"Hiring key people is one of the most important decisions you make for the success of your business, yet many CEOs pay little attention to the process their firms use to bring new people on board. Every organization has a recruiting and hiring process. It may be the accumulated experience of the organization or it may be the process that the HR manager brought from her previous employer. But is it the right process for your company? Is it designed to support your strategy for the business? Is it repeatable? Is it lawful? The cost of a poor hire can be several times the employee's salary! Here are the components that you should consider as part of your hiring process.
Position profile
This document answers the question "What exactly do we expect this person to accomplish, and how should the employee behave within the organization?" Have your HR professional, department manager and a successful incumbent get their heads together to define the skills and behaviors that are important for success in the position. Avoid requirements that are unlawfully discriminatory. A standard format for position profiles should be employed for every position in the organization.
Search strategy
Retained search? Contingency recruiters? Newspaper ads? Internet? Network? Employee referrals? National search? Local search? Recruiters are valuable for highly specialized positions, highly confidential searches and for companies that do not have human resource professionals on staff. The Internet is becoming an increasingly valuable search tool and will invite applicants from around the world. Internet and print ads will generate hundreds of resumes that you must be prepared to handle properly.
Screening
All submissions should be date-stamped and logged. The criteria set forth in the position profile should be the basis for initial screening. Be sure that screening criteria are not unlawfully discriminatory. Use an objective rating system whereby points are awarded for each required skill or behavior. The same person (or small group) should screen all the submissions to ensure consistency. Decide which applicants will move forward to the interview stage.
Interviews
The interview should be an important business meeting with clear objectives, solid preparation and the right people involved. Discerning skills and behaviors requires thoughtful preparation on the part of the interviewers (I recommend three: one to lead the questioning, one to observe behavior and the third to assess technical skill). A standard set of questions should be asked of all applicants. These questions together with the applicants' resumes should be reviewed well in advance by the interview team. Use a scoring system to objectively rate each applicant's performance. It's often useful to conduct initial interviews by telephone, particularly when applicants live outside the local area. If phone interviews are used for some, they should be used for all to ensure fairness. Again, a standard list of questions with scoring criteria should be employed.
The decision
Who's going to make the hiring decision? The CEO? The department head? A selection committee? What role will HR play? How many candidates will be presented for final consideration? These decisions must be made before the interview process begins so the decision makers will have all the information they expect.
The offer
The offer should be in writing, including the position being offered, compensation, a summary of benefits, the expected start date, and pre-employment requirements such as drug screen, credit history, confirmation of degrees, etc. Certain of these may be obtained only after the candidate has accepted your offer. The offer should include a response date, usually within five working days. The letter should also make clear the limits of contractual obligation and the prerogatives of at-will employment.
The welcome
The job is not finished when your prospect accepts the offer. He should receive a phone call welcoming him to the team and letting him know what to expect on his first day. Her business cards, telephone number, computer, email address, letterhead, name plate, etc. should all be in place when she arrives. He should be assigned a "buddy" to show him around and take him to lunch. First impressions are lasting impressions.
The path to success
Early in the process, once the position profile has been prepared, it is helpful to outline the 30-, 90-, 180- and 365-day plans for success in the position. This can be fine-tuned once the candidate is hired. The plans are simply those goals the new hire is expected to achieve along with training and other resources the company will provide. This plan together with the position profile serves as the basis for the new employee's performance appraisal.
The investment you make in a robust hiring process will pay dividends for years to come. Be certain to involve your labor attorney and human resource professional along the way. In future columns, we'll explore the importance of assessing personality, temperament and behavior in getting the right people on your bus.
Louis Allegra is president of Allegra Management Consulting, Inc. He chairs CEO advisory boards in affiliation with Vistage International, the world's largest CEO membership organization, to help Lexington-area executives become better leaders, make better decisions and get better results. Lou can be reached at Louis@AllegraManagement.com