1
Employee Selection
How Do I Find, Attract, and Select the Best?

HIRING IS A BASIC NEED for any employer that has at least one employee who is not a partner or family member. This is where the employment relationship begins. Policies and procedures for employee selection will set the tone for the interactions that follow throughout an individual’s time with the organization.

Hiring someone is easy. Hiring the best candidate isn’t always as simple, and it will require planning and a logical process. Whether you have one job opening or one hundred, the process and procedures you use for employee selection will be directly reflected in the results you achieve.

FINDING YOUR CANDIDATES

“Isn’t it as easy as posting the job on the Web?”

Web-based job postings are an important part of an effective recruitment strategy, but not the first step. Technology and the exponential rise in the use of online social networking have dramatically expanded the sources and methods for identifying candidates, but jumping right in without planning and preparation can bog down the process.

Some Preliminary Steps

Before identifying the best recruiting sources, you must clearly identify the parameters of the job. While a complete job description is helpful, it may not be available and does not always include all the information you need. Answering the following questions will help you define the job parameters. If you are the hiring manager, you will probably have the answers to these questions already or you know where to get them. If you are not the hiring manager, then the hiring manager is a good starting point.

• What is the job title and who does the job report to? In your company, a particular job title or level may have certain benefits or perks attached to it. Does your company allow flexibility or creativity with job titles? One candidate may only accept a job with a “director” title, while another may be satisfied with a lesser title if you add the word “senior.” Employers often add words like “senior” or “junior” with the intention of upgrading an individual or adding an entry-level spot in a department. Use care in creating these new titles. While the title of “senior sales associate” will add status, a title such as “junior sales associate” can be a detriment. Think of the customers or other employees who will interact with this person. Does dealing with a “junior” inspire confidence? Creative titles are terrific as long as they are appropriate for your culture both internally and externally. “Brand Champion” might have a nice ring, but may not translate into an understandable role in every business-to-business situation.

Speak to the person to whom the job reports to determine this individual’s needs and expectations. In a larger department, the position may report to a level below the hiring manager. In this situation, you should speak with both persons.

• When does the position have to be filled, and how much does it pay? A manager may demand a quick hire. Before you rush to offer the job to the first available candidate, remember that the cost of hiring the wrong person is potentially higher than leaving the position vacant. The wrong person can make expensive mistakes or cause dissatisfaction and turnover among other employees. Set realistic hiring timelines that also take into account the availability of necessary resources such as space, equipment, training, and supervision.

If you are filling an existing position, find out what the pay range has been in the past. If it is a new position, ensure that the pay rate is appropriate. If your company paid sign-on bonuses, relocation expenses, or other incentives or special benefits in the past, determine if they are available for this position and, if so, how much money is available. Extra perks are far less common when candidates are plentiful but may be necessary in industries or environments where skills shortages exist.

• Who needs to meet or interview this person, and who will make the job offer? Identify everyone who needs to be part of the hiring decision and determine their general availability to conduct interviews. Also, think about people who will be helpful in attracting candidates. These people may include employees from a promising candidate’s hometown or alma mater, as well as those with exceptional personalities who might be effective salespeople for the organization.

It is often helpful to obtain many different perspectives on an applicant, from both prospective superiors and peers. Consider having an employee who is at the same job level as the open position either conduct an interview, give a tour of the facility, or take a coffee break with candidates. Not only is employee involvement in the selection process good for morale, it will provide valuable feedback—and a peer can help to “sell” the company.

The job offer should be made by the person with the authority to make decisions and respond to demands. This can be the hiring manager, a senior manager or executive, a member of the HR staff, or a search firm, if one is used.

• What are the skills/education needed for this position? What is the work experience required for this position? Create a list of the core skills, education, and experience needed to get the job done. You can add additional skills and experience that would be helpful and designate these elements as optional for successful performance of the job.

• Was someone promoted or fired? Where did the last person come from? If the vacancy was created by a promotion, gather information about the position from the person who last held the job. Check with the hiring manager to ensure that the job content is not changing. If the vacancy was created because someone was fired, find out if the termination was due to poor job performance or a lack of specific knowledge or skills.

If the last person in the job had been hired within the past year, check for a file of resumes of other candidates who applied for the position. Find out whether the person came from a search firm, Internet posting, networking, or other source, then make it a priority to return to this source if it had previously generated strong candidates. Maintaining applicant flow logs in a spreadsheet or database will facilitate the process, particularly when resumes are filed electronically. A sample format can be found in the Tools and Templates section of this book.

Internet Recruiting

“How do I make the most out of the Internet for recruiting?”

With more than ten thousand Web sites focused on recruitment and the prevalence of online social networking, the Internet has become a significant source for candidates for many employers. However, before you jump in to make your presence known on the Web, plan ahead. Internet resources can be a valuable part of your recruitment strategy, or they could take too much time without generating strong results.

The first step in Web-based recruitment is a review of your own company Web site. Online job seekers should find a site that is representative of the culture and environment of your workplace, provides good information about the organization, and is easy to navigate. Embedded videos of employees sharing career experiences can help create a picture of the company. Have a designated location, button, or tab where job openings are posted. Make sure it’s visible on and accessible from your home page with a click on a button such as “Careers at XYZ Company.”

To maximize the effectiveness of your employment Web page, include information about career paths, expectations of experience and education, and how to apply for open positions. If you consistently solicit resumes whether or not there are any immediate openings, put this information on your Web site. Be sure to keep the information up to date. Provide a direct link that allows candidates to apply online. Do not force potential applicants to take the extra step of printing an application or mailing or faxing a resume.

“Shouldn’t I just post the opening on a large recruitment Web site?”

Posting your job on Monster or Careerbuilder may seem like a logical step, but sometimes the jumbo sites may be your least productive source of qualified job candidates.

If you are seeking a candidate in a highly competitive field where the number of job openings is far greater than the number of people in the workforce with the necessary skills, then many employers with similar needs will probably be posting jobs as well. The people who are successfully employed in a high-demand field are usually not spending time scrolling through job boards. In these circumstances, your posting is likely to generate either very few responses or responses from individuals who lack the necessary qualifications.

If the job opening is for a position with few requirements, or in a field that is overpopulated, you are likely to receive a very large response. A flood of resumes does not ensure the highest-quality candidates, and the larger the response, the more work you may need to do. If you feel it is important to generate a large candidate pool, make certain you are able to handle the applicants properly. A large candidate pool is useless if you cannot screen and respond to the resumes.

Effective use of recruitment sites requires research before you begin, preferably before a need occurs. An easy way to start your inquiry is to navigate one of the large popular sites. Recruitment sites feature separate sections for employers and job seekers. Gain an understanding of what types of jobs are posted—and how candidates get to view the postings—by searching for openings similar to yours in the job seekers’ section. The employer section of the site will include information about costs for both posting and viewing resumes and may also provide facts about the candidate database or typical visitor.

Once you are familiar with the basic components of recruitment sites, begin researching sites that will best fit your needs. The annually updated Weddle’s Guide to Employment Sites on the Internet includes a top 100 list with a full page of information on each and a listing of more than ten thousand sites identified as “The Best & the Rest” divided into helpful categories. Using this and other resources, you can identify sites that cater to your geographic location or industry specialty. Industry-specific sites can be as all-encompassing as www.dice.com, with more than seventy thousand technology jobs posted, or very specific, such as www.idealist.org, for nonprofits. Using a targeted site, whether it is local or industry/skill-specific, is likely to increase the number of quality responses. You can also find niche employment Web sites through a community search, area business groups such as the chamber of commerce, or local newspapers. Online versions of newspapers typically post all jobs that appear in their print editions and partner with the big job boards.

Internet posts typically cost approximately $200 to $400 per job listed. In this crowded industry, first-time user discounts and packages that include multiple postings will provide savings. A little checking can uncover less expensive options, including free and low-cost job boards managed by employer or industry associations and nearby schools. Craigslist, a popular free site with classifieds of all types, has grown to become a host for job opportunities throughout the world, with available openings listed by job category functions and geography. Craigslist jobs are predominantly entry-level, hourly, semiskilled, and skilled up to middle management.

“How do I write an online job posting?”

Follow these guidelines when you find the right site for your job posting:

Write a creative job posting that reflects not only the position, but also the culture of your company.$$$but also the culture of your company.but also the culture of your company.but also the culture of your company.

Job postings are more effective if they avoid repetition and use abbreviations and language that all readers can understand. Even though there is generally plenty of space, and you are not paying by the word, you still want to attract and hold the candidate’s attention.

Select the proper category that includes job or industry type. Research these factors by checking existing job postings. Don’t combine two or more openings into one posting. This can make it impossible to categorize or find effectively.

If you fill the job or a posted position becomes inactive, remove the posting immediately. Don’t frustrate potential applicants by posting jobs that are not available. Most sites have a feature allowing employers to view resumes in their databases, usually for an additional fee. Before paying to view resumes, determine the exact criteria used by the database so you’ll know whether the resumes are current and contain the background, skills, geographic location, and salary requirements that match your search.

Larger companies that receive numerous resumes use computer software programs to receive, organize, and track submissions. The biggest general recruitment sites also offer services or programs that perform these functions. Check out offerings that allow small to mid-size companies the ability to take advantage of this technology at more attractive rates, available through a variety of vendors from software to payroll providers. One step to help sort a flood of resumes is to use a dedicated e-mail address, or multiple addresses by type of position, such as [email protected] or [email protected].

Consider using an advertising agency that specializes in recruitment advertising. These companies have transitioned from ad writers who earned their fees from newspapers to partners who can facilitate online postings and manage much of the process. These companies’ services range from screening to providing virtual resume storage, employment branding, and candidate database management.

“How do I search social media sites to find potential employees?”

Job boards are not the only venues for online recruiting. The Internet has become a hotbed of virtual networking for job seekers and employers. With hundreds of millions of users interacting and sharing information online, employers now use social media to actively search for and connect with potential employees—sometimes as a first step before even turning to job sites. Social networking can take two forms: announcing your opening through different channels and seeking and identifying individual candidates.

“Isn’t Facebook for party and vacation photos?”

The majority of Facebook users are not the teenagers and college students who initially flocked to the site. Facebook is still the home for hundreds of millions of photos of vacations, families, and friends, but increasingly it is an important venue for employers seeking to broaden their Web presence.

Employers enhance their branding by creating Facebook pages that:

• Spread news about products and people

• Share information about innovations and successes

• Announce job openings or link to postings

• Provide a glimpse of the organizational culture and work environment through tone, images, video links, and comments by employees

The very presence of a Facebook page can give candidates the impression that an employer is progressive and modern, and the page provides a forum and format for research about a prospective employer that can be attractive to potential hires. Investor information does not belong on Facebook, but a description of a new marketing campaign, including links to sample commercials, fits perfectly into the format. Check fan pages of competitors or employers in your geographic area for examples. A consultant or internal staff member with expertise in social media can guide this process.

Social networking sites offer limitless potential to connect with people, but they should be used with care. If you have lost track of an engineer who left the company five years ago who could be a great rehire or referral source, you might reconnect with him simply by searching his name on Facebook. However, as with any recruiting search method, do not target some candidates and exclude others based on race, gender, religion, or other protected category. For example, a search that targets only candidates who openly espouse a particular religious affiliation could create problems.

“How do I find a director to produce a video?”

Videos that highlight and focus on stories of actual employees can be a powerful tool to create an impression of life at the workplace. While some companies upload professional quality videos to YouTube, you do not need a director and production team to achieve impact. Consider creating an in-house video with employees describing “why we like working at …” Some basic editing will often suffice, or you can add captions or voiceover. Add a title that will attract the viewers you seek, and link to the videos from your company Web site and Facebook fan pages rather than waiting for employees or potential employees to find you on YouTube.

“Can anyone describe a job opening in 140 characters?”

Twitter, the idea-sharing site that allows users to post short messages, or “tweets,” has rapidly become a global bulletin board for sharing information, ideas, and opinions. Like Facebook, employers can best use Twitter as part of a recruitment strategy to communicate quickly and maintain an image. You can announce job openings in tweets, or post a job, preferably with a link to apply, on free spots within the community. Search “using Twitter to post jobs” to find sites and get additional suggestions.

“Why should I spend time on LinkedIn?”

With a membership count approaching one hundred million users around the world, LinkedIn has become the premier online professional networking site. Members post individual profiles with the ability to invite contacts they know to connect and interact in affinity groups, categorized by industry, job type, alma mater, and location. LinkedIn offers employers the opportunity to post jobs at reasonable rates and to spread the word about a position by posting an “activity update,” starting a “discussion,” or sending out information to connections and groups. For example, employers in the alternative energy business can join the Wind Energy Professionals Group on LinkedIn and communicate a job opening to the more than 19,000 members.

You can also use LinkedIn to search for profiles of individuals employed by target companies or alumni. As with Facebook, since most people include a photo in their profiles, take care in the search to avoid making employment decisions based on appearance.

“Do I need to hire an eighteen-year-old to keep track of our social media presence?”

It doesn’t take a member of Generation Y to manage social media, but it is important to monitor and update your presence on the various outlets to make sure your content is consistent across sites and that it effectively conveys the company’s message and culture. Appoint an individual on the recruiting team, or someone close to the hiring process, to be responsible for recruiting through social media. This person should also monitor questions and comments posted about the company on these sites and respond with messages that reinforce the company’s message or clarify misinformation. A robust, positive, online conversation adds buzz about products and employment opportunities.

“Does anyone still run help wanted ads in newspapers?”

Hard copy help wanted ads are only a tiny minority of twenty-first century employment advertising, but they can be a creative option. These ads can still be found in alternative publications, such as college, trade, or industry journals or community newspapers. Check the free publications to see if they include a help wanted section that could be relevant for your needs.

Other Referral Sources

“How can my business contacts help me to find qualified candidates?”

Networking is possibly the single most effective way to generate candidates. Begin your networking with the hiring manager. The hiring manager may have resumes from a previous search or know the names of people in similar positions at other companies. Contact these potential candidates to ask if they know of anyone else who might be interested in the opening or if it is a position they would like more information about for themselves. Ask all managers for referrals. Besides referring specific individuals, managers can help identify other companies employing individuals in similar positions that would be good sources of candidates. Compile a list of all likely sources and call them to ask if they know of anyone who might be interested in the opening. Other networking sources include industry or trade associations and business organizations such as chambers of commerce. Newspapers and industry magazines often highlight people and awards programs, which will generate additional names.

Networking can also be as simple as calling a counterpart at another company. Other organizations may not have the same need, but they will have resumes or know of potential candidates elsewhere. Former employees are also an outstanding source of referrals for the same reasons. Many companies have established informal or formal alumni programs as an effective form of networking for candidates. You can begin these programs with simple lists, phone calls, e-mail blasts, invitations to new product launches and tours, mailings of employee news updates and job openings, and invitations to alumni events. Not only is networking a cost-effective way to identify candidates, but because it is a direct method you will also save time.

“How can I develop an effective employee referral program?”

An employee referral program is another form of networking under which a company rewards current employees for identifying new employees. You do not have to offer a huge—or even monetary— reward in order to attract interest. Rewards as small as $100, as well as gift certificates or noncash prizes, will be sufficient to generate considerable enthusiasm if your program is well-run. Most employees are motivated to participate as a way of contributing value to and receiving recognition from their organizations.

The most critical elements of a successful employee referral program are clear communication and follow-through. If your employees don’t know about the program, the existing job openings, or how to participate, you can have a very attractive program and still not generate a single referral.

Create a forum in which to communicate current job openings. This can be an employee bulletin board, newsletter, e-mail blasts, or the company’s intranet site. Publicize the guidelines of the program along with the job openings. Promptly and accurately follow up with referring employees. You want to let them know the status of candidates referred and thank them for their participation. Distribute awards promptly and make these distributions visible. When employees see their coworkers receiving rewards and/or recognition, they will become more excited about participating themselves.

You do not have to apply your referral program to all positions. You can limit eligibility to specified, hard-to-fill positions. Again, communicate eligibility requirements clearly and accurately. Misunderstanding as to what positions are covered and the nature of the reward will only generate hard feelings, not future referrals.

“Should I put up a ‘Help Wanted’ sign?”

Putting up a sign announcing job openings can be a terrific way to generate candidates if you have a high-traffic workplace frequented by potential employees. Your sign should say much more than “Help Wanted, Apply Within.” Like all good advertisements, effective signs are creative and target the customer or client with the greatest potential for becoming an employee. In a retail setting, you might post a sign asking, “Do you tell your friends about our products?”

Your sign should contain specific instructions for how to apply for a job, including a telephone number, hours to apply, or a Web address. When individuals inquire about your sign, instead of merely leaving a stack of blank applications on a table or handing them out, provide an instruction card or flyer describing both the position(s) and the application process. Consider the audience when determining the requirements. It does not make sense, for example, to require a resume for lower-skilled positions.

Consider carefully the location where the candidate will complete the application. It can be distracting and potentially disruptive for customers or your workers to have groups of candidates filling out applications in the middle of an establishment. Distributing a job application for completion “at home” does not guarantee that the candidate will be the person who fills it out. The instructions should direct candidates to an appropriate location, or you might have them return at specified times when business is slower. Whenever you use a Web-based employment application, either at your location or generally available online, make certain that the process is checked by an individual who is not IT-savvy to ensure that it is user-friendly.

“Where are the recent college graduates, and how can I attract them?”

Successful college recruiting is not limited to large companies with high visibility. Recruiting from colleges, universities, and graduate schools can be just as effective for filling one position as for filling a dozen. Large companies often receive special treatment for the funding and goods they provide, but educational institutions recognize smaller employers as strong sources of information, assistance, and potential jobs.

While college recruiting can certainly pay off when a company has a specific opening, the most effective programs flow from ongoing relationships that can provide part-time employees, paid and unpaid interns, and contacts for more experienced workers as well as recent graduates. If you are not aware of the college and university resources in your community or for your industry or specialty, begin by locating the applicable schools. Start your research with a basic college guide such as Barron’s Profiles of American Colleges. These are indexed by location and by major. The guides are written for prospective students, not employers, so you will need to do some additional research to make the best contacts. After choosing the programs or schools that would provide students who best fit your requirements, contact the school’s career or internship office.

To develop relationships before openings occur, speak to the career center director, internship coordinator, or head of the department whose students or graduates are of interest to you. Introduce yourself and your company and obtain the following information:

• Details about the curriculum, to determine whether the students and/or graduates fit your hiring needs.

• Calendar of on-campus recruiting events, the process for scheduling interviews, and a list of companies that recruit on campus for similar positions.

• Availability of ongoing job postings for current students and alumni, including how the information is accessed and any costs charged for alumni postings. Don’t be surprised if you are directed to an online resource that allows you to post at multiple schools from one site.

• Guidelines for any paid and unpaid internship programs, including the application process (e.g., do you meet and approve the intern before the program, or are they assigned?), calendar of internships, hours, and supervision/evaluation required.

• A list of classes at which someone from your company can guest lecture, or a list of student clubs or preprofessional groups that use outside speakers. Offer tours of your work site if it might be beneficial for any classes.

• Calendar of any career fairs, including costs and logistics.

• Calendar of classes, availability of students for internships, and graduation dates.

Identify any alumni of the school within your company and enlist them to help nurture this relationship. Alumni can establish instant rapport with students as employer representatives at a career fair.

“How do I find a recent college graduate in February?”

Don’t assume that you can hire recent college graduates only in May or June. Many students graduate at different times of the year. Others graduate without a position or take time off and maintain contact with a career services office.

If you have an immediate job opening, ask your contact at the school for referrals. Career services professionals generally know their students and have contact with alumni. Colleges often have a job posting system that includes alumni as well. Ask to review any available resumes of students or graduates who are interested in your industry or geographic area.

Developing ongoing paid or unpaid internship programs will provide valuable resources for recruiting. Internships provide opportunities for an employer to get to know prospective employees and gain motivated representatives who return to campus and spread positive information about the company. Certain colleges have programs with work-study components, through which students work full-time for three to nine months. Consider scheduling work-study students or interns in advance to cover leaves of absence or peak business periods. Encourage interns and college students who are employed in summer jobs to become ambassadors for your company on campus. Keep in touch with them even if you know they are heading to graduate school or another employer. An enthusiastic student can spread the word about a wonderful work environment faster than any career center.

“What happens at a job or career fair?”

Job or career fairs come in many forms. They range from on-campus career days sponsored by colleges to large programs at convention centers run by recruitment businesses, with events catering to specific needs in between. Participation in a career fair can generate candidates and increase the visibility of a company as an employer.

The cost of participating in a career fair can range from a few hundred dollars for a college or local job fair to thousands of dollars for a convention center program that promises to attract thousands of candidates. Before making a commitment, speak with other employers that have attended the fair in the past to evaluate their experiences. Obtain a list of participating companies to determine whether the event is appropriate for your company. A small employer with a small booth will be lost in a sea of very large employers with large booths. Being a “little fish in a big pond” will probably not generate strong candidate traffic flow and will certainly not improve visibility.

Plan ahead for effectiveness. The following steps will improve results:

• See that your booth is adequately staffed. It may give many attendees their first impression of your company. If you are setting up at an on-campus career fair, have alumni at the table.

• Prepare a few key questions for each candidate who presents a resume. Asking the same questions will make it easier for you to remember and rank candidates.

• Treat everyone who approaches the booth with respect. Don’t forget rules about appropriate and inappropriate interview questions simply because you are standing up or are in a less formal setting.

• Be prepared to inform promising candidates then and there about the “next step.” This can range from setting up an appointment to discuss an immediate opening to keeping in touch by following up with notes and/or phone calls. Plan to follow up on all resumes using the same process you use for other resumes you receive.

• Have something at the booth that will catch people’s eye, such as a pen, keychain, or other take-away gift, as well as marketing materials about your organization. Food, even small snack items, is usually a draw. You do not need slick recruitment information to display a positive image.

• Walk around and meet the representatives of other companies. These people can become part of your network for finding job candidates.

Search Firms

“What can headhunters do for me, and what should I look for?”

Recruitment firms can be called many things, from staffing agencies to executive search firms. The most important thing to remember in choosing, and using, a firm is that you, the employer, direct the search.

When deciding whether to use a search firm, consider your recruitment budget, available time, and in-house resources. The most costly searches are retained searches. Retained searches are exclusive searches where a specific recruiter is hired to fill a position, usually for a fee of up to one-third of the position’s annual compensation. Generally, there is an up-front “deposit” and charges for expenses, with the balance payable after a hire is made. Before you agree to a retained search, clarify the types of expenses that will be reimbursable and the methods the recruiter will use in conducting the search. Remember that once you sign an exclusive agreement, you must pay a fee even if you hire a person you located through another source.

Contingent search firms charge a fee equal to a percentage of a candidate’s annual compensation, but you have to pay this fee only if you hire a candidate introduced to you by the firm. Therefore, you can use several contingent search firms simultaneously to fill one position. But be aware that having many recruiters chasing the same people can lead to arguments about who first made contact with a candidate.

Many search firms will negotiate the amount of the fee they charge. Searches for a 20 percent fee are common in some areas and industries, and it is possible to obtain even lower rates. When negotiating a fee, be clear about what will be included in the calculation of compensation. If the position includes an incentive or bonus, the fee is typically based on the maximum that can be earned. Most search firms will offer some type of guarantee or reduction in a subsequent fee if a candidate does not remain employed for a specific period. If the search firm does not offer you a guarantee or reduction, ask for one. Get all terms in writing prior to accepting resumes from any recruiter.

While a nonretained search may offer a cost advantage, be aware that the quality of contingent search firms varies widely. An inferior firm will often produce an abundance of candidates who have not been well-screened. Be firm and clear with the person conducting the search. State your requirements, the steps you have already taken to locate candidates, and your preferred means of communication and scheduling. Do not let a search firm talk you into a candidate. If the consultant assigned to your search does not meet your needs, request a different one.

When it comes time to make an offer, do not let the search firm handle the salary negotiations or complete the reference checks. Chances are it will not be as diligent as you. If the firm informs you that it has already conducted reference checks, request copies of notes or records of conversations and follow up to verify or add to the information.

“I heard there are tax breaks for hiring certain people. What are they and how can I get them?”

One valuable and often overlooked source is the group of programs designed to employ people with disabilities or move individuals from welfare to work. There are many reasons for hiring people with disabilities and utilizing welfare-to-work programs to fill entry-level positions. Often these programs can be a good source for candidates in low unemployment locations where employment ads do not produce results. Financial incentives are often available to employers to hire from these sources, and they provide a satisfying and visible way to give back to the community.

Under disability and welfare-to-work programs, participants complete preemployment training before they are referred to employers. At minimum, this training includes job readiness classes where students learn resume and interview skills, plus lessons about responsibility, accepting supervision, and the importance of good attendance. During the training and in the interview and placement process, job coaches or counselors guide participants. These counselors help determine if there is a match between the candidate and the job opening, and they resolve issues that occur on the job. They also can coordinate supplemental benefits (such as government-provided transportation, child care, and clothing allowances) potentially available to the individual and financial incentives for the employer. This training and counseling is not available to you when you hire someone “off the street.”

To find disability and welfare-to-work programs, you can start with local business alliances, such as chambers of commerce. Qualified applicants with disabilities can be located through vocational rehabilitation or education departments in each state. These groups will be listed in the telephone book under state government agencies. Other links can be found through the Department of Labor and the Social Security Administration. Each state also operates offices to help people with disabilities and One Stop employment centers for employers and job seekers.

National or local stimulus programs often provide tax breaks for other types of hiring. An accountant or payroll provider should be able to provide details of any available hiring incentives, including the necessary documentation and reporting you will need to qualify.

CONDUCTING THE INTERVIEW

“How do I make the most of the interview process?”

Just as candidates should prepare for interviews, an employer needs to prepare as well. The first step is to conduct a brief prescreening with the applicant to determine whether the candidate meets the basic requirements of the position and is appropriate for an interview. This is generally done by telephone but may be handled in person, at a career fair, for example. The prescreening can be conducted by an employee with a minimum amount of training and should seek to determine the following information:

Does the Candidate Meet the Skill or Knowledge Requirements of the Position? This can be determined with a few basic, structured questions that are used for all candidates.

What Is the Candidate’s Salary Requirement? Many people believe that an employer should not discuss salary early in the interview process. However, you do not want to waste time interviewing someone for a $60,000-a-year job when that person is looking for $120,000 a year. If the candidate does not want to answer this question directly, ask for a range. Avoid disclosing the salary range for the position until you have learned more about the candidate, because the individual may be more qualified for a different position with a different rate of pay. If the salary or wage is fixed and nonnegotiable, just ask the candidate if it is an acceptable rate.

Does the Position Meet the Candidate’s Criteria? People have different interpretations of job titles. Provide a brief description of the position, including any details about hours or requirements.

Are There Logistical Considerations That Would Affect the Candidate’s Ability to Perform the Job? Obtain information such as days, hours, and locations at which the applicant can work, and the individual’s availability for an interview.

“How do I develop incisive interview questions?”

Outline your interview questions in advance and you will be more likely to obtain all the information you need during the interview. Review the resume and the prescreening documentation as a starting point for questions that should verify, clarify, and elaborate on any information provided. If there is any gap in employment or unusual positions or accomplishments, you will want to develop questions to gather additional details. Do not limit yourself to questions based on specifics already detailed in the resume or application. While it is important and useful to ask questions that verify information, well-prepared questions will provide a wealth of insight beyond what the candidate has chosen to tell you on paper.

Ask behaviorally based questions rather than questions that will merely elicit feelings or opinions. Behaviorally based questions focus on what the individual actually did in a given situation. For example, asking, “Are you a good team player?” is likely to bring forth a response such as, “Yes, I love to work with people.” However, asking the candidate to describe a time when he or she was successful at getting buy-in from others will give you an actual example rather than a potentially biased self-assessment.

Behaviorally based questions can be used to determine a candidate’s actual job experience and to assess skills that are less structured and less easily defined. If the job requires the management of multiple tasks, ask, “Can you describe a time when you managed multiple tasks? What strategies did you use and how successful were you?” These types of questions are also good predictors in interviews with candidates who may have the talent but not the direct experience. For example, if an individual without previous supervisory experience applies for a position that supervises others, ask this candidate to tell you about situations in which he or she led a team, committee, or group or demonstrated leadership.

Ask open-ended questions, not closed-ended ones that can be answered with a yes or no. Closed-ended questions do not create a conversation and will not provide the information needed to make a decision about a candidate. They are only appropriate for eliciting specific facts. Here’s a closed-ended question about business growth: “Have you been involved in a business that went through an expansion?” The open-ended version asks, “Describe a time when you worked in a company where there was an expansion, including your role, and describe the results of the actions you took.” Which is more likely to give you better insight into whether the candidate could help your company in a period of rapid growth?

Interviewers often select very common, overused questions, such as asking the candidate to describe his or her strengths and weaknesses. Here you are practically guaranteed to receive an answer that has been rehearsed. A more effective way of asking this, and making it more relevant to the conversation, would be: “Describe the strengths you would bring to this position.”

An oft-repeated query of an interviewer who did not prepare specifically for the interview is, “Tell me about yourself.” The candidate is sure to have a rehearsed response ready, and when the interview is over, the interviewer will have learned little. You and your own interviewing experience are an excellent source for interview questions. So are other managers who conduct interviews. Ask them to provide examples of questions they have found to be effective.

“What is an illegal interview question?”

If a question does not relate to the candidate’s qualifications and ability to do the job, there is no reason to ask it during an interview. Questions that have the effect of discriminating against a candidate by screening for age, sex, marital status, race, ethnicity, religion, disability, genetic information, and, in many locations, sexual orientation are illegal. Many questions that appear innocuous can actually be considered discriminatory. The following guidelines include questions that can and cannot be asked in some of the most common categories:

Marital Status. Questions about marital status including, “Do you plan to have children?” and “How much money does your husband make?” do not relate to the applicant’s ability to do the job and can be viewed as discriminating against women. To determine availability for work or long hours, it is more appropriate to ask, “What hours can you work?” or “Are you available for overtime?”

Race or National Origin. Examples of questions that are illegal include “What country are you from?”“What kind of name is that?”“Is English your first language?”“Were your parents born in the United States?” You may ask if the candidate can read or write English or another language if these skills are job-related. You may also ask whether a candidate has the legal right to work in the United States, since this is a requirement for employment.

Age. Federal law prohibits discrimination in employment against anyone over the age of forty, so employers should never ask applicants their age or ask any age-related question such as, “What year did you graduate from high school?” To determine a candidate’s legal eligibility to work, an employer can ask, “Are you eighteen years of age or older?” Other improper questions include, “How long do you plan to work before you retire?” It is appropriate to ask about short- and long-term career goals.

Religion. Interview questions such as “What is your religion?” or “Do you go to church?” are prohibited. They are not job-related and can be considered discriminatory against candidates of different religious beliefs. Since employers are required to make reasonable efforts to accommodate religious observances, it is also inappropriate to ask, “Does your religion prohibit your working on Saturdays?” or “Are there any holidays on which you cannot work?”

Disabilities. Under the Americans with Disabilities Act, employers are prohibited from asking questions about an applicant’s disabilities during the preemployment process. Employers cannot ask questions such as, “Have you ever filed a workers compensation claim?” or “Do you have any disabilities that would interfere with your ability to do this job?” If the candidate has an obvious disability or discloses a hidden disability during the interview process, you can ask how the candidate would perform a particular job or whether reasonable accommodations would be needed. You can also show a list of the job responsibilities to the candidate, followed by the question, “Are you capable of performing these duties with or without reasonable accommodation?” An employer can ask about a candidate’s attendance record at previous positions, since absences can be caused by many reasons other than disability. Questions about attendance records must not include the reasons for absences.

Arrest and Conviction Records. Because most arrests do not result in convictions, questions about arrest records can be interpreted as biased against particular minority groups. If you consider a record of conviction in making an employment decision, you must be able to demonstrate a business necessity for the requirement. When in doubt, refrain from asking about convictions during interviews. (See the section on Preemployment Testing and Screening, later in this chapter, for information on conducting background checks.)

Credit History. Questions about a candidate’s finances, such as “Have your wages ever been garnished?” and “Do you own or rent your home?” are illegal. (See the section on Preemployment Testing and Screening for guidelines.)

Personal Questions and Other Inappropriate Inquiries. Personal questions that are totally unrelated to job requirements should always be avoided, even if there is no discriminatory intent behind them. “Do you have an active social life?” or “Do you belong to any groups, clubs, or societies?” are examples of questions that can be seen as having a sex, ethnicity, or other improper bias. Trick or cute questions are inadvisable, whether or not they are illegal. A trick question that is designed to mislead or catch a candidate off-guard—such as, “You were only at your last job six months. Why were you fired?”—may unnerve and annoy the prospect and is unlikely to add to the discussion. Also avoid “cute” inquiries such as, “If you could be any animal, what would you be and why?” There are certainly better ways to elicit information.

As a rule, if you design your questions with the purpose of bringing out information about the candidate’s work experience, judgment, character, and maturity, you will be best equipped to make sound hiring decisions.

“I’ve planned for the interview. Now what?”

After you have adequately prepared for the interview, it is time to meet the candidate. There are four distinct parts to a successful interview.

Part 1: Welcoming the Interviewee. Begin by making the candidate comfortable and the setting productive for a conversation. Have a prepared, genuine welcome statement, which can be as simple as a making a comment on the weather, thanking the candidate for finding your office if it was a difficult trip to make, or remarking on a common alma mater. It is important to keep the welcome brief and not to let it evolve into a lengthy discussion that eats into the interview time.

Conduct the interview in a quiet, private location without interruptions. Nothing makes a candidate feel more unwelcome or unimportant than to have the interview interrupted by telephone calls, pagers, or knocks on the door during an interview.

Part 2: Asking Questions to Determine Qualifications. After you develop rapport with a candidate, turn the conversation to specifics about the candidate’s background and qualifications for the position. This is the time to ask the questions that you prepared in accordance with the guidelines earlier in this chapter. Tell the candidate that you may ask additional questions at other points in the interview, which you will do if you realize that you need additional information or clarification.

Avoid a “halo effect” that limits the questions you ask. A halo effect occurs when some characteristic, shared experience, or qualification of the candidate so overwhelms the interviewer that he or she assumes the candidate is perfect and does not follow through with enough questions to determine the candidate’s appropriateness for the job.

Part 3: Allowing Time for Candidate Questions. When you have asked all the questions you feel are necessary, offer the candidate time to ask questions. A candidate for a management position who does not have questions obviously has not prepared and may lack business acumen. If you cannot answer a question, respond honestly. If the answer to the question can be determined from another source, tell the candidate that you will get the information and follow up later.

This is the time to “sell” the candidate on the company. The individual should leave the interview with a basic understanding of the company and the position and the sense that the organization will be a good place to work. Never do all the talking. When an interviewer dominates a conversation, it is likely that the candidate will not have the chance to provide the information you need to make a sound hiring decision.

Part 4: Concluding the Interview. A proper close to an interview is just as important as an appropriate opening. This is your opportunity to ask any additional questions. Explain the next steps in the interview process. Next steps may include determining the candidate’s availability for further interviews, or just stating that the company will review results of the interview and get back to the individual by a specific date.

An interview may provide job candidates with their first impression of your company. Remember that when people are treated inconsiderately during the interview process, word spreads rapidly throughout the employment community. Strive to make a favorable impression on all candidates, whether you hire them or not.

PREEMPLOYMENT TESTING AND SCREENING

The hiring process does not end with the interview. As a responsible employer, you may want or need to take additional steps to assist in the hiring decision. These steps include doing preemployment testing, background checks, reference checks, and any medical screening.

“Should I require candidates to take a skills test?”

Many employers require a candidate to complete one or more preemployment tests. An extensive range of tests is available, and they can be helpful as long as you select an appropriate test.

• Basic skills tests. Employers have administered basic skills tests for years, most commonly to measure typing and computer abilities. These tests are easy to define and administer. They can be designed in-house, requiring the candidate to complete all or part of a typical assignment, or purchased from a vendor and administered in-house or online. For certain technical positions, a math or use-of-tools test may be appropriate.

If you conduct a skills test, it is essential that the components of the test are relevant to the job and that the test be administered uniformly to all candidates for the position. Uniform administration must extend to the location and format of the test, including any technology used.

• Soft skills tests. Tests have also been developed to measure “softer” skills that are required for a job. For a service environment, the test may include questions or specific examples of situations that you want the candidate to respond to, or it may be targeted toward determining whether the individual uses polite, positive language in responding to requests.

Less specific are psychological tests designed to target personality types determined to be best suited for an occupation. For example, an individual applying for a position that requires completion of inventory and record keeping might be tested for attention to detail. Before using psychological tests, make sure that they are actually relevant to and useful for your candidate evaluation. It could be difficult to justify the use of this type of test for all employees in an organization where there are a variety of positions and a range of interaction with others.

• Validation of tests. For any test to be a useful measure and to be considered nondiscriminatory, it should be validated. Validation means there is a demonstrated correlation between people’s performance on the test and their performance on the job to the standard measured by the test.

With the growth in availability and use of tests, the Equal Employment Opportunity Commission has issued updated recommendations concerning employment testing.

The guidelines state that:

• Employers should ensure that employment tests are properly validated for the applicable position. The test or selection procedure must be job-related. A test vendor’s documentation supporting test validity may be helpful, but the employer is responsible for ensuring validity.

• If a selection procedure results in screening out a protected group, the employer should see if there is another effective selection procedure that has less adverse impact, and, if so, adopt the alternative procedure.

• To ensure that a test or selection procedure remains predictive of success in a job, employers should keep up to date on changes in job requirements and should update the test specifications or selection procedures accordingly.

• Tests should not be adopted casually by managers. No test should be implemented without an understanding of its effectiveness and limitations for the organization, its appropriateness for a specific job, and whether it can be properly administered and the results evaluated.

Any test or procedure that has an adverse impact on any protected class is considered discriminatory. For example, if more men than women are selected based on the results of a test, it is discriminatory and therefore illegal.

The cost of testing can vary widely. Some test providers charge for administering and scoring each test; others train employers to do so and charge user fees. Your cost analysis should include how much time you will spend on testing, as well as the potential reduction in turnover and recruitment costs resulting from using an effective test. Check a variety of references including, if possible, individuals who took the test and were hired based on the results. Request sample tests and a trial period from any third-party test provider.

In some situations, a testing company will provide additional research and customization if your company volunteers as part of a test site for a new product. This is a good way to get a targeted test, as long as validation is built into the process.

“What do I need to know about preemployment drug testing?”

Drug testing is more fully discussed in Chapter 8. If you decide to do preemployment drug testing, select a reputable company. Ask how the test will be conducted and determine specific drugs to be screened.

“Can I require applicants to take preemployment physicals?”

If you require a candidate to take a preemployment physical, you must ensure that the recommendations, results, and subsequent decisions made about the applicant do not violate the Americans with Disabilities Act (ADA). Generally physicals are conducted after an offer is made. These exams are costly and time-consuming and should only be considered for employment situations that require specific information related to performance and the potential need for reasonable accommodations. (See Chapter 7 for more information on ADA compliance.)

“How do I conduct an effective reference check?”

Reference checks seek to obtain written or verbal verification of information and/or opinions about qualifications and past performance. Almost anyone in your organization can conduct a minimum reference check to verify information from previous employers or educational institutions. Someone comfortable asking open-ended questions to obtain information should conduct reference checks that seek opinions. Do not merely contact the human resources department of the candidate’s previous employer for a reference. This is especially true when hiring a manager, salesperson, or other key employee, when it will be important to speak with supervisors, subordinates, peers, and sometimes even customers, depending on the nature of the job responsibilities.

As in an interview situation, ask questions designed to elicit specific information. Instead of asking, “Was Tom a good performer?” ask, “What results did Tom produce?” This is also a good time to gain a different viewpoint on the candidate—such as the individual’s relationships with subordinates, management style, and other perspectives. Write up the results of all reference checks in a consistent format, including the date, the name of the person spoken to, and the details provided.

Often, a candidate will offer written letters of reference. While these letters are sometimes helpful, they are typically form letters lacking in details that will aid your decision-making process. Letters of reference are not a substitute for good reference checks. If a candidate is employed, do not call the current employer without explicit permission. If you feel you must have information relating to this job, ask for the name of a former employee of the company.

“Isn’t it quicker to just plug the candidate’s name into an Internet search?”

Type a candidate’s name into the box of your favorite search engine and within seconds you are likely to find at least a minimum amount of information. Facebook and LinkedIn results may provide some helpful professional information, but you may also discover personal information that is irrelevant to the candidate’s ability to perform the job, which could lead to discrimination and other charges if used in connection with the employment decision. In addition, while an Internet search may help you verify some dates and facts, it is no substitute for a thorough reference check.

“What is a background check, and do I need to conduct one?”

Background checks provide history about a potential employee from sources outside of previous employment. Criminal records, motor vehicle records, and credit reports may be part of a background check. The law requires that the extent of the preemployment background check be appropriate in relation to the specifics of a job. If a position requires someone to drive a vehicle, conduct a motor vehicles department check. You may want to retain a background check company because such companies may have quicker access to information than you would.

When information about a criminal record is used to make a hiring decision, the use must be based on a business necessity. You should consider the nature and seriousness of the offense, the time elapsed since conviction or incarceration, and how the offense relates to the job. Criminal record checks can be complicated because they require access to multiple jurisdictions. When contracting with companies to conduct these checks, ask how they obtain the information and how long the check will take to complete. State laws vary when it comes to whether an employer can deny employment based on a previous conviction, and the law may prohibit employers from asking certain questions. Check with counsel before acting.

Some employers also conduct credit checks when hiring for a position involving financial or cash-handling responsibility. If you conduct any background check, credit check, or reference check through a third party (i.e., someone other than a company employee), you will be covered under the Fair Credit Reporting Act (FCRA).The FCRA has specific guidelines for the use of credit checks and other defined “consumer reports” that require that the employer obtain the prior consent of the candidate. Under the FCRA, you will also be required to make certain disclosures to the applicant if the information contributes to your making an adverse decision. Because employers that violate the provisions of the FCRA may suffer significant legal consequences, it is important that you understand your responsibilities before allowing any outside parties to perform any investigations regarding a candidate. You can obtain more information about your obligations under the FCRA through the Federal Trade Commission. A number of state laws also limit employer use of credit data in the employment process.

MAKING THE JOB OFFER

“How do I decide on a candidate and make a job offer?”

All too often, hiring decisions are made without thorough review and analysis. Studies have shown that interviewers frequently make up their minds during the first few minutes of an interview and use the rest of the conversation to validate their decisions. They may not check references and instead go straight to a job offer. The total cost of replacing an unsuccessful hire can be as high as several times the individual’s annual earnings, depending on the level of responsibility of the position. Time spent making the correct hiring decision is decidedly cost-effective.

When you have completed the steps in the hiring process, review all available information before making your decision. Rank the candidates in order of preference. Obtain detailed feedback—not merely a yes or no—backed by clear information from everyone who met the candidate.

If you are hiring for a position that is paid an hourly rate, you can extend an offer to the candidate as soon as you have reached a decision. Think of the job offer as an opportunity to welcome an employee to your company. Congratulate the individual and provide details about the rate of pay, date, time, and location where they are expected to report to work, and name a person the new hire can contact with additional questions.

“How do I negotiate a job offer?”

If you are hiring for a salaried position, especially a key position in the company, you should expect to negotiate the job offer with the candidate. Before you begin, you must understand all the potential parameters of the compensation that will be offered. Employers typically make offers at 80 percent or 90 percent of the maximum they are willing or able to pay. The individual making the offer should understand all the forms of compensation, including base pay, bonuses or incentives, and the value of additional benefits. Decide in advance issues such as the potential availability of sign-on bonuses, relocation assistance, and reimbursement for any other expenses.

Sign-on bonuses are paid to attract a candidate and/or to compensate a candidate who has the potential to lose bonuses or incentives when accepting a new position. They are typically paid out over a specified period of time. Some organizations require employees who leave within a year to return a part of their sign-on bonuses.

If you are offering relocation expenses, state specific guidelines. Your company may have an existing policy detailing exactly what is covered, a maximum dollar amount allowable for the move, or even a single payment of a specified amount.

Before you offer or agree to any variations in benefits, inquire whether changes are allowed under your benefits plan. For example, your benefits contract may not permit you to move up an eligibility date for medical coverage. In this situation, you might offer to reimburse COBRA costs to continue benefits up to the eligibility date.

“I know what I want to pay. Why should I negotiate?”

If your company is not willing to negotiate a job offer, you must realize that you are setting the tone for a working relationship. A candidate for a sales or marketing position or any senior role should be expected to ask for more than the offer. This is a good opportunity to assess the individual’s negotiating skills. Do not give an immediate answer during a negotiation, and don’t expect an immediate response to an offer. A career change is an important decision; you do not want to pressure job candidates before they have had the opportunity to carefully consider your offer.

“Should I put the offer in writing or have the employee sign an employment contract?”

Employers commonly follow up verbal offers with written offer letters that confirm details. It is essential that these letters accurately reflect the verbal offer. When promised or requested, provide offer letters promptly. Never send an offer letter by e-mail to a candidate at work. Even if the candidate prints out the letter and deletes the file, it is still retained on the employer’s server. Any offer letter should specifically state that it is not a contract for employment. The effectiveness and defensibility of employment contracts and noncompete agreements vary widely. If you are considering the use of an employment contract, it should be drafted and reviewed by legal counsel.

“The selection process sounds like a lot of work. Do I really need to take all this time?”

The employment process is very time-consuming. It is impossible to expect a positive outcome by cutting corners. You cannot speed through an interview or reference check and hope to gain the information needed to make a decision.

A good interview and selection process is an investment. It is the first impression for a future employee, and the process will set the tone for the working relationship. And taking care in this investment will greatly increase the chances that you and your new employee will have a mutually beneficial relationship over the long term.