KEY POINTS:
Ask any business the key to its success and you'll get the same answer: people. The people you hire determine your company's success, so how do you make sure you hire the right ones?
The first step involves analysis: do you need to hire anyone at all and, if so, what sort of person? Just because a staff member has resigned, doesn't mean they need to be replaced. Since you hired them, your business may have changed - do you now need a different set of skills? Can the tasks be reallocated among existing staff?
Draw up a job description that will meet your needs. It should include:
* Job title: this should accurately reflect the job, not under or oversell it.
* Salary: make sure it reflects the calibre of candidate you wish to hire.
* Duties: everything the job will regularly entail, as well as an indication of duties that might arise.
* Education and credentials: what is vital and what is just preferable?
* Experience: how much is essential?
* Personal traits: what sort of person will be successful in this role?
Once you know what you are looking for, there are several places you can start searching:
* Recruit internally: the best person may be working for you.
* Hire former employees: someone who left on good terms may come back for a new opportunity.
* Personal recommendations: employees, former employees and business associates may know the right person. Consider offering referral bonuses to staff.
* Recruitment services: especially when you need specialist staff.
* Advertising: this can flush out a wide range of candidates, but many may be unsuitable unless it is well targeted.
Now you need to sift through the applications. CVs are full of traps for the unwary, many are professionally prepared and so don't give many clues.
Even so, some things will help sort the wheat from the chaff.
* Start at the end - this is where candidates are likely to hide unflattering information.
* Be wary of a functional CV - if a candidate lists only jobs and duties, not dates, they could be trying to hide something.
* Look for "weasel words" such as "participated in" and "familiar with". These may indicate the candidate played an insignificant part.
* Look for profit-mindedness - is this person commercially savvy as well as technically skilled?
Then comes the interview. If more than one person is interviewing, agree on the type of person you want and how you will evaluate them. You need a reliable rating system that gives appropriate weight to factors such as experience, qualifications, intelligence, communication skills and enthusiasm.
The trick to interviewing is to get as much relevant information out of the candidate as possible. Ensure candidates are comfortable by putting them at their ease with a proper introduction and try mixing a few easier questions with the more difficult ones.
Eight questions will reveal a lot about any candidate:
* Why are you changing jobs? Beware of anyone who is overly negative.
* What did you like best about your last job? Anyone who can't give a thoughtful answer probably can't think beyond the mechanics of a job.
* What improvement would you liked to have made to your last job? This will reveal their creativity and attitude.
* What is the most interesting job or project you have had so far? The reasons behind their choice will tell you if they enjoy a challenge.
* Describe the best person you have worked with. This will tell you a lot about the candidate's personality and the qualities they admire.
* What kinds of people annoy you? These are frequently traits the candidate does not have.
* Describe work emergencies for which you have had to reschedule your time. This will reveal whether the candidate is prepared to put in extra hours if necessary.
* How would you like the company to help you if you join us? You are looking for someone who is confident of their ability, but also knows they don't know it all.
Make sure you check references. The candidate will have provided people they know will be positive, so don't rely on these - phone as many former employers as possible and speak to the person who supervised the candidate.
Finally, once you have decided, don't delay. It's a tight employment market and if you hesitate you may lose them.
* Megan Alexander is a division director at Robert Half Finance & Accounting