Posted by Dave Lorenzo - Business Coach

Yesterday I was speaking with a client who told me a disturbing story.

Six months ago she hired a new manager for one of her successful retail stores. Since my client is a highly successful entrepreneur, she rarely works directly in any of her businesses. Instead she looks for competent professionals to run her businesses, pays them well and leaves the details to them. During a recent quarterly review of her profit and loss statement for that business, my client noticed a dramatic drop in monthly revenue.  Upon further investigation, she discovered that the manager had been stealing from the business for about three months.  The cost of the theft amounted to about $120,000 – and it continues to rise as her accountant uncovers more issues. As soon as the manager got wind that the business owner was looking into the books, she disappeared.

My client was furious.  She called the police who told her that the person she hired had a record of this type of behavior.

Where did my client go wrong?  It is impossible to know, in advance, if someone is a thief.  There are some steps you can take to avoid hiring a dishonest individual.  Here are 7 ways to avoid hiring a thief: 

1. Put a system in place for hiring and follow it.  Too many business owners fly by the seat of their pants when it comes to staffing.  They often do not think about hiring until an open position develops.  Creating a system and patiently following it will help keep discipline in the hiring process.  This discipline will help you make a good decision.
2. Interview Multiple Times.  Interview your candidate thoroughly then take some time and reflect upon his/her answers.  After you have thought about how they have answered, and after you have reviewed all of their background information, interview them again.  Ask the candidate questions about things in their background that concern you – like gaps in their employment history.  If there is nothing that concerns you about a candidate chances are good that you have not done enough research.  Everyone should have some minor things on their resume that you want to know more about. 
3. Ask for a Specific Reason Why they Left/ Want to Leave their Current Job. When you are interviewing a candidate ask him/her for specific examples of the reasons why they are leaving.  Ask the candidate to describe specific incidents that highlight the issues.  Details are difficult to fake.  If the candidate struggles with this question, it might be a red flag.  Think about it, most people can tell you hundreds of things that are wrong with their job.  Hesitation or refusal to answer this question MAY or MAY NOT mean that there were issues between them and their previous employer.  Use it as a point for further investigation.
4. Get a Second Opinion. Have someone else interview the candidate.  Getting a second or even third opinion on a new hire will definitely be helpful in making a decision.  Outstanding employees – “A” players are particularly helpful in this process.  Talent knows talent. Let some of your best folks talk to prospective employees during the hiring process. 
5. Use a Standardized Assessment.  There are several types of preemployment screening tools that are available.  Using one that is regularly validated can help you significantly reduce the risk of bad hires. Make certain that you give the assessment to everyone and that you use it early on in the interview process. 
6. “Google” the Candidate – This is the cheap version of a background check.  Searching through Google or Yahoo under the person’s name can help you locate any major issues that may be a part of the candidate’s past.  At worst, if the candidate was part of a major news story, it will appear when you do your search.  If some minor things show up – like some controversial postings on a message board – you can ask the candidate about then during the interview (if appropriate).
7. Check References – I am regularly surprised at how many people don’t check a candidates references before they are hired.  At a minimum, you should verify the dates of employment the candidate has listed.  Ideally, you should ask about the candidate’s work quality, attendance and if they are eligible for re-hire/left on good terms.

There is no way to be 100% certain that the person you are hiring is an honest hard working individual.  Setting up a reliable system and following it consistently is the best way to make sure you get the highest caliber person to join your team.

Filed under: Hiring
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