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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 Carefully analyze the job functions your business requires; consider
needs 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 Make all candidates go through the normal hiring process.
someone recommended
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 Obtain releases from candidates; engage the services of outside
background and reference agencies to check backgrounds.
checking
Failure to recognize you have Rectify mistakes quickly; assist terminated employees in securing
made a poor hiring decision new positions

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