CEOs of small, growing companies routinely call bookkeepers to manage their finances and consult experts on go-to-market strategy. Yet when it comes to hiring, many still rely on gut instinct—or the infamous “Would I have a beer with this person?” test.
Too often, leaders lean on unstructured interviews or ask colleagues to rate candidates on vague traits like “fit” or “technical chops.” These subjective methods create a false sense of confidence—especially when arbitrary numbers (like a 3.72 out of 5) are assigned without clear definitions. Without calibrated standards, that precision is just an illusion.
There’s a better way: **industrial and organizational (I/O) psychology**. Though the name may not spark excitement, this field is grounded in decades of research on predicting workplace behavior. I/O psychology helps leaders select the right people, motivate teams effectively, and align leadership with strategic goals. Despite its proven value since the early 20th century, it remains a well-kept secret—overshadowed by flashier, less rigorous tools that prioritize marketing over measurement.
The good news? You don’t need a PhD to apply its principles. Here’s how any leader can make smarter, more objective hiring decisions.
**Before the Interview**
**1. Define Key Competencies**
Start by identifying the specific behaviors and traits needed for success in the role. For example, if you’re hiring someone to expand into a new market, look for entrepreneurship, curiosity, influence, and commercial judgment—not just résumé buzzwords.
**2. Craft Behavioral Interview Questions**
Use the **STAR method** (Situation, Task, Action, Result) to design questions that uncover past behavior—the best predictor of future performance. Ask every candidate the same questions to ensure fairness and comparability.
Example:
> “Tell me about a time you had to learn a new product or industry quickly to sell it. What was the situation? What steps did you take? What was your specific role? What was the outcome? What would you do differently?”
Avoid gimmicks like brainteasers—they reveal little about job performance.
**3. Build a Behaviorally Anchored Rating Scale (BARS)**
For each competency, define what a “1” (ineffective), “3” (effective), and “5” (exceptional) response looks like—based on observable behaviors.
- A “1” might be a candidate who can’t explain how they learned or added value.
- A “3” shows structured learning and clear communication.
- A “5” demonstrates rapid mastery, synthesis of complex information, and measurable impact.
This removes guesswork and ensures consistency.
**During the Interview**
Take detailed, verbatim notes—**not judgments**. Resist the urge to label responses as “good” or “weak” in the moment. Premature evaluation biases your perception of later answers. Stay neutral and focused on capturing what the candidate actually says.
**After the Interview**
Review your notes and assign ratings **against your predefined scale**, not against other candidates. Evaluate each competency independently. A candidate might score a 5 in decision-making but only a 3 in influence—and that’s okay. Most roles don’t require excellence in every area. Prioritize the competencies that truly drive success.
Chasing a mythical “perfect 5 across the board” candidate only delays hiring and risks missing great fits.
If this feels overwhelming, remember: just as you’d hire an accountant for taxes or a consultant for marketing, you can—and should—engage an I/O psychologist for high-stakes hires. These professionals can design validated assessments, conduct structured interviews, and even run simulations or personality inventories tied directly to job performance.
A small investment in expert hiring practices can yield outsized returns in team performance, retention, and growth.
In a world where talent is the ultimate competitive advantage, ditch the beer test—and start measuring what really matters.