Chapter 7 Recruitment and Selection Learning Objectives 1. Describe the relationships among planning, recruiting, and selection 2. Identify and discuss the basic sources for recruiting; discuss realistic job previews and their role in effective recruiting 3. Describe the steps in the selection process and identify and summarize basic selection criteria that organizations use in hiring new employees 4. Discuss popular selection techniques that organizations use to hire new employees What is Recruiting? The process of developing a pool of qualified applicants who are interested in working for the organization and from which the organization might reasonably select the best individual or individuals to hire for employment. Goals of Recruiting A recruiting program has five goals: Achieve cost efficiency Attract highly qualified candidates Assist in efforts to comply with nondiscrimination laws Ensure those hired stay with company Help create a more culturally diverse workforce Goals of Recruiting Recruiting program goals: Achieving cost efficiency: • Reducing recruitment costs without lowering productivity can help enhance competitive advantage. Goals of Recruiting Recruiting program goals: Attracting highly qualified candidates • Sufficient number of qualified candidates must be notified of available opportunities. • Actions must be taken to enhance the likelihood that the best applicants will accept their job offers Goals of Recruiting Goals of Recruiting Recruiting program goals: Improving job retention rates through the use of realistic job previews (RJPs) • RJPs can reduce turnover by giving applicants more realistic information about the job and the organization. • Applicants can make a more informed choice about whether or not to accept the job offer. • Reducing turnover rates can result in substantial savings. Goals of Recruiting Recruiting program goals: Achieving legal compliance and creating a diverse workforce: • Organizations can help prevent discrimination charges by targeting recruitment efforts toward underutilized groups. • Extending recruitment practices to disadvantaged groups can create a more culturally diverse workforce. • The manner in which a company treats these candidates during the recruitment process is vital. Recruitment Planning Recruitment Planning Step 1: Identifying the Job Opening • Organizations should attempt to identify job openings well in advance of an announced resignation. • The HRM department should plan for future openings, thus providing organizations with the time needed to plan and implement recruitment strategies. Recruitment Planning Step 2: Decide How to Fill the Job Opening • Whether to use core or contingency personnel. • If core personnel are to be used, should the firm recruit them internally or externally. Recruitment Planning Step 2: Decide How to Fill the Job Opening • Core personnel – Hired in the “traditional” manner. – Considered permanent employees. – Included in the organization’s payroll. • Contingency personnel – Employed by a supplier agency, and “loaned” to the organization. – Not included in the organization’s payroll. – Supplier pays the workers’ salaries and benefits. – Fall into three major categories: temps, outsourcing, and independent contractors. Recruitment Planning Step 2: Decide How to Fill the Job Opening Internal Recruitment Advantages of internal recruitment: • Enhance morale and motivation. • Qualifications of internal candidates are well known; openings can be filled more quickly. • Less expensive. • Internal candidates are more familiar with organizational policies and practices, requiring less orientation and training. Recruitment Planning Step 2: Decide How to Fill the Job Opening Internal Recruitment Disadvantages of internal recruitment: • Rejected candidates may become resentful. • Workers promoted into supervisory positions may find it difficult managing former coworkers. • Can result in stagnation and stifle creativity • Creates a ripple effect Recruitment Planning Step 2: Decide How to Fill the Job Opening External Recruitment • External recruitment is limited primarily to entry-level jobs. • External recruitment for jobs above the entry level is usually restricted to the following situations: – An outsider is needed to expose the organization to new ideas and innovations. – No qualified internal candidates apply. – The organization needs to increase its percentage of employees within a particular underutilized group. Recruitment Planning Step 3: Identify the Target Population • Specify worker requirements. • Decide whether to target certain segments of the applicant population. Recruitment Planning Step 4: Notify the Target Population • Limit the size of the applicant pool by attracting only the most qualified applicants. – A good way to do this is to clearly state the job qualifications in the vacancy notification. Recruitment Planning Step 5: Meet with the Candidates • Gives the firm a chance to further assess the candidates’ qualifications. • Provides candidates an opportunity to learn more about the company and the employment opportunity Methods of Internal Recruitment Computerized Progression and Supervisor Selection Recruitment Method Strengths Weaknesses Computerized career progression systems • Candidates can be found quickly. • Limited to only objective or factual information. • Helps identify a broad spectrum of candidates. • Information of a more subjective nature is excluded. Supervisor selection • Very popular with supervisors. • Usually very subjective. • Supervisor is in a good position to know the capabilities of potential candidates. • Some qualified employees may be overlooked. • Susceptible to bias, leading to possible discrimination. Methods of Internal Recruitment Job Posting Strengths: • Enhances the probability that the firm’s most qualified employees will be considered for the job. • Gives employees an opportunity to become more responsible for their career development. • Enables employees to leave a “bad” work situation. Methods of Internal Recruitment Job Posting Weaknesses: • Position may remain open for an extended period. • The system may prevent supervisors from hiring individuals of their choice. • Some employees may hop from job to job without any clear direction. • Employees whose bids are rejected may become alienated. Methods of Internal Recruitment Career Development Systems Strengths: • The firm’s top performers are more likely to remain with the organization. • Such systems ensure that someone is always ready to fill a position when it becomes open. Weaknesses: • An employee not selected for grooming may become disenchanted with the organization and leave. • Selected employees may become frustrated if the expected promotion does not materialize because the position never becomes vacant. Methods of External Recruitment Employee Referrals Strengths • Is effective, quite popular, and cost efficient. • Employees accurately judge the ‘‘fit’’ between the job being filled and the individual, and refer only the highest quality applicants. • Applicants referred by employees tend to perform better and stay longer. Weaknesses • May serve as a barrier to equal employment opportunity. Methods of External Recruitment Applicant-Initiated and Help-Wanted Ads Recruitment Method Strengths Weaknesses Applicantinitiated recruitment • Efficient and low cost. • There may be no jobs available when the applicants come in or by the time a job becomes vacant, many of these individuals may have already found other jobs. Help-wanted advertisements • Large audience can be reached in a relatively short period of time. •Candidates are likely to be highly motivated. • Aids in ensuring equal opportunity to apply for job openings. • Often ineffective. • May attract too many applicants, making the screening process cumbersome. Methods of External Recruitment Employment Agencies - Public • Most frequently provide personnel for clerical and blue-collar jobs. • Cost is low as the agency does not charge employers a fee. • The method is efficient as jobs can be filled fairly quickly. • Applicants may lack motivation. Methods of External Recruitment Employment Agencies - Private • Have the resources to fill a wide variety of jobs. • Candidates register with the agency voluntarily – thus they may be more committed. • Agency charges a fee for its service. • They are especially useful when many individuals are expected to apply for a job or when qualified candidates are hard to find. Methods of External Recruitment Executive Search Firms • Specialize in the recruitment of mid- and senior-level managers. • Charge the employer a large fee for their services. • Can be unsuccessful – only 50 to 60 percent of all executive searches result in the selection of the type of individual initially specified. Methods of External Recruitment Campus Recruiting • Used to fill specialized entry-level jobs. • Is costly and time consuming. • Recruitment process can be rather slow. Methods of External Recruitment Online Recruiting • Is becoming quite popular. • Is much faster and reaches a much larger audience compared to newspaper advertising. • Can be inexpensive. • Not the best approach for reaching external candidates. Methods of External Recruitment Choosing the Right Method The type of job being filled. How quickly the job needs to be filled. The geographic region of recruitment. The cost of implementing the recruitment method. Whether the method will attract the right mix of candidates from an EEO perspective. What is the Selection Process? • Selection Process Is concerned with identifying the best candidate or candidates for jobs from among the pool of qualified applicants developed during the recruiting process. Technical Standards for Selection Practices • Validity, the technical term for effectiveness, refers to the appropriateness, meaningfulness, and usefulness of selection inferences. • Extent to which scores on a test, interview or other selection process correspond to actual job performance • The closer the actual job performances match the expected performances, the greater the validity of the selection process. Technical Standards for Selection Practices • To determine expected performance and validity: – Manager must have a clear notion of the needed job qualifications, and must use selection methods that reliably and accurately measure these qualifications. Technical Standards for Selection Practices • Determining job qualifications – Job qualifications refer to the personal qualities an employer seeks when filling a position. – Some qualifications, such as technical KSAs and nontechnical skills are job-specific; other qualifications are universal. – By basing qualifications on job analysis information, a company ensures that the qualities being assessed are important for the job. – Job analyses are also needed for legal reasons. Technical Standards for Selection Practices • Choosing selection methods – The choice of selection methods should reliably and accurately measure the needed qualifications. – Reliability is the degree of self-consistency among the scores earned by an individual. – Reliable evaluations are consistent across both people and time. Technical Standards for Selection Practices Technical Standards for Selection Practices • Three ways of assessing and documenting validity Content-oriented strategy • Demonstrate that it followed “proper” procedures in the development and use of its selection devices. Degree to which the content of the selection method (test) is representative of the job content Criterion-related strategy • Provide statistical evidence showing a relationship between applicant selection scores and subsequent job performance levels. Validity generalization strategy • Demonstrate that other companies have already demonstrated the validity of the selection instruments. Technical Standards for Selection Practices • Three ways of assessing and documenting validity • Content-oriented strategy – Evidence would show that the selection devices were properly designed and were accurate measures of the needed worker requirements. – The employer must demonstrate that: • The selection devices were chosen on the basis of an acceptable job analysis. • They measured a representative sample of the KSAs identified. Technical Standards for Selection Practices • Three ways of assessing and documenting validity • Criterion-related strategy – Attempts to demonstrate statistically that someone who does well on a selection instrument is more likely to be a good job performer than someone who does poorly. – To gather criterion-related evidence, two pieces of information are required : a predictor score and a criterion score. Technical Standards for Selection Practices • Three ways of assessing and documenting validity • A criterion-related validation study may be conducted in one of two ways: – Predictive validation study: Information is gathered on actual job applicants. – Concurrent validation study: • Information is gathered on current employees. • More commonly used as they can be conducted more quickly. Technical Standards for Selection Practices • Three ways of assessing and documenting validity • Validity generalization strategy – Established by demonstrating that a selection device has been consistently found to be valid in many other similar settings. Selection Methods • • • • • • • • Application blanks Biodata inventories Background investigations Reference checks Employment interviews Employment tests Assessment centers Screening for dysfunctional behavior Selection Methods Application Blanks Purpose: • To determine whether candidates meet the minimum qualifications for the job. • Help employers judge the presence (or absence) of certain job-related attributes. • Used to “red flag” any potential problem areas concerning the applicant. Selection Methods Examples of Potentially Unlawful Questions Selection Methods Biodata Inventory • Responses are objectively evaluated. • The two types of biodata inventories are weighted application blanks and biographical information blanks. • Weighted application blank: A biodata inventory containing the same questions as an application blank. • Biographical information blank: A biodata inventory consisting of a set of questions designed to cover a broad array of background information. Selection Methods Biodata Inventory • • • • Used as a prescreening device to predict tenure. Excellent predictors of job success. Few companies use this method. Have some legal concerns that may be justified. Selection Methods Background Investigations • Serve two purposes – Screen applicants for: • Positions of trust in occupations such as law enforcement, private security, and nuclear power. • “Special duty of care” positions in order to satisfy requirements imposed by negligent hiring law. • Employers must avoid violating the legal rights of applicants; the primary law being Fair Credit Reporting Act. • This law is designed to protect applicants’ rights in the event of a background investigation conducted by an investigative agency. Selection Methods Reference Checks • Involve collecting information from applicants’ previous employers. • Provide another potentially useful means of assessment. • Serve two important purposes: – Verify information provided by applicants to ensure that they have not fabricated their qualifications or work history. – Provide additional information about applicants, which may be predictive of job performance. Selection Methods Employment Interviews A selection technique that uses a face-to-face conversation between the job applicant and a representative of the organization as part of the selection process. Selection Methods Employment Interviews Structured Situational Types of Interviews Unstructured Semistructured Selection Methods Employment Tests – Mental Ability Tests • Designed to measure intelligence or aptitude. • Used primarily for assessing entry-level applicants for jobs that do not require specific job-related skills. • Determine whether applicants have the capacity to learn job skills successfully. • Often have a disparate impact on certain protected groups; some employers are thus reluctant to use mental ability tests. Selection Methods Employment Tests – Personality Tests • Provide a more objective way to gauge personality. • The validity of a personality test is situation specific; a well-designed test can be a valid predictor of job performance for some jobs, but not for others. • There are few legal problems associated with their use. Selection Methods The “Big Five” Personality Types Selection Methods Employment Tests – Work Sample Tests • Require applicants to perform some of the actual (or simulated) duties of the vacant position. • Used to assess manual skills, clerical skills, and managerial skills. • The tests are quite valid, if properly constructed and implemented, as they provide direct measures of job performance. • Are quite expensive. • Could have possible safety problems. Selection Methods Assessment Centers • A selection technique that consists of work samples and other assessment techniques. • Is primarily used to select managers. • Work sample tests are often administered as part of an assessment center. • The most commonly used work sample tests are: – Leaderless group discussion – Management games – In-basket • Have been found to be quite valid when appropriately developed and used. Selection Methods Screening for Dysfunctional Behavior • Employers do not want to hire applicants with dysfunctional tendencies such as drug addiction and dishonesty • Organizations can minimize drug abuse costs by administering drug tests to applicants Selection Methods Screening for Dysfunctional Behavior • Polygraph tests: Designed to ascertain truthfulness of the information given by the examinee. – The Employee Polygraph Protection Act (EPPA) of 1988 bans most private-sector employers from using polygraph tests in the selection of candidates. • Paper-and-pencil honesty tests: Written tests that employers use to estimate an applicant’s propensity to steal from an employer. – Paper-and-pencil honesty tests may either be overt or personality-based measures. Legal Constraints on Employee Selection Tort Law Constraints on Selection • Refers to civil laws designed to discourage individuals from subjecting others to unreasonable risks and to compensate those who have been injured by unreasonably risky behavior. • Two areas that bear the most influence on employee selection are negligent hiring and defamation. • Defamation – The unprivileged publication of a false oral or written statement that harms the reputation of another person. – Claims often arise when giving reference information. Legal Constraints on Employee Selection Tort Law Constraints on Selection Negligent hiring: • Refers to situations in which employers hire an applicant who is somehow unfit for the job, and because of this unfitness, commits an act that causes harm to another. • An individual would be considered unfit in a negligent hiring case if he or she: • • • • • Lacked the necessary training and experience. Had a physical or mental infirmity. Was frequently intoxicated. Experienced constant forgetfulness. Liked to engage in horseplay or was reckless or malicious. Poor Alice…