Tax ARTICLE - The Most Important Thing
Smart Hiring Now Saves Time and Money Later

Target Audience: Business Owners, Financial Managers, Accounting Consulting Firm Advisement Interest, Tax News and Business Updates, Tax Hints and Tips Interest, Human Resources Departments, Supervisors, Peers, Hiring Process Overseers

One could make a pretty strong case that hiring good employees is the most important thing a company needs to do. After all, no matter how sound your business plan or how brilliant your strategies for executing it, without the right people on staff, your company isn’t likely to get very far.

That’s why you always need to be on the lookout for smart approaches to hiring. Here are a few to consider.

The Search: Look to Your Rivals

Where does the hiring process begin? With the search — and knowing where to look can be just as important as knowing whom to look for. You’re likely familiar with typical approaches such as classified ads, online job boards and professional recruiters.

Although these all have value, there’s another source that many business owners either overlook or shy away from: your competitors. Hiring experienced employees away from competitors can cut the cost and time your company must invest in training and may bring new insights into your operations.

Now, we’re not suggesting you head down to your chief rival’s office and start striking up conversations in the parking lot. But trade shows, conferences, professional meetings and educational programs are often good neutral places to seek out experienced workers who may be looking for a new team.

Naturally, you need to be sure to steer clear of legal entanglements, so consult your attorney before undertaking any such effort. For instance, you’ll need to make sure any potential hire isn’t restricted by a noncompete agreement.

The Interview: Think Behaviorally

Once you do find a prospect, and call him or her in for an interview, you face another great challenge. How do you see through the typical hiring chit-chat to determine whether this person is really right for your company?

One way is behavioral interviewing — a technique in which you frame your questions to candidates to elicit real-world stories from previous work experience. The answers your interviewees give can offer a glimpse of how they’ll handle certain situations and what skills they’ll bring to your organization.

For example, if you’re looking for a customer service rep, you could ask, “Tell me about a time you’ve had to handle a dissatisfied customer.” Be sure to structure your question so that the candidate can’t reply with only a “yes” or “no” answer.

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The Follow-up: Check References Carefully

So let’s say the interview went well and you’re ready to take things to the next level. At this stage, patience is critical. Many businesses rush to hire employees who talk a good game, only to later discover that the employees aren’t all they claimed to be.

Among the primary ways to avoid making this mistake is to check candidates’ references carefully. This means doing more than just contacting the references a candidate provides. You’ll probably get more information from supervisors, peers and subordinates who aren’t on the list. (You may be able to find names and contact info on the Web sites of the candidate’s previous employers.)

Before you talk to anyone who isn’t on a candidate’s list, however, make sure the candidate understands that you’ll be looking beyond those names. To avoid appearing sneaky or dishonest, ask if there’s anyone you can’t consult and, if he or she answers in the affirmative, ask why you can’t consult that person.

Last, be sure to confirm all of the other things claimed on an applicant’s resumé or application, such as employment dates and positions, degrees earned, etc. Resumé fraud is not uncommon.

Painting a Picture

These are but a few of the many ways companies can ensure they find a solution through the hiring process, not another problem.

Also bear in mind that, when building an organization that will last, smart hiring is often more about your company’s culture and an applicant’s long-term career fit than just a job description. Painting a picture of a candidate’s potential career path and inquiring into his or her personal motivations are of paramount importance.

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