Hiring is something many people need to do and yet few seem to do effectively. A CEO of a Fortune 500 company confessed recently that his biggest downfall in the past couple of years had been “making some bad hiring decisions.” Two executives he had selected had been extremely disruptive to the organization and had to be let go. He seemed to have little insight into why he had selected the wrong people. He feared repeating the mistake.
Many hiring supervisors share this fear. The process they follow for hiring gives them little confidence that the right person will be selected. Too often some comments and questions are exchanged, an application may be filled out but not checked out and the hiring supervisor relies on “gut” instinct.
The importance of hiring right is illustrated by your company’s turnover. Average corporate turnover is more than 15 percent. According to a Harvard University study, 80 percent of turnover is due to hiring mistakes.
Instead of rolling the dice, there are proven steps that will help you hire the right person, lower your turnover and improve your productivity. Sound like a dream? It can be a reality for you if you follow a rather simple process.
- Determine your needs. As the old expression says, “If you don’t know where you are going, any road will take you there.” The first step in the hiring process is to determine your needs. Write out the qualifications (duties/responsibilities, skills/ expertise needed, experience and education/training required or desired) for the position you are trying to fill. Put the needs into priority so you will have a clear picture of the person you seek.
- Write a job description. If you don’t already have a job description for that position, develop one that is accurate. Good job descriptions can be completed in one page and serve as an important guide not only for hiring but also for performance appraisals.
- Advertise. Using the qualifications from your updated job description for the position you wish to fill, consider various ways to advertise your open position. Besides the usual methods of placing ads in newspapers and magazines, talk to your good employees and tell them of your needs. Also consider “word of mouth” advertising with people with whom you come in contact professionally and socially. Think about posting the position on the Internet.
- Create an application form. Have an application form ready to be filled out by interested applicants. This form should be sensitive to the questions to ask – and not to ask. If in doubt, have your attorney review it.
- Screen. Screen applicants based on the specific qualifications you listed. This phase of the hiring process becomes easier if you have been honest and specific in listing your needs.
- Conduct an initial interview. Have an initial interview with those applicants who appear to meet your needs. This does not need to be a face-to-face interview and can often be successfully accomplished over the phone, holding down your hiring expenses. The key here is good questions. Some are offered later in this article.
- Conduct a face-to-face interview. A face-to-face interview with those candidates who looked good on paper and responded well to your questions over the phone is the next step. It is a good idea to have more than one person doing the interviewing so that what one person sees (good or bad) can be discussed if not confirmed by someone else on the hiring team. Again, good questions plus the ability to listen are the keys. (See “Basic Interviewing Questions.”) Beware of the common mistake of doing too much of the talking during the interview. Studies have shown that expecting applicants to be able to discuss their previous experiences and accomplishments more than triples your chances of hiring the right person. Ask them to “tell me about a time when you . . . .” Don’t just talk in generalities during the interview; strive for open-ended questions. Be sure to avoid illegal questions about age, marital status, pregnancy, day care arrangements, disabilities, religion, race and national origin. A sample candidate rating form is included here. You can prepare a similar form that lists your needs/qualifications. After you determine those key job qualifications, you might want to weight each in terms of its importance. Ask all who attend interviews to complete a form about each candidate.
- Consider innovative approaches. Give candidates an assignment before the interview. For example, ask them to review your product or Web page and give you their comments. If the position for which you are hiring is especially key to your
organization, make an effort to see the person in action. For example, ask a shop foreman candidate to walk through your plant and comment on things he/she sees. Always give a 5-minute warning before closing an interview. People often reveal
something important about themselves at the last minute.
- Check references. Thoroughly check references of final candidates before you make any job offers. Often this is done as a way to screen applicants, but this step is best utilized after the interview since it is a good way to verify information discussed in the interview. It is a good idea to talk to others who know the candidate – in addition to the references listed – before making any offers. If your reference checks are a dead end, that may be a negative red flag. Many companies have
adopted a policy of refusing to confirm any information about a previous employee other than dates of employment. However, the burden of supplying reachable and responsive references belongs with the candidate! An interview may only test the
candidate’s ability to interview well. A reference check may be the single most important step of the selection process.
- Make an offer. If the reference checks confirm your interest to hire someone, make an offer to that candidate. Any offer should be subject to accurate and honest information filled out on the application form. If you are not sure, a follow-up interview may be needed.
- Inform other candidates. Once the applicant has accepted the job offer and completed any written forms required, inform the other candidates (via letter or phone) that the position for which they applied at your company has been filled.
Sincerely thank the other candidates for their interest in working for your company, and perhaps even consider a close runner-up for another position within your company.
- Review. Review with your hiring team what went right and wrong so that you can continually improve the hiring process for the next time.
In summary, the more you do at the beginning of the hiring process, the fewer problems you will encounter during the process and after the person is hired. It is much easier and less expensive to hire right the first time than to have to keep doing it over and over for the same position or to have to deal with people who are not the right fit for the job. Nothing you do will be more important than getting the right people into the right jobs.
A Few Pointers
The following pointers may seem obvious. They are overall good business practices that can impact your ability to hire the right people. But, as we look at the poor hiring situations at plants and businesses around us, we realize that not everyone – even those
with the best intentions – follows the sage advice perfectly. A quick review may help.
- Consider new strategies. As a hiring manager, you know that finding qualified candidates in today’s environment is tougher than ever. You can’t rely simply on historical practices, because candidates can afford to be choosier, and the best candidates almost always have options. Consider adopting some new strategies that will help you hire better over the long run.
- Treat your employees well. A good work environment will create positive messages about your company in the community. You will be a place where people want to work.
- Promote your company name. If no one has ever heard of your company, it will make it far more difficult for you to attract good candidates.
- Focus on employee retention. Lowering turnover will reduce your need to hire from outside and lower your costs considerably. In addition, give your own employees (internal candidates) the same courtesies and opportunities as you do external applicants! Consider promoting someone who already knows “the system” and has proven to be an excellent employee.
- Be on constant look-out for good people. Don’t just rely on newspaper advertising when you have an opening. Encourage your employees to recommend people to you. Talk positively about your company wherever you go and ask your employees to do the same.
- Move quickly. Don’t let another employer ace you out because you moved too slowly. The hiring timeline of the past no longer works.
- Convey your enthusiasm! Always speak positively about your company. Sell the candidate during the interview on yourself and your company.
Basic Interviewing Questions
- We have read your resume and looked over your application. Please briefly summarize your background as it relates to this position. In other words, how has your training and experience prepared you for this job? What skills have you acquired in your past positions that will be an asset in this job? (Good “ice breaker” and good way to see if the candidate can focus on being brief with specific information. Look for the proven skills needed.)
- What aspects of your last job did you like the best and the least? Why? (Look for positive and negative “red flags.”)
- Considering the various people you have worked for, please describe the management styles of your favorite and least favorite boss. (Again, look for “red flags” that could prove to be a good or bad fit in your organization.)
- What if . . . scenarios/situations. Provide candidates with situations in which they have to resolve a “problem.” (Look for specific traits, skills and abilities needed, e.g., integrity, the ability to work with other people, temperament and problem solving.)
- What appeals to you the most and the least about this position? Why? (Any red flags?)
- When we contact your references, what do you think they will they tell us are your greatest strengths and weaknesses? (How do the candidate’s strengths and weaknesses fit with your needs as the employer?)
- What are you specifically looking for in this position and organization? (Again, how do the answers fit with the needs of your company?)
- What questions do you have for us? (Make sure you allow enough time for this even if other questions have to be omitted! You can often learn more about candidates from the questions they ask than from the answers they give to your questions.)
- Based on this interview and what you have learned today, what is your level of interest in this position now? Why? (Look for a definite high level of interest.)
Whatever open-ended questions you decide to use, make sure you ask all the candidates the same questions. Doing so will help maintain consistency and will make ranking the candidates easier after the interviews. And do not forget to inform candidates of the next step(s) in the selection process before they leave.
Example
Candidate Rating Form
Candidate’s Name: _______________________________________________________
Open Position: ___________________________________________________________
Interview Date: __________________________________________________________
- Communication Skills (ability to listen plus express self verbally and in writing)
- Decision-making Skills (ability to make choices considering various impacts)
- Problem-solving Skills (ability to identify key issues and bring resolution)
- Financial Skills (ability to make cost-efficient decisions)
- Leadership Skills (ability to motivate and show initiative)
- Interpersonal Skills (ability to interact effectively with others)
- Flexibility (ability to adapt to changes and to see the “big picture”)
- Job Know-how & Demeanor (ability to perform duties in a professional manner)
Recommend Hiring
Comments: __________________________________________________________
Do Not Recommend Hiring
Comments: __________________________________________________________
Interviewer’s Name: ______________________________________________________
Retaining Employees
You can have a major impact on employee retention. Begin by:
- Recognizing turnover as a problem that has solutions. Employees are now expected to change jobs an average of seven times during their lifetimes, and, according to Harvard University, 80 percent of turnover is due to hiring mistakes.
- Acknowledging that people are your most important asset. Are employees in your organization viewed as assets to be maximized or as costs to be minimized? Does management treat workers as disposable or easily replaced units or capital that has gained investment value?
- Accepting that job security and open communication will decrease employee turnover. If employees feel respect and a commitment from management, they will be more likely to return the loyalty. Show employees that you genuinely care about them. Employees often say the least satisfactory elements of their jobs include a perceived lack of management ethics, recognition and communications (Towers Perrin, Irvine, CA). Companies willing to increase communication have seen increased employee commitment.
Credit
Bob Tvrdik, a consultant on business management practices, wrote this article. Tvrdik has extensive experience working with industry on a variety of human resources issues, particularly hiring practices. He also worked for many years as an industrial specialist with the Center for Industrial Research and Service (CIRAS) at Iowa State University. Tvrdik is located at 1714 N. 129 Street, Omaha, NE 68154; (402) 496- 9512; btvrdik@tconl.com.