GREAT 142 IDEA: Use the BATH System for Hiring

Jay Goltz has been an entrepreneur since he graduated from high school. He knows a lot about hiring, having run several home and garden businesses in the Chicago area.

“Seventy-five percent of good management is hiring the right people in the first place,” said Goltz, who has written several books on small business (www.jaygoltz.com).

He said many former employers are reluctant to provide references for fear of repercussions if you don't hire the person. But you can ask them if they would rehire the person. Another way to gauge your current hiring strategy is to consider this hypothetical situation: An employee walks into your office and says they are moving to California. Do you say “yippee!” or would you be sad to see them go?

If you feel relieved they are leaving, they are clearly not the best person for the job. To avoid making bad hires, Goltz said he developed a hiring strategy he calls the BATH test, Here's how it works:

• “B” is for buy into your concept. Tell prospective employees what your company is all about. You want to fit square pegs into square holes.
• “A” is for ability. Find people who have done this job or something similar.
• “T” is for being a team player. Hire people who will tell you what is on their mind. You can spend your whole life playing psychoanalyst with your employees—and it's a waste of time.
• “H” is for hungry. “I need people who are hungry and want to work,” says Goltz.

After implementing the BATH system, Goltz said his turnover rate dropped to 10 percent. He has another great idea:

Set up a group interview. Bring in several job applicants at once to tell them about your business. Take a coffee break. Don't be surprised if some folks disappear. But it's better to scare off the losers before you hire them.