Is Your Agency Using the Right Hiring Criteria?

One of the most challenging issues agencies face when hiring qualified applicants is choosing the most appropriate criteria for qualification.

Most employers don’t realize they have carte blanche to pick whatever criteria they see fit. However, job requirements must pertain to a bona fide occupational qualification (BFOQ), meaning the requirements directly relate to the job’s essential duties.

The seminal BFOQ case was Griggs v. Duke Power Co., decided in 1971, which concerned employment discrimination and the adverse impact theory. In the case, the U.S. Supreme Court ruled that Duke Power’s educational requirements for some manual labor positions did not pertain to applicants’ abilities to perform their jobs. The decision held that the company was discriminating against black employees by adhering to unwarranted standards intended to eliminate a large percentage of black applicants.

At the other end of the spectrum, Ernst & Young, one of the largest professional services firms in the world, announced this fall that it would no longer require college degrees for job applicants because it found no evidence that previous success in higher education correlated with future success in professional positions. And while E&Y did not say it wouldn’t consider an applicant’s degree during the hiring process, the company will also use other criteria to determine future success, such as a skills test, aptitude tests and past accomplishments. Of course, for certain jobs—including a CPA—a five-year degree may be required to qualify for a relevant exam.

Aside from keeping licensing requirements in mind when filling an open position, independent agents should carefully review job duties and use an employment assessment tool like Caliper’s to match a position’s essential components with the employee attributes that best suit it. These may include creative reasoning, attention to detail and personal temperament, such as an ability to empathize.

Certainly, education is important and is always a worthwhile investment of time and energy. But ultimately, capabilities are the most important factor in professional success. Locating talent that possesses those capabilities, regardless of background, is critical to the success and perpetuation of your agency. Make sure your job requirements match the essential qualities of the position you’re trying to fill.

Dave Evans is a certified financial planner and an IA contributor.