate you, they won’t do good work for you. Many will just stop work all together. People lose their tempers all the time. Americans are far less patient than people in India — just for your knowledge. When we screen outsourcing companies, we ask them a bunch of questions to learn how they think. But, maybe we should ask a few questions to test their patience as well. In real life, in a business relationship, there will be situations where you have to go over nit-picky details to straighten out an ugly situation. If they don’t have patience, learn this up front.

But, what questions could you ask people that will annoy them?
I asked an IT outsourcing company details about their corporate status. They became furious and said they didn’t want to work with me anymore. I asked a programming outsourcing firm about their birth data so I could do an astrological chart to prove compatibility. They flat rejected my question.

Honestly, if you want to have a happy family, you should find out BEFORE the wedding if you are compatible, and an astrological chart can help identify areas of incompatibility — although it still is rather wishy-washy at best. A chart is better than nothing.

I ask people how they would fit a giraffe in a refrigerator.
I ask people what they would do if they won a million dollars.
The point is that if you keep asking questions to the point where it is ridiculous, you can test their patience.

“Are you testing my patience?”
“Yes, that is exactly what I am doing — as a matter of policy. If I don’t know where you break, then it is not safe to enter a work relationship with you”

Err on the side of safety when hiring companies or individuals. A single bad choice can cost you thousands, while shopping around only costs hundreds! You need to shop around anyway, so shop smart in addition to shopping hard.

The 2nd interview: why is it so important?

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After hiring and firing eight software companies in a row, I am becoming smarter. The first one I hired, I only interviewed three companies and made contact with only a dozen. When they didn’t pan out, I went to a known contact who started out good, but had gone down hill over the years. I stuck with him for a year on the current project. I had a feeling that it wouldn’t work out that well due to the complexity of the work, but at least I knew him better than anyone else. I don’t like taking risks. I like doing business with people I know as a rule. Whomever I know best gets the most critical work. Experimental or new projects can be done by strangers.

So, company 1 and 2 didn’t work out well. to hire the 3rd company I made contact with another 20 companies. I figured I would get it right this time. Yet again, the company I hired didn’t get any work done. I tried a few other companies, and it didn’t work out either. Finally after a while I reverted to a company in Arizona who I had used for a few months. I gave them all of my work because nobody else worked out. Unfortunately, their work went down hill and they developed a huge temper too since I was being more demanding after I gave them my most critical project. They couldn’t handle the pressure. After all of these failures, my new strategy was to make contact with HUNDREDS of companies in 10 different countries and screen them with my life.

What I learned is that you can interview people, ask probing questions, test them, and give them projects. But, you don’t know how RELIABLE they are until they are doing a real project. The trick here is to see their true colors. People never show their true colors at a 1st interview. I never understood why big companies were so fastidious and had such long screening and interviewing processes. Now that I have been through the ringer, I understand perfectly. The more tests, trials and tribulations you give a prospective employee or outsourced company, the higher your chances are for a successful relationship.

The 2nd interview is one of the most intelligent hiring techniques ever invented. If they are getting upset with you, it will show during the 2nd interview. If they are in the habit of being late, that might show up too. Their initial good behavior will fade, and they will start being themselves. If there is a long silence at the beginning and there is nothing to say — that is a sign. If they seem bored, that is another sign. If they don’t even bother to show up, yet another useful analytic. But, there is more.

You can ask annoying questions during the 2nd interview to see how much endurance they have. If you are going to hire someone for a decade worth of tough projects, they had better have staying power. You can ask weird questions about astrology, feng-shui, natural disasters, or touch working conditions to see if they can handle it. You need to know if someone is serious about getting your work done, otherwise you have no business hiring them. Good luck!

Integrity is more important than skills or even prices

Categories: Hiring & Firing, Semi-Popular | Tagged , , | Leave a comment

How do you assess a person’s character? Should you? Should you jump to conclusions? Should you trust your gut? Or should we be good Christians and “Judge Not” like the Bible says? In business, the minute you stop judging, you get eaten alive. You have no choice but to determine where danger lurks and avoid it like a disease!

Imagine a world where you have a million dollars, but the people around you lack integrity. They lie, cheat, deceive, and steal. They are late on deadlines and they couldn’t care less about their clients. How long would your million last without integrity? I feel that the majority of outsourcers lack integrity, and you can get taken for a ride very easily. Without a society with integrity, you will lose your money easily. My personal story is that I was very lucky to find many outsourcers who had excellent integrity, and it has only been recently in the last two years when I have been confronted with so many crooked people involved in outsourcing. Maybe God wants me to learn how to deal with them.

On the other hand, in a world where you start out with little or no money, but are surrounded by honest and decent folks, you will make money, and not get cheated out of it if you do worthwhile work for a living. You would be given a fair handshake every step of the way! You might only make moderate income, or you might make millions. With integrity, the money comes!

When working with outsourcers, you might not see their flaws right away. Part of your skill as someone who hires companies is to quickly recognize the character of the owner, manager, and workers in an outsourcing company. You can see certain traits right away if you are looking. You can ask questions that reveal a person’s character or thinking style too. Avoid questions where they tell you what they think you want to hear and ask probing questions which bring out their personality.

If a company gets by your initial scrutinization, you might see character flaws later on, i.e. Recklessness, carelessness, disrespect to others, substance abuse, keeping bad company, etc. You need multiple backup plans when hiring companies just in case your first pick doesn’t work out well. If your hired company exhibits character flaws, you can expect trouble to manifest itself later on, and you will suffer as a result. Keep a keen eye and watch out.

An outsourcing company that is not reputable can start out nice, but later on cheat you in so many ways you never thought of. There are so many ways to cheat in outsourcing services and it is so hard to protect yourself. The only real protection is good karma and choosing people with integrity. Integrity means you don’t cheat, you don’t lie, you deliver when you said you would, and you are generally decent. Don’t compromise on these.

Pick people with good character even if they are not the smartest! In the long run you will be better off!

Tweets:
(1) How do you assess a person’s character? Should you? In business you get eaten the minute you stop judging!
(2) The Bible says, “Judge Not,” but if you don’t judge in business, you can lose everything overnight!
(3) If you lived in a world where people were honest, you might do okay w/very little money.
(4) An outsourcing co that is not reputable can start out nice & then cheat you!

You might also like:

What type of salesperson to avoid in outsourcing
http://bpo.123outsource.net/2013/12/14/what-type-of-salesperson-to-avoid-in-outsourcing/

You are a helpless victim if you hire the wrong company
http://bpo.123outsource.net/2013/07/04/you-are-a-helpless-victem-if-you-hire-the-wrong-company/

Mistrust and Phone Interaction
http://bpo.123outsource.net/2012/05/26/mistrust-and-phone-interaction/

What is the correct order of steps to screen an outsourced company?

Categories: Hiring & Firing, Semi-Popular | Tagged , , | Leave a comment

Many of us hire BPO companies to do outsourcing work for us. Some of us who are less experienced just talk to them over the phone, say, “They sound good”, and hire them. Once we have had bad luck a few times, we start scrutinizing a lot more. But, what is the best order of steps to scrutinize a company?

If you spend hours interviewing people, and then find out that they don’t cooperate when given a real task, you just wasted a lot of time. Sure, it is fun to interview people, but that is a huge chunk out of your day, and can go down the drain easily.

Part of scrutinizing companies has to do with finding out how cooperative they are. People these days tend not to be so cooperative no matter what you pay them. An email is a fast way to contact many companies quickly. You can keep a log of how fast people responded to your email. You can ask them all types of questions and see how thorough or realistic their answers are.

Requesting a bid for a project is a wonderful way to get to know companies. You can see right away if they have slow or inefficient workers. I would do basic email Q&A, and a bid request before you spend too much time talking — if you want to save time. Once you get a bid on a sample project, maybe give them a mini-project to see how they do. You would be surprised at how companies handle mini-projects. A few will leave you high and dry, others will deliver horrible work, while a few will do a great job. This is your opportunity to weed out the troublemakers and identify amazing service providers. There are “A” quality people out there, you just have to find them.

After a company has done a good job on a test project, then talk to everyone at that company who is pertinent. However, I recommend spending as little time talking to salespeople as possible. They are not going to be working with you after the fact, so don’t cloud your mind with the impression of how much or little you like them!

Tweets:
(1) Do you talk to the company over the phone and say, “They sound good” or do you test them?
(2) You can spend hours interviewing people & learn that they don’t cooperate w/real tasks!
(3) Requesting a bid for a project is a wonderful way to get to know companies.
(4) Interviewing new companies? Get to know the technical manager, not the salesperson!

You might also like:

The 2% rule; only 2% of companies are worth hiring
http://bpo.123outsource.net/2013/10/21/the-2-rule-only-2-of-companies-are-worth-hiring/

The 2nd interview: why is it so important?
http://bpo.123outsource.net/2013/09/02/the-2nd-interview-why-is-it-so-important/

How many salespeople is the perfect number?

Categories: Hiring & Firing, Sales, Semi-Popular | Tagged | Leave a comment

There are so many ways of looking at this issue. I am convinced that there is no right answer. But, I believe that getting closer to the optimal answer lies in stopping thinking of the question in these terms. How many — stop that thought! Each salesperson is a human being, and each human being has unique characteristics. My goal in hiring people is to find people who have unique ways of thinking that can help me find amazing new ways of doing things that will lead to business growth that I never thought was possible. You will not find this amazement if you simply hire a calculated amount of staff who do the same work every day. Don’t stifle the talent of your hired staff — nurture it!

Basically, what many companies don’t get, is that by banging your head against the wall, trying to get sales out of people, you are missing the point. To get ahead, you need to have a goal of adding value to society and NOT selling things. You should be there to EDUCATE your clients, not to sell to them. Guide them to the best choices for them instead of pushing them around. They will like you a lot more in the short run and the long run and trust you much more. Trust translates into sales. In short, you sell without selling which is a Zen principle!

So, what should you look for in your sales force? I have been selling the same products for years, and my sales techniques were mediocre at best. What I learned is that I needed to spend more time listening to my clients. I needed to learn how they think, what mattered to them, and what makes them tick. Everybody is motivated differently. My mistake was simple. I think in a logical way, therefor, when presenting reasons to others, I use logic and assume that that is the ideal way to motivate others. My mistake was that only 1% of Americans are logical, and the rest think emotionally (if at all). My new sales technique is based on listening to my clients and seeing how they typically react which is emotionally, not rationally. So, I tell them stories (true stories without embelleshment) which make them gasp. I even make myself gasp and say, “Oh My God”. I tell them horror stories of dangerous and stupid things that other people did who didn’t educate themselves enough about the business, and I use this to sell courses. We also give mini quizzes over the phone to highlight what our clients don’t know which can hurt them. Now, our sales have tripled. The root of the increase is all about tuning in, not selling.

The question is — can you hire salespeople who are experts at tuning into your clients and finding out what makes them tick? That is how you adapt your sales techniques, and develop better products that are more catered to what your clients really want.

So, stop thinking about how many salespeople you need, and start thinking about how to get salespeople who tune in and give you information you can use in battle! You might want to have extra salespeople around to give yourself plenty of time to feel out the market and gather critical information which could multiply your business by 100x. I kid you not!

Tweets:
(a) The perfect # of salespeople is that there is no perfect #. It is about tuning into your clients.
(b) It doesn’t matter how many salespeople you have — it is about LISTENING to the clients!
(c) I mistakenly thought that Americans thought logically when 99% think emotionally. Highly illogical captain. #sales
(d) Spock hired a salesforce to sell advertising and found that 97.6% of American consumers were highly illogical. #sales
(e) Trust translates into sales. In short, you sell without selling which is a Zen principle!

(f) You annoy by overselling; Gain trust and you’ll find that sales will go through like a hot knife through butter.
(g) Is it the number of salespeople or the character of the salespeople that really matters?
(h) Don’t count the number of salespeople you have, count the number of sales

You might also like:

The power of knowing people for outsourcing
http://bpo.123outsource.net/2013/06/10/the-power-of-knowing-people-for-outsourcing/

Capitalizing on the shock factor in sales
http://bpo.123outsource.net/2013/06/03/capitalizing-on-the-shock-factor-in-sales/

How to sell like a pro, what exactly do they do?
http://bpo.123outsource.net/2012/06/25/how-to-sell-like-a-pro-what-do-the-pros-do/

What are your work standards? When do you fire substandard workers?

Categories: Hiring & Firing | Tagged , | Leave a comment

Many bosses don’t have exact work standards. That is too bad. I pay commission, so if you make poor commissions, then I know that something is wrong! That is easy! Some jobs are harder to assess than others in terms of performance. As a boss, it is your job to figure out how well your people should be doing at various levels of experience. If they don’t meet the mark, then get rid of them.

If you don’t train people adequately, then it is YOU who is to blame if you have good workers who don’t perform. People need interaction with their managers other than yelling sessions. Your job is to TEACH, not to yell. Yelling comes after a generous period of nurturing where the worker just won’t cooperate no matter what. Honestly, you should fire anyone you have to regularly yell at unless you only have to yell at them about a particular detail.

Yelling is a last recourse. In India people get an ego trip for yelling at their inferiors. The concept of inferiority is huge in India by the way. Sometimes, you can not get good workers, so you have to settle for nitwits who benefit from being yelled at. Choose carefully who you yell at. For some it is actually constructive, and for others, you just upset them!

Hiring people with a good attitude does wonders!

Categories: Hiring & Firing | Tagged , | Leave a comment

By hiring people with a great attitude, you not only get a cooperative worker, but there are many other benefits as well. People with good attitudes are easier to teach because they want to learn. Even if they are not that smart, they will cooperate more! Another good factor is that people with a good attitude will be less likely to cheat you in the long run. Remember, that sometimes workers start out good, but cheat you in the long run. Their bad attitude might not surface in terms of cheating right away — these personality traits can be detectable early, but the effects can be dormant for a while!

You need to also consider that someone with a positive attitude is a huge influence on the other workers at your BPO, and also on you. You will be happier, and more positive and harder working if you have good people working for you. It is a win-win situation.

So, pay a little more and hire someone who has the right attitude to make everyone on their team win!

The one out of three rule

Categories: Hiring & Firing, Outsourcing Articles | Tagged , , | Leave a comment

It seems to be the case in most companies that engage in some sort of outsourcing. I noticed that 1 out of 3 workers seems to do their work in a way that I like. If I try six workers at a company for various tasks, I will like 2. Is it possible to find a company where everyone is amazing? I wish! Well, my company hires amazing people, so with us, you can have your cake and eat it to! But, we are special in case you didn’t notice (or, at least we like to think we are).

Even at a place that offered chiropractic work, I noticed that I liked exactly 1 out of 3 of the practitioners. Bizarre. So, there is merit to the 1 out of 3 rule. The trick is to make sure you are ALWAYS working with workers who are favorable to you. If you do, the you will:

Have good dreams at night.
Feel happier
Notice that you start whistling for no apparant reason
Do nice deeds for other without your usual ulterior motivations
And more…

Hire the right people and be happy!

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Hiring people who can really think

Roadblocks in the BPO outsourcing profession

Categories: BPO, Hiring & Firing | Tagged | Leave a comment

I love meeting people at new companies and talking to them. Some people are so interesting. It is like opening a box of chocolates with fillings. You never know what you will get when you bite into one. Will it be cherry, caramel, or in the case of some companies — a disconnected phone? But, there are also many roadblocks as well. I have various criteria that I use when selecting a new company. Since I have more experience now than before, I interview more companies and expect more, because I know how happy I will be if I pick someone good!

It all starts with the initial phone call. The salesperson is always so nice (if you can reach them which can sometimes be hard). I skip the companies that don’t answer their phone. I also skip the companies where I can’t talk to a salesperson easily. If they call me back and sound promising then MAYBE I’ll consider them if I’m in a good mood. But, after talking to them, I realize that I need to DIG and see what I find.

My old company started me with a passable programmer. He quit, and was replaced by an idiot. I fired the idiot and the boss gave me another idiot, and then another. There were problems — I asked them to fix the problems, and they said the problems was with the server.

“You’re FIRED”

I tried one company who had a great programmer, but was so BUSY, that work didn’t get done on schedule. How will this love affair continue when I can’t predict their next move and its ETA? My verdict was:

“Indecision and Hmmmm”

A previous company took me on, but then added fraudulent fees to the bill. 3 hours extra for meetings that never took place, and another 6 hours for meetings that took place where the outcome of the meetings was never applied. No consent to pay for meetings was ever given. I’m paying for WORK buddy! Then they tried to charge me 42 hours worth of work to do a project they bid at 12 hours on, but never followed directions on.

“You’re FIRED” — NEXT!!!

At one BPO company, everything was great. I agreed to hire them and all was fine… Until I read the contract. 40 hour minimum — the salesman never mentioned that before. Hmmm. Should I disqualify them from round 1?

I told them

“I like your company, but this is too rigid for this project — maybe next time!”

Another company had a great boss. I talked with him, and we got along. Then, we had a phone meeting with the programmer overseas. The boss kept interrupting and telling the programmer not to answer my questions. What kind of interview is this? The whole point is to get my questions answered, right?
“You’re FIRED!”

The next BPO company was better, but they said they had 40 programmers who knew a particular language. Upon my next call to the project manager, I found out they only had 5. Disqualify? What would Donald Trump do in this situation? But, I liked them, so I gave them the go ahead. Nice people — great communication — super pricing — even better terms! I was able to dial a California number and be directly connected to India where their project manager answered on the second ring and spoke perfect English! Wow! Now that is service!

“We have a winner — YOU’RE HIRED”

There was only one relatively insignificant piece of misinformation here — so far. Everything else was wonderful!

So, as you can see, when you are TRYING to hire a company, and trying to work with them, many companies seem to put a bunch of road blocks in the way of YOU getting your work done. The secret here is to see the road blocks early on, so you can get rid of these bozo’s (American slang for clowns) and move on! I hope you learned something from my colorful experience dealing with the most stubborn and impossible types of BPO Outsourcing companies.

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Power in business is about having choices

Techniques for interviewing outsourcing companies