We have just faced the toughest recession of our modern times. In my 40-plus years of executive search for the rotating equipment and valve industry, I have seen no less than six recessions, and this is by far the worst. The recession, coupled with crises in housing, banking and finance, a nation at war and high unemployment, have affected most companies' bottom line profit, development of new products and frozen desire for expansion.

However, all recessions, including this one, are temporary. Now is the best time to hire top talent to increase profits and make your company "lean and mean." Here are several steps you can and should take to hire top talent in today's economy.

1. Evaluate Current Employees

Evaluate each of your employees in writing. Rate their performance on a scale of one to five (one being the top performer). Evaluate their work qualities, attitude and willingness to go the extra mile in their role. Evaluate and downsize bottom performers regardless of their length of time with the company or your emotional attachment to them. Eliminate highly paid, middle staff positions that are unnecessary and non-productive.

2. Determine Critical Needs

Examine your department's critical needs and hire one or two top performers in each area. For example, let's say you have five regional sales managers and you downsized two. Hire back one top performer, or if necessary two, but only from the top 25 percent of your competitor's sales staff. Repeat the process for manufacturing, engineering and general management areas.

3. Post Job Openings on Your Website

Posting job openings using job order boards will produce hundreds of resumes.  Most candidates will only remotely qualify for your job opening. Many will not be your top performers, but are the bottom candidates other companies have downsized. It will also cost you and your staff an extraordinary amount of time to screen through these resumes. Post job openings on your website only.

4. Consider Using a Recruiting Firm

If you are capable of hiring the top 25 percent talent on your own, cost savings can be effective. If not, select the top recruiting firm in your industry with credentials, longevity and success in recruiting the top 25 percent in engineering, sales, manufacturing and general management. This firm should perform an extensive search to identify the top competitive talent, and have experience and resources to do a complete search. The best talent may not be in its database; but if it is an expert in your industry, it will have the resources and knowhow to find the top performers.

5. Trust a Specialized Search Firm

If you are using a search firm who specializes in your industry, trust they know how to do their job. Many of the candidates represented by a search firm have a track record in industry, and the search firm has followed their successes for many years. When they recruit a candidate for a specific position, they do an in-depth interview based on the company's specific criteria. Many times they will have gone through 50 to 60 or more candidates to select the top three to five performers. The prepared resume may not address all the critical factors necessary for the position, but the recruiter should provide additional pertinent information that will. Use an evaluation meeting to discuss issues involved. If your recruiter recommends you interview a candidate, treat him as an expert. We personally have had many cases where the employer did not want to interview a candidate; however, when we convinced them that the candidate should be interviewed, he was the one they hired.

6. Do Not Procrastinate

Time is of the essence in hiring top performers, so do not hesitate or procrastinate. Have a specific hiring procedure and timeframe and stick to it. Top performers are not commonly available and will not stay on the market long. Streamline your hiring procedures and processes. Normally only two or three key people need to be involved in hiring.

Do not start the interview process until you are ready to hire. If your need is four to six months down the road, wait until 30 days out. Be prepared to conduct a telephone interview first, if necessary, and bring in top talent for a personal interview as soon as possible. Personal interviews within two weeks of a telephone interview are the most effective.

7. Find the Best Talent

Our recession has produced a positive situation when it comes to hiring top talent. Because many companies have been forced to downsize, consolidate or eliminate middle management positions, even some of the best talent has become available or are attracted to making major changes in their careers. In specific markets, such as engineering, talent that has been difficult to find in the past and unreasonable in their expectations is now available. Their money expectations are more realistic, and they are more willing to relocate. However, top talent is not available too long. Many have more than one offer they are considering. The need to move quickly is paramount.

8. Evaluate a Candidate's Bonuses and Incentives

In evaluating candidates for hire, hone in on their bonuses and incentives. Find out specifically what was paid in 2009. A potential bonus of 25 percent does not mean it was actually received. It has been our experience that almost all bonuses have not been paid out at their potential and many candidates have not received a bonus at all. If necessary, ask for verification from a W-2 form.

9. Examine the Need for and Cost of Relocation

Hiring candidates that must relocate necessitates significant relocation costs. Examine carefully whether relocation is absolutely necessary. Candidates are still struggling with relocation issues because of the housing decline and movement of families. In sales and marketing positions and some technical positions, it may be cost effective to leave candidates in their own location. Many candidates are more willing to travel to headquarters two to three times a month. For certain positions, relocation is mandatory. If you do relocate a candidate, offer extended temporary housing until their home sells. The housing market is picking up somewhat, but will be critical for the next few years.

10. Consider Talented Candidates without Direct Product Experience

Consider hiring talented candidates who may not have direct product experience in your industry. If they are a top performer in a related product line or market but experienced in the same client base, look seriously at them. They can learn your product line in three to six months. As top performers, they will bring "out-of-box" creative thinking and performance to your position. They will also challenge existing employees, bring new ways of doing business and introduce new markets. If their industry knowledge meets 75 percent of your company's needs, it is the additional 25 percent that will cause them to stretch and learn. This in itself will keep them interested.

11. Ignore the News Media Regarding Hiring

Do not let the news media affect your hiring decisions. Make decisions based on your own company's hiring needs, goals and financial status.

12. Sell Your Company

Sell the benefits of your company and what you can offer a new employee. When you are interviewing, you must sell your company. It is time to have bragging rights! In today's economy, stability and security are key. Talk about how your company is successful and stable even though you have downsized. Top candidates know you should be downsizing. Talk about critical elements that attract candidates: top notch products and key areas where this position can lead in upward mobility. All top performers need to have growth potential. Talk about "out-of-box" thinking and strategies you employ.

As a hiring official, talk about why you joined the company and why this company excites you. Sell it enthusiastically and with conviction. Remember, the #1 reason candidates move has not changed. It is "chemistry" with the company and particularly with the hiring officials who make the hire. Everyone on your interview team needs to sell with this conviction.

One other key is to ask each candidate you interview this question: "Here is the biggest problem I am facing in this position this year; what would you do to solve it?" Listen carefully, and take extensive notes. The candidate who conveys he has solved an identical or related problem the most successfully and sells it with passion and conviction is most likely your best hire.

Conclusion

The worst of the recession is over and companies' profits and growth have started to rebound. In the last quarter of 2009, we saw almost all companies stop their loss and increase profits. The recovery is slower than in past recessions, but we are seeing positive changes. In December 2009, we had the greatest number of placements of any December in our history, which is traditionally slower than other months.

In conclusion, evaluate and rate staff-keeping only your top performers; selectively hire talent to replace critical needs; keep hiring process moving quickly; expand and open restrictions on talent from related industries; offer competitive and fair compensation; sell your company; and identify key issues you need solved.

Business is on the upswing, and it is the best time to hire top talent.  Remember your company's talent is your key resource. May you all have a great and successful 2010!

Dan Bolen is the owner of Dan Bolen & Associates, 9741 N. 90th Place, Suite 200, Scottsdale, AZ  85258, Phone: 480-767-9000.