The bad executive hire - a postmortem.

Examining the reasons a bad hiring decision was made can identify common errors in the selection process.

Why do so many managers leave short-after they are hired? Why do hiring situations that seem to begin on a positive note veer quickly to a negative end?

Poorly defined hiring

UNCLEAR IDEA OF WHAT THE JOB SHOULD BE

To develop a clear picture of the position to be filled, the recruiter needs specific information. Before beginning the search for an executive, he or she should compile the following data:

1. Job specifications-credentials, background and experience needed to qualify for the position.

2. Job description-primary duties and responsibilities.

3. Job goals and objectives - the criteria for measuring performance and realistic understanding of the company culture.

After carefully analyzing all the detailed information, the recruiter should combine it to create a complete depiction of the position to present to management.

LACK OF CONSENSUS ON QUALIFICATIONS

The recruiter's challenge is to help the supervisor, peers and subordinates of the prospective hire reach agreement on the specifications, description and objectives of the job. The recruiter must have a sense of the type of personality that will work best for the management team.

A recent Pomeroy Corporation assignment to recruit a chief financial officer (CFO) provides a good example of how different groups view the same job. All interested parties agreed that the position required an understanding of the Securities and Exchange Commission's (SEC) regulations and reporting requirements for publicly held companies. They also agreed that connections with various powers of Wall Street - venture capitalists, investment bankers, private investors, underwriters and brokers - was necessary.

However, when supervisor, peers and subordinates were asked to allocate the amount of time the CFO should spend on certain duties, there were major differences. They separately rated the SEC/Wall Street connections from a low of 15 percent to as much as 65 percent of the CFO's time. Similarly, there was a wide range of opinions about allocations for other duties, such as long- and short-range financial planning, accounting and control, treasury functions, management information systems, human resource risk management, and administration. As for opinions on the personality and demeanor of the prospective hire, the group was split over how much aggressiveness and professional, fiduciary conservatism they would want to see in the candidate.

After synthesizing this information, the recruiter should first chart the common threads of agreement and disagreement about the position, then weight those areas in proportion to how much each individual will be affected by the CFO's performance in a particular area.

In a procedure similar to that used by political parties in forming their national platforms, the recruiter must propose and develop a composite description of the position that incorporates the divergent opinions of the various parties.

ABSENCE OF A FORMAL INTERVIEW PLAN

Establish an interview schedule that allows the most appropriate executives to interview each applicant. The schedule should be sensible and allow ample time for the interviewers and applicants to fully discuss duties and expectations of the position. Supplying the interviewers with a rating sheet that can be filled out immediately after the interview is strongly recommended.

That precaution ensures that the quantitative and qualitative judgments, evaluations, impressions and reactions are not forgotten before the final decision is made. Everyone's input needs to be collected. It's important to be patient until near unanimity is reached on the field of candidates.

CURSORY REFERENCE CHECKING

A candidate's most valuable references are ranked as follows: past supervisors who can comment on work quality; the previous employer's HR department, which can verify employment data; and professionals, contractors, vendors and representatives from governmental agencies, who can comment on the candidate's character. Additionally, at the request of the company, and with the applicant's permission, information about academic credentials, credit history, civil/criminal legal involvement, driving records, and drug use may be gathered.

OVERDEPENDENCE ON PRE-EMPLOYMENT TESTING

Certainly there is a place for quantitative and qualitative testing of the applicant's skills, attitude, aptitude and personality. However, the profiles produced by such test results should play a defined but limited role in the hiring decision process. Often, employers rely too heavily on the results of such tests or misinterpret them.

IMBALANCED ASSESSMENT OF INTERVIEW RESULTS

Oftentimes hiring decisions are subjective. As a starting point for the company's hiring evaluation, consider the following decision-weighting matrix, which can be adjusted for the company culture.

                                    Weight Factors
Hiring Decision                      for Scoring
Input Source                          a Hiring

Opinion of Supervisor                   51%
Consensus of Peers                      15%
Consensus of Subordinates                5%
Reference Results                       20%
Testing Results                          9%
Total                                  100%

Perhaps a minimum requirement for a candidate to be considered for employment would be a total score of 80 percent. Minimum percentages in individual categories would also need to be established to prevent a candidate who was radically deficient in any individual category from qualifying. For example, if a score in one category, let's say, Reference Results, was exceedingly low, but offset by higher overall totals in the other sections, an aggregate score of 80 percent could be reached, allowing the candidate to qualify. A minimum requirement for each category would eliminate that possibility. Again, adjustments would be made by the organization, based on its management style and business philosophies.

ANALYZING PERSONAL "CHEMISTRY" INCORRECTLY

Judging how a candidate's personality will fit is the most difficult state of the hiring process. Unfortunately, unlike the exact science of chemistry, human resources has no such formulas.

Insights into candidates' personality can be gained to some extent by their history, but it is difficult to predict how a candidate will get along with current employees. Comparing a candidate's personality profile with that of other employees will give some indication. A truly talented professional recruiter can assimilate data by using logic as well as "gut" feeling to help the company make a good hiring choice.

FINAL REPORT

The hiring process needs to be clearly defined and precise. Recruiters can improve executive retention rates by using the tips offered above to develop a more intelligent hiring process.

Anthony F. Ettorre, president of The Pomeroy Corporation in Coral Springs, Fla., is a member of the SHRM consultants forum. He has written several articles and a book on business management practices.