Conduct 'Due Diligence' on Job Candidates

08/20/08

As with most things in life, the more time and effort you invest in something upfront, the better the return in the future. Hiring is no exception. The following smart hiring practices cost little to nothing but can significantly improve your chances of making a solid hire:

Check references. Good managers check all the references offered by the candidate. Great managers check references not mentioned by the candidate (after getting a signed release from the candidate to do so). For example, consider calling the boss from three jobs ago, or a co-worker you happen to know from the candidate’s last job.

Evaluate candidates during the interview process. Interviews are the place to confirm the “facts” listed on the résumé. Take time before the interview to form questions based on the information the candidate provides.

Question the candidate’s claimed accomplishments closely. “Sales doubled thanks to your work? Tell me how you did it.” Or, “You supervised forty-two people? That’s impressive. How did you manage to evaluate them all properly?” If something sounds superhuman, probe until you’re satisfied Superwoman is—or is not—sitting in front of you.

Check past employers/schools. Don’t have the time? Delegate the task to someone who does, but make sure it is done. It’s easy to catch a lie here, which will save you much greater grief down the line.

Require samples of candidate’s work. This is one of the best ways invented to avoid a hiring mistake. If you’re looking for a writer or designer, ask to see samples. A product developer, look at schematics or other plans. Floral arranger? Pictures of finished work. Engineer? Tangible proof they can build bridges, chips, airplane wings or whatever they say they are expert in.

Test skills. If a job doesn’t lend itself to samples, then test. Bookkeeper? Test skill in arithmetic. Order entry? Test typing skills. Customer service agent? Put him through a simulation to test his poise under fire. Decision maker? Present a case and ask her to come up with a decision. Some companies go further by subjecting the decision to a grilling by senior staff.

If you take hiring seriously by doing due diligence necessary on each candidate, you’ll have a real competitive advantage over your lazy competitors: A much stronger team, savings in hiring costs, and much less anguish over employees who don’t perform nearly as well as their gold-plated résumés promised they would.