PUT THE ODDS IN YOUR FAVOR WHEN HIRING A REPLACEMENT
The hiring process is not, and never will be, an exact science. However, this article will outline a process that, if followed, will ensure you have put the odds in your favor of avoiding the possibility of ending up with a mismatch. You may lose an employee to another company or to a promotion within your organization. Whatever your scenario might be, it is essential that you go through an analysis before you begin the interview process so you will clarify the target, and therefore be more likely to hire the right type of individual.
Do not assume the position definition should stay the same or you should hire the same type of person again. Remember your "needs & wants" for this role will change over time; what you have to offer a potential candidate will also change over time; as well as the supply and demand factor for tax professionals...THEREFORE, you must seize the opportunity to reevaluate these issues.
GATHER INFORMATION
STEP A. DO AN EXIT INTERVIEW.
The purpose of an exit interview is to gather any information which will help you understand the pluses and minuses of the position from your exiting employee's perspective.
Cover topics such as:
Technical content of job - did it turn out to be similar as to how it was represented prior to start date? Get percentage breakdowns of research/planning vs. compliance vs. audit responsibilities -- what did the employee think they would be doing vs. what they actually did vs. what they think the technical content of the position should be.
How position is situated in the department - do they report to the person they believe they should be reporting to? Do they have sufficient support?
Quality of life -- hours per week/travel requirements?
Path for future opportunities -- Did the position offer them the future potential they were interested in?
*** It is best to have someone conduct the exit interview who the employee will view as more objective. You want as much information from this employee as you can get, so find someone to do the exit interview who the employee will be more open and honest with ... be prepared to hear the good and the bad (even if it relates to you as their Manager). Avoid asking why they are leaving at the beginning of the interview. All you will hear is their canned answer. Use the questions above to get beneath this.
STEP B: MEET WITH OTHER EMPLOYEES IN THE DEPARTMENT.
Get their opinions of how they see this position fitting into the department. How did the exiting employee do in this position? Do they have any suggestions on any changes which they think would improve how this position functions in the department?
*** Again, you may need to have someone, other than yourself, meet with other employees ... remember, your goal is to get as much honest feedback as possible.
STEP C: MEET WITH THE PRIMARY "INTERNAL CLIENTS" SERVICED BY THIS POSITION
Operations, Finance, Treasury, Accounting, Marketing, etc. Get their Needs vs. Wants in priority order with respect to this position and how it will affect them.
STEP D: TAP INTO OTHER SOURCES SUCH AS:
Tax colleagues you know in other companies. Ask them if they have a similar position in their department. If so, exactly what type of person do they have in that position? How has this person worked out? What changes would they make, if any?
Benchmark your competition by hiring a firm to do a formal study.
Consult your technical advisors (Public Accounting and/or Law Firm)
Tap into search firms and find out what they have identified.
IDENTIFY ALL KEY DECISION MAKERS INVOLVED IN THE HIRING OF A CANDIDATE FOR THIS SPECIFIC POSITION.
It is essential to get all decision makers involved in steps II, III, IV and V (below). It is difficult to push your superiors ... so do not put yourself in this situation. Get them to "buy into" your criteria for hiring at the beginning of the process. It will make the offer stage much smoother.
What are the position objectives? What is to be accomplished in this position? How will your company benefit from this position operating effectively? Define the objectives of the position for:
The first 12 month
The second and third years
What specific responsibilities need to be accomplished to achieve these objectives? Responsibilities must also be defined for two separate timeframes:
The first 12 months
The second and third years
Define how the job will evolve. If the employee's role will change, how will all responsibilities be covered? (Example: If an employee will do 50/50 compliance/planning the first year, and then shift to 100% planning on the second year, who will handle the compliance function when this change occurs? ... another staff person in the department? Outsource to a CPA firm?) These factors must be taken into consideration to avoid a problem in the future.
Define:
Technical work (prioritize specifications and always break down into %'s, and give examples)
Interaction of this person with others; who will it be essential for this person to interact with for them to achieve the objective of this position? What are the personality characteristics needed to interact with these specific individuals?
Hours/Travel: Be conservative, if anything, over estimate average work week and percentage of travel. If weekend travel is required, be sure to quantify, as well as define domestic vs. international travel.
DEFINE CANDIDATE PROFILE:
Describe what criteria you want to use in developing your profile.
Years of experience in tax (ideal, minimum)
Years of experience in specialty areas of tax (International, State & Local, Federal, Benefits, etc.) if applicable
Specific technical experience (areas of expertise required)
Educational background (does the position require an accountant or an attorney?)
Personality (outgoing, laid back, assertive, leader, support person)
Aggressiveness in career aspirations (fast tracker/medium tracker/slow tracker?)
Work experience (industry, public accounting, law firm)
Always check the "whys" behind what criteria you think you need. (Example: If you think you need an attorney with 7-9 years of experience, always know why. Does this profile really make sense for the needs of the company? )
Define your ideal candidate profile using the criteria in #1.
Define your least acceptable candidate profiles using the criteria in #1. (both on the heavier and lighter profiles)
Define "nonnegotiables" -- those things you cannot live with or live without.
DEFINE WHAT THE COMPANY HAS TO OFFER.
Keep in mind, this is a two-way street. Each candidate is going to be evaluating what the position and company have to offer them. You must define:
Quality of technical work (during 1st 12 months; after the 1st 12 months)
Career track (within tax and out of tax) - short term and long term
Management opportunities
Compensation - base, bonus potential, stock plan
Other benefits - savings plans, pension, health club, child care
CONTRAST NUMBER III JOB PROFILE WITH NUMBER IV CANDIDATE PROFILE WITH NUMBER IV WHAT YOU HAVE TO OFFER.
Do they match? Are you planning to hire someone who isn't the best fit for the job? Are you under hiring? ... or over hiring? Do you want a tax attorney when a pure accountant would be a better match for the technical offer work? Do you want to hire a 10-year person when you don't have a track to offer them that would be appropriate for their years of experience? Are you thinking of hiring an A+ fast tracker when you won't have a career path to meet their expectations? Are you hiring at the right level for the money you have to offer? Is the profile personality type in line with your firm's management style?
AGAIN, ALL THREE AREAS MUST COMPLIMENT EACH OTHER! (1) Job Profile (2) Candidate Profile and (3) What you have to Offer.
REALITY CHECK!
Is the match you are seeking REALISTIC in today's market? Will you be able to attract the ideal person (candidate profile) to do the job you want done (job profile) considering what you have to offer? Is the match you want realistic or are you wanting something unattainable in today's market? Here is how to find out:
GET THE FACTS from numerous sources:
Contact trade associations (TEI, International Fiscal Association, API, ABA Tax Committee, etc.) for salary information.
Talk with tax professionals at companies with similar positions.
Talk to search firms, especially those who specialize in the tax field.
View the "Salary Survey Comparison" on the Tax-Talent.com website at www.tax-talent.com.
Get all other decision makers (See #II) to "sign off" (literally) on the following, prior to interviewing the candidates:
Job Profile
Candidate Profile
What company/department has to offer.
If you follow the eight step analysis above, you will be much more likely to hire a "good match", both from a short term and long term perspective.
