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Simple steps for better hiring

04-Aug-2011

Where do you learn how to hire people effectively? Unfortunately, they don't teach you how to hire effectively in business schools.

According to the authors of Topgrading, in tough economic times like these, getting (and keeping) the right staff is more critical than ever.  The current high levels of unemployment do not make it any easier to hire “A” Players.

Unfortunately most managers don’t follow a disciplined hiring process.  They rely on gut instinct, they shortcut the hiring process, or they completely outsource it to other parties.  This approach more often than not, produces high failure rates of people who do not make the grade.  

(RESULTS.com defines an “A” Player as a person who consistently exceeds the performance standards required for their role; and who simultaneously demonstrates all your company core values – they are a role model for your culture.  Both requirements must be met).

The authors propose the following key steps to increase your hiring success to 90%.

1. Role Score Cards

Start by writing a "scorecard" for each role. The scorecard is the checklist against which everything must be ticked before you make a hiring decision.  In broad terms, here is what your scorecards should contain for each role:

Core Values.

For any role in your company, the applicant must be able to prove that they are aligned with, and have demonstrated these behaviors in previous roles.  Otherwise they are the wrong fit for your culture – period.

Key Performance Indicators.

Every role should have a KPI. What 1 or 2 numbers will the applicant be held strictly accountable for attaining the required performance standard every month?  They must know how their performance will be scored, and be willing to be held accountable to achieve these specified results.      

Behavioral Competencies.

What specific behaviors “must” the applicant have demonstrated in previous jobs, in order to be highly likely to deliver an “A” Player level of performance for you in this role?  (When you specify these, it is possible to construct an interview process that performs “due diligence” on each of these areas)

Experience, qualifications.

Most companies only recruit for these factors – but they are really just table stakes.

2.  Tap Your Networks

Try to source the candidates using the networks of your current employees, rather than over-relying on ads, job boards, and recruiters.  Pay a significant referral fee to employees who source “A” Players who are ultimately hired.  Align your interests, by paying half to the referrer now, and the other half if both parties are still employed and both are consistently achieving “A” Player level of performance after 1 year.

3. Past behavior is the best predictor of future behavior

Don't bother with resumes.  Filter out the tire kickers by using a Career History form to find out for each previous job the person has had:

• What were their accountabilities in the role? (You will verify with reference checks)
• What were their biggest accomplishments?  (You will verify with data)
• What were their mistakes?  (You are looking for honesty and self-awareness)
• What would their bosses / employees / colleagues say about them? (You will verify with reference checks)
• Why did they leave?  (You are looking for honesty and self-awareness)

4.  Best practice interviewing

Select the right person by conducting at least one extremely thorough, 3-hour, chronological, in-depth, structured interview.  Why 3 hours?  Basically you are wearing the candidate down – because after 3 hours you get to the real truth!  (We will share this process in more detail in a future Growth Tip).  

5. The 5 “F” formula

Sell candidates on joining your company with:

• Fit (their personal values are aligned with your company core values)
• Family (you care about the home life of your people, and achieving balance in all areas)
• Freedom (you give people authority to make decisions about “how” goals will be achieved)
• Fortune (you offer financial rewards and recognition for successful performance)
• Fun (you make time to enjoy the journey)

It sounds like a lot of work (and it is), but your business and personal success is dependent on the quality of the hires you make.  Hiring is too important to get wrong!

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