In search of competence: Structured behavior interviews

Abstract

R ecent management research has confirmed that the most widely used selection tool, the traditional hiring interview, has only a 15-20 percent chance of accurately predicting job performance. The staffing process in some organizations requires change, and tools now available can make executives and managers more effective in predicting the job performance of potential employees. The financial impact that a competent versus a marginal performer can have on a corporation can be substantial. On a recently completed staffing assignment for a director of international tax planning, it was estimated that a potential productivity gain of $3 million in taxes saved over three years could be realized by hiring a highly competent versus an average international tax director. The more senior the position, the greater the productivity impact from hiring a competent performer. The key is being able to define and measure effective behavior that produces bottom-line results, and to distinguish the average from the highly competent performer in a systematic and defensible staffing process.