Making the right hire: behavioral interviewing.

The Problem

A major problem for accounting firms is turnover. It seems that just when many tax professionals become really valuable to the practice, they leave (usually within the first five years of employment). What can be done to mitigate undesirable turnover? One place to look is in the hiring process. Behavior-based interviewing (BBI) helps to identify the right kind of tax professional for an organization.

Purpose of Interviewing

The purpose of an interview is to identify and hire candidates who will perform well and want to remain with the firm. This is achieved by assessing a candidate's technical abilities, personal preferences and behavior patterns. Tests, academic achievements and related work experiences can measure technical abilities, using some kind of tax competency form for experienced professionals win also help. (See the sample form in Exhibit I on page 571). Past behavior in specific situations will indicate more accurately a candidate's personal preferences, attitudes and behaviors. A person can have the skills and knowledge to do the job, but may not have the inclination to do it.

Different interview styles yield different results. Some of the more common styles include the following: * The traditional interview is somewhat unstructured and conversational. Focusing on education, qualifications and experience, it is made up of questions such as: "What are your goals?" "What are your strengths and weaknesses?" "Why did you major in accounting?" "Tell me about yourself." * The team or panel interview involves at least two interviewers at the same time, using questions similar to those listed above. However, this type of interview has somewhat more structure, the team plans questions jointly, and must coordinate who is going to ask which questions. Also, there are two evaluations of the candidate's responses. * The behavior-based interview incorporates structured questions on the applicant's past behavior in situations similar to those that will be encountered in the new position. It goes beyond determining whether a person can do the job. It better indicates if a person will do a good job, how it will be done and to what extent.

How Successful Are These

Interview Styles?

In hiring the right person, research shows that traditional interviewing has a success accuracy of up to 14%, and the team interview has a success accuracy of up to 35%. However, behavior-based interviewing has a success accuracy of around 55%.

Cost Analysis

When factoring in the real cost per successful hire, the figures become extremely significant. The chart on page 572 details the cost for hiring 100 people using the different interviewing styles. An arbitrary figure of $7,500 is used as a cost per hire; this cost will vary depending on the extent of a firm's recruiting program.

What Is BBI?

BBI is founded on the principle that one of the best predictors of future performance is past performance in similar circumstances. BBI is a structured pattern of questions designed to probe the applicant's past behavior in situations similar to those that will be encountered in the new job.

The more recent and repetitive the behavior, the greater is the predictive power. By focusing on past performance, the ability to predict whether or not a person will be a "top performer" in the organization is greatly increased. Questions directly related to the new position are constructed to gather information about the applicant's past performance. The BBI process can also give insight into a candidate's attitude and personal preferences.

How Are BBI Questions Built?

Behavioral questions can be constructed using a combination of approaches.

One approach is to look at the performance standards of the job and then formulate questions to determine the extent applicants have them. This can be difficult; most people are not accustomed to looking at jobs this way. It is easier to look at job duties, tasks and technical skills, and not include performance skills. Some examples of performance skills are adaptability, communication, decisiveness, delegation, empathy, interpersonal relations, organization, risk-taking and teamwork.

An effective - but much more time-consuming - approach is to conduct a behavioral analysis of key successful people in the tax practice. To quickly summarize this process, hundreds of descriptive statements are collected and grouped into categories (called "dimensions"). For example: "Mary had a special talent for identifying the client's need because she listens to what the client is saying and then clarifies what was said" could fall under the dimension communication. "Troy knew when to approach the client and when to stay out of her way" could fall under the dimension interpersonal relations. "Erik showed his impatience when he chastised the supervisor for missing two days of work because of illness" could fall under the dimension empathy. The dimensions are formed as a result of the analysis, characterizing what is really important to the firm's tax practice. BBI questions are then formulated from these dimensions. The candidate's responses to these questions tell the interviewer the performance capability of the candidate.

Another way to build behavioral questions is to review the candidates resume, cover letter and other supporting documentation. Look for clues to behavioral questions, such as well-organized, self-motivated, strong interpersonal skills, etc. Asking the candidate to list his greatest strengths can also yield dues. The candidate should be able to give documented stories to substantiate these competencies.

See Exhibit II, on page 572, for examples of BBI questions.

Advantages and Disadvantages

of BBI

BBI is very time-consuming, often requiring a minimum of 45 minutes per interview (although more time is desirable). Candidates with limited work/life experiences tend to have more difficulty with the process, more experienced candidates have an easier time because they have more experience from which to draw.

Top candidates enjoy the process because it gives them an opportunity to talk about a subject they know better than anyone else - themselves and their experiences. They see the process as focused and performance-related. Weaker candidates are more intimidated, because they may not always have an answer or a significant experience.

Furthermore, this process provides a safe approach to conducting legal interviews because it is based strictly on performance. Applicants also feel the process is fair and equitable.

Conclusion

BBI can increase the quality of hires by combining an assessment of technical skills, personal preferences and performance skills. The results will be a better match between the employee and the job, lower turnover and greater job performance and satisfaction for the employee. The BBI process also indirectly communicates some of the job expectations and minimizes "first day surprises."

From Jay Zack, CPA, Tax Partner In Charge of the Twin Cities Practice, and Mark Van Beusekom, Regional Human Resources Director, McGladrey & Pullen LLP, Minneapolis, Minn.