Using intuition
As a consultant, I am often asked to interview potential new executive employees for my clients. In my sales management career, I hired many outside sales representatives. When interviewing, I relied heavily on intuition and my success rate was above average — in the 70% range. However, I recently read Thinking, Fast and Slow by Daniel Kahneman, which challenged me to rethink the evaluation process. In a chapter, “Intuitions versus Formulas,” one of Kahneman’s key axioms is, “Whenever we can replace human judgment by a formula, we should at least consider it.” While intuition served me well in interviewing, I see now that scoring behavioral characteristics can yield a more accurate assessment.
The formula
When developing a formula for your hiring process, consider these steps:
- Select traits – Create a way to measure up to six specific traits, such as passion, problem solving, organizational skills, work ethic, listening skills, and integrity.
- Make a list of questions for each trait.
- What are you passionate about? The candidate needs to be able to provide an example.
- What was your toughest career problem? The candidate should be able to provide an example and a solution.
- How do you prepare for a week’s work? The candidate should be able to demonstrate organizational skills.
- How many hours do you work per week? The candidate needs to tell you that he is willing to work more than 40 hours per week and that he will work however long it takes to finish a project, solve a problem, etc.
- If someone comes to you with a personal issue, what do you do? The candidate should respond, “Listen” and “Give them help or refer them to someone who can.”
- What do you value in a company’s culture? The candidate needs to include integrity, truth, etc.
- Score each trait – Rate the traits on a 1-5 scale, from “very weak” to “very strong.” Think through each question and what significant qualities would make a difference on your scoring. Avoid the “halo effect” — the tendency for an impression created from the answer of one trait to influence your opinion in another area. Score the answer given for each trait before moving to the next.
- Total final scores – Firmly resolve that you will hire the candidate whose final score is the highest, even if there is a candidate whom you like better. You are much more likely to find the best candidate using this process than only trusting your intuitive judgment.
Raise your hiring success rate
Kahneman suggests, “Let’s decide in advance to give credence to the scores on the data from the candidate’s past performance. Otherwise, we will give too much weight to our impression from the interview.” To raise your hiring success rate, use a formula. Choose the candidate whose final score is the highest and let intuitions take a back seat.
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