WEEKLY ADVISER: Finding the Right Person for the Job Is an Art - and a

Our latest contest drew responses that should provide "red meat" suggestions to our readers.

We asked, "What does your bank look for in deciding whether to hire or reject an applicant for employment?"

One respondent summed it up that credit losses can be determined in dollar and cents figures. But the loss from hiring the wrong employee includes compensation cost plus cost to the employee culture of the bank, the cost of loss of synergy, and the cost of missed opportunities.

Several pointed out that "not unlike the business of lending, it is an art, not a science."

Steven F. Rosenbaum, executive vice president of Prospect Federal Savings Bank in Worth, Ill., provided two interview questions that his bank has found enlightening:

*What would your current/former supervisor say about you? This usually garners some interesting replies that can't be glossed over by a resume.

*What are your weaknesses? Look positively for "weaknesses" that are strengths, e.g. "I can become frustrated if the pace of a project is bogged down." Often though, the reply will serve as a devastating self- incrimination by acceptable candidates.

Joseph D. Hudgins, president and chief executive of West Coast Bank in Sarasota, Fla., presented a picture of how he involves himself in the hiring process:

"I personally try to question our managers along the way during the hiring process. Almost every new employee we hire is required to complete a personality profile, which indicates a person's temperament and communication skills. It is with this profile in hand that we then approach a prospect with a specific line of questioning.

"Some of my favorite questions to a prospect are to ask them what irritated them the most in their former or current job assignment, and what were the redeeming and unredeeming qualities of their supervisor. This line of questioning yields much fruit in determining a person's tolerance and happiness in the workplace."

While Mr. Hudgins' response has plenty of "red meat" in it, we have decided to present the award - president for a day of Schmidlap National Bank - to Philipp J. Walter Jr., executive vice president of Founders' Bank, Bryn Mawr, Pa. Congratulations, Mr. Walter.

His response gave a description of his bank's hiring process in such detail that it seems other banks might want to pick it up and use it verbatim. We at American Banker feel this is one of the finest responses we have had in the year we have been running this contest.

Here it is, edited somewhat for space:

"To begin with, the three or four of us at management level tend to be involved in virtually every hire. We have a variety of backgrounds and experience, and this proves helpful in the interviews, which are always done one on one.

"Referrals, either from search firms or friends, are always better than cold resumes. It saves a lot of time by eliminating poor performers up front.

"Reference checks are always conducted to catch the obvious fraudulent case, but we don't rely on them because of the obvious - who would use an enemy as a reference?

"The interview itself is the most telling part of the process. In our business, the customers must be made to feel that their satisfaction is our No. 1 priority. Thus, a candidate for any opening, be it in the back room, on the platform, as a CSR or teller, or as a lender, must demonstrate a genuine liking for people. If an individual is otherwise inclined, it is hard to hide.

"A sense of humor and humility also becomes apparent rather quickly in an interview. If you can't laugh at yourself, or try to defuse a sensitive situation with humor, you're probably prone to taking yourself too seriously. "Asking what the candidate's former boss would say about him/her usually delivers a pause followed by an honest statement, since it's obvious that we will do just that.

"Getting a feel for a candidate's self-assessment of his/her strengths and preferences before going into the job description can be very helpful. Most people won't identify their weaknesses, but what's left unsaid in response to the question can be useful.

"In the end, the decision is based on our collective views of the candidate from our own individual perspectives. We use a form for subjective grading of the candidate based on a number of qualities, including appearance, ability to express oneself, and a desire to excel.

"Once a candidate has been selected, one final step is to have him or her spend a full day in the bank. This lets us size up the candidate, and allows the candidate to see if what we do and how we go about serving our clients is consistent with our description."

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