Direct answer: Build a hiring process in four steps: define role SOPs, write the job description, create a hiring profile, then develop scenario questions. Never hire anyone who “can fog a mirror.” Use two-interviewer teams and expect one unicorn in 100 hires.
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Why Your Hiring Process Determines Growth, Scale, Or Exit
As a business owner, entrepreneur, offer owner, or practitioner, one of the most common conversations I get to have is how to build a hiring process for interviewing potential candidates. Your hiring process is not just an HR checklist. It is the specific mechanism that determines whether you can actually grow, scale, or exit your business — because every hire either strengthens or weakens the operational infrastructure buyers evaluate at exit.
What I am going to give you is one version. It does not mean it is the only version. Take this as a recipe. There are tons of recipes out there. This one happens to be the recipe I use, built from years of interviewing thousands of candidates across multiple industries. This concept sits inside the Exit Ratio 360™ system as one of the operational preparation topics that pairs directly with the Foundational Four framework.
The “No Description, No Position” Foundation Of Your Hiring Process
Here is the saying that anchors everything else. No description, no position. I did not make this up. I cannot remember who it came from — brilliant person, but I want to give credit where credit is due. The principle is foundational: you cannot hire for a role you have not documented.
What “no description, no position” means in practice:
- You cannot describe the role clearly enough to screen candidates against it
- You cannot evaluate whether a candidate performed well without a documented standard
- You cannot fire underperformers cleanly because you never defined the performance bar
- You cannot build repeatable hiring because the criteria live only in your head
- You cannot demonstrate operational maturity to buyers who inspect hiring documentation during due diligence
The absence of position documentation is the hidden cost of most owner-operated businesses. Fixing it is the entry point to everything else in your hiring process.
The Four-Step Framework To Build A Hiring Process
Here is the specific four-step framework I use with clients to build a hiring process that works:
| Step | What You Build | Why It Matters |
|---|---|---|
| 1. | ||
| Role SOPs | The standard operating procedures that define what this role actually does day-to-day — reports, actions, items, deliverables | Without SOPs you are hiring for a fantasy job, not a real one |
| 2. Job Description | Written description translating the SOPs into a hiring document — what is involved, what it takes to do the job properly | Anchors the candidate expectations before the interview begins |
| 3. Hiring Profile | What kind of person fills this role — expectations, education requirements, schedule (morning-afternoon or afternoon-evening), personality fit | Screens candidates before you invest interview time |
| 4. Interview Questions | Standardized questions based on the role, scenarios, and past problems — asked consistently across all candidates | Creates comparable data across candidates instead of subjective impressions |
The order matters. You cannot skip to step 4 without steps 1-3, because your questions will be generic instead of role-specific. See why the Foundational Four allows you to sell your business or take vacation for the broader infrastructure this hiring process fits inside.
The “Can Fog A Mirror” Wrong Way To Run A Hiring Process
I cannot tell you how many times I have worked with different companies and organizations that do not have a standardized hiring process. They do not have consistent questions. They do not have common conversations. They just bring somebody in and — if they can fog a mirror — they get hired. That is what I refer to as the wrong way.
The “can fog a mirror” hiring process shows up in specific patterns:
- Different interviewers ask completely different questions across the same role
- The hiring decision comes down to gut feel rather than documented evaluation
- Candidates are compared to each other rather than to a defined standard
- Reference checks are inconsistent or skipped entirely
- Onboarding starts before the role SOPs are even finalized
- The first hire in the role becomes the accidental template for all future hires
Every one of these patterns compounds the problem. Fixing the hiring process at the front end prevents years of downstream cost from bad hires you could not have identified in time.
Scenario Questions That Test Real Candidates In Your Hiring Process
Here is the specific interview technique worth using. Take common problems your business faces and ask candidates how they would solve them. You can anonymize the specifics — you do not have to give your exact scenario. But you can ask about problems that happen in the industry, problems with employees, problems with clients, problems with output or delivery or installation.
Sample scenario question structure:
“If I were to give you this opportunity, what are some things you would put in place? I am going to give you a couple of pieces of information. I am going to share some ideas and concepts.”
Then listen for how they think through the problem, not just what conclusion they reach.
Important NDA warning: if it is super important inside your business and private, do not share it in the interview. If it is something that requires a non-disclosure agreement, it is not something you talk about in a job interview. The scenario technique works with anonymized industry examples — not with your specific confidential situations. See how you could use an NDA to your advantage in your business for related guidance on protecting confidential business information.
The Reverse-Criteria Questions Missing From Most Hiring Processes
Here is a specific practice most hiring processes skip. Take things you did not like from previous employees in the role, and ask questions about what you did not like. This reverse-criteria approach produces sharper screening than positive-only questions.
Reverse-criteria question examples:
- “How do you feel about showing up on time?” (targets punctuality issues)
- “How do you feel about completing tasks that are given to you?” (targets follow-through issues)
- “How do you handle client complaints when the issue is not your fault?” (targets accountability issues)
- “How do you communicate when you have missed a deadline?” (targets transparency issues)
- “How do you handle it when a manager gives you feedback you disagree with?” (targets coaching receptivity)
Each reverse-criteria question targets a specific past problem the previous person in this role created. Candidates who answer defensively or dismissively signal they will create the same problems. Candidates who answer thoughtfully and with self-awareness signal the opposite. See should you hire or grow a manager for your business for the related decision framework on hire-vs-develop dynamics.
The Two-Interviewer Step-Outside Protocol
Here is a specific technique I use for interviewing candidates. We always interviewed in two. One person running the interview, one person watching. Then at the end, we step outside and have a private conversation.
The step-outside protocol:
- Run the interview with two people — one leads, one observes
- At the end, tell the candidate: “Let me go talk to my partner. We will step outside for a minute.”
- Outside: “What did you think?”
- Compare notes. Identify inconsistencies, gaps, or questions
- Return to the room. “We got some questions. We were not quite clear on one of the answers you gave. We really like to get your side of the story.”
- Give the candidate the chance to clarify
- Then position honestly: “We are looking to offer you a position” OR “We are still interviewing”
The step-outside conversation catches interview weaknesses in real time. Solo interviewers miss things. Two interviewers with a private debrief catch what one interviewer alone would have missed — which is where the highest-quality candidates get identified and the highest-risk candidates get flagged.
The Unicorn Rate — Why Most Hiring Process Hires Are Not Perfect
For key positions, the more people you can interview, the better. Unless you find the unicorn — the perfect candidate who fits everything immediately.
The unicorn rate reality:
| Organization Quality | Unicorn Rate |
|---|---|
| Typical business | 1 in 100 hires |
| Really good company with strong process | 5 in 100 hires |
| Everything else | Multiple interviews required |
Most hires are not unicorns. Which means your hiring process needs to work for the 95-99% of hires who are good-but-not-perfect fits. Multiple interviews, standardized questions, two-interviewer teams, and reverse-criteria screening are what produce reliable non-unicorn hires. See should you hire top talent when you find it in the marketplace for what to do when you actually do find a unicorn candidate.
The Pushback Signal That Reveals Your Best Hiring Process Candidates
Here is a specific candidate behavior worth watching for. Really good candidates push back during the interview. They might say:
“I have got everything you need. Why are we not doing business right now?”
“You are going to lose the opportunity. I have got other opportunities on the market. People want me right now.”
The pushback is not arrogance. It is signal.
What the pushback actually reveals:
- They know their market value
- They have alternative options and are not desperate
- They can advocate for themselves under pressure — which they will need to do with clients, vendors, and team members
- They understand competitive dynamics and use them appropriately
- They will not disappear silently if the offer is not competitive
Weak candidates never push back because they have no alternatives to push from. The candidate who pushes back is often the candidate you want to hire — because that same push-back behavior serves you when they become part of your team.
The KPIs That Measure Your Hiring Process Quality
Here is how you measure whether your hiring process is actually working. Two specific KPIs paired together tell you the story:
- Candidate throughput per role: How many people are you interviewing for each position? Too few = you are settling for whoever applies. Too many = your job description is misaligned with the actual role.
- Retention time: How long do hires stay in the company? Is it 3 months? 6 months? 1 year? Or do you not lose them because your hiring process is doing the work?
The formula: candidates interviewed × retention time = hiring process quality metric.
Both variables have to work together. Interviewing 50 candidates and losing them all in 6 months is a hiring process failure disguised as thoroughness. Interviewing 2 candidates and keeping them 5 years is either exceptional luck or an exceptional process — track it long enough to know which.
If you are looking to sell your business in the next zero to thirty-six months, doing at least $2 million a year in revenue with a ten percent profit margin, the deal hotline is 888-DEAL-919. One of the team members will get back to you. No deal is too big.
Related cluster reading: should you hire top talent when you find it in the marketplace, should you hire or grow a manager for your business, the three types of employees you will find when doing deals.
Frequently Asked Questions
What are the four steps to build a hiring process?
Step 1: Define the standard operating procedures for the role — reports, actions, items, deliverables. Step 2: Take the SOPs and write a job description. Step 3: Take the job description and create a hiring profile — what kind of person, expectations, education, schedule. Step 4: Develop standardized interview questions based on the role, scenarios, and past problems. Order matters — you cannot skip to questions without the foundation.
What does “no description, no position” mean in hiring?
It means you cannot hire for a role you have not documented. Without role SOPs and a written job description, you are hiring for a fantasy job rather than a real one. You cannot screen candidates against undefined standards, evaluate performance against undocumented expectations, or fire underperformers cleanly when you never defined the bar. The saying is not mine — brilliant person came up with it, credit where credit is due.
Why should you never hire someone who “can fog a mirror”?
Because hiring anyone who breathes creates downstream cost far exceeding the interview time you saved. The “can fog a mirror” hiring pattern shows up as inconsistent interviewer questions, gut-feel decisions, candidates compared to each other rather than to standards, skipped reference checks, and the accidental-template problem where your first bad hire in a role becomes the template for future bad hires.
What is the scenario-based interview question technique?
Take common problems your business faces and ask candidates how they would solve them. Anonymize the specifics. Ask about industry problems, employee problems, client problems, output or delivery problems. “If I were to give you this opportunity, what are some things you would put in place?” Listen for how they think through problems, not just what conclusion they reach. Never share confidential business details in interviews — that requires an NDA first.
How do you use anonymized problems in interview questions?
Rather than sharing your specific confidential situation, describe a similar problem in generic industry terms. Instead of “our top customer is threatening to leave,” ask “how would you approach a situation where a top customer is expressing dissatisfaction?” The anonymization protects confidential business information while still testing candidate problem-solving. If a specific scenario requires NDA-level confidentiality to describe accurately, save it for post-hire.
What is the two-interviewer step-outside protocol?
Two interviewers run each interview — one leads, one observes. At the end, tell the candidate: “Let me go talk to my partner. We will step outside for a minute.” Compare notes privately. Identify inconsistencies, gaps, or questions. Return to the room and give the candidate the chance to clarify anything unclear. Then position honestly about next steps. The private debrief catches things solo interviewers miss.
What is the unicorn hire rate in candidate interviews?
Approximately 1 in 100 hires is a true unicorn — the perfect candidate who fits everything immediately. In really good companies with strong hiring processes, it might be 5 in 100. For the remaining 95-99% of hires, multiple interviews are required. Which means your hiring process needs to work for good-but-not-perfect candidates through standardized questions, two-interviewer teams, and reverse-criteria screening.
Why do good candidates push back during interviews?
Because they know their market value and have alternative options. Pushback like “I have everything you need, why are we not doing business right now?” is not arrogance — it is signal. It reveals candidates who can advocate for themselves under pressure (which they will need with clients, vendors, and team members), know competitive dynamics, and will not disappear silently if your offer is not competitive.
What KPIs measure hiring process quality?
Two specific KPIs paired together: candidate throughput per role (how many people you interview per position) and retention time (how long hires stay in the company). The formula: candidates interviewed × retention time = hiring process quality metric. Both variables have to work together. Interviewing 50 candidates and losing them all in 6 months is a hiring process failure. Interviewing 2 and keeping them 5 years is exceptional.
Should you ask reverse-criteria questions in interviews?
Yes. Take things you did not like from previous employees in the role and ask questions targeting those exact behaviors. Examples: “How do you feel about showing up on time?” (targets punctuality), “How do you feel about completing tasks given to you?” (targets follow-through), “How do you handle client complaints when the issue is not your fault?” (targets accountability). Reverse-criteria questions screen for the specific problems your last hire created.
Full Transcript
As a business owner, entrepreneur, offer owner, or practitioner, what are some ways you can figure out how to hire the right person for a role inside of your organization when you want to grow, scale, or exit? This is a fantastic question. I am Scott Sylvan Bell coming to you live from Consulting Secrets on a perfect day to talk about business growth opportunities, hiring the right person, and even scale or exit if that is what you choose to do. Coming to you live from Sacramento.
This is a common conversation I get to have with offer owners, practitioners, and entrepreneurs — how do you put together a process to interview a potential candidate? I am going to give you one version. It does not mean it is the only version. Take this as a recipe. There are tons of recipes out there. This just happens to be one that I use. I have got my $12 whiteboard here to make some notes.
First and foremost, anytime you are looking to hire, there is a saying: no description, no position. I did not make it up. I cannot remember who it came from. Brilliant person. But I want to give credit where credit is due. It did not come from me. No description, no position. You really want to take a look at the standard operating procedures it is going to take for that role or function to work. You are going to make a list. What are the reports, the actions, the items they are going to have to take?
Then you take those standard operating procedures and write a job description. You are going to say: here is what is involved in the job. Here is what it is going to take to do your job properly. You know based on the role and the position what it is going to be.
Then you take that job description and create a hiring profile. What kind of person is going to be in this role? What are the expectations? Do they need to have an education? Can they be just getting started? Is it morning to afternoon? Is it afternoon to evening? Whatever that role is, now you have a hiring profile.
Then you come up with your questions to ask. I cannot tell you how many times I have worked with different companies and organizations, and they do not have a standardized hiring process. They do not have consistent questions they are asking. They do not have common conversations they are going to have. They just bring somebody in — and if they can fog a mirror, they get hired. That is what we refer to as the wrong way.
You can take a look and say — we are going to go through our company and ask questions on common problems that we face. You give the person a scenario. You can anonymize it. You do not have to give your exact scenario. But you could talk about problems that happen in the industry. Problems with employees. Problems with clients. Problems with output, delivery, or installation. Things you want to do new inside the business. Ask them: if I were to give you this opportunity, what are some things you would put in place? I am going to give you a couple of pieces of information. I am going to share some ideas and concepts.
Here is the thing: if it is super important inside your business and private, you do not share it. If it is something that requires a non-disclosure agreement, it is not something you talk about in the job interview.
You can also talk about things you did not like from previous employees and ask questions about what you did not like. How do you feel about showing up on time? How do you feel about completing job tasks that are given to you? This process gives you the ability to look for better talent.
One of the rules I like to have in place: if it is a key position, the more people you can interview, the better. Unless you find the unicorn. There is going to be a point where you go — oh my goodness, we found the perfect person. They are a unicorn. It happens like 1 in every 100 hires. Maybe if you have got a really good company, 5 in 100 times. But you want to have conversations with multiple people and then a second interview.
At one point I interviewed a ton of people for an organization. I was always the tiebreaker. They would say — hey Scott, can you come do an interview? I would talk to the person, ask questions. I have done so many interviews in my life, I would get to a point where I would get stuck with them and go — hey, I am missing something. Something seems a little off. I am not understanding your answer. Can you explain a little more?
We always interviewed in two. There were always two people in the interview. One running the interview and one watching. What we would do — okay cool, let me go talk to my partner. We are going to step outside for a minute. Then we would step outside and say — okay, what did you think? Well, I got questions about their job history. I got questions about what they meant about an answer. We would go through the entire interview. Then we would go back into the room and have a conversation. Hey, we got some questions. We were not quite clear on one of the answers you gave. We were missing a piece of information. We would really like to get your side of the story. Then we would let them know — we are still interviewing, we are looking to offer you a position, or we do not know what the answer is quite just yet.
For really good candidates, they might push back. They might say — I have got everything you need, why are we not doing business right now? They might come back and say — you are going to lose the opportunity. I have got other opportunities on the market. People want me right now. Opportunity is going to come up a lot. Opportunity to hire me.
Be aware you do want to have some sort of strategy for hiring top talent, new positions, and even mid-level or starting-out positions. Have your team use something consistent and standard. That way you can judge — are we doing a good job by hiring? One of the metrics, one of the KPIs you should be looking at is how many people are we interviewing for a role or position, and then what is their time inside the company? How long before we lose them? Is it 3 months? 6 months? A year? Or do we not lose them because we do a really good job? The amount of candidates you take a look at plus the amount of time they are able to stay is one of the KPIs that can give you direction on what you are doing right and what you could change.
