Rather than grappling with managing production and services on a skeleton staff – as we did during last year’s financial squeeze – it seems the pendulum has swung back in our favour and we can now pull in the resources we need to grow into the future.

This is great news of course, but are we going to do things differently this time? Are we going to make sure we don’t splurge the precious dollars we hoarded during the lean times by hiring lemons?

A bad hire is like a ticking time bomb and the financial fallout could end up costing you three times the incumbent’s annual salary once you tot up wages, re-hire costs, training invested, overall loss in productivity, performance management and the opportunity cost to your business.

While there is no miracle solution to this dilemma (as truth serums and lie-detector-tests haven’t yet been approved for use during interviews) there is plenty we can do to reduce risks and minimise impact on our businesses. The opportunity to reduce the risks lie in the two key stages of hiring - selection and probation.

Beilby’s General Manager for Victoria John Wallis has written about the importance of  developing a realistic job profile; one where an employer defines his/her expectations of the ideal candidate by providing precise information about what is required for the role, tasks, work behaviours and competencies.

Commenting on John's advice, Donna Neill, Managing Consultant for Beilby's HR Consulting Division, said: “This is the first key step in building an authentic communication between your organisation and candidate, and certainly helps to reduce expectation mismatches,” explained Donna Neill, Managing Consultant in Beilby's HR Consulting Division.

“Another key step in the recruitment process is psychometric testing - but don’t be tempted to use cheap online tests that may not have been created by qualified professionals if you want quality candidates.

“Some online psychometric tools are already being tested in the courts by disgruntled candidates in the US, and we may well see the same happening here in the near future,” Donna said.

Interviews are the last stage of the pre-selection process and the most vital element because we are no longer assessing flat, one-dimensional, paper-based information.

“We need to remember that interviews are a two-way street. Our candidate is assessing us just as much as we are assessing them, and we should embrace this,” said Donna.

Interviews should be seen as a means of representing and promoting the real company culture and an opportunity to find out if the candidate will be a good fit. Never sugar-coat a role or intimidate a candidate to break them into submission.

Then, assuming our selection process has done its job and we have made our ‘ideal’ hire, our next opportunity is to minimise risk during a probation period.

This is the point at which many employers relax and take their eyes off the ball, but this is precisely when they should be paying the most attention, urged Donna.

“Probation periods should be used as an opportunity to assess the actual level of competency and potential of a new employee. We need to use this time to engage with them and ensure they have all the support and information they need to be successful,” she said.

“We also need to ensure they complete a proper and thorough induction process. This is your opportunity to reinforce the vision and values of your organisation and help integrate them into the work force, as we ensure they have the skills required to do the job at hand.”

Remaining close to an employee during this time enables you to build rapport, address and hopefully resolve issues quickly. This is also the time to document performance-related issues where you suspect you may have made a weak hire or are unable to immediately resolve certain issues.

The overriding message is to communicate and be open and honest throughout each stage of the recruitment process. Build this into every aspect of your selection and early management system for new recruits to help avoid recruiting a lemon.