It will not come as a news flash that the labor market has never been tighter. But that’s no excuse to make por hires. That tight market also makes it paramount that you focus on how to retain good people. Let’s discuss the hiring first. Traditionally, you have relied on a résumé, listing education and work experience; the interview; intuition - and luck. Consider the following: A study in the Harvard Business Review found that 90 percent of hiring decisions are based on the interview. A Michigan State University study found that interviews are only 14 percent accurate. Bad hiring can be expensive. Conservative estimates are that hiring, training and creating a productive employee costs a minimum of 700 times the worker’s hourly wage. Recent articles quote costs that range up to 1.5 times the annual salary. So how do you know who is really behind that “interview mask?” How can you better determine whether this person has the behavioral traits that best suit the position or the mind-set that will help ensure success in your company’s culture?

Pre-employment assessment tools that seek to uncover the real aptitudes and abilities of job candidates are gaining in popularity. These tools assess qualities such as interpersonal strengths, communication style, honesty and the ability to thrive in certain work environments. In my coaching business, I use the 360-Degree Feedback Assessment and other assessment tools available from TTI Performance Systems Ltd. of Scottsdale, Ariz. Similar products are available from Carlson Learning Co. of Minneapolis and Praendex Inc. of Wellesley Hills, Mass. By assessing the attitudes of potential hires, employers can gain insight about what keeps them working, what environment they will thrive in, what motivates them, how to communicate with them most effectively and what their best role is. Once employees are hired, the same kinds of assessment tools can be used to help retain them by identifying ways to improve their performance and job satisfaction.

Another strategy for retaining good employees is the use of self-development plans. They can take a variety of forms, but the plans typically include creating strategies for career development, conflict resolution, effective team participation and response to change. These plans can be powerful tools for keeping workers. A survey by Robert Half International Inc. found that 91.7 percent of information-technology staff members would be more loyal and likely to stay if self-development plans were in place. Why go to all this trouble? Because self-development plans and assessment tools can help align workers’ goals with the company’s business strategy. By doing that, you greatly improve your odds of attracting and keeping the best employees in a tight market. CDB Bill Pinkerton is an executive coach and managing partner of The VV Group Inc. in West Bloomfield Township. He can be reached at (248) 683-1068 or Coach@4nSight. More information can be found at his Web site: www.4nsight.com