By Shreyasi Singh

Every human resource manual you read will probably begin by preaching how “people” are a company’s biggest asset. Of course, you know that. Just as you know how tricky it is to find good talent—and more importantly, retain it. Customers, finances and markets you can deal with. But people always remain a key concern, especially in a mid-sized business.

In a growing economy, talent comes at a price—and often remains out of reach for an enterprise like yours. And yet, you have to find ways to fill those seats and look at the bigger picture. While you go about that task, make sure that you get rid of the one-out-one-in mentality.

Hiring goes beyond matching people to tasks. It is a critical organisational function carried out to support a company’s strategy and vision. A wrong hire is not only a waste of time and energy, it can also adversely impact employee morale and hamper team work. Smaller organisations are more acutely affected by such bad decisions.

“A large organisation can afford a few people who are not optimally placed. In a smaller place, every wrong-fitting recruit pricks the organisation. People must fit their roles perfectly,” says Sundar Rajan, director, Thomas Assessments India, a leading behaviour assessment firm.

Hiring might not be rocket science, as human resource managers say, but having a professional on board can make all the difference. “If a trained recruiter is hiring, you can ensure yourself that there is only a 1 in 10 chance of going wrong,” says Rajender Mehta, head, human resource, retail business, at DCM Sriram Consolidated. Sounds impossible? It isn’t. Read on for some best practices in recruiting and hiring.

1. No rocket science, but no cakewalk either
Define your business need: Determine why you need to hire and what your business needs are at the moment. Are you doing just-on-time hiring, or are you investing in top talent for the future? Both approaches can work, provided they fit in with your company’s stage of evolution. “If there are pressing needs, go ahead and hire. But, often, it is possible to outsource functions like finance and IT. Do that, if you can. Focus your hiring resources on people who can grow your business, get more feet on the street,” points out Sarjeev Sethi, founder director, People Connect, a Delhi-based executive search firm. He adds: “Keep a growing organisation lean and thin, and do not add bulk. Look carefully at the value proposition of each hire.”

Know the job you are hiring for: Experts say the prime reason for bad hiring is a shoddy job analysis. To hire the best employees, analyse the position you have in mind. Job description is just one aspect of job analysis. Don’t just list the skills or experience needed. Define deliverables, competencies, and steps required for on-the-job success. If you know people who have excelled in similar jobs, speak to them and observe their behaviour to identify which characteristics help them achieve their goals. Try and clone that.

2. Lay down a process
Determine your benchmark: “Companies tend to get very aspirational when it comes to hiring. Once you know what the job is about, you will know what you want in an employee for that position. Define a minimum benchmark level in terms of experience, skill set and educational qualifications,” advises Chanchal Singh, a senior human resource manager with a leading financial services firm. Know what you value: “We hire for will, train for skill. We look for high energy levels, good communication skills, and a go-getter attitude. Formulate combinations specific to your organisation. Don’t copy-paste manuals from big companies,” adds Singh. Mehta agrees, “For me, the first fit is if the person buys my value system, understands it, respects it. I am keen to judge reflex, to test passion. I think skill and talent are trainable.” Find out what works for you.

Screen CVs properly: Don’t use it as an elimination round. Use the minimum benchmark and remove the waste. Ensure you have a sizeable chunk, a decent pool of people to meet.

Select the right evaluation tools: An interview still remains a non-negotiable way to meet people and can be effective if you have followed the earlier steps diligently. For the very technical jobs, go in for testing or assessments and validate results with an interview, educational qualifications and successes in the past. Generally, aim at a 10% shortlist and a hit rate of 3%.

Look for maximum input: More and more Indian companies now use tools like psychometric testing to “measure the mind of the person”, and assess their attitude, cognition and emotional intelligence. “It is a pleasant surprise to most people that it is possible to get an impressive grip on somebody with these tools. In the behavioural tests, these tools can give you an 85% accuracy level. Supplement your interview with these results,” Rajan says. The best part is that most of these tests are not beyond the reach of start-ups. “At an executive level, they cost 1% of the total annual CTC. But, if you get a perfect fit, it’s like buying insurance, especially for critical jobs like those which can impact the financial health of your organisation and are customer-facing positions.”

Be consistent: According to Singh, most small businesses don’t hire in a structured way. “Prepare an interview evaluation sheet and standardise it. Give different weights to different parameters. Fill it up with data from all your tools. It will help substantially in hiring objectively,” she explains.

3. Don’t make a friend, hire the best employee
Guard against first impressions: It happens often enough. Within the first six seconds of a potential candidate walking in, you know your talent hunt has come to an end. But, be careful. First impressions don't predict job success even for sales positions. Hiring managers concede that succumbing to one’s “gut feel” is a very real problem. “This can be highly dangerous. Even if, in your mind, you have chosen the first candidate you meet, make the effort to interview the other candidates sincerely,” recommends Mehta. Evaluate your first impressions only at the end of the interview. You will probably find you were wrong. The best employees might not make the best first impression. Try and understand your own biases, what instinctively attracts you, or what you innately don’t like, and train yourself to insulate from these in subsequent interviews.

Strive for diversity: While it is important to hire people who fit seamlessly into your company’s culture, “people like us”, attempt to inject diversity into the workforce. A diverse mix of people with different strengths, attitudes and experiences substantially enriches a workplace. “Diversity is a big concern now. A lot of companies stress on it. More women are being encouraged to join the workforce for example,” says Sethi.

Conduct background checks: Invest time and money to do a thorough, stringent background check on your potential hires. Over the last few years, a reference check has become mandatory and non-negotiable for all big companies. Industry insiders say up to 30% of all resumes have some misappropriation of truth.

It might be a good idea to enlist pre-employment reference check companies like Cross Hill Partners, KPMG Forensic Team and Integrity Verification Services. Verify academic and professional credentials, employment dates, performance success. Many employers also check criminal records and credit history. Do a comprehensive reference check regardless of whether you are hiring for a Rs 2 lakh or a 10 lakh-CTC position. “There is no alternate to reference checks. It just has to happen. In fact, we spend less time with our candidates and more time finding information on them. For critical positions, speak to former employers, ex-colleagues, customers, or batchmates from college. It helps that people now are quite forthcoming about others and are mostly happy to talk” says Mehta.

For senior employees, reference checks should go beyond just mere checking of information. Use it to develop an understanding of the person, their management style and personal qualities. It can help you transform them better. Typically, reference check agencies charge upwards of Rs 2,000 for each candidate. Costs can vary depending on the depth of the check required.

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