There can be no argument your employees are your most valuable asset. Each year, businesses lose over $40 billion to employee theft and dishonesty. While this figure continues to rise, employers can do more to reduce their individual losses. The best investment against employee crime is to make careful, well informed hiring decisions. And although there are no guarantees, there is great deal employers can do to attract, hire and retain quality employees. Here are a few suggestions and recommendations:
Recruit constantly, not just when a position needs to be filled. Recruiting is a continuing and never ending process. It is not something one does only when one needs to hire. Maintain a revolving inventory of qualified candidates so that when positions become available, interviewing and screening can begin immediately.
Don’t use generic employment applications. They look unprofessional, and frequently don’t meet current legal standards. Instead, create a customized application. But, before going to press, have it reviewed by an attorney to ensure it complies with applicable federal and local law.
Get a signed release of liability from each applicant and require applications be signed. In addition to the notifications and authorizations required by the Fair Credit Reporting Act, the release should be fashioned to protect the prospective employer from any invasion of privacy claim that might arise during the pre-employment screening process. The release should authorize, without liability, the examination and use of public records, communication with former employers and reference checking.
Interview thoroughly and consistently. Use trained interviewers, and ensure that they know what can, and cannot be asked. Develop an interviewing process whereby every applicant is properly interviewed and his or her skills are examined and job suitability determined. Allow the applicant to thoroughly explain; strengths and weaknesses, how long he or she thinks it will take to become a contributor, and any gaps in employment. Retain all notes as part of the applicant’s permanent file.
Request as many references as possible and check them thoroughly. Ask the applicant to provide the work and home telephone number of every reference provided. Additionally, ask for the names and telephone numbers of peers and subordinates. Contact each reference and ask for help to determine if the applicant is suited for the positions for which they’ve applied. Be direct, but be respectful, and take notes.
Insist the applicant provide relevant documents such as recent performance reviews, check stubs, military discharge records, copies of transcripts and degrees, and professional licenses if applicable. Applicants should unhesitantly produce such documents-smart applicants anticipate this increasingly common request.
Conduct a thorough and complete background investigation. In most states, an applicant’s driving history and criminal history (if any) are public record and available to perspective employers. A string of traffic violations or even misdemeanor offenses should be taken seriously. A history of bankruptcies, tax liens and unfavorable judgments are also red flags. Check federal and local laws before making any inquiries, and comply with the Fair Credit Reporting Act.
Drug test all applicants. According to recent studies, one third of the population has used an illegal drug at least once, and 11.6 million are still regular users. Substance abusers are less productive, have more accidents and miss more work than non-substance abusers. Budget permitting, consider psychological testing as well. Tests that have been validated will help match applicants’ skills with job requirements, and screen out those unlikely to meet performance standards.
Team consult with staff members and collectively identify the best candidates. Establish a standardized rating system and rate qualified applicants based on skills, work experience, past performance and the information provided by references. Re-interview the best candidates before making a final decision. Put your offer in writing and have it acknowledged by the final candidate’s signature. Maintain good will with those not selected, with a kind thank you letter.
Sell the company, not the job. It is common for business owners, recruiter and even experienced human resource professionals to oversell a position. This practice often leaves the new employee disillusioned, frustrated, and angry. Instead, sell the company and all that it offers. Company benefits often forgotten include: technical training, personal and/or professional recognition, and professional networking opportunities.
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