Eric provides concise, clear practical advice that can be implemented immediately.
Posts tagged Avoid Hiring Mistakes
Stop Making Bad Hires: 8 Steps for Improving Any Interview Process
I first realized how unscientific the hiring process was in most companies when I worked as a recruiter in the financial arena. I was placing CFOs, Controllers, and other financial personnel with some highly regarded companies. My clients were very successful senior executives. Yet there hiring process was unstructured and ineffective. They were, of course, very busy people. They would emerge from a meeting and head to the conference room where they were to interview a candidate. Often, they would read the resume as they walked to the interview! Once with the candidate, they would often spend too much time talking and not enough time asking questions and listening. After the interview was completed, they would stop by the office of someone else who had interviewed the person and ask that perennial question: so, what did you think about that guy?
This is no way to run an interview. If you are falling into some of these traps, then consider adding some or all of the steps below to reduce hiring mistakes:
1. Determine an A-Player Profile. In my new book How to Hire A-Players, I ask the question: would you know an A-player if you met one? How so? What would tell you that an individual you currently employee or that someone you are interviewing is an A-player? I know this sounds obvious, but you would be surprised at the lack of clarity within companies about the profile of an ideal candidate. If you don’t know exactly who you are looking for, you and your team will be slow to agree upon and actively pursue the right people.
2. Look for overall patterns of accomplishment. The best way to reduce hiring mistakes in an interview is to get a very clear picture of someone’s overall pattern of accomplishments in their life and career. Then, compare that pattern to your A-Player Profile for the role. Unlike mutual funds, with people past performance is the best indicator of future results.
3. Ask initial screening questions to weed out unqualified people. For example, some roles require that applicants have certain software expertise or industry experience. If you can’t determine this from the resume, ask about these abilities early in a phone screen. If someone does not meet these minimum criteria, they are eliminated and the phone interview is over.
4. Starting with their most recent role, confirm their dates of employment, including both the month and the year. People often fudge these dates – you want to verify them.
5. For each role, ask questions specifically designed to dig into their accomplishments. The best overall question to ask is: Please tell me briefly about the top accomplishments for which you were personally responsible while employed in this role?
6. Ask follow-up questions that keep the candidate talking. These questions include: How did you do that? Why so? Please tell me how you made that happen? What were the most important steps you took to make that happen? Such open-ended questions dig beneath a candidate’s initial, pre-planned answers and programmed responses to find out what he or she really did.
7. Take verbatim notes: I have found that jotting down the word-for-word responses that people provide during interviews is helpful. When you go back and look at your notes, those verbatim quotes will help you to recall the person’s strengths and weaknesses.
8. Score each candidate: Create a scorecard for yourself using the A-Player Profile that you created. Give candidate’s a score for each key area in the profile as well as an overall score. This helps you to objectively compare and contrast the strengths and weaknesses of all the people you interview.
In the end, it is your job as an interviewer to gain a complete picture of the accomplishments, failures, strengths and weaknesses of each person you interview. Then, you compare that picture to your A-player profile for the job. By taking this approach, you uncover more about job candidates than your typical interview and determine the person who best fits the role. The end result will be fewer hiring mistakes and more A-players hired.
Eric Herrenkohl is the author of How to Hire A-Players www.howtohireaplayers.com , being published by John Wiley & Sons April 12, 2010.
Domino’s Pizza and Building a Team of A-Players
Last January, the New York Times ran a great article about building a business by creating a team of A-players (For a Franchise, Success is in the Hiring; January 6, 2008). The article introduces Dave Melton, who owns 5 Domino’s Pizza stores in NYC with total sales of $5 million, has 100 employees – and experiences essentially zero turnover.
This retention rate would be impressive in any business, but the average turnover rate for “limited service restaurants” is 51%. In other words, a similar franchise owner is losing 50 employees every year while Dave Melton loses 1 or 2. How did he do it? Here are some points that I pulled out of this article that are relevant to any business when it comes to finding, hiring, leading, and keeping A-players.
He knows his A-player profile. In my upcoming book How to Hire A-Players, I talk about the importance of understanding the A-player profile for key roles in your business. You can tell Dave Melton understands his A-player profile. He says in this article that he looks for people who “can work quickly and have nice personalities.” My guess is that there are few other things he looks for as well, but don’t dismiss this basic profile. A lot of people have bubbly personalities but can’t get things done. Some people can get things done but are surly. He is looking for the combination.
Focuses on creating a great customer experience. Melton lists the bad behaviors that got some of his early, bad hires fired. They include “arguing with customers, refusing to wear uniforms in the correct way, visiting friends en route to delivering pizza, and failing to show up for work. What do all of these have in common? They all create a bad experience for customers. Let’s face it, the average retail experience in the United States is not impressive. If you can put a staff together that creates a good customer experience (much less an exceptional one), that is going to show up in your customer retention. It’s pretty easy to connect the dots between an exceptional retail staff and customer retention.
Creates an Internal Talent Incubator. You wouldn’t think that a Domino’s Pizza franchise could be a talent incubator, but read this article and you realize that Melton has accomplished it. He starts all his employees as hourly workers who make minimum wage + tips delivering pizzas by bicycle. But they can end up as Store Managers making $70,000 annually.
Shows People a Career Path. Again, you don’t associate the concept of Career Path with working at a place like Domino’s, but Melton realizes that you don’t have to send someone to Wharton to provide them with a career path. Melton and his wife Angie (who helps to run the franchise) encouraged one of their employees to take a New York City food safety certification course to “enhance her credentials.” The employee’s initial reaction? “I was a little skeptical. I don’t like tests. But I took it and I passed. I did well. I got a raise and I got a bonus for passing the test.” (She also got promoted to assistant manager).
Promotes Internally. Melton promotes from within when he has a job opening. When a company can promote good people from its ranks into leadership roles, you know they are doing a great job of hiring the right people, developing them, and keeping them around.
Taps into undervalued pools of talent. The article quotes Zia Shah, 35, a native of Pakistan with a degree in business who came to New York at age 26 looking for more opportunity. He started delivering pizzas for Mr. Melton’s Domino’s franchise and today is a manager of one of his 5 stores. Here is a very sharp, educated guy who was “overeducated” for his initial role but hung on because of the opportunity that was ahead of him. I am sure he was a lot hungrier for opportunity than many of his 26-year-old American peers. Sometimes finding and hiring A-players is like being a value investor in stocks. You have to find people who have been undervalued by the market and give them a chance.
Gets entry-level hires from employee referrals. Today, this Domino’s franchise gets most of its employees from employee referrals. I make the point in How to Hire A-Players that recruiting is just marketing and sales in different garb. We all know that positive word-of-mouth is critical in marketing and sales. The same thing is true in creating a team of A-players. If you hire great people and give them opportunities to succeed and win, they are going to tell their friends! Your job is to get your employees engaged in this A-Player mindset.
Grew his business organically. Melton grew his business from 3 stores to 5 in part because he already had groomed the talent to do so. Show me your business plan for growth over the next 3-5 years, and I will ask you if you are developing the talent today to fuel that growth.
You can find the New York Times article For a Franchise, Success is in the Hiring here:
