Don’t Rush the Hiring Process: Bad Hires Are 3X More Costly Than You Think

By Dana Borowka, MA

There is an old adage that one bad apple can spoil the whole bunch. A bad hire can be that bad apple for you.

by Natalie Grainger

Now contrast that to the famous words of anthropologist Margaret Mead: “Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed, it is the only thing that ever has.”

This is the power of good hires. Team members working together in thoughtful, committed ways to the company mission, core values and objectives can change your workplace world for the better.

When our team has conversations with C-level executives, better hiring is on their minds. Research backs this up.

“Labor shortages are driving talent retention and recruitment to the top of the CEO agenda in 2022,” concluded The Conference Board in its 2022 “C-Suite Outlook,” it’s 23rd annual survey. The report reflects the views of 1,614 C-suite executives, including 917 CEOs globally.

The Conference Board report details the external stress points business leaders face and the impact of these stressors on growth strategies. It includes views on the benefits and risks of hybrid work models, and the struggles to find and keep good employees.

Finding good employees is noticeably harder these days. Research from Glassdoor says attracting the right job candidates is the most difficult task for 76% of hiring managers. A common woe is that the best hires are snapped up in the first ten days of actively being available on the market. This adds up to a hiring process that lasts 36 days, on average.

True Cost Of Bad Hires

Bad hires can cost your company more than you think. CareerBuilder reports that 74% of employers say they have hired the wrong person for the job.

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According to the U.S. Department of Labor, the average cost of a bad hire is up to 30% of the employee’s first-year earnings.

When you examine the true costs broken down by hiring, retention, and pay, you might conclude the researchers at the Labor Department might be lowballing the true cost. Our team extrapolates the real cost might equal at least projected first-year earnings and maybe more.

Here’s why: Poor hires can result in lost productivity and expenses in hiring, recruiting, and training replacements. That can quickly add up.

Robert Half International reports in Fortune Insiders that managers assert lost salary isn’t the only money they lose by hiring the wrong person. Managers must also spend 17% of their time monitoring underperforming employees. In a typical workweek, that time suck equates to nearly a full day of wasted time.

A Harvard Business Review column by David K. Williams and Mary Michele Scott noted “that of nearly 2,700 employers surveyed, 41% estimate a single bad hire cost $25,000. A quarter of respondents estimate a bad choice has cost $50,000 or more.”

Not to mention the demoralizing impact on other employees.

”A hire that is going the wrong direction is bad for everybody involved,” writes Williams and Scott. “A dismissal is bad for the morale of the entire team. It’s even worse for the morale and future of the person you fire, who faces one of the most stressful events in human experience.”

by Tim Mossholder

Here are just some of the ways your company can suffer: lost productivity, loss of focus, poor execution, training costs, legal fees, damaged employee morale, damaged reputation in the marketplace, and lost manager supervision time.

Research by Gallup estimates that actively disengaged employees in the United States cost businesses anywhere from $450 billion to $550 billion in lost productivity each year.

Plus, the number of bad hires is staggering. Think of how many new hires fail to meet expectations.

“Over 50% of newly hired employees fail to meet expectations,” says recruiting expert Barry Deutsch of Impact Hiring Solutions. “Most hiring managers don’t make a significant change by firing the person, putting a PIP together, or having a deep developmental program to improve performance or behavior. They just accept partially competent people, or take those elements off the plate that the employee can’t do – and the manager does it by allowing the monkey to be transferred onto their back.”

Deutsch says that is the definition of dysfunctional.

How To Avoid Bad Hires

Deutsch, coauthor of the book You’re Not The Person I Hired, offers several suggestions for avoiding bad hires.

“One of the most powerful interview techniques for measuring success is to probe for the ability to continuously learn and adapt it to their job and expectations,” says Deutsch. “Do you probe for deep and continuous learning from the professionals and managers you’re looking to hire?”

According to Deutsch, the interview, when conducted with focused structured questions that correlate to job expectations, can be a very reliable predictor of future success.

“Unfortunately, most hiring managers don’t define the expectations so the interview questions are in doubt,” adds Deutsch “Secondly, the biggest mistake is that most hiring managers have never been trained how to conduct an accurate interview – so they are just winging it based on their life experiences. No wonder, the studies show that interview accuracy is basically as effective as rolling dice.”

Deutsch believes a proper interview process includes in-depth work style and personality assessments. As with any business decision, having the right information is critical. Work style and personality assessment testing can help reduce bad hires in three main ways:

by Bernd Dittrich

Identify potential red flags. An In-depth Workstyle and Personality assessment can discover issues that are sometimes overlooked during the interviewing process and can quantify an intuition or feeling the interviewer may have about a particular candidate. It can be used to identify potential red flags concerning behavioral issues, help understand how to manage individuals for greater work performance and compare interpersonal dynamics of teams, departments, and candidates.

Optimize employees’ work performance. An In-depth Workstyle and Personality can provide extensive information on an individual’s ability to work with their job responsibilities, team dynamics and company culture. Additionally, the assessment can show effective strategies to gain optimal performance from that individual within their particular work environment. It can also be employed to quickly identify the most effective management style for a new employee or predict how team members are likely to interact.

Ensure you have the right people in the right positions: Additionally, an In-depth Workstyle and Personality Assessments can be utilized in rehires, or situations which call for employees to re-apply for their current jobs, as in the case of a corporate merger or restructuring. A personality assessment can also ensure that your company continues to have the right people in the right positions and distribute assets and talents effectively.

How does Deutsch define a good hire?

by Jackalope West

“I would define quality of hire as a candidate who hits or exceeds your specific quantifiable outcomes at the 90-day or six-month timeframe with a set of behaviors and style that is consistent with your organizational culture and values,” says Deutsch.

Assessments and professional feedback is not just for the Fortune 500 companies, but can help organizations of all sizes with avoiding bad hires.

Lighthouse Consulting Services helps a variety of companies avoid bad hires through in-depth workstyle and personality assessments and professional interpretation of the results. Not only does this help avoid bad hires, but these assessments also help companies get the most out of new hires from day one. These assessments are tremendous productivity tools for managers who want high-performing teams.

In addition, Lighthouse Consulting provides 360-degree feedback surveys. Be warned: The amount and level of training of those providing the 360-degree feedback can impact the level of accuracy of the feedback.

Without guidance from a trained professional, bias may distort the value of the feedback. To get the full benefit, leaders need to be debriefed on the 360-degree survey results by trained professionals such as those who are part of the Lighthouse Consulting team.

Bottom line: When professionally conducted and interpreted, the results assessments help produce can be significant. But without a trained professional to help interpret the assessments, the value of their results is severely diminished.

by Kyler Boone

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your business”. They do this through the use of in-depth work style & personality assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication, stress & time management, sales & customer service training and negotiation skills as well as our full-service Business Consulting Division. Dana has over 30 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. He is the co-author of the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”. To order the books, please visit www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC – Testing Division provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCS can test in 19 different languages, skills testing, domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication. Business Consulting for Higher Productivity Division provides stress & time management workshops, sales & customer service training and negotiation skills, leadership training, market research, staff planning, operations, ERP/MRP selection and implementation, refining a remote work force, M&A including due diligence – success planning – value creation and much more.

If you would like additional information on this topic or others, please contact Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2024

Beware The Shortcomings Of Adjective-Based Assessments

By Dana Borowka, MA

Pop quiz for business leaders. Complete these statements:

By Lindsay Jayne

A. If something seems too good to true, it ________________.
B. You get what you _______________________.
C. Haste makes ______________________.
D. Quality takes _______________________.

Many companies now use very simplistic adjective-only personality assessments. These quickie assessments are used for hiring, promoting employees, and improving team dynamics.

On average, some of these assessments only take only six to ten minutes to complete.

Typically, assessment takers receive two lists of adjectives. The makers of the tests claim the simple assessments measure four complex behavioral drives: Dominance, Extraversion, Patience, and Formality.

But a 2014 article in the Harvard Business Review raised a serious red flag regarding the adjective-based simplistic tests. In the article “The Problem With Using Personality Tests For Hiring,” Whitney Martin reported the widespread use of Four Quadrant (4-Q) personality tests for hiring is especially problematic. According to the article.

Generally speaking, 4-Q tools consist of a list of adjectives from which respondents select words that are most/least like them, and are designed to measure “style,” or tendencies and preferences. While they can seem highly insightful — not to mention being widely available and inexpensive — they have some severe shortcomings when used in high stakes applications such as hiring. For one, they tend to be highly transparent, enabling a test taker to manipulate the results in a way that they feel will be viewed favorably by the administrator.

Another popular test measures how much an individual matches to several personas. Though there are several variations of the assessment, a standard quiz presents statement prompts and asks respondents to rate the degree to which they agree. Assessment takers will also receive a diagram that represents how the personas react within the psyche.

Why You Need To Be On Guard

Not to alarm you, but don’t take choosing a personality assessment lightly. There are a multitude of assessments available out there, and the industry is totally unregulated.

So be wary. Sometimes cheap and fast is not always the best with so much on the line.

book watch glasses by Georgi Dyulgerov from Pixabay

By Georgi Dyulgerov

Today there are approximately 2,500 cognitive and personality tests on the market. To understand how to choose from the cornucopia of assessments, it is helpful to understand the origins of these instruments.

The story begins with a University of Illinois professor, Raymond Cattell, who was able to use the first electronic computer, the Iliac I, to do a large-scale factor analyses of his personality testing theories.

The 16 Personality Factor Questionnaire (16PF) was first published by Cattell, Tatsuoka, and Eber in 1949. Since then, there have been more additions.

The questionnaire is designed to measure normal behaviors and can be used for career development, employee selection and managing employees. The 16PF measures: warmth, reasoning, emotional stability, dominance, liveliness, rule-consciousness, social boldness, sensitivity, vigilance, abstractedness, privateness, apprehension, openness to change, self-reliance, perfectionism and tension.

Still in use today, in-depth assessments for screening candidates and assessing a team using 12-16 scales with 60-120 questions with more than 164 questions can take 30-90 minutes to complete.

There has been a 60-year quest to find a shortcut.

In 1963, W.T. Norman verified Cattell’s work but felt only five factors shape personality: extraversion, independence, self-control, anxiety and tough-mindedness. Dubbed the “Big Five” approach, this has become the basis of many of the modern personality tests on the market today.

There have been hundreds of studies validating the approach.

Different tests use different terms for the five factors. Some other terms include ambition, agreeableness, likeability, prudence, conscientiousness, adjustment, openness and intellect.

“This topic that’s been researched to death by the field of industrial and organization psychology,” said Wharton professor Peter Cappelli to Inc. magazine. “The amazing thing is how few companies take it seriously. It’s kind of mind-boggling that they would undertake such huge investments and not pay attention to what we know about how to pick out people who are going to be the best.”

But let’s say you take it seriously, then how do you pick the best assessment?

How To Evaluate Assessments

Here are seven factors to use to evaluate assessments:

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1. Interpreters. How much training or degrees are required to interpret the results? Data interpretation is the most important factor when reviewing results.

2. Scales. Are enough scales used to cover the human personality? Lighthouse Consulting believes a minimum of 12 primary scales are needed to get a complete picture, with 16 scales being optimal in order to get the clearest picture of the individuals. This is why we only offer an in-depth work style and personality assessment. Anything less can lead to costly mistakes in the hiring process.

3. Validation. Is the test properly validated and on what basis? Just saying it is derived from the “Big Five” approach is not enough.

4. Reliability. Is the test reliable and on what basis? Test reliability refers to whether the test is consistent in measuring personality.

5. Legality. Is the test legal? Has it been reviewed for ADA compliance and gender, culture, and racial bias?

6. Impression. Would the test leave a negative impression with job candidates? If it is too easy it might send the wrong message.

7. Versatile. Is it proper for both hiring and managing? The information needs to be detailed enough to measure a candidate and improve manager/team member communications.

Our Point Of View: Faster Is Not Better

We believe the best tests require someone with comprehensive psychological training or degrees for proper interpretation of the data. Weekend training programs can be problematic since testing and human behavior is a highly complex subject.

Secondly, the more personality scales, the clearer the picture of the individual’s personality and work style.

Using 12 or more primary scales is the more cost-effective method since the personality assessments can be used for both screening candidates and for team building. We feel this offers the best return on investment for a manager because they can first have their existing team of employees tested, and then use the data to best judge how new hires will work with the existing team.

Here was the bottom from for Martin in the Harvard Business Review:

When using any assessment, managers need to step back and ask themselves one basic question before giving it to a potential employee: Is this test predictive of future job performance? In the case of 4-Qs, probably not. They can provide tremendous value for self-discovery, team building, coaching, enhancing communication, and numerous other developmental applications. But due to limited predictive validity, low test-retest reliability, lack of norming and an internal consistency (lie detector) measure, etc., they are not ideal for use in hiring.

by Septimiu Balica (pixabay)

By Septimiu Balica

Just to be clear, the pop quiz questions at the article’s beginning are called business truisms for a reason. If something seems too good to true, it probably is. You get what you pay for. Haste makes waste. Quality takes time.

To learn more about how you might take advantage of services offered by our Testing Division and our Business Consulting for Higher Productivity Division, please email dana@lighthouseconsulting.com.

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your business”. They do this through the use of in-depth work style & personality assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication, stress & time management, sales & customer service training and negotiation skills as well as our full-service Business Consulting Division. Dana has over 30 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. He is the co-author of the books, “Cracking the Personality Code,” “Cracking the Business Code” and “Cracking the High-Performance Team Code.” To order the books, please visit www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC

Testing Division provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCS can test in 19 different languages, skills testing, domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication.

Business Consulting for Higher Productivity Division provides stress & time management workshops, sales & customer service training and negotiation skills, leadership training, market research, staff planning, operations, ERP/MRP selection and implementation, refining a remote work force, M&A including due diligence – success planning – value creation and much more.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2023

Defining Your Culture and Hiring Strategically

By Patty Crabtree

Picture in your mind a race car speeding toward that waving checkered flag as it prepares to cross the finish line. If you think of a company like a high-performance car, culture is the oil that allows everything to run smoothly to help achieve your goals.

Culture reflects what is greatest, genuine, and noble about the company. It is the key behaviors an organization expects as the team works together and with its clients and vendors.

Culture establishes the foundation of the company and defines the qualities to be successful and help achieve its mission.

Overcoming A Culture Challenge

The culture journey for Bill’s company started with identifying the key attributes that they felt exemplified how they wanted to work together. Bill communicated it to staff and shared it with his clients. He posted it on the breakroom wall as a reminder. The company even branded it in their email signature blocks.

But the challenge was their behaviors did not reflect those defined values. It was not the heart of the organization. The words chosen were what they seen other successful companies using to define their values. It just was not who they were, how they were making their decisions and how leadership was supporting staff.

This misalignment led to a high turnover rate. A turnover rate that cost not only the hard dollars and time to recruit new candidates, but the soft dollar costs of repeated onboarding and staff scrambling to cover all the work. The situation had an adverse impact on company morale. Overall, the company had stalled in its growth.

Bill and his leadership team were puzzled. They felt they had a good work environment and didn’t understand what was holding them back. They were committed to creating an environment for growth and decided to take a step back to reassess their approach.

Bill’s team went through an exercise to help them identify the genuine culture for their firm. What were the core values that would drive their business, their team? Through this effort, they uncovered their own unique style and reflected it in their values.

Then, they took it one step further. Each value was clearly defined to communicate what it meant to the organization. Definition statements were created for each value to describe its intent. These enhanced values were shared with staff and communicated on a regular basis. Leadership reinforced them in their daily interactions.

The updated values were also more deeply embedded into their recruiting process. Behavioral interview questions were developed that focused on cultural fit which helped pinpoint the best candidates.

Over time, Bill’s company’s turnover was reduced by more than 50%. The recruitment process brought the right people to the team. Bill and his leadership team were successfully enhancing their infrastructure and teamwork which drove the growth.

Nurturing the culture and creating a stronger recruiting strategy took a focused effort to produce the desired results. In the long run, it paid dividends for them. Year after year they exceeded their goals and built a well-oiled machine.

Strong Culture Creates The Power of Alignment

One of the most powerful tools is alignment. Alignment brings a shared vision with everyone moving in the same direction.

Every company has culture whether it is by accident or by design. Some may be in that early growth stage and have been chasing the business opportunities, so culture has not been formally developed. Others may have determined their values but the day to day takes over and it isn’t nurtured.

If your company is being outperformed in the marketplace, you experience high turnover in key positions, financial performance is declining, or just want to move from good to great, often these issues are a result of an unhealthy culture.

Alignment empowers your staff with the knowledge of what to do, how to do it and why it is being done. It gives an emotional stability to their work world that encourages high performance.

Be Purposeful With Your Culture

Developing that path toward alignment is one part of the process. Being purposeful with it is another aspect. Leadership must walk the walk. If this does not happen, then your culture will struggle.

Once you have defined your culture and it has been effectively communicated to staff, a critical part of the process comes into play. To walk the walk. It starts with your leadership team embodying your culture in all their actions.

Clearly define how you want to lead, what is your purpose, something that rings true to the heart of the organization. Then, live by it consistently even though the hardest decisions.

Integrate Culture With Your Hiring Strategy And Beyond

At times, hiring can feel like a shot in the dark. You meet with the candidate, assess that they have the technical skills needed, you like them. So, you hire them and then 30-90 days you realize they aren’t fitting in and thriving in your organization. The situation can be confusing because on paper everything looked good though in execution it doesn’t meet your expectations

The missing piece here is understanding that person’s values and how it fits into your organization. Developing a recruiting process that supports your culture will help make it a more effective practice and lead to a stronger team environment. Hire people who believe in and display the values important to your organization. When someone comes onboard and does not embody your values, it can slow progress, disrupt teamwork, and cause morale issues.

Adopt Behavioral Interviewing

Once the core qualifications are met, the best interview questions are behavioral based. Questions around the candidate’s approach to certain situations or experiences.

In an interview, you want the candidate to speak more than you do. You want to know about their experiences and how they approach different situations. This does not come from asking the basic “tell me about yourself” or “where do you see yourself in 5 years.” This comes from “give me an example” or “tell me about a time.”

Ask the candidate to describe the culture at their last firm. Tell me about what worked well? What could have been improved? What are the elements of a company’s culture that they feel creates an excellent work environment? Have them share a story about how culture helped resolve an issue and what was their role in that resolution? Have them share a story about how culture inhibited a project they were working on and what happened.

Another approach is to interview your ‘A’ players about the qualities they feel makes them successful or someone successful in the position. Listen to their perspective on successful outcomes and teamwork. Use this information to build the behavioral based questions.

Open-ended questions are the best way to learn about people and determine their fit into your culture. Ask questions that tie into those success qualities for the position and have candidates share stories about their execution of the values most important to your organization.

Improve Onboarding Because Hiring Doesn’t End With An Offer Letter

Culture appears in every aspect of your organization. It flows through recruiting to onboarding and long-term retention.

The opportunity to instill your culture with a new team member is through a detailed onboarding process that reinforces your culture and expectations along with training on the systems and job specific tasks.

Many times, a company will bring someone in, have them complete the necessary paperwork, give them a quick tour, show them their desk, give them a quick overview and set them loose. This approach is a lost opportunity.

Developing a mapped-out onboarding process that includes learning about the organization, its culture, the different departments, and developing relationships along with the necessary job specific training can set a great foundation for success.

It helps create connection and enhance engagement. A well thought out onboarding process connects new hires to every aspect of the organization along with developing relationships throughout the firm. Many new hires express gratitude for this investment in their success.

Here Is The Bottom Line

Culture takes regular nurturing. Commit to creating an environment where staff will thrive, clients will receive excellent service and your external partners will feel valued and you will reap the benefits. Keep steering everyone in the same direction, toward the same goals and vision course correcting when needed.

Lighthouse Consulting Partners, LLC, has a team of inter-disciplinary specialists ready to help raise the effectiveness of critical functions within the organization, such as Sales, Customer Service, Operations, and IT. From team building to implementing cybersecurity technology, LCS consultants are uniquely suited to advise small, mid-sized and global companies. We can assist with in-depth workstyle and personality assessments along with skills testing for new hire candidates at all levels within an organization. Each is a former business executive with extensive strategic and tactical skills. Our consultants are poised to provide, on short notice, highly personalized and cost-effective guidance and tools to boost the performance of a department or organization. For additional information please email pattyc@lighthouseconsulting.com.

Patty Crabtree is a Chief Executive Officer at Lighthouse Consulting Partners, LLC with 25 years of operations and finance leadership experience along with building a successful remote workforce. She has extensive experience in successfully leading and growing teams. She was instrumental in the development of an operations infrastructure that resulted in consistent increased profits and employee engagement. Patty has also effectively navigated the challenges of change management in the ever-changing business world.

Lighthouse Consulting Partners, LLC

Testing Division provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCP can test in 19 different languages, skills testing, domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication.

Business Consulting for Higher Productivity Division provides stress & time management workshops, sales & customer service training and negotiation skills, leadership training, market research, staff planning, operations, ERP/MRP selection and implementation, refining a remote work force, M&A including due diligence – success planning – value creation and much more.

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact Lighthouse Consulting Partners LLC, Santa Monica, CA, (310) 453-6556, ext. 410,  pattyc@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Permission is needed from Lighthouse Consulting Partners, LLC to reproduce any portion provided in this article. © 2024

Stop Trying to Shortcut the Hiring Process

By Dana Borowka, MA

If they hadn’t gone on a “shortcut,” the world probably wouldn’t know who the Donner party is today. There is a lesson in this infamous tragedy for all hiring managers.

For the wagons of the Donner party, a group of 81 westward-bound pioneers who were stopped by a blizzard at the gateway to California in the fall of 1846, getting over the Sierra covered wagonsummit proved to be an insurmountable obstacle. In a 2008 book, Desperate Passage: The Donner Party’s Perilous Journey West, journalist Ethan Rarick chronicled the misadventures of the infamous group.

Rarick argues because of an ill-advised decision to take an untested shortcut earlier that summer—the wagon train, named after its leader, George Donner, was trapped by a severe fall storm. When their food ran out, they roasted shoestrings and ate animal hides to stay alive. Finally, snowbound, with little hope of rescue, they started to eat those who died by starvation. The 45 survivors were rescued in February of 1847.

But why did it happen? The members of the Donner Party listened to some hucksters on the trail who had an idea of a straighter route to try. The problem was that the shortcut went over the Wasatch Mountains and through the Great Salt Lake desert; however, these two barriers meant that straighter was not really shorter. The three-week delay led to disaster.

The Donner party was not a military expedition, band of gold seekers, or a group of explorers. These were ordinary people trying to find a better life. The tragic mistake was being duped into believing there was an easy shortcut.

Beware of Shortcut Hiring Hucksters Today

Not to alarm you, but don’t take choosing a personality test lightly. There are many services that boast a quick and easy way to profile a job candidate with personality testing. Taking these shortcuts can result in bad hires that have a negative impact on your bottom line and that won’t benefit you or your workforce.maze cutting

According to the research in my book, Cracking the Personality Code, today there are around 2,500 cognitive and personality tests on the market. So how do you decide which one to use? An organization risks lawsuits if it fails to do proper due diligence in test selection. That’s because there are a multitude of assessments available out there and the industry is totally unregulated.

To understand how to choose from the plethora of personality tests, it is helpful to understand the origins of these instruments.

The quest began in a mental hospital in Minnesota during World War II. A test called the Minnesota Multiphasic Personality Inventory was created to diagnose mental illness with yes-or-no responses to a series of questions. In an attempt to put some science into the hiring process, many companies start employing psychologists who in turn used this existing MMPI psychopathological test to screen job applicants. The test includes true-false questions like “I never indulge in unusual sex practices” and “I feel sure there is only one true religion.” Of course, this seemed strange and intrusive to most job applicants who took the test over the next six decades.

Meanwhile, a Harvard University instructor and psychologist named Raymond Cattell working in the Adjutant General’s office devised psychological tests for the military. After the war he accepts a research professorship at the University of Illinois where they were developing the first electronic computer, the Illiac I, which would make it possible for the first time to do large-scale factor analyses of his personality testing theories.

runs with computerCattell used an IBM sorter and the brand-new Illiac computer to perform factor analysis on 4,500 personality-related words. The result was a test to measure intelligence and to assess personality traits known as the Sixteen Personality Factor questionnaire (16PF). First published in 1949, the 16PF profiles individuals using 16 different personality traits. Cattell’s research proved that while most people have surface personality traits that can be easily observed, we also have source traits that can be discovered only by the statistical processes of factor analysis.

In 1963 W.T. Norman verified Cattell’s work but felt that only five factors really shape personality: extraversion, independence, self-control, anxiety and tough-mindedness. Dubbed the “Big Five” approach, this has become the basis of many of the modern personality tests on the market today. There have been hundreds and hundreds of studies validating the approach.

The five decades of research findings has served as the framework for constructing a number of derivative personality inventories. This is a topic that’s been researched extensively by the field of industrial and organizational psychology. Some clear dictates of what to do and what not to do have emerged.

Five Dos and Don’ts

Some personality testing services simply deliver a test score and guidelines. Others provide a superficial level of analysis that is not much to go on. What hiring managers really need is an in-depth analysis of the test in the context of the job description and the candidate’s resume.

Here are my top five shortcut don’ts:

• Don’t use a basic personality screening that takes 20 minutes or less as a final screening tool.
• Don’t skip a phone interview.
• Don’t try to shorten multiple face-to-face interviews.
• Don’t skip background and reference checks, and never skip financial background checks when appropriate for the position.
• Don’t skip giving someone homework during the interviewing process.

Here are five dos:

• Do use an in-depth work style and personality assessment.
• Do look for red flags in the results concerning behavioral issues.
• Do use testing to identify how team members are likely to interact.
• Do use testing to ensure you have the right people in the right positions.
• Do use a trained professional to review the testing results with you – they should have a copy of the candidate’s resume and job description for the debrief discussion.

The testing procedure that a company follows can send a message to candidates that the company leaders are serious about who they hire. Successful people want to work with other successful people. In many cases, the candidate may accept a position from the organization they perceive to be more thoughtful during the hiring process.

Conclusion

The astounding thing is how many companies undertake such huge investments in hiring and do not pay attention to what is known about using personality assessments to pick out the people who are going to be the best. An in-depth assessment is only one component needed for a successful recruitment and hiring program. Armed with accurate and quantifiable data from an in-depth personality assessment, the interview process becomes much more reliable. When it comes to limiting the potential for wrong hiring decisions, there really is no shortcut.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2023 

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your business”. They do this through the use of in-depth work style & personality assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication, stress & time management, sales & customer service training and negotiation skills as well as our full-service Business Consulting Division. Dana has over 30 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. He is the co-author of the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”. To order the books, please visit www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLCTesting Division provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCS can test in 19 different languages, skills testing, domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication. Business Consulting for Higher Productivity Division provides stress & time management workshops, sales & customer service training and negotiation skills, leadership training, market research, staff planning, operations, ERP/MRP selection and implementation, refining a remote work force, M&A including due diligence – success planning – value creation and much more.

Should Skills Testing be a Standard Operating Procedure for Hiring?

By Dana Borowka, MA

I’ve noticed an interesting trend that I want to share with you. In the past 12 months we’ve been receiving a lot more questions about pre-employment skills testing. We’ve taken notice. Something has shifted. Companies that had never before considered using skills testing in their hiring process, now ‘suddenly’ had an interest in learning more. Other companies that had used skills testing only sparingly were exploring what additional tests were available.

Yes, something was up alright. As I talked with these companies the reason behind their intensified interest in skills testing became clear.

Elephant in the room by David Blackwell

The Elephant in the Room

Every company I spoke to was having an exceedingly difficult time hiring people that had the right skills for the job, no matter what the job. The elephant in the room during these discussions was that companies were getting burned time and time again. The cost of the hiring mistakes was escalating. Too many candidates who went through the screening and hiring process failed to perform up to expectations once on the job.

Anecdotally, I knew this was a big problem. Employers can’t be 100% certain that a candidate has the right skills based on resume, references, and interviews. Even in-depth work style and personality assessments, like we do for our clients, aren’t designed to verify job skills. I wondered just how big a problem it is. I did some research.

The Department of Labor estimates the cost of a bad hire is equal to at least 30% of first year salary. “Wow”, I said to myself, doing some quick math in my head. Hire a $30,000 bookkeeper that doesn’t have the right bookkeeping skills, and there’s a $9,000 hit to the bottom line. Hire a $50,000 PC administrator without the right technical skills, write off another $15,000.

These numbers got me to think about what contributes to the high costs.

1. Lost time and productivity of the people involved in the hiring process
2. The new employee’s mistakes often have hard costs associated with them – poor service or product quality for example
3. The productivity of the new hire is well-below expectations
4. The possible negative impact on customers and your brand image
5. Training the new hire to achieve a skill-level they should have had in the first place
6. Replacing the employee

As managers we know the hassle and frustration attached to hiring someone without the right skills. What’s more, there are considerable hard and soft costs associated, too, as the list above shows and the Department of Labor statistics prove.

Is Skills Testing the Panacea for Hiring Mistakes?

With a problem this large we at LCS saw an opportunity. We’re now offering a catalog of online skills tests for our clients. But, I’m getting ahead of myself. Let me explore with you how skills testing is best used. I’ll debunk a few myths along the way.

How Skills Testing is Best Used

If you really want to improve the success of your new-hires, incorporate skills testing and personality assessments in the hiring process. Nothing is fool-proof, but believe me, if you do both types of testing together with smart interviewing, your new-hire success rate will go way up. The failure rate (and the costs associated with it) will drop like a rock.

I’ve been a proponent of skills testing for a very long time, IF they are used properly. Skills testing is a tool, like so many others available to managers. Tools can be misused. Tools can be trusted too much.

Here’s the point. Just because a candidate has the right skills for a specific role in your company doesn’t mean you should hire the person. A great skills test score doesn’t mean the person will be a great fit in your company.

The mistake that I’ve seen made by hiring managers is to place too much weight on skills test results. Good resume, good references, interviews went well, aced the skills test – fabulous, make that woman an offer fast!

Not so fast. Is her work style a good match for the role? Is her personality a good fit for the level of responsibility and interaction necessary? Skills testing doesn’t venture into these waters. This is the realm of the in-depth work style and personality assessment.

Skills Testing Only Works if you Know What Skill Level Matters

I can’t emphasize this point enough. If your company hasn’t identified the specific skills required for each position, a test is not going to be all that useful. Let me use a sports analogy.

A track coach has try outs for his sprint team. Five athletes show up wanting to make the team for the 100-meter event. The coach gets out his stop watch. Lines all five at the starting line and fires the starting gun. Bang. Off they run.

The coach looks at his watch as the first racer crosses the finish line several steps ahead of the others. Click. The fastest racer covered the 100 meters in 11.2 seconds. Better than the other four. Does the coach offer the racer a position on the team? He will if he doesn’t know what speed is necessary for his 100-meter squad to compete effectively. Sure, he’ll have a racer for the 100 meter event, but the team will never win. He won’t offer the position to any of the five candidates if he knows that a pace of at least 10.1 seconds is necessary to win in his conference. In this case the required skill is running the 100 meters in 10.1 seconds or less.

The Never-Ending Search for the Perfect Candidate

LCS is deeply involved in the active hiring processes of hundreds of clients. I make this claim just to point out that few companies are better positioned to observe and assess the hiring practices of so many companies. What we’ve noticed is companies tend to fall into two categories. Those that take too long to find and hire employees. And those who have found a way to hire more quickly and retain those employees. What is the difference?

There are many facets to this. Most are beyond the scope of this article, but one is very relevant. The companies who are the most successful realize that the perfect candidate doesn’t exist. They know it’s fool-hardy to spend valuable time and resources searching for the perfect person.

They identify the best person available and which areas will need to be developed in that person once hired. This change in strategy presents an integrated view of hiring and training. So, where does skills testing enter the picture?

Let’s go back to the race track. The coach has one athlete who ran the 100 meters in 11.2 seconds, a full second slower than a competitive pace. If the coach knows that a short period of training and conditioning can shave a second off the time, he’ll gladly bring the person onto the team. A diamond in the rough, so-to-speak.

Same philosophy holds with enlightened companies who use skills testing wisely. If you have a fabulous candidate who is missing a few skills that can be learned quickly, hire the person and build the training into the 90-day probationary period.

The skills test results tell you exactly what skills need to be learned. The training can focus on those areas.

This also makes it a lot easier and more effective when it comes time to buy the training, or arrange the mentoring in-house. You know exactly the skills to be gained.

LCS to the Rescue

After doing our research and talking with more clients about skills testing, we’re convinced this is a service we should be offering.
The catalog we’re offering has been hand-selected from tests Fortune 500 companies rely on in their hiring. These are time-proven, industry-accepted tests in the following categories:

• Accounting
• IT
• Office Software
• Language
• Industrial
• Customer Service
• Sales
• Math
• Honesty

I invite you to visit the Skills Testing page on our website that includes more information, including brief descriptions of the tests we’re offering.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2020

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

Our Sino-Am Leadership Program helps executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.

We also have an affiliate in the UK who covers all of Europe so we are now a true multi-national company that can support our clients globally.

Five Biggest Mis-Hiring Mistakes

By Dana Borowka, MA

Ready. Aim. Mis-hire.

Unfortunately, that is a common problem for many companies. That mis-hire can have a big negative impact on your company’s bottom line. Worse, it could hurt work force morale.

Each mis-hire decision can cost your company well over two to three times the individual’s salary, according to author Barry Deutsch of Impact Hiring Solutions. This figure may be a conservative estimate because of factors like training, evaluation, termination, re-initiating the hiring process, and lost opportunity costs.

There is also an emotional factor involved in a mis-hire. Not only can it cause stress and anxiety for both management and employees, but it also takes away focus from your company’s primary goals.

According to research by Deutsch, co-author of the best-selling book You’re Not The Person I Hired, here are the five biggest mis-hiring mistakes to avoid:

Mis-Hiring Mistake #1. Not taking the time to define success. Not defining success up front is almost a guarantee of a mis-hire. Defining success is the number one issue behind problems with hiring, performance management, and engagement. Defining success up front dictates where you go to find the candidate, it provides 80 percent of your interview questions, and it lays out performance expectations that you can use in interviewing.

Mis-Hiring Mistake #2. No formal hiring process. If there is one key to overcoming most of the mis-hiring mistakes that managers make, it is by developing a rigorous and disciplined hiring process. This kind of process has two major components: a detailed step-by-step process, and written forms and questions prepared in advance. Although each hiring experience may have its unique aspects, most follow a consistent process. Best-practice information on hiring found in many books and websites can form the basis of your step-by-step process. But once you settle on a process after trial-and-error, it needs to be written down in the form of a checklist or procedure so that each hire follows a complete course of action.

Mis-Hiring Mistake #3. Not shaking the bushes hard enough to uncover the best candidates. Most companies post generic job descriptions on generic job boards and pray the best person drops into their lap. Sometimes, you might do a little superficial networking. The tactic of posting the job usually brings the bottom third of the candidate pool to your doorstep – all the worse candidates. Sometimes you get lucky. There is an old adage that goes: “Even a blind squirrel can find a nut sometimes.” It’s tough to build high performing teams based on luck and hope. Running generic ads on generic job boards shows up a small microcosm of the candidate pool – those who are unemployed, or desperate to leave their current organization. If you want to fill your funnel with outstanding talent, you have to work at compelling the best to come forward by writing compelling marketing statements to replace the disgusting use of job descriptions, networking, referrals, and direct sourcing using tools like LinkedIn.

Mis-Hiring Mistake #4. Ignoring character and values. Have you heard the expression, “People are usually hired for experience and fired for character.” With today’s emphasis on resume screening and superficial interviews, about the only information a hiring supervisor can glean from a candidate are the facts of past experience and skills. Talent, skills and experience are important, but after the hiring is done, real people show up with their own values, morals, and motivations.

Mis-Hiring Mistake #5. Failing to use in-depth work style and personality assessment. You must have an interview process designed to validate, verify, and vet whether the candidate can achieve your desired results, and whether they will be a good fit for your culture and values. That includes assessments. As with any business decision, having the right information is critical. Work style and personality assessment testing can provide insight into potential hires, as well as your current workforce, in three main ways:

1. Identify potential red flags. A personality assessment can discover issues that are sometimes overlooked during the interviewing process and can quantify an intuition or feeling the interviewer may have about a particular candidate. It can be used to identify potential red flags concerning behavioral issues, help understand how to manage individuals for greater work performance and compare interpersonal dynamics of teams, departments and candidates.

2. Learn how to optimize employees’ work performance. A personality assessment can provide extensive information on an individual’s ability to work with their job responsibilities, team dynamics and company culture. Additionally, the assessment can show effective strategies to gain optimal performance from that individual within their particular work environment. It can also be employed to quickly identify the most effective management style for a new employee or predict how team members are likely to interact.

3. Ensure you have the right people in the right positions: Additionally, personality assessments can be utilized in rehires, or situations which call for employees to re-apply for their current jobs, as in the case of a corporate merger or restructuring. A personality assessment can also ensure that your company continues to have the right people in the right positions and distribute assets and talents effectively.

Legal Guidelines For Assessing Recruits

A frequent question from companies and organizations concerns the legal guidelines in administering assessments to potential employees. Industry regulations can vary and the best option is to consult with your company’s trade association along with reading through the EEOC guidelines by visiting Additional information can be found online at the EEOC website, in the Disability-Related Inquiries and Medical Examinations of Employees section: http://www.eeoc.gov/policy/docs/guidance-inquiries.html#2. The EEOC is the end all of end-alls. So, no matter what people say, always go by what the EEOC has outlined.

As a general rule if your company uses an assessment, any test or set of hiring questions must be administered to all of the final candidates in order to assure that discrimination is not present.

The Bottom Line

An in-depth work style and personality assessment is only one component needed for a successful recruitment and hiring program. It can provide valuable information for critical personnel decisions. Combined with an effective recruitment program and skilled interview techniques, it can benefit your company as a whole, in addition to your individual employees. Armed with accurate and quantifiable data from an in-depth personality assessment, the interview process becomes much more reliable. Ultimately, this only adds to your organization’s bottom line, allowing more effective management of your existing workforce and limiting the potential for wrong hiring decisions.

For more information, please visit our website, www.lighthouseconsulting.com to sign up for our Open Line webinars and monthly Keeping On Track publication.

If you are open to a conversation about how our in-depth work style and personality assessment could help your team, including pricing and the science behind the tests, please contact us at 310-453-6556, extension 403.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2021

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your business”. They do this through the use of in-depth work style & personality assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication, stress & time management, sales & customer service training and negotiation skills as well as our full-service Business Consulting Division. Dana has over 30 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics.  He is the co-author of the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”. To order the books, please visit www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication, stress & time management, sales & customer service training and negotiation skills as well as our full-service Business Consulting Division.

Hire Right The First Time, Part 2

By Dana Borowka, MA

Is your company still hiring employees using the same process it did five years ago? Think carefully about the question for a moment. Is the company recruiting, screening, interviewing, and verifying using the same techniques and procedures as in the past?

Next question. Do you wonder why so many of your new hires don’t remain in their jobs over six months, or why other companies seem to attract and keep solid employees, but not your company?

It is time for every company to re-examine their hiring practices, or risk falling behind in the race to win great talent.

In Part One (see Hire Right the First Time (https://lighthouseconsulting.com/hire-right-first-time/) . . . I explored the new rules of recruitment and the necessity of in-depth work style and personality assessments.

In this, Part Two, I look at interviewing, background checks, and skills testing. Combined, these practices must form the pillars of a modern-day hiring procedure for companies and organizations of all sizes.

1. Recruitment
2. Interviewing
3. Background Checks
4. In-depth Assessments of Skills and Work Style

Why Change the Hiring Procedure?

In Part One I opened by stating that a wrong hiring decision costs a company 2-3 times the employee’s annual salary. That hurts no matter if it’s an entry-level position or a top executive. Cost is reason enough to change how talent is recruited and hired. But, there’s even more justification for change.

The success of the entire organization is at stake. A company is only as good as the combined ability of its employees to meet customer expectations and outperform the competition. Good employees matter, but therein lies the problem.

Good employees are rare today no matter the industry. (For simplicity sake let’s define “good” as those people with the right skills and right work style personality to perform their given duties with excellence over time). The demand for good employees is higher than ever. The supply is lower than ever. A company has to work differently today to find prospective employees and then identify the “good” ones – those that have the right work style personality and skills to do the job well within the company’s culture.

A Recruiter’s Advice

One area for improvement is how we find and recruit prospective employees. I mentioned in Part One some considerations for a modern-day recruitment effort. To this I’ll add a note about using an executive search firm. Companies frequently make two mistakes in this area. According to Barry Deutsch, Founder of Impact Hiring Solutions (http://www.impacthiringsolutions.com/) and co-author of “You’re Not the Person I Hired”, companies too often use search firms before they must, and they tend to hire a recruiter based only on industry focus.

“Working your network to seek referrals is the absolute first place a company should look when attempting to find candidates for a key role in the company,” Deutsch advises. “Only after shaking the trees should you consider investing in an executive search firm.”

Once a decision is made to use a recruiter, avoid the temptation to think that only those with prior experience in your field can be successful. As Deutsch explains, “Just because a recruiter spent years as an electrical engineering manager, doesn’t mean they’ll be able to bring you the best engineering candidates.” Having a network within a specialty or industry is helpful, but just knowing who to call isn’t the biggest value a recruiter brings to the table. “Effective recruiters earn their fees by being adept at convincing people who already have a good job to consider leaving it for another better opportunity,” Deutsch said. “Ninety percent of managerial and executive positions are filled by people who were already employed and not actively thinking about making a switch.”

Learn the Right Way to Interview

The interview process in most companies is woefully ineffective, according to Deutsch, and is largely to blame for poor hiring decisions. “Companies aren’t investing enough time in preparing for the interview,” he said. He advises his clients to first set the right expectations for the job and make everyone involved in the interview aware of the job’s expectations. “This goes hand in hand with a detailed job description. What is the position expected to know and to accomplish, and by when?”

Once the expectations are documented, map a list of questions to those expectations. “Stop asking the standard, stupid 20 questions. Get strategic with your questions so you receive pointed, meaningful answers,” Deutsch advises. “If you do this important step, you will move closer to hiring the best candidate not the candidate who interviews best.”

Validate Resume and Interview Answers

The next steps in the hiring process will be new to many companies, but a mandatory addition if the organization hopes to achieve a higher level of hiring success. The steps involve Background Checks, Skill Testing, and In-Depth Work Style and Personality Testing.

An article in Inc. Magazine quoted a HireRight 2017 employment screening benchmark report that claimed 85% of employers caught applicants fibbing on their resumes. According to Gordon Basichis, Co-Founder of Corra Group (http://www.corragroup.com/), criminal record and education deception are the most common “surprises” uncovered by Background Checks. The potential hidden liability for the employer is obvious.

Basichis explains that the most common mistake by employers is not going far enough with a background check simply because they are not aware of the types of background checks and in which cases they should be conducted.

1. Employment verification. A leading point of inconsistency.
2. Education verification. Another area of high discrepancy.
3. Social Security Trace. Traces where someone has lived the past seven years.
4. County Civil and Criminal Records. These tend to be the most accurate, but it’s important to know where the candidate has lived so all the counties can be searched.
5. Federal Criminal and Federal Civil Records. Typically, these checks are for employees involved with government contracts, financial positions, or high-level executives.
6. Terror Watch List.

Basichis urges companies to follow the advice of an HR specialist and employment attorney when setting policies for background checks. There are numerous regulations and guidelines at the Federal, State and City levels which must be followed regarding how Background Checks can be conducted and used in the hiring process.

Okay, the candidate aced the well-prepared interview questions, passed the background check with flying colors. Do you extend an offer? Not so fast.

Verifying Skills

The candidate may have said all the right things, but do they really have the skills required for the job? Testing is the only way to verify if the person can do the job as expected. Fortunately, online skills tests exist for hundreds of common jobs from Accounting to Manufacturing to Software Programming.

There simply isn’t an excuse today for hiring someone ill-suited for a job. Candidates can be given a 15-30 minute online skills test in your office and the results are known immediately.

Last year Lighthouse Consulting began offering its clients a catalog of some 200 Skills Tests (https://lighthouseconsulting.com/talent-development/skills-testing/) in 16 job categories. These pay-on-demand tests cost $22.50 to $100 – a drop in the bucket compared to the cost of training or re-hiring.

Identifying the Work Style Personality

Great, the skills test was successful, the background checked out, and the interview questions were answered to your satisfaction. NOW can you make the offer? Better not. You may know a lot about this candidate, but you don’t know how they work, or how they work with others. That’s where in-depth workstyle and personality assessments (https://lighthouseconsulting.com/assessment-tests/) play an invaluable role in hiring, promoting and team formation.

I went into detail about in-depth work style and personality assessments in Part One (https://lighthouseconsulting.com/hire-right-first-time/) of this article, so I’ll recap the key point here. If you aren’t conducting this type of assessment, start doing so immediately. If you are using a tool with only four primary scales (5-10 minute assessment) it might work as a very basic screener but is too superficial to reveal insightful behavioral information about the candidate. In fact, some companies have learned to not even bother with these simplistic profiles. They prefer to give final candidates an in-depth assessment (minimum 164 questions).

As a manager you know all too well the importance of knowing an employee’s work style and how they will interact (or not) with others. Only in-depth assessments based on 16 levels (we call them “scales”) gives you a true picture of the individual on which a hiring decision can be based.

The Pillars of Hiring Success

In conclusion, the structure for achieving hiring success at 80% or better consists of four pillars.

1. Recruitment
2. Interviewing
3. Background Checks
4. Work Style Personality and Skill Assessments

LCS and our partners stand ready to quickly help you put into place the training, tools, and procedures necessary to build a highly effective and competitive organization through better hiring. Reach out to me any time to get started. danab@lighthouseconsulting.com.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2021

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your business”. They do this through the use of in-depth work style assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management. Dana has over 25 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. He is the co-author of the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”. To order the books, please visit www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Our Sino-Am Leadership Program helps executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.

We also have an affiliate in the UK who covers all of Europe so we are now a true multi-national company that can support our clients globally.

Hire Right The First Time: Are You Tired of Not Knowing Who You are Hiring?

By Dana Borowka, MA

In this day and age, making the wrong hiring decision can cost a minimum of 2-3 times the annual salary! That’s a high price to pay, and it’s a conservative figure when you factor in the emotional pressures of training, evaluation, termination and then starting the hiring process all over again.  By refining your hiring process, you can turn hiring into a profitable and successful venture.

Creating An Effective Recruitment Program

There are several steps to creating an effective recruitment program. The first starts with the basics – the job description. Many companies don’t even have job descriptions for their bizmen on moneypositions and that’s one of many hiring pitfalls. It’s very difficult to describe a position to a candidate, without having it completely defined. The next problem with job descriptions is that they are usually not definitive enough. It’s important to detail the expected job performance outcome, and be very specific in what is needed and expected. The job description should have 30-, 60-, 90- and 180-day objectives, so the candidate has a clear understanding what is expected for the job. Be sure to review and update job descriptions regularly, as company needs and expectations for a position are bound to change.

The next step is to define where to recruit candidates or target your recruiting process. Now that you have an idea of what you need and expect for the position, where do you find this treasured person? There are many resources: Referrals, recruiters, ads, college placement centers, .com listings, etc. Of course, referrals are usually one of the best sources for candidates and giving out the job description to business associates and friends may reveal the perfect candidate. When working with recruiters, it is very important to be as specific as possible to avoid your time being wasted with unqualified candidates.

According to Arnie Winkler of the Northwest Public Power Association, “Organizations must be specific in understanding what they want in technical competency, cultural fit and behavioral characteristics.” The same is true for ads so that the ad is as definitive as possible. College placement centers are not only good for recruiting college grads, but usually have facilities to list positions that require extensive experience too. They can be especially helpful if they are in close contact with the alumni association.

In today’s environment, we all need to do more than just post an ad. An example of this would be if you post something with a university. The next step would be to reach out to the dean of the department and any clubs or fraternities or sororities on campus. The schools want to help their students get placed so you just need to reach out and ask and then follow-up… follow-up and follow-up again. This is the nature of our environment today. Everyone needs to think outside of the box as to where to find the candidates then be very proactive to find the just right person that you are looking for. Also, never wait until the need arises – you need to have a pro-active recruiting program year round. If you haven’t read the book,“You’re Not The Person I Hired”, please get a copy. It’s the bible of hiring and is filled with ideas that will help for the full recruiting cycle.

Resumes & Interviews

Soon in your hiring process, you will be faced with a big pile of resumes. Look for resumes that are specific to your needs and notice the presentation style, which will tell you athe interview great deal about the candidate. It is helpful to decide what the priorities are for the position and look for those first in the resumes. Once you have settled on a few resumes, we suggest the two step approach to interviewing. The first is the telephone interview, which can save you valuable time and effort. Ask the candidate a set of specific questions, such as: Why are you interested in this position? Please describe three key attributes that you have to offer to our company? Give me one significant program that you had an impact on in the last six months? Listen carefully to the candidate to see if the response fits the job description. This process allows the candidate to earn a face-to-face interview.

When interviewing in person, it is important to listen and not let emotions take over. The candidate should talk about 80 percent of the interview and the interviewer only 20 percent. The goal for interviewing effectively is to note their thinking patterns, and not get caught up in appearances, impressive schools or companies. During the interview, questions that are more specific are helpful in making successful hiring decisions. Some examples are: What significant impact have they had at three or more companies on their resumes – ask for specifics, percentage of change; Please describe in detail what brought about the change; What was their process, from A to Z? and ask how the candidate would handle a specific problem that you have seen in the position.

Reference Checking & Work Style Assessment

Once a candidate has been selected to be hired, then the most difficult part of the hiring process begins – reference checking. Most firms find professional organizations helpful when making background checks. We highly recommend doing a very thorough check including verifying education, job history, criminal (local, state and federal) and credit if it applies. Background and reference checks should be a part of your hiring process.

Yet, as the old saying goes, “You never know someone until you work with them, travel with them or live with them”. Through in-depth work style and personality assessments, you can reduce the possibility of making a hiring error if the appropriate assessment is selected.

When researching profiles, here are some things to keep in mind:

  1. Training or degrees of those who are providing the debrief/interpretation of the data.
  2. A copy of the resume and job description should be supplied to the testing company.
  3. Number of actual scales (minimum of 12)
  4. Scale for “Impression Management” (minimum of 164 questions in the questionnaire)
  5. What is the history of the profile?
  6. Does the profile meet U.S. government employment standards? Has it been reviewed for ADA compliance & gender, culture & racial bias?
  7. Does the data provide an understanding on how an individual is wired?

These are some general questions and if a profile falls short in any one area, we strongly suggest additional research into the accuracy of the data being generated.

Legal Guidelines

A common inquiry from companies and organizations is about the legal guidelines in providing assessments to candidates. Since industries vary, it is always best to check with a trade association or a legal representative. The general rule is that a test or any set of hiring questions needs to be administered to all final candidates in order to assure that discrimination is not taking place. More information may be found at the EEOC website, in the Disability-Related Inquiries and Medical Examinations of Employees section:
http://www.eeoc.gov/policy/docs/guidance-inquiries.html#2

Another question is how do new hires usually feel about taking an in-depth, work style assessments. It shows that a company is serious about who they hire. If the company presents the testing program as a method of assuring both parties that they are making the right decision, the individual usually responds very well. The bottom line is that hopefully turnover is greatly reduced.

Benefits of Assessments

In-depth assessments can be very helpful for personnel development and succession planning. As a hiring tool, they can be used to develop additional questions for interviewing and confirming the interviewer’s intuition that might be overlooked. This process gains more reliable and accurate data in order to effectively manage individuals to make hiring and personnel decisions a win-win for everyone.

If you are a hiring manager and would like to see a sample of an in-depth assessment, please give us a call or email us. For more information, please contact Dana Borowka at Lighthouse Consulting Services, LLC, (310) 453-6556, extension 403 or email dana@lighthouseconsulting.com.

As you have seen, a successful hiring program requires many components that work together to provide the needed information for difficult personnel decisions. Combining a well-defined job description, targeted recruiting and focused interviewing with an effective personality evaluation program, turns hiring into a profitable and rewarding process.

Permission is needed from Lighthouse Consulting Services to reproduce any portion provided in this article. © 2020

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your business”. They do this through the use of in-depth work style assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management. Dana has over 25 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. He is the co-author of the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”. To order the books, please visit www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Our Sino-Am Leadership Program helps executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.

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Screening Job Candidates: The Top Ten Hiring Mistakes & How To Avoid Them

By Barry Deutsch, MA & Brad Remillard – Excerpt from the book, Cracking the Business Code

When hiring, make sure the person you bring into a critical job is, in fact, the person he or she appears to be. Too often the hiring process is a case of mutually crossed fingers— both parties hope the match is a good one, and hope the gamble they’re taking will pay off. And then, regrettably, when Monday morning rolls around and the work begins, it all unravels.

Whose fault is it when the person who seemed like a fired-up go-getter turns out to be indifferent to goals she didn’t set herself? Whose fault is it when the person hired to overhaul the organizational IT system turns out to be short-tempered, impractical, and a lousy communicator who alienates every functional department head? Whose fault is it when the new sales manager seems to have no impact whatsoever on penetrating two new markets — a mission-critical goal that he seemed fully capable of doing in interviews? Whose fault is it when the person who shows up for the job isn’t the person you thought you hired?

We believe the blame lies squarely with the hiring process itself, and we have compiled evidence to prove it. Our research focusing on more than 20,000 hiring executives during the past 15 years has identified the most common mistakes made in hiring. Through the course of our analysis, we’ve determined the actual failure rate for newly hired managers and executives reaches a staggering 56 percent in many mid-sized and large organizations. We wanted to understand why. Prior to writing our book, You’re Not the Person I Hired!, we analyzed the hiring practices of 225 executive hires in 134 target companies.

What we discovered was that almost every organization makes the same mistakes, over and over again. Most often, several mistakes occurred in each case. In nearly every situation, when new executives and managers failed to meet expectations, a major causal factor was that expectations had not been clearly defined in the first place.

Everything else fell out from there. Here are their ten most frequent mistakes, in reverse rank order:

10. Desperation Hiring: In 55 percent of searches, the hiring organization failed to budget enough time for the search, resulting in shallow sourcing and superficial interviews that failed to identify potential pitfalls.
9. Ignoring Top Candidate’s Needs: 55 percent of searches were handled with a primary focus on the organization’s needs and failed to build a compelling case for why top candidates should make the move.
8. Failure To Probe For Core Success Factors: The five best predictors of long-term success are self-motivation, leadership, comparable past performance, job-specific problem solving, and adaptability. A majority of searches failed to probe for these (56 percent).
7. Fishing in Shallow Waters: The search attracted only “Aggressive” candidates without seeking “Selective” and “Sleeper” candidates (62 percent).
6. Performance Bias: Interviews and offers were rewarded to the “best actor,” not the best candidate (63 percent).
5. Historical Bias: The hiring company used only past performance to predict future results (68 percent).
4. Snap Judgment: Hiring teams relied too heavily on first impressions to make final hiring decisions (72 percent).
3. Inappropriate “Prerequisites” Used Too Early In Selection Process: Hiring teams placed too much emphasis on specific education, technical skills, and industry experience to screen out qualified candidates (76 percent).
2. Superficial interviewing: Candidates’ backgrounds and claims were not deeply probed or verified (92 percent).
1. Inadequate job descriptions: These focused solely on experience and skills, not company expectations. A staggering 93 percent of searches that resulted in new executive failure made this mistake at the outset.

The Causes Of Hiring Mistakes

In their experience, the authors found that hiring mistakes are not caused by willful ignorance or negligence. Most often, new executive failure has several interrelated causes:

1. Inadequate preparation. Rarely had the hiring companies outlined a detailed, measurable definition of “success” that could be used to source, evaluate, and select candidates. Instead, they relied on outdated or insufficient job specs, focused around desired attributes, educational attainment, and so on.

2. Lack of information. After their work with the surveyed companies, nearly all dramatically improved hiring practices and (most important) the performance of new hires. They conclude, therefore, that at least one cause of their earlier hiring failures was not endemic organizational dysfunction, but a lack of information and training about how to hire more effectively at the executive level.

3. “Human nature.” Interpersonal situations like interviews, conducted in a vacuum, are often guided primarily by gut feelings. Hiring team members who have not been trained to minimize these distractions are easily influenced by preconscious perceptions and nonverbal cues. When provided with a tool set designed to counterbalance these biases, interview team performance is far more likely to overcome distractions and focus on more critical success-based matters.

With the most common hiring mistakes and their causes in mind, we have developed and refined the Success Factor Methodology™ (for a free copy go to the website,
www.impacthiringsolutions.com). This structured approach to executive hiring helps our client companies prevent repeating predictable, avoidable hiring pitfalls that plague many new employee hires. We believe every organization — large or small, for-profit or nonprofit, public or private — is capable of using this methodology to significantly improve its hiring success at all levels of the organization.

There is only one way we’ve discovered to make sure the next employee you hire is successful: tightly define what success will look like before the search begins, and focus like a laser beam on verifying that each candidate you see has the demonstrated potential to create that success. The Success Factor Methodology requires a rethinking of almost every part of your hiring process. The progress you make will correlate directly with the amount of dedication, focus, leadership, and effort you expend. It works when you work — and there are no shortcuts.

Stay Focused When The Finish Line Is In Sight

The interview is over. The candidate has left the building. Now comes the hard part; making sense of what you’ve just heard. Assessment, verification, evaluation, and in-depth analysis of the candidate’s stories and claims are on the docket for the interview team. Do you have a systematic process to ensure the candidates have been truthful? How do you ensure you are continuing with the right candidate as you move through various interviews?

If you’re like most hiring executives, when you interview a candidate, you scribbled a few notes in the resume margin. You formed a general impression based on a mélange of nonverbal cues and behaviors. You’ve already decided that you “like” or “don’t like” the candidate. But you don’t have a tool to help you compare apples to apples, and candidates to your Success Factor Snapshot.

The Water Cooler Is No Place To Debrief

We have frequently seen interviewers emerge from a round of interviews and then commiserate near the proverbial water cooler.watercooler talk

• “So, what did you think of Candidate A?”
• “Well, he seemed enthusiastic.”
• “She had a lot of energy.”
• “He was polite.”
• “Seemed okay. I think he could probably do the job.”

These abstract impressions are not grounded in what’s needed to succeed on the job. A case in point: One of the best people a client of ours ever hired nearly wasn’t invited back for a second interview. She was a powerhouse — highly accomplished, with more than enough demonstrable success behind her. In terms of her ability to do the job, she stood head and shoulders above all other candidates.

There was, however, a “problem.” The candidate was not a fashion plate. The company’s employees tended to be fashionable, with name-brand labels oozing out of every office suite. The candidate arrived at the first interview in a tasteful but conservative suit, her hair pulled back in a plain style, wearing minimal makeup. Some members of the interview panel (they never asked who, exactly) apparently fixated on her “lack of grooming.”

When we spoke to the hiring team after the first interview and they expressed reluctance to continue interviewing the candidate, we were puzzled. It took considerable probing to uncover the fact that the interviewers who had expressed reservations were subconsciously prejudiced based on the candidate’s “stodgy, plain” clothing and makeup.

However, the position was not one that required interfacing with clients who would expect flash and style. She would be managing sophisticated financial analysis, planning, budgeting, and forecasting.

Here was a candidate with phenomenal qualifications who had nailed the answer to every question they gave her…but she wasn’t “glam” enough?

We let the hiring committee know what a mistake they were making. The important question, we reminded them, was not whether this candidate subscribed to Vogue and Elle, shopped at Saks, or invested a fifth of her income in facials, French manicures, MAC makeup, or triple foil highlights. The important question — the only question — was whether she could do what the company needed done.

The hiring team rethought their position. The candidate was invited back, eventually offered the job, promoted twice, and last we knew, was still successfully making things happen nearly a decade later, Armani suit or no.

This episode crystallizes a universal truth about candidate evaluation: Superficial, irrelevant issues often get more of an interviewer’s attention than real substance.

“Criteria” To Toss Out

When you interview, what’s on your mental checklist? Some of the most time honored “criteria” have absolutely nothing to do with whether a candidate can do the job.

• Strong presentation
• Assertive or Aggressive
• Manicured
• Polished shoes in the right color (brown with navy, not black)
• “Enthusiasm”
• High Energy
• Good eye contact
• Strong handshake
• Well-spoken
• Instant, unhesitant recall of events from many years ago (honestly, if somebody asked you about something that happened in 1993, wouldn’t you pause and look up to the right as you tried to remember all the details?)
• Smooth speech without “ums” or stutters or backtracking
• Personable

Many hiring mistakes occur because the hiring team draws first impressions from factors like these, or because the candidate either wowed them or bored them during interviews.

The team can lose sight of the real goal: Measuring the candidate’s ability to deliver the results defined in the success factor worksheet.

Remember, you’re not hiring an actor; you’re hiring an Operations Director, or a VP of Finance, or a Plant Manager. In what way, exactly, does a candidate’s handshake correlate with their ability to succeed in those jobs? In some jobs, of course, presentation skills and a solid professional appearance are important. But focusing on “hot-button” factors like those in the list above does not help to select the right candidate.

The Eight-Dimension Success Matrix™

To eliminate interviewers’ ingrained tendency to focus on superficial criteria and miss substantive evidence, we developed a structured tool to help each interviewer evaluate each candidate—objectively, fairly, and comprehensively.

The Eight-Dimension Success Matrix is the tool we have our clients use to rate “fit” based on the examples, illustrations, specifics, results, accomplishments, and patterns of behavior that emerge in candidate interviews.

It is quick to use, easy to understand, and focused on the job itself. Perhaps most importantly, it calibrates interviewer ratings, keeping everyone on the same page. Built around the five key predictors of success, the Eight-Dimension Success Matrix forces interviewers to assess answers to questions in a uniform way.

Accountability to the group is vital. When interviewers know they will have to justify the ratings assigned to each candidate to the entire group of interviewers—especially if they’ve designated Candidate A’s Team Leadership ability 1 while everybody else assigned her a 2—the whole process is taken more seriously.

Because each member of the interviewing team fills out an Eight-Dimension Success Matrix form after each interview, by the end of a long interview cycle, a candidate’s file may contain twenty or more forms. The full file allows the person with final hiring power to evaluate full-spectrum of evaluation on all Success Factors. Skimming the right column helps the hiring executive to rapidly compare the same candidate interview-to-interview, and also to evaluate candidates’ qualifications against each other, on equal footing. For more information on the Eight-Dimension Success Matrix form, go to the website, www.impacthiringsolutions.com.

When References Go Bad

If a candidate makes it to the second round of interviews, it’s getting serious. You’ve settled on one, or possibly two, candidates. You believe with all your heart, soul, and mind that one is the right person for the job. He or she seems to be the cherry on the sundae, and you’re looking forward to making the job offer to the number one candidate.

You phone HR and tell them to make two quick reference calls based on names and numbers the candidate has given you. Once that’s done, you figure, it’s a wrap. Stop right there.
Even though most reference calls tend to be five-minute, rubber stamp, “Is-he-a-nice-guy/would-you-rehire-her/did-she-do-well” conversations, yours will not be. Your calls won’t even technically be “reference calls.” They will be 20 to 30 minutes long. They will go into great detail. They will be deep third-party verifications of what the candidate has told you in the interviews. You will push and probe for nearly as much detail with each reference as you did with the candidate.busy-880800_1280

You must do so, not because you do not trust this person (it’s obvious that you do, or you wouldn’t be on the cusp of offering him a job), but because verification is a mandatory step in a proven hiring process. Ordinary reference calls (and even background checks—more on that in a moment) don’t get to the heart of potential problems.

Most people who receive reference calls expect to be on the line for fewer than ten minutes.  They expect to be able to say simple things like, “Cathy is a great worker! You can’t go wrong hiring her. I’d rehire her in an instant.”

But you, as the hiring company, are about to invest literally hundreds of thousands of dollars in a new hire. To do so without fully verifying what the candidate has told you would be irresponsible. Up until now, you’ve had only the candidate’s word to go on. References, though, are a treasure chest waiting to be opened and explored.

Finding The Right Reference

First off: No family, friends, or personal references. While many applicants still include these in their list, personally invested people are unlikely to yield much useful information. When a reference’s primary relationship with a candidate is personal, there is an automatic conflict of interest. Their loyalty is to the candidate, not you, and most importantly, they are unlikely to be able to speak intelligently about the candidate’s work accomplishments.

Once you’ve decided you want to hire a particular candidate, ask them for three to five professional references. Ideally, these should be former bosses, peers, or individuals they have supervised. They suggest to their search clients that reference checks should be conducted on a 360-degree basis, including all the individuals who might touch this person, both inside and outside the company. Ask for the numbers of key customers, vendors, and suppliers. If the candidate is still employed at a company where they have been for a long time (five years or more), and they would prefer you do not contact their boss until an offer is made, work around it as best you can. Perhaps a former mentor from another department has left the company and would be able to speak about them. Maybe the person who hired them originally and saw them through their meteoric first few years is now retired and living in Key West—call her.

A Top 5% candidate, if he or she is interested in the job, will work with you on this, and may even agree to let you contact a current employer under certain circumstances. As a last resort, sometimes candidates will grant you permission to talk with their boss once an offer is formally presented. You can always make the offer contingent upon the successful outcome of reference checks. Because coworkers and colleagues have usually spent more time with the candidate than the boss, they are outstanding sources of verification. Usually “lateral” references can offer deeper insights into work style, team leadership ability, personality, and cultural issues. Pay particular attention to these areas when speaking to former coworkers, probing for any indications that the person may pose interpersonal problems or “rub people the wrong way.”

Going Deeper: Secondary References

Don’t stop at the first layer of verification. When you speak to first-tier references (those whose names the candidate gave you), ask whom else the candidate worked with, reported to, supervised, or led as part of a team. These are secondary references, and they are additional potential sources of objective verification. Then, go back to the candidate and ask them whether they would mind if you contacted these secondary references. A highly qualified candidate will usually agree immediately.

If you sense hesitation, it may be a red flag. If the candidate objects to contacting a secondary reference, ask why. Sometimes they will offer a good reason (“I was charged with supervising the team’s efforts. His department was always late with their deliverables and I had to ride him hard for a year to make sure he followed up on his commitments. I don’t think Judy, my primary reference, was aware of the ongoing friction between their departments, but Bob in accounting was on the same team. Would you like me to put you in touch with him?”).

Other times, they will be vague and evasive (“Um, well, they didn’t work together much and she didn’t have anything to do with my projects. I don’t think she’d really be able to tell you much.”) Listen carefully to the answers you receive from the candidate and make an informed judgment call before proceeding with a secondary reference verification interview.

As a rule of thumb, if you get strong verification not only from a candidate’s “first tier” of references, but also from secondary references, you can almost bet the farm you’ve found the candidate you’re looking for. (Almost. See “Background Checks” before you leap, though.) Finally, it is important not to “wear out” references. Third-party verification calls should be one of the last items on the hiring agenda, not the first. Not even the middle.

The Eight-Point Success Validation form is lengthy and intense and will take at least thirty minutes to complete; this is a significant investment of time, and you should let people know up front that the call will take this long.

A good third of the information you need about candidates is obtained in verification phone calls. It’s best to set expectations early in a reference phone call. Make it clear that you are not asking for a recommendation. Rather, you are verifying information that you’ve been given, and you would appreciate as much detail as the reference feels comfortable giving.

The Vital Role of Testing And Assessment

We strongly believe testing is a valuable adjunct to the Success Factor Methodology, because when administered correctly, tests can uncover useful information about personality traits, potential for high achievement, and other factors that may not be immediately evident in an interview situation. However, there are several cautions about assessment instruments. We highly recommend that our clients use an outside, third-party assessment professional who is specifically trained to select appropriate tests, as well as administer and interpret the results. Beyond using appropriate personnel, they advise the following:

1. The instrument must be appropriate to the job. Each selected test should measure traits, characteristics, and skills that are directly and obviously relevant to the job. Appropriate scales may be honesty and integrity — important qualities for the person who will be in charge of the company coffers. On the other hand, there is no apparent reason to administer an instrument like the Minnesota Multiphasic Personality Inventory, which is designed to test for mental and emotional disorders.

2. The instrument must be valid and reliable. The Buros Institute, an organization founded in 1935 to catalog and evaluate psychological tests, publishes two comprehensive directories that can help you to select instruments that are known to be reliable and valid. The Mental Measurements Yearbook and Tests In Print are available at most libraries and contain descriptions and reviews of psychological instruments.  Be sure to ask consulting industrial psychologists whether the assessments they use are listed in these directories. If you are interested in how they were developed and validated, you can consult these reference works. At last count, the volumes had collected development, price, administration, and interpretation data on more than 11,000 instruments.

3. Be wary of free online tests. Unless they come from a highly regarded institute and/or are listed in one of the books mentioned above, they may not be valid and reliable instruments.

4. The instrument must be administered and interpreted professionally. We cannot emphasize enough that tests, inventories, personality profiles, and the like are difficult to interpret for a nonprofessional. Human Resources professionals are generally not qualified to administer psychological or behavioral tests. If you do choose to use some form of assessment to help you make a hiring decision, it is safer and more effective to delegate responsibility to a third party, who will likely ask candidates to sign waivers before taking the tests. These professionals will also ensure that untrained people on the hiring team do not focus on one or two potentially “negative” findings in a 20-page report—something they have seen frequently.

Getting the Right Information

As with any business decision, having the right information is critical. Work style and personality assessment testing can provide insight into potential hires, as well as your current workforce, in several ways:

1. Identify potential red flags: An in-depth work style and personality assessment can discover issues that are sometimes overlooked during the interviewing process and can quantify an intuition or feeling the interviewer may have about a particular candidate. It can be used to identify potential red flags concerning behavioral issues, help understand how to manage individuals for greater work performance and compare interpersonal dynamics of teams, departments and candidates.

2. Learn how to optimize employees’ work performance: An in-depth assessment can provide extensive information on an individual’s ability to work with their job responsibilities, team dynamics and company culture. Additionally, the assessment can show effective strategies to gain optimal performance from that individual within their particular work environment. It can also be employed to quickly identify the most effective management style for a new employee or predict how team members are likely to interact.

3. Ensure you have the right people in the right positions: Additionally, personality assessments can be utilized in rehires, or situations which call for employees to re-apply for their current jobs, as in the case of a corporate merger or restructuring. A personality assessment test can also ensure that your company continues to have the right people in the right positions and distribute assets & talents effectively.

Which Assessment Tool Should My Organization Use?

The following are some things to think about when reviewing various work style & personality profiles:

1. Training or degrees of those who are providing the debrief/interpretation of the data.
2. A copy of the resume and job description should be supplied to the testing company.
3. Scale for “Impression Management”
4. What is the history of the profile?
5. Cultural bias
6. Does the profile meet U.S. government employment standards? Has it been reviewed for ADA compliance & gender, culture & racial bias?
7. Reading level required (5th grade English, etc.)
8. Number of actual scales (minimum of 12+ primary scales – 16 is optimal)
9. Does the data provide an understanding on how an individual is wired?

These are some general questions and if a profile falls short in any one area, we strongly suggest additional research into the accuracy of the data being generated.

Frequently Asked Questions

A frequent question from companies and organizations concerns the legal guidelines in administering assessments to potential employees. Industry regulations can vary and the best option is to consult with your company’s trade association or legal department. As a general rule, if your company uses an assessment, any test or set of hiring questions must be administered to all of the final candidates in order to assure that discrimination is not present. Additional information can be found online at the EEOC website, in the Disability-Related Inquiries and Medical Examinations of Employees section: http://www.eeoc.gov/docs/guidance-inquiries.html.

An additional question concerns how a new hire may feel about taking an in-depth personality and work style assessment. There is a certain amount of “test anxiety” that can be common. However, the test demonstrates that your company is serious about who they hire. If your company explains that the goal of the assessment is to reduce turnover and is only one of several factors involved in the hiring decision, the individual usually responds very well. In many cases, the candidate may accept a position from the organization they perceive to be more thoughtful during the hiring process.

An in-depth assessment is only one component needed for a successful recruitment and hiring program. It can provide valuable information for critical personnel decisions. Combined with an effective recruitment program and skilled interview techniques, it can benefit your company as a whole, in addition to your individual employees. Armed with accurate and quantifiable data from an in-depth personality assessment, the interview process becomes much more reliable. Ultimately, this only adds to your organization’s bottom line, allowing more effective management of your existing workforce and limiting the potential for wrong hiring decisions. For more information, please call (310) 453-6556, ext. 403 or email us at dana@lighthouseconsulting.com.

A Comprehensive Background Check

Finally, we reach the granddaddy of all pre-hiring due diligence: The Background Check. As with psychological and personality testing, we believe this is an activity best left to trained professionals who understand the legal and ethical constraints of such activities.

Background checks are often the last shield between a hiring company and a particularly slick candidate who interviews well. You might be surprised at how many people woman with mag glassmisrepresent their educational credentials, for example. In recent years, the media has exposed numerous scandals resulting from puffery in nearly every sector.

• In 2004, Quincy Troupe, poet laureate of the State of California and a tenured college professor, resigned his post. The reason? He had lied for years about his background, listing himself as a graduate of Grambling University. In fact, the professor (who was in charge of training graduate students, among other duties) he had never even finished a bachelor’s degree.
• Jeffrey Papows, former president of Lotus Software, was revealed by a 1999 Wall Street Journal investigation to have habitually exaggerated his past and accomplishments. While he claimed to be an orphan who rose through military ranks to eventually earn a Ph.D. from Pepperdine, he in fact had parents living in Massachusetts and a Ph.D. from a correspondence school. (He did, however, have a Master’s from Pepperdine.)
• Sandra Baldwin, former president of the United States Olympic Committee, resigned after admitting that she had lied on her resume about earning a Ph.D from Arizona State University. She had not.
• Joseph Ellis, a Pulitzer Prize–winning biographer and professor of history at Mt. Holyoke College, was immensely popular for courses that included his personal insights into the violence and mayhem he had witnessed in Vietnam. In 2001, however, the Boston Globe exposed him: Dr. Ellis had never left the States during the Vietnam War.
• In 2002, Veritas Software lost its Chief Financial Officer, Kenneth Lonchar, who resigned after his employer found out he had lied about his education, including an MBA from Stanford. He never earned such a degree. The company’s stock plummeted in the weeks following these revelations.

There are many more cases like these. We could fill ten pages with just recent examples of resume-padding gone horribly wrong. Obviously all these people were highly accomplished, but their basic dishonesty about degrees and other background information introduced high levels of doubt about their overall ethics and trustworthiness.

If such visible and respected organizations can be successfully bluffed in their highest-level hires, it can happen to your organization, too. The only way to be sure everything you’ve heard is true is to invest the time and money to verify the candidate’s claims on his resume or other documents he completes and signs after beginning the interviewing process.

Many third-party providers can run a comprehensive background check to make sure there are no skeletons in any closet. These companies are fully up-to-date on laws that regulate the extent to which such checks can be used prior to employment.

If you decide to wait to run these checks until after you extend an offer, be sure you make the offer contingent upon satisfactory results from the background check.

1. Criminal Background. In rare cases, charming, and charismatic characters, who just happen to be crooks, have made it all the way into positions of power. In their own experience, they know of a candidate who was offered a position as CFO without a criminal check. It was revealed later — too late — that he was under active investigation by the FBI and had allegedly embezzled huge sums of money in the past. A criminal background check would have revealed these issues before the company hired him; no matter how charming and convincing he had been in interviews.
2. Credit. For any candidate who will be placed in a role where they will have access to the company coffers (or even something as innocent as a company credit card), we strongly recommend a credit check. Does the person have a huge amount of debt in the form of mortgages and consumer debt? Does the person make their required payments in a timely manner? Has the person filed for bankruptcy? What is their credit score? They realize that nobody is perfect, and while a high level of debt does not automatically disqualify a candidate, nor does the occasional late payment, there is merit in being cautious and checking these items. Financial pressure and stress can cause even the most well-intentioned people to snap. Knowing a high-level executive’s financial straits up front can help to head off potential problems.
3. Educational Background. It may not actually be important to the job whether somebody earned an MBA or simply attended a year of a program without finishing. However, dishonesty about educational achievement is a huge red flag that should cause you to dig much deeper in every other area. If a candidate lies about this accomplishment, what else might he or she be lying about? Because educational background is frequently misrepresented, this check is the most likely place where you will uncover discrepancies. Integrity matters. We never recommend going forward with a candidate who has lied about their education.
4. State Drivers’ License Bureau. If a candidate has a record of arrests for driving under the influence, reckless accidents, or other egregious traffic violations, it may be a hint of deeper problems — and potential liability or risk to the company.
5. Social Security Verification. Social Security will identify the names associated with the candidate’s social security number. While most discrepancies can be cleared up quickly (marriage or adoption changed the last name, or a religious conversion changed the entire name), multiple aliases may be a red flag and should be explained by the candidate.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2020

Barry Deutsch is a well-known thought leader in hiring and peak performance management. He is a frequent and sought-after speaker for management meetings, trade associations, and CEO forums, such as Vistage International, a worldwide CEO membership organization of more than 15,000 CEOs and senior executives. Many of his clients view him as their virtual Chief Talent Officer. Barry is also frequently asked to present IMPACT Hiring Solutions award-winning programs on hiring, retention, and motivating top talent and leverages a vast knowledge base of 25 years in the executive search field, with a track of successful placements in multi-billion dollar Fortune 100 companies, entrepreneurial firms, and middle-market high-growth businesses. He has worked closely with thousands of CEOs and key executives to help improve hiring success, leverage human capital, and raise the bar on talent acquisition. Barry earned his BA and MA from the American University in Washington, D.C. Prior to his executive search career, Barry held positions of responsibility in Finance and General Management with Mattel, Beatrice Foods, and Westinghouse Cable.  Barry can be contacted at barry@impacthiringsolutions.com or 310-378-4571.

Brad Remillard, an executive recruiter with more than 30 years of experience, has conducted more than 10,000 interviews and been involved in more than 2,000 executive searches.  In 2005 along with his partner of 25 years, Barry Deutsch, he co-founded the company IMPACT Hiring Solutions. This firm is dedicated to providing best practices hiring techniques to companies seeking to reduce turnover, recruit qualified candidates, improve interviewing that reduces hiring errors and eliminates candidate embellishment and exaggeration. IMPACT Hiring Solutions accomplishes this via its on-site manage hiring workshops utilizing our trademarked, Success Factor Methodology. These comprehensive in-house workshops and training programs are highly customized solutions to the specific company’s needs. Previously he served as President of CJA Executive Search, which was recognized as one of the top search firms in Southern California. Brad has trained thousands of managers how to recruit, interview and retain top talent for both Fortune 500 and entrepreneurial companies.  Brad can be reached at brad@impacthiringsolutions.com or 949-310-5659.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.  To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and soon to be released “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

We recently launched a new service called Sino-Am Leadership to help executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.  We also have an affiliate in the UK who covers all of Europe so we are now a true multi-national company that can support our clients globally.

Optimize Your Staffing Decisions By Using In-Depth Work Style & Personality Assessment Tools

Dana Borowka, MA – Excerpt from Cracking the Business Code

The wrong hiring decision can cost your company well over two to three times the individual’s salary according to Vistage International speaker, Barry Deutsch. This figure may be a conservative estimate because of factors like training, evaluation, termination, re-initiating the hiring process, and lost opportunity costs. There is also an emotional factor involved brain on crane to headin a bad hire situation. Not only can it cause stress and anxiety for both management and employees, but it also takes away focus from your company’s primary goals. Essentially, a bad hire can have a negative impact on your company’s bottom line and that won’t benefit you or your workforce.

These circumstances can be minimized during the initial hiring process by using several techniques including effective recruitment programs, skilled interviewing, and in depth work-style and personality assessment tests. A personality assessment is a highly effective tool and an efficient use of company resources at this crucial point of the decision making process.

This section focuses on in-depth work style and personality assessment tests and how your company can benefit from them during the interview process, before a potential new hire turns into the wrong decision. An in-depth assessment, in conjunction with a thorough interview process and good background check, can reduce the possibility of a hiring error. It also can provide your company with quantifiable information on a candidate’s specific strengths and weaknesses. Moreover, an assessment will offer objective, expert guidance on how best to manage and place that individual within your organization.

In-Depth Work Style and Personality Assessment Testing — A Standard in Recruiting

Assessment tests are a standard recruiting practice for many branches of the government and military, as well as many Fortune 500 companies when assessing potential hires for key or critical positions. They are used to reduce employee turnover and improve department effectiveness. Correctly interpreted, professionals can help guide your organization on how to best manage, communicate, and train new hires and staff members.

As with any business decision, having the right information is critical. Work style and personality assessment testing can provide insight into potential hires, as well as your current workforce, in several ways:

1. Identify potential red flags: An in-depth work style and personality assessment can discover issues that are sometimes overlooked during the interviewing process and can quantify an intuition or feeling the interviewer may have about a particular candidate. It can be used to identify potential red flags concerning behavioral issues, help understand how to manage individuals for greater work performance, and compare interpersonal dynamics of teams, departments, and candidates.
2. Learn how to optimize employees’ work performance: An assessment can provide extensive information on an individual’s ability to work with their job responsibilities, team dynamics, and company culture. Additionally, the assessment can show effective strategies to gain optimal performance from that individual within their particular work environment. It can also be employed to quickly identify the most effective management style for a new employee or predict how team members are likely to interact.
3. Ensure you have the right people in the right positions: Additionally, assessments can be utilized in rehires, or situations which call for employees to re-apply for their current jobs, as in the case of a corporate merger or restructuring. An assessment test can also ensure that your company continues to have the right people in the right positions and distribute assets and talents effectively.

Which Assessment Tool Should My Organization Use?

The following are some things to think about when reviewing various work style and personality profiles:

1. Training or degrees required for interpretation of the data. Weekend training programs can be problematic since testing and human behavior is a very complex subject. When making hiring or internal decisions, organizations need as much information and understanding as possible as the consequences can be very costly.
2. A copy of the resume should be supplied to the testing company to review when discussing the assessment results. We suggest you make sure that they require this as part of the process so it is used when reviewing the assessment.
3. Scale for “Impression Management” to understanding accuracy of results and if someone is trying to “fake good.”
4. Common warning signs: When a representative uses absolute statements when describing human behavior, like “People are all the same” or “People don’t change.” This will convey what their level of understanding of the human personality is. Or when someone claims that their profile is 98 or 99% accurate, which rarely can be clinically supported. If you hear this, ask how the data was collected.
5. Career matching: Some organizations claim to know what the perfect “sales person” or “secretary” is from a personality perspective. Ask how many careers and man with arrowsoccupations have been studied; is the database validated by outside organizations or only by “applied in-house studies.” “Ideal” is very difficult to define due to the variance of geography, job history, and education. What is most important is if the individual has a similar thought pattern that meets the criteria within the job description.
6. Number of clinical studies conducted by major universities and there should be multiple studies for validation purposes.
7. How long has the profile been used — what is the history?
8. How often is the normative database updated and where is the data coming from? (For example, U.S. Census 1990, 2000)
9. Cultural bias — is it built into the profile and for which countries?
10. Does the profile meet U.S. government employment standards? Has it been reviewed for ADA compliance and gender, culture, and racial bias?
11. Reading level required (5th grade English, etc).
12. Number of profiles administered.
13. Number of actual primary scales as defined by the “Big 5” testing standards. Many tests will claim to have more scales than they actually have — this can lead to misrepresentation of data.
14. Does the data provide the depth necessary to understand how an individual is wired inside?
15. Validity, reliability, and basis.

These are some general questions and if a profile falls short in any one area, we strongly suggest additional research into the accuracy of the data being generated.

Frequently Asked Questions

A frequent question from companies and organizations concerns the legal guidelines in administering assessments to potential employees. Industry regulations can vary and the best option is to consult with your company’s trade association or legal department. As a general rule, if your company uses an assessment, any test or set of hiring questions must be administered to all of the final candidates in order to assure that discrimination is not present. Additional information can be found online at the EEOC website, in the Disability-Related Inquiries and Medical Examinations of Employees section: http://www.eeoc.gov/docs/guidance-inquiries.html.

An additional question concerns how a new hire may feel about taking an in-depth personality and work style assessment. There is a certain amount of “test anxiety” that can be common. However, the test demonstrates that your company is serious about who they hire. If your company explains that the goal of the assessment is to reduce turnover and is only one of several factors involved in the hiring decision, the individual usually responds very well. In many cases, the candidate may accept a position from the organization they perceive to be more thoughtful during the hiring process.

Conclusion

An assessment is only one component needed for a successful recruitment and hiring program. It can provide valuable information for critical personnel decisions. Combined with an effective recruitment program and skilled interview techniques, it can benefit your company as a whole, in addition to your individual employees. Armed with accurate and man with magnify glassquantifiable data from an in-depth assessment, the interview process becomes much more reliable. Ultimately, this only adds to your organization’s bottom line, allowing more effective management of your existing workforce and limiting the potential for wrong hiring decisions.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2016 

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your organization”. They do this through the use of in-depth work style assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. They also have a full service consulting division that provides domestic and international interpersonal coaching, executive onboarding, leadership training, global options for expanding your business, sales and customer service training, operational productivity improvement, 360s and employee surveys as well as a variety of workshops. Dana has over 25 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. He provides workshops on hiring, managing for the future, and techniques to improve interpersonal communications that have a proven ROI. He is the co-author of the books, “Cracking the Personality Code” and “Cracking the Business Code”. To order the books, please visit www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, 3130 Wilshire Blvd., Suite 550, Santa Monica, CA 90403, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development, team building, interpersonal & communication training, career guidance & transition, conflict management, 360s, workshops, and executive & employee coaching. Other areas of expertise: Executive on boarding for success, leadership training for the 21st century, exploring global options for expanding your business, sales and customer service training and operational productivity improvement.

We recently launched a new service called Sino-Am Leadership to help executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.