You believe the economy is improving. You need help to get organized and re-energized to take advantage of a new opportunity. At the same time, a long time employee decides to retire or move in. Do you change the nature of the responsibilities or combine two jobs into one? Do you have someone on staff to move in or up or do you need to go outside?
This is one of the most stressful decisions you have to make. A mistake here can cost a lot of money. This new person could upset the current organization or worst upset an important customer.
An interesting fact is that most people quit or are terminated not because they lack the skills but because they did not fit into the organization's culture or they can not adjust to change. I am not suggesting that skills are not important but that there are two things you need to look for when you interview: skills for the job and will the person fit into the organization. Let me suggest some ways to improve your odds so that you will hire the "correct" person.
The technical portion of the interview should be handled by someone in the organization that has those skills. If there is not someone in your company or firm, get someone to do this portion of the interview. This could be a board member, your outside accountant or a trusted friend. This should also be followed up by checking the references the candidate gave you of people they worked with or for. Avoid speaking to the human resources department at his previous employer since they will usually only give dates of employment. Another way to satisfy your need to confirm their technical skills is to explore whether you have a contact at a place he worked at. If you do, call them and ask questions about your candidate's technical capabilities.
The next part can be difficult. You need to see how this new person will interact with your current organization. The best idea is to meet with this person more than once. One good meeting is just that, one good meeting. Have several meetings. If you have a human resources department let them also have two meetings with the person. A behavioral interview is helpful and your human resource department should know how to do this type of interview. A behavioral interview is asking the candidate how they have handled a specific situation in the past and the results of their action. Typical questions are "Did you ever have a difficult employee and how did you handle it". Another may be "Did a pier or supervisor ever steal your idea and how did you handle it". You may wish to ask how the candidate handled a tough client or get an organization to implement his idea. Avoid candidates who talk about what they "want"; just as those who talk about what they "offer".
You may wish to have a one-on-one interview to start this portion of the interviewing. Then have a meeting with the candidate and someone they will work with. Discuss current or past problems or opportunities and how the candidate would handle those. Observe the interaction between your current employee and the candidate. A lunch with several of the candidate's peers would also give you insight how the candidate will work with-in your organization. Another idea would be to use the behavioral interview and ask the candidate how they handled a situation that is similar to an issue that occurred in your company. You can always make a situation up to see if the candidate would handle a problem how you would like the problem handled. Remember, you can ask as many of these questions as you like. See how quickly the prospective employee grasps the key points.
If you have had a current employee meet the candidate, ask your employee what they thought of the candidate, good and bad observations. Listen to what they say and what is not mentioned. Ask the candidate what they thought of the employee privately. Listen carefully to what the candidate says and does not say. How accurately did the candidate size up your employee? If the new employee is going to have hiring authority this skill is very important.
Remember, the candidate is deciding if they want to work for you as well as you deciding if you want to hire them. Make this a pleasant experience but do not gloss over problems and issues. Be honest with all the candidates. For example is travel required and how much? This can be a deal breaker for some. Do not draw this process out. Good candidates will see this as weakness of your organization not being able to make a decision. You may also lose a good candidate. Handle this like an important business transaction because, it is and treat all candidates with respect and courtesy no matter what your reaction. Also don't be reluctant to trust your instincts, which means you are activating your experience spectrum.