EXPERIENCE VS. POTENTIAL WHAT MATTERS MORE IN NEW HIRES?
Scaling a business is one of the most complicated challenges for entrepreneurs. Developing a model that allows for consistent growth while maintaining profit margins and effective systems is a substantial task for business owners. But once the proper blueprint is in place, a new test presents itself, and how well you perform will undoubtedly define the future success of your company. Hiring plays a significant role along a company’s path to success. It’s not a landmark or a checkpoint on the map; it’s the vehicle that takes you to your destination. Your business is only as good as the people who propel it forward. You need individuals who fit into your culture, possess the necessary skills to be effective, and have a desire to continue learning best practices if you’re ever going to achieve your goals. Some qualities are universally known to be linked to good hiring practices, but there’s still one important question that divides the masses: Do I hire for experience or potential? EXPERIENCE A degree- or trade-specific education can certainly lay a foundation for an employee to be successful, but experience provides specialized training that cannot be
found anywhere else. An employee who has a working knowledge of their craft can provide a sense of security when hiring. With new employees playing such a pivotal role in growth, many employers want to limit uncertainty and ensure they aren’t gambling with their company’s future. But experience doesn’t equate to competency, which is why some employers elect to hire for potential. POTENTIAL The argument for hiring based on potential centers around two concepts. One is that by hiring someone with a bright future and helping them achieve their goals, you could gain the loyalty of that person and thus retain that employee for a longer time. This comes with the caveat that those who have potential also look for potential, so as an employer, it’s important to provide opportunities for advancement. The other argument is that potential combined with training can equate to a more effective employee in the long run. In truth, the disagreement that transpires is a moot point. You can hire someone with experience or an individual with potential and strike out just the same. All successful employees will have one important trait: passion. You can’t teach passion, but you can hire for it.
THINK LEGAL PROTECTION REQUIRES MOUNTAINS OF PAPERWORK? THINK AGAIN
One of the common misconceptions I hear about legal protection is that it will require you to put together a mountain of paperwork. In my experience, this couldn’t be further from the truth. Just because the status quo is set at overly- complicated contracts doesn’t mean it needs to stay this way. THE MYTH: Securing legal protection for your business will require a mountain of paperwork. THE REALITY: A good contract should be straightforward and accessible to all parties. The days of using outdated and superfluous language and grammar in contracts are gone. Contracts that feel like a burden don’t just give the signer a headache as they pour over the muck; they lower the chances that they’ll get
signed at all. When getting your product into the market is at a premium, you’re making it a whole lot harder on yourself with contracts that can’t be reviewed over a business lunch. If you need proof, take GE Aviation’s implementation of plain-language contracts as a case study. Over a few years, their team revamped the way they drafted contracts, aiming to make documents even a high schooler could comprehend with little context. During this process, the legal team had to ensure the contracts were still air- tight. Since implementing these plain- language contracts, they’ve signed more than 100 contracts that took 60 percent less time to negotiate. Customers are happier with these versions, giving positive feedback across the board and making far fewer changes, and in some cases, no changes at all.
Isn’t getting your customer or investor on board the whole idea? Vague, ambiguous language doesn’t make anyone feel agreeable or cooperative. Use friendly, accessible language, presented in a straightforward package — this is one reason we recommend digitizing contracts — and your success rate can be much higher. The attorneys at Reib Law are pros at constructing contracts that are not only straightforward, but actually enjoyable to read. In fact, our members have access to tons of legal templates, including templates that can help you stay protected. Email support@reiblaw.com to set up your free 30-minute session with Scott or another member of our team to make getting that contract signed a whole lot easier.
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