Jordan
Welcome to The Manager’s Playbook, the podcast where we break down the complexities of management into actionable insights. I’m Jordan, and today, we’re diving deep into one of the most critical—and challenging—aspects of your job: hiring entry-level associates. Hiring might seem as simple as filling a gap, but every hire affects your budget, your team’s morale, and even your company’s reputation. So grab your notepad, sit back, and let’s get into the definitive guide for hiring hourly employees.
Taylor
Thanks, Jordan! I’m Taylor, and I’m excited to be here. I think this episode is going to be incredibly valuable for anyone looking to build a strong, cohesive team. So, let’s start by understanding why hiring matters. Jordan, why is it so important to get this right?
Jordan
Absolutely, Taylor. Hiring the right person isn’t just about filling a position—it’s about building a team that propels your business forward. A bad hire can cost you up to 25–30% of an employee’s annual wage when you factor in turnover, lost productivity, and recruitment costs. And it doesn’t stop there—a poor hire drags down team morale, increases training costs, and, in customer-facing roles, can even damage your brand. Every step in your hiring process is designed to safeguard your team and your bottom line. Rushing or skipping steps might seem expedient, but it creates long-term problems.
Taylor
That’s a great point, Jordan. So, what’s the biggest mistake managers make when hiring hourly employees? I think a lot of people might not realize how critical it is to take their time.
Jordan
You’re right, Taylor. The biggest mistake managers make is rushing the process. When you’re pressed for time, it’s tempting to hire the first candidate who seems ‘good enough.’ But that shortcut often leads to someone who isn’t the right fit—someone who might quit in a few weeks, leaving you back at square one. Think of hiring like dating: Would you propose on the first date? Absolutely not! Taking the time to thoroughly vet candidates means investing in a long-term, successful relationship with your team.
Taylor
I love that analogy, Jordan. So, let’s move on to the next step: resume screening, prescreen, and interview scheduling. How do you recommend managers narrow down their candidate pool and prepare for interviews?
Jordan
Great question, Taylor. First, HR conducts an initial screening to filter out resumes that don’t meet basic qualifications. Then, as a manager, you review the remaining applications using a structured scoring system—narrowing the pool down to a manageable number, say 10 to 15 candidates, depending on the role. Once you have your shortlist, the optional prescreen call is used to confirm key non-negotiables—like shift availability or necessary certifications. This step is often not needed for entry level roles, but is there to add an extra level of support. Remember, the purpose here is not to drastically cut the candidate pool; it’s to prepare those you plan to interview for success.
Taylor
So, Jordan, what’s the next step in the process—interviewing. How do you conduct a fair interview?
Jordan
That’s a crucial step, Taylor. In the interview, you need to balance three key areas: Technical Skills, Culture Fit, and Trainability. Begin by clearly defining the role’s requirements and prepare a set of structured, consistent questions. For example, ‘Tell me about a time you overcame a challenge at work’ or ‘How do you handle feedback?’ If you’ve worked with a candidate before or if they’ve applied multiple times, make sure to disclose this to your manager to avoid any potential bias. And remember, company policy prohibits hiring relatives into a direct reporting relationship. A real-world example is a retail manager who once hired a charismatic candidate based solely on personality, only to discover they couldn’t follow the sales process effectively. Conversely, a warehouse manager nearly overlooked a quiet candidate who later became one of the most reliable team members due to their strong technical responses.
Taylor
Those examples are so insightful, Jordan. Moving on to pay decisions, how do managers ensure they’re making the right financial choices when setting wages for new hires?
Jordan
Step five focuses on pay decisions, and here’s where understanding your budget is absolutely crucial. When setting a wage, you’re not just determining individual compensation—you’re impacting your overall labor budget and scheduling flexibility. Consider the budget impact, future headcount, and room for growth. Starting an employee at the top leaves little room for future raises, which can affect long-term satisfaction. Review the approved wage band provided by HR, assess the candidate’s experience and training needs, and calculate how the wage decision will affect your budget and scheduling. And remember—all pay decisions require leadership approval before any forms are submitted. A real-world example is a warehouse manager who hired an experienced candidate at the top of the wage band. Soon, the high cost forced cuts in scheduled hours, and the next hiring request was rejected due to budget overruns.
Taylor
That’s a great example, Jordan. What about the final hiring approval? How do managers ensure everything is in order before extending an offer?
Jordan
Step six is the final hiring approval—a critical checkpoint. Before any HR forms are submitted, every request must be fully approved by leadership. Complete the New Hire Action Form, including the candidate’s name, final pay rate, interview scores, and hiring justification. Ensure that all HR-related requests have leadership sign-off before submitting the form. HR will review the documentation for adherence to budget, policy, and conflict-of-interest guidelines. Verify that the candidate’s availability aligns with your team’s needs. A manager once assumed HR would process the paperwork based on a verbal agreement. Without proper approvals, the candidate accepted another offer, and the position had to be reposted.
Taylor
That’s a cautionary tale, Jordan. Finally, what about the offer letter and onboarding process? How do you ensure everything is smooth and professional?
Jordan
Once all approvals are in place, it’s time to lock in your hire with a formal offer and a thorough onboarding process. Extend a verbal offer, clearly communicating pay, start date, and expectations. Send a formal offer letter, which HR issues, covering salary, benefits, and company policies. Ensure the candidate signs the offer letter and completes all necessary documentation—like I-9, tax forms, and policy acknowledgments—before their start date. Confirm that all HR actions have been pre-approved by leadership before moving forward. A customer service manager once made a verbal offer but delayed sending the formal letter. The candidate eventually ‘ghosted’ the offer, leaving the role unfilled during a critical period.
Taylor
Thanks, Jordan. To wrap things up, what are some key takeaways for our listeners?
Jordan
There are so many! Follow the full process—from headcount approval to onboarding—to protect your team, your budget, and your company’s reputation. Don’t rush—a structured process prevents costly mistakes. Get it in writing—every HR-related action must be pre-approved by leadership before any forms are submitted. Balance is key—evaluate technical skills, cultural fit, and trainability while considering the long-term impact of wage decisions. By following this definitive hiring guide, you’ll build a stronger, more cohesive team, reduce turnover, and ensure your department runs smoothly. If you found today’s episode helpful, please share it with your fellow managers, and leave us a comment. Thanks for listening to The Manager’s Playbook. Remember: Hire smarter, lead better, and build the team that drives success.
Jordan
Host and Management Expert
Taylor
HR Expert and Co-Host