Chapter 11
Choosing and Hiring Candidates
Rutgers, The State University of New Jersey
Learning Objectives
After studying this chapter, you should be able to:





Describe different ways of combining candidates’ scores on different
assessment methods to calculate an overall score.
Describe three different ways of making a final choice of whom to hire.
Discuss the factors that influence the content of a company’s job offer.
Describe the four different job offer strategies.
Describe different types of fairness and explain why candidates’ perceptions of
fairness are important to staffing.
1-2
Combining Assessment Scores
• Using more than one assessment method, as is usually the case because the validity
of the candidate’s assessment is more valid when using multiple predictors.
• A candidate’s scores must be meaningfully combined to calculate an overall score
that can be compared across candidates or to a minimum hiring standard.
• There are two ways of combining assessment scores:
• Multiple hurdles
• Compensatory approaches
1-3
Multiple Hurdles
• Multiple hurdles: candidates must receive a passing score on an assessment before
being allowed to continue in the selection process
• Costly and take more time due to the need for candidates to make repeated visits for
the different assessments
• Used when the cost of poor performance on that characteristic is high
• For example, when safety is at risk
1-4
Compensatory Approaches
• Compensatory approach: high scores on some assessments can compensate for low
scores on other assessments.
• This approach is less useful for jobs in which specific talents must exist at a
minimum level.
1-5
Executing the Compensatory Approach
• Unit weighting: giving multiple assessments equal weight in computing an overall
score
• Rational weighting: experts assign a different subjective weight to each assessment
score
• Statistical weighting: using a statistical technique, such as multiple regression, to
assign a different weight to each assessment score
• Multiple regression: the most scientific approach to determining how to weight
each assessment in computing a candidate’s overall score
1-6
Unit-Weighted Approach
1-7
Statistical Weighting Approach
The output of a multiple regression includes a formula like:
• Overall score = c + (b1 * a1) + (b2 * a2) + (b3 * a3)…
•
In this formula, c is a constant, the b’s are the statistical weights applied to each assessment method
to maximize the validity of the group of assessment methods, and the a’s are a candidate’s scores on
each of the assessment methods.
• Any number of assessment methods can be used.
For example, if the regression equation looked like this:
• Overall score = 24 + (.20 * Cognitive Ability) + (.25 * Interview) + (.15 * Personality)
And the candidate’s cognitive ability score was 70, interview score was 75, and personality score was 50,
then the candidate’s overall score would be 64.25:
• 64.25 = 24 + (.2*70) + (.25*75) + (.15*50)
1-8
Statistical Weighting Approach
• To be most accurate
• The statistical approach requires a sample of several hundred or more hires
• A low inter-correlation among assessment methods
• A relatively small number of assessment methods.
• Because the weights can differ when derived from different groups of people, it is
best to check the stability of the multiple regression equation in different groups
to assess its actual effectiveness.
• If estimating the regression equation on a large sample size is not possible, unit
weighting or even rational weighting may be a better choice.
• Validity can sometimes be enhanced by combining the multiple regression
approach with global expert judgment.
1-9
Combining Multiple Hurdles and Compensatory Approaches
Often, some job requirements are essential to job performance but others can
compensate for each other.
• A data entry hire may need to type a certain number of words per minute with a
minimum number of errors, which would be a minimum hurdle, but cognitive ability
and personality may be compensatory factors.
• A typing test can be used at the beginning of the assessment process as a hurdle to
weed out candidates who do not meet the minimum typing requirements
• Then a compensatory approach balancing cognitive ability and personality used at
the end.
• Scores on cognitive ability and personality would be weighted and combined in a
compensatory manner and the highest scoring candidates offered jobs.
1-10
Poll Question
Allowing a candidate's high score on an interview to make up for a low score on a
personality test is an example of the ________.
A) multiple hurdles approach
B) compensatory approach
C) contingent approach
D) normative approach
1-11
Final Choice
• Cut score: a minimum assessment score that must be met or exceeded to advance to
the next assessment phase or to be eligible to receive a job offer.
• Rank ordering: ranking candidates from highest to lowest scoring.
• Banding: Everyone who scores within a certain range of scores is considered to have
performed equivalently and assigned the same grade.
• Hiring within the band is done randomly or based on other factors (EEO or affirmative
action goals, etc.).
• Banding allows for the consideration of other factors in making a final choice, including
whether an internal candidate is at risk of leaving the company if passed up for a
promotion.
• Band widths are generally calculated on the basis of the standard error of measurement.
1-12
Banding
1-13
Final Choice
• When using cut scores or rank ordering, an additional decision needs to be made
about whether to hire from the top of the list down, OR to create a pool of finalists
from which to make a final choice.
• This pool of finalists can then be rank ordered based on global or specific
assessments, selected from randomly, or banded.
• There is no one best method of choosing the candidates to whom to extend job
offers.
• Whenever possible, the ability of the assessment scores to predict job success should
be carefully evaluated, and cutoff scores should be set high enough to ensure that
new hires are likely to meet or exceed minimum standards of success.
1-14
Legal Issues
• The Fair Labor Standards Act: covers working hours and the payment of overtime
or compensatory time off to nonexempt employees.
• If an applicant is not hired because the applicant has previously exercised his or her
rights under the FLSA, a court may conclude that the applicant’s rights have been
violated.
• The Family and Medical Leave Act (FMLA): entitles qualified applicants up to 12
weeks of unpaid leave for certain reasons.
• If an applicant is not hired because he or she had previously exercised his or her rights
under the FMLA, a court may conclude that the applicant’s rights have been violated.
• For example, a federal appellate court held that an employer who failed to hire an
applicant because she “took a lot of FMLA” violated this statute.
1-15
Uniform Guidelines on Employee Selection Procedures
•
•
•
The UGESP require the elimination of adverse impact or its justification through validation
studies.
The Guidelines generally state that cut scores should be set no higher than necessary to achieve
acceptable proficiency among those hired.
• The determination of this minimum proficiency level is up to the firm.
• Even if an assessment method or battery is highly valid, it is not advisable to set a cut score that
generates adverse impact and that screens out minority applicants whose scores are consistent
with normal expectations of acceptable proficiency.
• The UGESP also state that “the way in which normal expectations of proficiency within the
workforce were determined and the way in which the cutoff score was determined” should be
described.
To deal with adverse impact problems, the UGESP also discuss the use of “alternative procedures”
that cause less adverse impact but that have similar validity to the problematic procedure.
• Example: Aptitude tests vs. education vs. experience
1-16
Preference for Diversity During Final Choice
• Affirmative action and diversity programs need to be carefully implemented to avoid
the potential for legal trouble.
• Pursuing diverse hires should not begin during the assessment stage of the hiring
process.
• If qualified diverse candidates do not become part of the applicant pool, no selection
system can identify them.
• If sourcing and recruiting activities identify and attract qualified diverse applicants,
then applying a valid assessment system that has little to no adverse impact should
generate quality diverse hires.
• Successfully attracting qualified diverse applicants eliminates the need to consider
any protected characteristic as a “plus factor” in the final candidate choice.
1-17
Job Offer Strategies
• Particularly for firms with a talent philosophy of viewing employees as investors
rather than assets, the job offer should maximize the employee value proposition
offered to the finalist.
• Before extending a job offer, or deciding on the content of the job offer, it is always a
good idea to verify the truthfulness of any statements made by the applicant that
were relied on in assessing the candidate or deciding on the offer’s contents
• Grade point average, prior work experience, prior salary, etc.
• It is also a good idea to identify a backup hire in case your first choice does not take
the job.
1-18
1-19
Compensation Decisions
•
•
•
•
Low job offer: below-market rewards package
Competitive job offer: total rewards package is competitive with the market
High job offer: total rewards package is above the market
Maximum job offer: the company’s best and final offer
1-20
Poll Question
Which of the following, if true, would result in a new hire to a company getting paid
less than existing employees?
A) The company wishes to preserve internal equity.
B) The company wishes to attract top talent in the market.
C) The company lets the hiring manger make payroll decisions.
D) The company needs to fill a position immediately.
1-21
Employment Contract
•
•
•
•
•
Implicit employment contract: an understanding that is not part of a written or verbal contract.
Because binding contracts for employment or for future compensation can be created verbally, great
care should be taken during discussions with prospective new hires.
To be legally binding and enforceable, any contract must consist of an offer outlining the terms and
conditions of employment (and possibly a deadline for accepting the contract) that is accepted on the
terms offered. Something of value (consideration), usually promises of pay in exchange for promises
for labor, must also be exchanged.
An agent authorized by the receiver can negotiate on the finalist’s behalf, and agents authorized by
the organization such as executive recruiters and search consultants can negotiate on behalf of the
company.
Offer letter: written letter describing in clear and precise terms exactly what the compensation
structure and terms of employment will be.
1-22
Common Employment Contract Content
1-23
Common Employment Contract Content (cont.)
1-24
Employment Contracts
• Statements on a job application blank (e.g., a statement that providing false
information is grounds for termination), statements in employee handbooks, and
statements in other documents may become interpreted as enforceable contracts.
• Often focus more on termination issues than on employment.
1-25
Additional Agreements
•
•
•
•
•
•
•
Restrictive Covenants are contract clauses that require one party to do or to refrain from doing
certain things.
First rights to their inventions and patents
Nondisclosure agreements are intended to stop a current or former employee from giving away trade
secrets or using confidential data for a competitor’s benefit.
Non-compete clauses prevent an employee who has resigned from joining a competitor for a certain
period of time. (time, geographic area and business activity).
Non-solicitation agreements prevent departing employees from actually soliciting their customers
for business on behalf of their new employer.
It is a good idea to consult legal counsel before preparing any contract forms or statements on
application forms
Because states’ laws differ, employment law counsel should also be consulted to determine whether
your state’s law enforces non-compete covenants and, if so, under what circumstances
1-26
Presenting a Job Offer
•
•
•
•
In writing
Verbally
Showing your company as a unique or exciting place to work can help close the deal
Emphasizing the selling points of the job itself and the career development
opportunities that exist
• Selling the company’s image and brand, can increase the appeal of the opportunity to
the candidate
• The job rewards analysis should help identify some of a job’s most attractive
features.
1-27
Presenting a Job Offer
• Should reinforce the company image and the positive impression formed by the
candidate during the hiring process
• While the candidate is considering the offer, it is a good idea to stay in contact with
him or her to reinforce your enthusiasm
1-28
Negotiable Job Offer Elements
1-29
Salary Negotiating Zone
1-30
Job Offer Negotiation Tips (The Candidate)
•
•
•
•
•
•
•
•
•
Do not look at a negotiation as an either/or proposition
Identify what you can and cannot part with and be realistic
Try to identify and use sources of leverage
Suppress your emotions
Know your BATNA (Best Alternative To a Negotiated Agreement)
Take time to evaluate the offer
Practice your negotiation skills
Document and be prepared to discuss your skills and accomplishments
Be appreciative and respectful; remember that employment is an ongoing
relationship
1-31
Closing the Deal
For job offer acceptances:
• Ensure that the finalist followed the proper procedures, accepted the job offer as
written, and responded before the deadline.
• Congratulate the new hire and express your enthusiasm about having him or her
onboard.
• It can also be helpful to ask what persuaded the person to say yes, and what he or she thought of
each company contact and the hiring process.
• To begin the new hire’s transition into the company, stay in contact with the new hire
and encourage his or her supervisor and coworkers to do the same.
• Once a job offer has been accepted, the recruiter’s role is to begin building the new
hire’s commitment to the company and enhancing his or her ability to succeed on the
job.
1-32
Closing the Deal, cont.
When the company rejects a candidate:
• Do so respectfully.
• Distributive fairness will be perceived as low, and to reduce negative spillover
effects, efforts should be made to enhance the procedural and interactional fairness
perceptions of rejected applicants.
• Negative reactions of rejected internal candidates may be reduced by explaining why
they were not chosen, and what they can do to be more competitive for the position
in the future.
• Development plans can be created to help the rejected employees enhance their
experience and qualifications.
1-33
Closing the Deal, cont.
When a finalist rejects a job offer:
• Try to find out why and whether an enhanced offer might be acceptable if the firm is
willing to negotiate.
• Promptly and respectfully acknowledge the rejection.
• Be sure to keep appropriate records of all applicants for EEO/AA computations, such
as applicant flow.
• If a rejected applicant is qualified for a different position or if they might be hirable
in the future for the job to which he or she applied.
• Requesting permission to retain the applicant’s information for a period of time can
help to build a talent pipeline and facilitate the future sourcing and recruiting of prequalified applicants.
1-34
Fairness Perceptions
• Distributive fairness: the perceived fairness of the outcomes received
• Because most applicants don’t get a job offer, distributive fairness perceptions are often low
• Procedural fairness: the perceived fairness of the policies and procedures used to
determine the hiring outcome
• Interactional fairness: perceptions of the degree of respect and the quality of the
interpersonal treatment received
• Attending to procedural and interactional fairness perceptions can increase
finalists’ willingness to accept job offers and can help reduce the negative
spillover effects among those applicants turned down for the job who perceive
low distributive fairness
1-35
Reneging
• Reneging is backing out of a contract after it is accepted.
• Job seekers should never accept an offer unless willing to commit
• Employers should never pressure candidates to renege on other employers
• If an employer must renege on a job offer or new hire, perhaps because business
conditions have changed, the individual often receives compensation for breaking the
contract
• Honesty and respect can reduce subsequent feelings of unfairness and inequity and
maintain the individuals’ willingness to work for the firm in the future.
1-36