The 10 Biggest Mistakes Made in Hiring
By Donald A. Phin, Esq., Employment Practices Liability Consultant Newsletter
"If workers are carefully selected, the problems of employee discipline will be
negligible." —Johnson & Johnson Co., Employee Relations Manual, 1932
Organizations today are beset with high rates of employee turnover, wrongful hiring
claims, sexual harassment allegations, workplace violence, employee theft ... the
list goes on and on. Such risks are magnified when you
hire the wrong person! The wrong person is underqualified, litigious,
controlling, insubordinate, and detrimental to an entire firm. Indeed, the seeds
of many failed employee-employer relationships are planted during the hiring process.
Within the pages of Hiring Smart (reviewed in
the Winter 2000 EPLiC), Dr. Pierre Mornell offers
a wealth of prescriptive recommendations—45 specific "do's"—that will increase a
firm's chances of hiring effective, productive employees. In this issue, we examine
the opposite perspective and share with you some of the most common mistakes—10
"don'ts"—for the hiring process.
It makes no difference whether an organization is large or small, or hiring an entry-level
worker or an executive. For example, we've seen a convalescent home unknowingly
employ a violent felon: a janitor who kidnapped, raped, and then killed one of its
patients. At the other end of the spectrum, we've seen companies hire multimillion-dollar
executives; that's not what they cost the company in salary, but how much long-term
strategic damage they caused. By avoiding the 10 pitfalls examined in this article,
you will be in a better position to prevent the costly mistakes that victimized
these organizations.
Clearly Identify Company Needs
When seeking to fill a position, your company must clearly define its goals in terms
of skills, experience, character, and competency. Determine the actual, objective
standards a candidate must meet, and the requisite educational background, exact
work experience, and specific technical skills they must possess. In addition, it
is important to evaluate the organization's short-and long-term needs and the effect
this particular hiring decision will have upon those needs. Many times, however,
an organization's requirements can be more efficiently met through outsourcing or
strategic partnering. Don't automatically assume you need a certain type of employee.
Test those assumptions before you hire.
Test a Prospective Employee's Skills
Skill testing is a must. Every job has some form of measurable, objective performance
standard. Identify it and test for it. A secretary
who types 60 words per minute with mistakes will be less effective than a secretary
who types 90 words per minute without mistakes. However, if a company fails to test
for typing skills, it will have no way of evaluating a prospective employee's ability
to perform a specific task. Under these circumstances, a supervisor may criticize
the first secretary for lack of productivity, when she is in fact giving her best
effort. Unless you test an applicant's skills, you are taking a gamble that they
can perform. It's a bet you just may lose.
Avoid Hiring Out of Desperation
Too many hiring decisions are made out of desperation. The following scenarios occur
repeatedly: a key manager quits and must be replaced NOW; rapid growth forces a
company to fill positions without enough forethought; programmers are so scarce
that anyone will do. We've all, in pure desperation, brought someone into an employment
relationship only to find out later that they were not trustworthy or competent.
Don't fall prey to such fear-based thinking. Rather, consider the alternatives.
If you are unable to conduct a thorough, timely hiring process, hire a temporary
or leased employee or borrow an employee from another company. But don't hire in
haste—you may end up with waste.
Guard Against Hiring Out of Laziness
Despite the high stakes associated with hiring, we often get lazy. Managers who
are lazy hire the first remotely suitable person who walks through the door. Often,
we simply want to avoid the hiring process altogether. After all, we have jobs to
do. Companies and managers must fight this very human tendency to do less rather
than more. Alternatively, if you don't want to endure the rigors of the hiring process,
then contract with someone else to do it for you. Consider engaging the services
of an executive recruiter or search firm. Or delegate this task to a trusted individual
within your company.
Watch Out for Infatuation
A series of surveys has revealed that during the hiring process, most interviewers
made their decision—up or down—within the first 10 minutes of the interview. They
then spent the next 50 minutes internally justifying that decision. We buy cars
the same way. First, we choose the car we want to buy—from an emotional standpoint—and
then search for objective data to justify that emotional decision. We all know that
"facts tell, but emotions sell." Remember, the best con artists attract infatuation.
In studies where professional actors are interviewed for jobs for which they have
no experience, they are hired at a higher rate than those who have actual qualifications
for such positions! Simply because someone "looks" right for the role does not mean
they will be. You can guard against infatuation by having coworkers interview prospects,
having group interviews, and by conducting follow-up interviews.
Avoid Baggage that Gets in the Way
Everyone carries some baggage. Sometimes, it is the belief that a woman can't operate
a forklift, that a man can't be a nurse, or that a minority cannot function as an
executive. But baggage is not reality.
Men once dominated orchestras, until they began to conduct "blind auditions" where
a curtain was placed in front of the performers. The quality of their sound, not
their gender, became the sole evaluation criterion. The preconception about what
makes a better musician was removed, and thereafter women were hired at twice the
previous rate. It is a fact the best and brightest are not always going to look
and act the way you think they should! Seeking diversity is not important simply
to placate the Equal Employment Opportunity Commission (EEOC). Rather, it has become
an absolute necessity in today's competitive economy.
Carefully Evaluate Candidates Recommended by Employees and Associates
Just because someone recommends a person they think would be highly capable for
a particular position doesn't mean that person is qualified. We have seen many occasions
where someone was hired without going through the usual evaluation process simply
because they were recommended by another employee or colleague. Don't let someone
else make your hiring decisions for you. Follow the usual channels and requirements
when anyone—no matter how highly recommended—seeks to work for your organization.
Do Not Blindly Promote from Within
We are firm believers in promoting from within an organization. However, your best
performers aren't necessarily always the most qualified candidates for a specific
job. This is especially true when promoting to the management level. Simply because
someone is particularly adept at handling a certain function doesn't mean they are
capable of managing others. Many a career has gone downhill after such a promotion.
Remember the Peter Principle: organizations frequently promote otherwise capable
workers until they reach their own level of incompetence! Make sure your company
follows a thorough hiring analysis when promoting from within. Promoting solely
from within can create inbreeding and stagnate creativity. To guard against these
pitfalls, companies should consider filling at least one-third of all positions
involving promotions with people from outside the organization.
Perform Extensive Background and Reference Checks
We are often asked to investigate a claim of harassment, theft, threatened violence,
or other workplace misconduct. As part of our investigation, we always review the
involved employee's file and evaluate the extent to which a background investigation
was conducted. Much more often than not, little or no background information was
obtained. Employees with drug problems were never tested prior to hire. Security
guards who conspired against their employers were never checked for criminal records.
The employers of employees who engaged in wrongful conduct at other companies had
never been contacted. Yet, many companies are afraid of engaging in extensive background
investigations out of concern for EEOC and legislative privacy mandates. Don't be.
Potential problems can be avoided by securing releases from job candidates and/or
their previous employers. Refer to Figure 1, a form that authorizes a potential
employer to conduct a background check on a job candidate and releases the potential
employer from any liability associated with such investigations.
Figure 1
Authorization, Waiver, and Release of Liability for Employment-Related Investigations
In applying for employment with _________________________ ("Company"), I hereby
authorize the Company, and/or any designated agent including any consumer reporting
agency in the Company's behalf, to conduct any desired background investigation
of my personal history as allowed by law, and to obtain and review any criminal
and civil court findings, consumer credit report, to investigate any action related
to employment, and/or any investigative consumer report in conjunction with said
investigation.
I understand the nature and scope of said inquiries may include, but are not limited
to, verification, inspection, and/or reporting of any lawfully available records
or information pertaining to work history; education; workers compensation claims,
criminal and civil court-related actions; driving history (including traffic-related
offenses); personal financial status including consumer credit reports; and any
other information available from any public or otherwise documented record, and/or
from any past or present business, professional, or personal associates, pertaining
to, but not limited to, my work history, character, ethics, mode of living, and
general reputation.
It is my understanding the information being obtained will not be used in violation
of any federal or state equal opportunity law or regulation, and that before any
adverse action is taken based upon review of any consumer credit report and/or investigative
consumer report, I will be provided with a copy of said report as well as a summary
of consumer's rights.
I hereby fully release the Company, and any and all of its employees, directors,
agents, successors, and assigns, and any contributing parties or sources from whom
any information is obtained, from any and all claims, actions, or liability whatsoever
that are in any way related to this or any subsequent investigation of my personal
history.
I hereby state that all information provided by me to the Company, in any form,
is, to the best of my knowledge, true, correct, and complete. I also understand
that any known misrepresentation made by me to the Company will exclude me from
further consideration as a candidate for employment or advancement, and may result
in termination of my employment with the Company if I am hired and/or advanced by
the Company before such misrepresentation is identified.
I understand that acceptance of any offer of employment does not create a contractual
obligation to the Company to continue to employ me in the future, and that my employment
is "at-will," for no definite period, and may be terminated at any time either by
myself or the Company without previous notice.
Signature ___________________________ Date__________
(Applicant)
Print Name ___________________________
Received by the Company:
Signature ___________________________ Date__________
Name and Title______________________________________
Form 17
© 2000 Donald A. Phin
Alternatively, companies that have reservations about conducting such investigations
should consider delegating this task to outside service firms specializing in this
work. Poor hiring decisions are not the result of failing to ask EEOC-prohibited
questions. Rather, neglecting to ask all of those other important questions that
can often alert a company to future difficulties causes them.
Recognize and Rectify Poor Hiring Decisions
To their credit, many organizations quickly recognize when they have made a fatal
hiring mistake, often within the first 3 months of the employment relationship.
But they don't terminate the employee. You must overcome this very human tendency
to admit a mistake and dismiss unsuitable employees on a timely basis!
However, if you do make a poor hiring decision, try your best to help the person
land on his or her feet. This means doing what you can to put the person back to
at least the same position in which you found them. Assuming an employee's job-related
conduct did not involve fraud or dishonesty, try to help by providing outplacement
assistance, a positive recommendation, and a reasonable severance package. This
approach will often prevent an ex-employee's bitterness or, even worse, a lawsuit.
Conclusion
When you have the opportunity, go back and analyze the departments within your company
that have experienced unusually high turnover or performance problems. Ask yourself,
"How did we hire the individuals who failed to perform up to our expectations?"
"What process did we use?" "Did we make any of the mistakes outlined above?" Remember,
if you want to hire the right employee, you have to follow a proven, systematic
process that allows you to do so. When you hire the best, you will have high productivity,
loyalty, innovation, team players, a healthy bottom line—and a much-reduced exposure
to employee lawsuits.
To hire successfully, you need effective strategies and time-tested tools that can
help you to accurately evaluate a job candidate's skills and character. Refer to
Figure 2 for a summary of successful hiring approaches. You can access at www.donphin.com a wealth of forms, checklists,
and agreements that will further assist you in making more profitable hiring decisions.
Figure 2
10 Hiring Pitfalls—and How to Avoid Them
|
Hiring Mistake
|
Preventive Measure
|
|
Failing to identify company needs
|
Carefully analyze the job functions your business requires; consider hiring on a
temporary basis to confirm these needs.
|
|
Failing to test skills
|
Develop and use an objective skill test for each specific position.
|
|
Hiring out of desperation
|
Use temporary, leased, or borrowed employees.
|
|
Hiring out of laziness
|
Engage the services of a recruiter or delegate the task to another person within
the company.
|
|
Avoid infatuation
|
Have follow-up interviews; have peers/coworkers also interview the candidate.
|
|
Avoid personal baggage
|
Develop objective qualifications for each position and have other persons review
these criteria.
|
|
Avoid automatically hiring someone recommended
|
Make all candidates go through the normal hiring process.
|
|
Blindly promoting from within
|
Objectively analyze internal candidates, preferably in conjunction with other managers;
make one-third of all promotions from outside the company.
|
|
Failure to do extensive background and reference checking
|
Obtain releases from candidates; engage the services of outside agencies to check
backgrounds.
|
|
Failure to recognize you have made a poor hiring decision
|
Rectify mistakes quickly; assist terminated employees in securing new positions.
|
Donald A. Phin, Esq.,
has been an employment and business litigation attorney since 1983 and earned certification
as a professional consultant to management (CPCM) in 1994. He presents workshops
and seminars for groups including The Executive Committee, CEO Club, Foundation
for Enterprise Development, Insurance Marketing and Management Services (IMMS),
and Risk and Insurance Management Society (RIMS). Mr. Phin is the coeditor of
EPLiC and the human resources consultant for IMMS. He is
the author of Building Powerful Employment Relationships
and LAWSUIT FREE! How To Prevent Employee Lawsuits.
His articles have appeared in The Risk Report, Business Insurance,
CFG Update, and other industry publications. He can be
reached at (800) 234-3304 or by e-mail at don@donphin.com.