Recruiting in a Downturn: 4 Steps to Sifting Through the Talent

When unemployment rates soar, businesses are inundated with job applications. But unlike large corporations, which have the manpower to sort through hundreds of resumes, small businesses are left with a stack of papers and little time to find the right candidate.

That’s why they may end up hiring sub-par staffers, says Michael Mercer, a Barrington, Ill.-based human resources consultant and author of “Hire the Best and Avoid the Rest.” “Quite often, small business owners feel desperate to hire someone immediately, so they give people the benefit of the doubt and end up hiring a lousy employee,” Mercer says.

And during a downturn, when it seems like everyone is qualified—or over-qualified—he offers these tips to ferret out the best person:

• To cut down the stack of resumes, first have an assistant or manager match each resume with the listed requirements of the job. (Do they have five years of professional experience? Do they have a master’s degree?) Next, find out if their work experience is relevant. (Is their experience from the right industry?) Also, how long have they stayed at each job? “A three-year average is better than six months apiece,” says Mercer. “Small businesses can’t afford to hire a job hopper.” And finally, toss the resumes that are poorly done—sloppy or ridden with typos. There are too many talented, competent workers out there to spend time on lazy candidates.

• Figure out which traits make for a good employee—and this is different for every position, and every company. If the job was previously filled by a high-quality employee, for example, or if you already employ high-quality workers in similar positions, gather their biographical data to determine these traits. (Be careful not to include factors like sex, age and race these profiles, which is against the law.) A client of Mercer’s found that in one of his company’s positions, for example, employees with post-secondary education performed poorly. So the client tossed out any resume that listed education beyond a high school diploma. Also, ask what they earned at their previous job—not what they would like to earn now. Research shows that workers who say they’re OK with being paid less, especially during a recession, are never actually OK with it, and may become disgruntled employees. Once you’ve determined the biographical data of a potential high-quality hire, narrow the resume stack to candidates who fit the profile.

• The remaining applicants should now take an online pre-employment test—before they come in for an interview. Research shows that these tests more accurately predict fit than any other method (checking references, interviews, etc.), Mercer says. Instead of writing one yourself, find a pre-employment test that’s been produced by a professional and ask your candidates to fill one out at home. The results, which are automatically generated based on an applicant’s answers, can reveal traits related to teamwork, focus, problem solving, work ethic, honesty, etc. Decide what’s most important to the position, and interview only the candidates who score well in these areas. If you still have hundreds of qualified applicants, you can also custom-tailor experiences questions at the end of a test. For example, one of Mercer’s clients employed outdoor servicemen. The client asked at the end of its pre-employment test, “Have you worked outside before?” And went further with, “Have you worked in several climates or types of weather?” The client weeded out candidates who had only worked in sunny, warm weather.

• Ask candidates who score well on the test to come in for an interview. “Most small business owners are horrible at predicting how someone will work on the job, based on the interview,” Mercer says. That’s because they often don’t know what questions to ask, and don’t know what to make of the answers, which is why a pre-employment test is vital. Include someone else in the interview who can serve as a second opinion—either a human resources director or other manager. Consider people who seem to fit well with the company culture.