Management Skills that Drive Profitability: What to Look for in a Hire
If your company is not profitable, then managerial skills could be a big culprit. In fact, management skills that drive profitability can make all the difference between a company simply content to exist versus one that innovates and brings in bundles of profits. Management skills matter because excellent managers motivate team members to successful levels of productivity, which then leads to more business profits. On the other hand, weak management skills result in more employee churn, a costly business expense. As you interview managerial candidates from now on, keep an eye out for the following management skills that drive profitability.
How They Hire and Keep Employees
As a rule of thumb, excellent managers hire excellent employees. Furthermore, excellent managers know how to keep employees engaged, productive and motivated. Ask managerial candidates for their employee turnover numbers, and ask how they attract and retain the best talent.
How They Communicate
Because the job of a manager is to supervise the work of other people, communication skills are essential. Management skills that drive profitability include these four aspects of communication:
-Keeping even more upper-level managers in the loop as to the progress of a project
-Providing ongoing feedback to team members
-Communicating successfully through multiple means that require writing (emails to clients and reports to the CEO, for example)
Ask managerial candidates about their communication philosophies and about each of the four aspects above. For instance, one question on communication could be, ïHow do you keep your own managers in the loop about project progressï
How They Solve Problems
Among management skills that drive profitability, an essential one is problem solving. After all, if a manger cannot solve problems, he only hurts the company. Delve into the history of managerial candidates to find out about their abilities in this area. Inquire about a situation in which candidates had to solve a difficult problem and how they did it. You should also ask about a time in which a problem could not be solved. Not only does this question give you insight into candidates’ definition of a ïsolvedï problem, it also tells you if they accept responsibility or blame others for their own mistakes.
How They Multi-Task
Dynamic and effective managers are capable of managing on several fronts. For example, they may oversee employees in far-flung locations as well as those at their home base. They may also manage across departments instead of focusing on a single function. Ask managerial candidates to give scenarios in which they had to prioritize, and ask how they shift from one project to another.
How They Mentor
Managers wear many hats: supervisor, leader, colleague, coach, motivator and mentor. They guide employees, ideally help them blossom and help ensure they get the professional development and training they want and need. When trying to determine if candidates have management skills that drive profitability, ask about their experiences as a mentor. What is their approach How do they communicate with mentees
How They Fill Gaps in Your Company
It is interesting how humans gravitate to people like them. People who look or behave similarly, or who graduated from the same university, tend to endear themselves to one another. However, when you are seeking management skills that drive profitability, you do not want to repeat skills the company already has, especially at the expense of losing out on skills the company lacks. Instead of hiring for overlapping skills, plug gaps.
How They Plan
Whether your company seeks a manager to oversee daily operations or to oversee the bigger picture, planning and organization skills are critical. To that end, ask questions about how managers schedule their time. Ask about their organizational systems, and any approaches they use to save time and reduce bloat. For example, one candidate might prefer to meet with folks at far-flung locations through video conferencing rather than having one party fly to the other location.
How They Delegate
You definitely do not want a hire a micro manager, someone who does not trust employees to get work done. Micro managers have such high opinions of their own skills that they fail to realize what other folks bring to the table and that different does not mean worse. Ask managerial candidates how they delegate and about situations in which they’ve had difficulty doing so.
How Others See Them
Even the most appealing candidates you interview should have their references checked. When you do so, ask references to weigh in on candidates’ managerial styles and skills. Ask that references rate candidates on a scale of 1 to 10 in categories such as communication ability, ability to delegate and problem-solving skills.
As you make all-star hires by identifying management skills that drive profitability, turn to the resources here at Mighty Recruiter for guidance.