The success of any distribution center is a combination of equipment, efficient processes and the people necessary to carry them out. Many warehouse managers would contend that the third part of that equation is the most important.

Finding good employees has always been critical. During the prosperity of the 1990s, however, employers were willing to hire just about anyone to fill open positions in their growing businesses. Now, labor is not as tight and managers can be more particular about the people they bring on board. They can look for workers who have the potential to be productive over the long term.

"With the job market firming up, we are seeing an end to the cycle of cutbacks," says Mike Flamer, vice president of the Dorfman Group (480-860-8820), an employment search firm. "Companies will need to hire again to address their needs in a recovering economy."

This is good news for most businesses, but that brings up the age-old dilemma of who to hire. Managers should have a consistent approach to hiring that includes proper screening of candidates, interview processes that reveal the best applicants and ways to determine who is trainable.

While many companies find potential candidates through local advertisements and employment agencies, Michael Fostyk, vice president of distribution at American Eagle Outfitters, says that most employees come to him by word of mouth.

"We do not have a lot of turnover. This is a nice place to work," he says. "When we do need to find people, our current employees make the best referrals. We could not put an advertisement together that could be better than what is said to others by our employees."

But then, how do you find the best of the ones who make it to your door? Though warehousing and distribution facilities are often highly automated, most managers still value character over technical experience, especially when hiring for entry-level positions. If they can find a person with the right attitude for work, they can then train them to perform the job.

"Employers today are looking for people who have a track record of honesty and stability," says Flamer. "If you find someone with good character and an honest reputation, then you are well on the way to hiring the best people."

That is the case at Dart's distribution center in Naperville, Ill. Dart is a third party logistics (3PL) provider of warehouse services for Sears, Keebler and Kellogg's, among others. "Most of what we rely on in hiring is the potential of the person," says Herb Duggan, general manager. "We try to ascertain the commitment the person will bring to the job, and we look for employees with strong family and cultural values as well."

At FedEx Ground's facility in Woodbridge, N.J., the best candidates are those who have demonstrated job stability even though 500 of the 600 jobs are part time, says Bruce Polansky, employee relations manager. "We will overlook people who have not worked in a while or have just been temporary labor elsewhere. We also try to find people who have worked in a physical environment before, such as a warehouse." The facility is highly automated, which leaves workers to do the heavy lifting of loading and unloading the delivery trucks.

Polansky says he gets a lot of referrals from local tech schools. Many of these students welcome part time work and FedEx helps to pay for their schooling.

Telecommunications giant Verizon seeks employees who are able to work well in a team environment. The company's National Logistics Center in Westfield, Ind. ships products and repair parts directly to field technicians in six midwestern states. It also processes some direct-to-consumer items and sends merchandise to other Verizon DCs. The facility uses extensive pick-to-light for order picking. It also has a fleet of lift trucks and order pickers.

"We look for people who can easily float from one position to another," says Pam Reeves, manager of national logistics. "If someone has forklift experience, then it takes less time to train them."

Her employees are cross-trained so that they will be able to perform at multiple functions within the building. During one shift they may be doing receiving, the next working order fulfillment within the pick-to-light module.

"We may vary it from job function to job function and from shift to shift," she says. "A lot of what we look for is teamwork and how they can think through a situation. It is not just how well they can drive a forklift."

Reeves attempts to place her full-time workers in more demanding positions, while putting part-time labor in the pick-to-light, kitting and other areas that require less decision making. She additionally brings in temporary labor for peak-season fulfillment.

American Eagle Outfitters also looks for flexibility in their workforce. The company's distribution center in Warrendale, Penn. ships clothing products to over 500 company stores. Key to their success is an efficient put-to-light area. Workers must be able to follow the light-guided system for splitting full cases into individual store orders. The items are placed into staged shipping cartons as directed by lights.

Many of the same principles used to hire front-line workers apply to supervisors, too.

"When hiring our supervisors, we match up personalities to the task," says Dart's Duggan. "Our supervisor who handles our returns, for instance, must be in control, flexible and good at handling pressure. The guy we have in that position also works as a baseball umpire. On the other hand, the man who supervises our replenishment area is a very nuts and bolts guy. There is little change in that area, and he is a man who works well in a constant routine."

But how do you determine if someone has the right character and attitude, and in the case of supervisors and technical positions, the right skills for the job?

"Testing helps you determine their intellectual capacities and organizational skills, and whether the person has the drive to hang in there and succeed," says Flamer.

In addition to seeking people with flexibility, the testing may help to identify applicants who are comfortable around machinery, especially if the facility has a high degree of automation.

While testing helps weed out candidates, the central part of any good hiring process is the interview. It remains the best way to become familiar with a potential employee. Flamer prefers "serial" interviewing, where interviews of various applicants are conducted one right after another, rather than allowing days to pass between candidates. This provides a more accurate comparison. It is also preferable to have the same person conduct all interviews.

If a company has a human resources department, it is best to have them screen potential candidates first before bringing management into the process.

Once candidates are narrowed down, supervisors and managers should be part of the interviews. Many companies utilize a team of people that may include someone from human resources, the supervisor and the manager above the supervisor. Some also include a peer-level person on the work team.

Verizon has a structured interview process, initially asking the candidates the same standard questions. Most of these are situational questions designed to see if they can be team oriented and how well they think things through, reason and adapt to their environment. Their answers are scored. After that, two managers sit down for an interview.

Verizon also conducts a data test to check the computer skills of the candidates. With so many computer-based systems within the warehouse, including scanners, radio frequency devices and terminals, computer literacy is critical. Reeves says that she, the operations manager and the supervisor then make the final decisions on hiring.

Fostyk says that the human resources department also conducts initial screening of candidates at American Eagle Outfitters. Then two or three people conduct interviews, including supervisors.

FedEx Ground pre-screens candidates on its Web site. Interested applicants are asked to complete an online application that also asks about availability for shifts and experiences. Four recruiters then conduct one-on-one interviews with candidates. A background check is run for criminal record and other references are checked by phone and mail, though Polansky admits he gets better responses by phone.

The managers of the sorting runs then do a second interview. Successful candidates take a two-hour orientation class. If the background checks are clear, then the applicant is extended a job offer.

Dart does simple interviews first to screen candidates, then brings in a team to conduct the final interviews.

"We all have to have that warm fuzzy feeling about the person before we put them on the job," says Duggan.

Immigrants are a large part of the workforce at Dart, as is the case with many urban facilities offering entry-level positions. Dart's workforce is 97% Hispanic.

"That has a major influence on what we do here," adds Duggan. Dart requires that all lead personnel and team leaders speak Spanish. Most of his supervisors are also bilingual.

Hiring immigrants also requires employers to perform the government-prescribed background checks. Companies should also make sure the facility is an environment in which immigrants feel welcomed. Make sure that all signage is bilingual. This is especially important with safety signs.

Finally, it is critical to check references before making the final hiring decision. Flamer prefers doing reference checks by telephone.

"You can hear how someone speaks about the candidate, which is better than just reading the words on a sheet of paper," he says.

While companies giving references must take care with what is said, usually a good person will have good things said about them. Bad workers will have employment dates released and little more.

Even after you have done your homework, tested the candidates, checked references and conducted thorough interviews, hiring the right person is not yet an exact science.

"A certain number of new hires will still fail on the job," says Flamer. "It is not a precision process. Hiring is still 90% chemistry. It has to be a cultural fit. There must be a comfort level between the company and the employee."