The Best Practice Hiring Process: Stages and Outcomes

A structured hiring process is essential for finding the right candidate while reducing the risks and costs associated with bad hires. This section will provide an overview of the best practice hiring process, breaking it down into clear, actionable stages and their expected outcomes.

Check Your Current Understanding

Self-check quiz

What should be the best starting point for a good hiring process?

1. Sourcing on LinkedIn or other employment databases.
2. Publishing the job ad.
3. Stakeholders analyzing the position and agreeing on the hire’s goals.
4. HR preparing a job specification.

Video Insights: Best Practices Explained

Watch the video below, where our instructor, Tõnis Arro, explains best practices in the hiring process and sets the stage for understanding the steps outlined here.  

The 9 Stages of the Best Practice Hiring Process

1. Position Analysis (Position Map, Vacancy Description, Role Description) 
The foundation of every successful hire is clarity. A position map ensures all stakeholders agree on what the role entails and what kind of candidate they are looking for.  

Outcome: A role description and candidate requirements agreed upon by all hiring managers.

2. Sourcing
This stage involves building a long list of potential candidates—both active and passive job seekers. The goal is to identify people who match the role requirements.  

Outcome: A comprehensive list of potential candidates for the role.

2. Screening
Screening helps filter the long list down to a shortlist of viable candidates. This typically involves structured phone calls or initial video interviews to assess the candidate's qualifications, motivations, and readiness to proceed.  

Outcome: A refined list of candidates to be formally interviewed.

4. Interviewing 
Structured, behavioral interviews are key at this stage. Pre-determined, role-specific questions help evaluate the candidate’s **knowledge, skills, and behaviors** against the job’s requirements. 

Outcome: Detailed insights to identify a shortlist of the most suitable candidates.

5. Executive Interviewing of Finalists
Whether handled internally or by an external consultant, this stage ensures a thorough assessment of finalists. The approach should be consistent, focusing on deeper evaluations and alignment with the company’s goals.  

Outcome: 1-2 finalists identified for reference checks or final decisions.

6. Reference Checks 
References provide valuable, objective data about the candidate’s past performance. Focus on facts, not opinions, to verify their suitability.  

Outcome: Confirmation of the candidate’s qualifications and character through reference feedback.

7. Making the Executive Hiring Decision  

Use a combination of data-driven insights, reference checks, and interview evaluations to select the best candidate. A collaborative decision-making process among stakeholders ensures alignment. 
Outcome: The hiring decision is finalized.

8. Making the Employment Offer
Extend a formal offer to the selected candidate, including salary, benefits, and role expectations. A well-structured offer ensures clarity and acceptance.  

Outcome: The candidate accepts the offer and prepares for onboarding.

9. Onboarding
The hiring process isn’t complete until the candidate is fully onboarded. Effective onboarding includes clear role expectations, an action plan, and cultural integration.  

Outcome: The candidate is performing at full capacity and is fully integrated into the team.

Why a Best Practice Hiring Process Matters

A structured process ensures:  

- Reduced hiring risks and costs.  

- Better team performance.  

- Higher retention rates for top talent.  

Did You Know?

Research shows that structured hiring processes can improve the likelihood of selecting the right candidate by over 50% (source). This is especially critical at the executive level, where the cost of a bad hire can exceed 200% of their annual salary (source).

Self-check quiz

What would you consider as not an actual result of a successful hiring process?

1. Improved team performance.
2. The best candidate is selected for the role.
3. After 12 months, the hiring manager says they would hire the same person again for this role.
4. All the candidates you were in contact with are informed that the process has ended.

In the next section, we’ll take a deeper dive into position analysis and how defining the role properly sets the stage for success. Ready to move forward? Analysing Positions and Writing Better Role Descriptions