Some entrepreneurs argue that you should never hire someone unemployed -- the thinking is that you know a person is capable of holding down a job if he or she is holding down a job. But there's another school of thought on this point: Other business owners say they don't like to lure people away from other jobs unless they're actively looking, because such employees often expect star treatment and tend to be easily poached by yet another company.
3. The Interview
More companies are using so-called behavioral interviews to determine whether a candidate is right for a particular job. Conventional interviews tend to focus on the candidate's biography and sometimes include questions about how he or she would handle a hypothetical situation. Behavioral interviews instead ask the candidate to describe how he or she handled specific real situations in the past. For example: 'Tell me about a time when you did something innovative that added to the bottom line.' The theory -- backed by a fair amount of research -- is that past performance is the best indicator of future performance. (For more on behavioral interviewing, see the sidebar at right and www.inc.com/keyword/scienceofhiring)
Trust your instincts -- but not too much. Several people on staff should meet the candidate separately. Interviews are a time to determine how well someone matches the position you're filling, not how much you will like the person. Guard against forming quick impressions, and be aware that your personal hunches could work against you. Many entrepreneurs tend to thrive on optimism and decisiveness, whereas skepticism and patience are watchwords when it comes to hiring. The interview is also the time to determine what the prospect is looking for -- it's seldom just money. Darrow cites studies that put money about fifth in importance. No. 1 Creative challenge. Use what you glean to formulate the offer.
4. The Offer
Make the offer yourself, says Darrow, because 'it's a good time to start building trust and rapport.' Extend the offer quickly, and do it in person if you can. (Time trumps a sit-down.) Highlight the benefits that matter most to the candidate, and have ready an offer letter that puts everything in writing, even if you will be paying by the hour. Condition the offer on passing a background check, which should begin once the candidate accepts. (See 'Doing Your Due Diligence,'.) Candidates typically make a counteroffer, not just to get more out of you but to show they're not pushovers. 'It makes sense to make a good offer but not the top offer,' says Darrow. 'Leave some room to negotiate.'
Don't overpromise about job security. Assuming there's no employment contract involved, employment is generally an 'at-will' relationship -- meaning that the employee may be fired and may quit for any reason or no reason at all. But courts have occasionally found that employers forfeit their blanket freedom to fire by making written or oral promises or statements that seem to contradict the at-will presumption. Protect yourself by asking applicants to sign an at-will acknowledgment as part of their written application. (See 'Resources'.)
To Get Useful Answers, Ask Hard Questions
The behavioral interview is fairly straightforward. Say you're evaluating how a prospect handles conflict. You might ask: Tell me about a recent situation in which you had to deal with a very upset customer.
If the job entails team building, you could ask: Tell me about a time when you had to get a diverse group of workers to cooperate. How did you do it?
In some cases, the candidate's answers will lead to the next question. So, if your company is looking for an organized and detail-oriented project manager, start by asking: Tell me about a project you've planned in the past year.
Then, if the candidate says she organized a major sales conference, respond with: Walk me through how you planned the event.
As she recounts her efforts, you might drill down: How did you manage last-minute hotel accommodations?
Finally, ask her to describe the result: How did the conference turn out?
Resources
For sample application forms, go to jobsearch.about.com/od/ jobapplications
The Society for Human Resource Management offers material on all aspects of managing employees at shrm.org.
For an Inc. guide to behavioral interviews, go to www.inc.com/keyword/scienceofhiring.
Applicants and employers can benefit from the advice at quintcareers.com/behavioral_interviewing.html.
