Effective interviewing strategies; why do promising candidates sometimes turn into disappointing employees?

GREG M. THIBADOUX, Phd, is professor of accounting and finance at the University of Tennessee at Chattanooga. He is a former education director of the National Association of Accountants and the author of a number of articles on accounting. RAYMOND JEFFORDS, CPA, Phd, is a University of Chattanooga Foundation assistant professor at the University of Tennessee at Chattanooga. A frequent contributor to accounting literature, he holds memberships in the Tennessee Society of CPAs, the American Accounting Association and the Institute of Internal Auditors.

Why promising candidates sometimes turn into disappointing employees?

High turnover among entry-level employees can be a problem for CPAs in firms and in industry. In public accounting in particular, the turnover among staff accountants generally is very high. A survey of 130 CPA firms found staff accountants remained at their first jobs an average of one and a half years. Senior accountants remained less than three years.

Unfortunately, some CPAs don't perceive this as a problem, since there usually is an ample supply of suitable candidates to fill the ranks of entry-level accountants. However, this attitude ignores related problems, such as reduced morale, loss of organizational identity and increased training costs. In addition, firms and companies with high turnover often have difficulty retaining their best employees.

PROBLEMS WITH TRADITIONAL INTERVIEWS

One reason for the high turnover rates may well be the inefficiency of traditional interviewing techniques. Standard interviews often reveal very little information about a candidate's job skills. Human resource specialists estimate that only 5% of the information obtained in a standard interview pertains to skills required on the job. Instead, traditional interviews tend to focus on the candidate's resume, the employer's job requirements, hypothetical situations and self-evaluation. Candidates can easily be trained to provide appropriate responses to questions such as, "Where do you see yourself five years from now?" or "What are your strengths and weaknesses?" (See exhibit 1 on page 94 for a summary of the traditional interview process.) College placement offices offer training programs to help students prepare for standard interview questions.

Since the traditional interview collects very little information about job skills, neither the employer nor the prospective employee may realize the employer's specific job requirements and the candidate's abilities are poorly matched. Generally speaking, any candidate with a suitable grade point average and an agreeable disposition is likely to receive a job offer at the end of the traditional interview process. There may be little or no attempt to collect data on the candidate's ability to handle multiple work assignments, long working hours, tight client deadlines and all the other work challenges faced by staff accountants. As a result, firms and accounting professionals in industry spend thousands of dollars each year training new hires who often are unsuited to the demands of their work. These recruits become disillusioned and generally unproductive employees.

IMPROVING THE INTERVIEW PROCESS

Within the past decade, a new technique has been developed to address the shortcomings of the traditional interview process.

This technique, called behavior description interviewing or situational interviewing, is designed to obtain the most information about past behavior as it relates to specific job skills. Behavior description interviews are based on the premise that past actions are the best indicators of future behavior. The questions used are developed through a multistep process that begins with the collection of observed job-related behaviors or critical incidents.

STEP ONE: DEFINING EFFECTIVE JOB BEHAVIORS

A critical incident is an event or behavior that defines successful job performance in the eyes of peers and supervisors. Incidents can be gathered from different levels in the firm through questionnaires or face-to-face interviews. The latter usually is best, since the behaviors described in a critical incident must be specific and fairly detailed. Obtaining this information may require repeated prompting and direction, since many people tend to describe the behavior of others in very general terms.

For example, if a manager is asked to describe an effective staff accountant's behavior, the likely response will be very subjective and nonspecific. The manager might refer to such an employee as hard-working, technically competent and good with clients. Such descriptions are not critical incidents, since they describe no specific event or past behavior. To be useful, critical incidents must describe actual behaviors and events observed by the manager.

To identify critical incidents, the manager would be prompted to think of a specific situation in which a staff accountant was good with clients. He or she might recall the following: "One of our clients lost some inventory data in converting to a new computer system. The staff accountant volunteered the missing information by searching the previous year's workpapers. The client later wrote a letter of appreciation for this unexpected service."

This response defines a specific situation in which an employee exhibited an effective behavior. Five other examples of critical incidents derived from interviews with accountants at large national CPA firms are presented in exhibit 2 above. Interviews with 8 to 10 members of a firm will usually generate 50 to 80 different incidents.

STEP TWO: DEFINING EFFECTIVE JOB SKILLS

The next step is to analyze critical incidents to determine exactly what skill is demonstrated in each situation. For example, consider the following incident: "An accountant was under time pressure to complete several tasks. She made a list of everything that needed to be done and then ranked the tasks by relative importance and due date."

The skill the accountant demonstrated in this situation is, of course, the ability to set priorities. Exhibit 3 on page 96 lists important job skills for accountants.

STEP THREE: DEVELOPING MOM EFFECTIVE INTERVIEW QUESTIONS

Next, the critical incidents are used to develop specific interview questions for a given job position, in this case a beginning staff accountant. Since new hires seldom have accounting work experience, the questions must be adapted to reflect similar experiences from the applicant's past. For example, the critical incident involving setting priorities was the basis for the following question: "Tell me about a situation at home, at work or in school in which you were under time pressure to complete several tasks. How did you handle that particular situation?"

Exhibit 3 on page 96 lists interview questions related to each job skill defined in step two above. These behavioral interview questions were developed from data collected by the authors of this article in personal interviews with staff members of large national CPA firms.

CONDUCTING THE INTERVIEW

The behavior description interview is not a replacement for the traditional interview but a way to make it more effective. A review of the applicant's resume, references and past job experience is still very important. The applicant's demeanor, social skills and interaction with the interviewer also are valuable sources of information about suitability. Nonetheless, questions that probe specific job-related skills based on actual incidents and past behavior can provide data not otherwise available.

Incorporating questions based on the behavior description technique into the traditional interview process may present a challenge, since the manner in which these questions are asked is critical. In addition, applicants who have been trained to handle traditional interview questions may find it difficult to provide appropriate responses.

Therefore, the interviewer should be prepared for periods of silence while the applicant thinks. He or she must refrain from stepping in too quickly if a candidate falters. At the same time, the interviewer must be persistent in requesting specific information involving actual past behavior. In some cases the interviewer may give an example of the desired response based on his own experience to help the candidate understand what is wanted.

The interviewer also must work to obtain complete information about any incident the applicant describes. He should request a brief explanation of the circumstances leading up to the incident, how the applicant behaved in the situation and the outcome or result of that behavior. Some applicants may find it difficult to think of specific examples; others may ramble. The interviewer should take control of the conversation and encourage the applicant to summarize his response to the question. The interviewer should not spend too much time on one question or allow the applicant to change the subject.

Often the candidate will think of an example or situation that reveals a great deal about his or her suitability for the job. In such cases, the interviewer must take care to remain neutral and not overreact to the applicant's response. Expressing surprise or negativity, whether in words or facial expressions, can undermine the interview and prompt applicants to change the manner in which they respond. If an applicant's response is strongly positive or negative, the interviewer should ask for contrary data to provide a more balanced picture of his strengths and weaknesses. For example, if a candidate admits that school or company rules were broken to accomplish a specific objective, the interviewer might ask about a time when the candidate obeyed the rules even though it meant a goal could not be achieved.

INTERVIEW EVALUATION

Exhibit 4, above, is an overall evaluation form firms can use. Interviewers should rate each candidate's answer and then total the score for each different set of skills.

They can then rate each response to behavior description questions by comparing them to other candidates' answers.

A NEW WAY TO IMPROVE THE INTERVIEW PROCESS

The traditional interview process often fails to capture information essential to ensuring the best people will be hired for entry-level staff positions. The behavioral interview questions developed from actual experiences at CPA firms are designed to determine how potential employees have responded in situations similar to those that will occur in a firm. Since past behaviors are a good indicator of future actions, this interview format has excellent predictive value. Incorporating behavioral interview questions into a traditional interview increases the likelihood firms will select the best candidates.

EXHIBIT 1

Elements of the traditional interview process

* Evaluation of biographical information and achievements based on candidate's resume, application form and personal references.

* Evaluation of candidate's education and job experience.

* Assessment of candidate's technical expertise based on grade point average, degrees and credentials.

* Subjective evaluation of candidate's social skills and character-based personal interaction with interviewer.

* Review of employer information pertaining to ob requirements and benefits.

* Self-evaluation information:

1. Personal goals.

2. Attitudes and philosophy,

3. Questions based on hypothetical or speculative statements.

EXECUTIVE SUMMARY

* HIGH TURNOVER among entry-level employees can be a problem for CPAs in firms and in industry. One reason for the turnover rates may well be the inefficiency of traditional interviewing techniques. Standard interviews often reveal very little information about a candidate's job skills or whether he or she is right for the job.

* A NEW TECHNIQUE, called behavior description interviewing or situational interviewing, is designed to obtain the most information about past behavior as it relates to specific skills. The technique is integrated into the traditional interview to make it more effective. A review of the applicant's resume, references and past job experience is still a necessary step.

* THE PROCESS is based on observed job-related behaviors or critical incidents, which define successful job performance in the eyes of peers and supervisors using specific examples.

* THE CRITICAL INCIDENTS are analyzed to determine exactly what skill they demonstrate, such as the ability to set priorities or delegate responsibilities. The incidents are used to develop specific interview questions for a given job position that would require these skills.

* THE NEW TECHNIQUE CAN be challenging for interviewers and for applicants trained to handle traditional interview questions. Interviewers must be persistent in requesting useful information but must also allow candidates time to answer questions.

EXHIBIT 2

Examples of critical incidents involving staff accountants

* One person took charge of a job and made an extra effort to understand the client's operations. This person would use personal time to do library research and talk informally with the client's staff, customers and suppliers.

* Someone was given what appeared to be incorrect information by a superior. The staff member personally verified the information and resolved the problem diplomatically.

* One person made clients feel important by clipping newspaper articles or other published reports on the client's firm and personnel. A personal note of congratulations always accompanied the clipping.

* A very farsighted accountant had a client who decided against putting its files on the computer. The staff member convinced the client to change that decision. By the end of the engagement the job had increased in scope, justifying the decision to computerize and saving valuable time.

* One person had a special talent for identifying people's needs by being an effective listener. This person knew when to approach people and when to stay out of their way.