Finding the right people may be one of the most important jobs a manager has in a bad economy. Few companies can afford to recruit and train the wrong people — especially the wrong IT people –  in these tough times.

The new book, “Who: Solve your #1 Problem” makes the case that managers only hire the right person for a job 50% of the time.

And hiring mistakes can cost companies 15 times an employee’s base salary in terms of both hard costs and productivity loss.

Authors Geoff Smart and Randy Street gathered suggestions from 300 CEOs and more than 20 business billionaires to come up with a four-part process to improve hiring odds.

They suggest avoiding what’s called “voodoo hiring” techniques like:

• using gimmicks to test for behaviors
• relying on gut impressions, and
• asking hypothetical questions about the future.

A more systematic approach the authors recommend includes:

1. Create a scorecard for the position you want to fill. Include the specific competencies the ideal candidate should have for the job.
2. Develop sources for talent. This should be an ongoing process, not just one you engage in when you have a job to fill. Managers should ask “Who are the most talented people you know?” whenever they meet new people.
3. Use multiple interviews. The authors recommend a series of four, with the first being a quick telephone screening call and the last one that includes asking references probing questions about the candidate.
4. Selling yourself as a manager. People work for people, not companies. You not only need to connect the candidate to your organization, but to you as a boss.

Tags: costs, hiring, interviews, mistakes