Just had to let someone go and it was a nightmare. Thought I'd share the story so others can avoid my mistakes. Hired an ""experienced"" auditor who claimed 10 years with various firms. Resume looked great, interview went well, references checked out. Three months in, clients start complaining about sloppy work and missed deadlines. Turns out he was falsifying time sheets AND billing clients for work he never did. NYSEG complaint almost cost us our relationship. Always verify, verify, verify before hiring. Trust but definitely verify in this business.
Worst hiring mistake - learn from my disaster
Tom, that's terrible but not uncommon unfortunately. Had a similar experience with Avista territory work here in Spokane. Guy seemed great but started cutting corners after a few weeks. Now I do working interviews - have candidates actually audit a sample bill while I watch. Tells you everything you need to know about their process and attention to detail.
Eddie's working interview idea is smart. I do something similar now - give them a real case (with client permission) and see how they handle it. Also learned to check with their actual former clients, not just employer references. Previous boss might be happy to get rid of a problem employee. Clients will tell you the truth about work quality.
Sorry to hear about your experience Tom. Unfortunately we see this more often than we'd like in our industry. The key is having robust systems to catch problems early. Random quality checks, client feedback loops, detailed time tracking. I also recommend bonding all employees who handle client funds or have direct client contact. The few hundred dollars in premiums is nothing compared to the liability exposure.
Randy makes a great point about bonding. Learned that lesson with CenterPoint Energy work down here in Corpus Christi. Also started doing credit checks - someone with serious financial problems might be tempted to cut corners or worse. It's not foolproof but another data point in the hiring decision.
What about non-compete agreements? Had an auditor leave and immediately start poaching our Entergy Arkansas clients. Legal said we couldn't do much since our non-compete was too broad. Now I use much more specific language about not soliciting existing clients for 12 months. Expensive lesson but necessary protection.
Helen, non-competes are tricky and many states are limiting their enforceability. Better to focus on protecting your client relationships and trade secrets. I use detailed confidentiality agreements and make sure all client contacts flow through the office, not directly to individual auditors. PPL territory here in Harrisburg has taught me that client loyalty goes to the company, not the individual auditor.
Great advice everyone. Sylvia's point about client relationships is spot on. I was too focused on the technical skills and ignored the character issues. Now I do much longer interviews, ask for work samples, and have a 90-day probationary period with weekly check-ins. The right hire is worth waiting for.
Tom, have you considered partnering with other audit firms instead of hiring? OG&E territory keeps me busy but not quite enough to justify a full-time employee. I have referral arrangements with two other firms - we share overflow work and cover for each other during vacations. Less overhead and risk than hiring.
Susan, that's an interesting model. How do you handle client relationships when you're referring work out? Do clients know they're working with a partner firm or does it stay under your company name? Thinking this might work for some of my larger Avista commercial accounts.
The partnership model can work well but requires very clear agreements about quality standards, pricing, and client communication. We've seen situations where it works great and others where it created more problems than hiring would have. The key is finding partners whose standards match your own. Regular communication and joint quality reviews are essential.