5-1 chapter five recruiting & selecting employees

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CHAPTER FIVECHAPTER FIVE

Recruiting &Recruiting &

Selecting EmployeesSelecting Employees

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Chapter ObjectivesChapter Objectives

Understand approaches to Understand approaches to matching labor supply and matching labor supply and demanddemand

Weigh the advantages and Weigh the advantages and disadvantages of internal and disadvantages of internal and external recruitingexternal recruiting

Distinguish among the major Distinguish among the major selection methods and use the selection methods and use the most legally defensible of them most legally defensible of them to provide the best ‘fit’ for to provide the best ‘fit’ for your firmyour firm

Understand the legal Understand the legal constraints on the hiring constraints on the hiring processprocess

Review Key TermsLabor SupplyLabor SupplyLabor DemandLabor DemandHuman Resource PlanningHuman Resource PlanningRecruitmentRecruitmentSelectionSelectionSocializationSocialization

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Key Terms Key Terms

Labor SupplyLabor Supply The availability of workers with the required skills to The availability of workers with the required skills to

meet the firm’s labor demand.meet the firm’s labor demand. Labor Demand Labor Demand

How many workers the organization will need in the How many workers the organization will need in the future.future.

Human Resource Planning Human Resource Planning The process an organization uses to ensure that it has The process an organization uses to ensure that it has

the right amount and the right kind of people to the right amount and the right kind of people to deliver a particular level of output or services in the deliver a particular level of output or services in the future.future.

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Human Resource Supply and DemandHuman Resource Supply and Demand

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Forecasting MethodsForecasting Methods

Forecasting Demand Quantitative Techniques

Regression Analysis, Ratio Analysis Judgmental Techniques

Top-down approach, Bottom-up approach

Methods of Forecasting Supply Quantitative Techniques

Markov Analysis Judgmental Techniques

Executive Reviews, Succession Planning, Vacancy Analysis

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The Hiring ProcessThe Hiring Process

RecruitmentRecruitmentProcess of generating a pool of qualified Process of generating a pool of qualified

candidates for particular jobcandidates for particular job SelectionSelection

Process of making a ‘hire’ or ‘no hire’ decision Process of making a ‘hire’ or ‘no hire’ decision regarding each applicant for a jobregarding each applicant for a job

SocializationSocializationOrienting new applicants to the organization Orienting new applicants to the organization

and the departments to which they will be and the departments to which they will be workingworking

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Challenges in the Hiring ProcessChallenges in the Hiring Process

Determining the characteristics most important to Determining the characteristics most important to performanceperformance

Measuring the characteristics that determine Measuring the characteristics that determine performanceperformance

The motivation factor: The motivation factor: performance = ability x motivationperformance = ability x motivation

Who should make the decision?Who should make the decision?

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Meeting the Challenges of Meeting the Challenges of Effective Staffing - Effective Staffing - RecruitmentRecruitment

Sources of recruitingSources of recruiting Current employeesCurrent employees Referrals from current employeesReferrals from current employees Former employeesFormer employees Print and radio advertisementsPrint and radio advertisements Internet advertising and career sitesInternet advertising and career sites Employment agenciesEmployment agencies Temporary workersTemporary workers College recruitingCollege recruiting CustomersCustomers MilitaryMilitary

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Meeting the Challenges of Meeting the Challenges of Effective Staffing- Effective Staffing- RecruitmentRecruitment

External vs. internal candidatesExternal vs. internal candidates Recruiting protected classesRecruiting protected classes Planning the recruitment effortPlanning the recruitment effort Planning your job searchPlanning your job search

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Recruitment - Hiring from WithinRecruitment - Hiring from Within

Advantages Foreknowledge of

candidates’ strengths and weaknesses

More accurate view of candidate’s skills

Candidates have a stronger commitment to the company

Increases employee morale Less training and

orientation required

Disadvantages Failed applicants become

discontented Time wasted interviewing

inside candidates who will not be considered

Inbreeding of the status quo

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Recruitment - Finding Internal CandidatesRecruitment - Finding Internal Candidates

Job posting Publicizing an open job to employees (often by literally

posting it on bulletin boards) and listing its attributes. Rehiring former employees

Advantages: They are known quantities. They know the firm and its culture.

Disadvantages: They may have less-than positive attitudes. Rehiring may sent the wrong message to current employees about how

to get ahead.

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Recruitment - Finding Internal CandidatesRecruitment - Finding Internal Candidates

Succession planningThe process of ensuring a suitable supply of

successors for current and future senior or key jobs. Succession planning steps:

Identifying and analyzing key jobs.Creating and assessing candidates.Selecting those who will fill the key positions.

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Recruitment - Finding External CandidatesRecruitment - Finding External Candidates

AdvertisingThe Media: selection of the best medium depends on

the positions for which the firm is recruiting. Newspapers (local and specific labor markets) Trade and professional journals Internet job sites Marketing programs

Constructing an effective adWording related to job interest factors should evoke

the applicant’s attention, interest, desire, and action (AIDA) and create a positive impression of the firm.

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Employment agencies:Public agencies operated by federal, state, or local

governmentsAgencies associated with nonprofit organizationsPrivately owned agencies

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Recruitment - Private Employment AgenciesRecruitment - Private Employment Agencies

Reasons to Use: When a firm does not have an HR department and is not

geared to doing recruiting and screening. The firm has found it difficult in the past to generate a pool of

qualified applicants. The firm must fill a particular opening quickly. There is a perceived need to attract a greater number of

minority or female applicants. The firm wants to reach currently employed individuals, who

might feel more comfortable dealing with agencies than with competing companies.

The firm wants to cut down on the time it is devoting to recruiting.

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Recruitment - Private Employment AgenciesRecruitment - Private Employment Agencies

Avoiding problems with employment agencies: Give the agency an accurate and complete job description. Make sure tests, application blanks, and interviews are part of

the agency’s selection process. Periodically review data on candidates accepted or rejected by

your firm, and by the agency. Check on the effectiveness and fairness of the agency’s screening process.

Screen the agency. Check with other managers or HR people to find out which agencies have been the most effective at filling the sorts of positions needed to be filled.

Review the Internet and a few back issues of the Sunday classified ads to discover the agencies that handle the positions to be filled.

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Recruitment - Temp Agencies & Alternative StaffingRecruitment - Temp Agencies & Alternative Staffing

Benefits of Temps Paid only when working More productive No recruitment, screening,

and payroll administration costs

Costs of Temps Fees paid to temp agencies Lack of commitment to

firm

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Recruitment - Temp Agencies & Alternative StaffingRecruitment - Temp Agencies & Alternative Staffing

Concerns of Temp Employees Treatment by employers in a dehumanizing, impersonal, and ultimately

discouraging way.

Insecurity about their employment and pessimistic about the future.

Worry about their lack of insurance and pension benefits.

Being misled about their job assignments and in particular about whether temporary assignments were likely to become full-time positions.

Being “underemployed” (particularly those trying to return to the full-time labor market).

In general they were angry toward the corporate world and its values; participants repeatedly expressed feelings of alienation and disenchantment.

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Recruitment - Recruitment - Temp Agencies & Alternative StaffingTemp Agencies & Alternative Staffing

Guidelines for Using Temporary Employees Do not train your contingent workers. Do not negotiate the pay rate of your contingent workers. Do not coach or counsel a contingent worker on his/her job performance. Do not negotiate a contingent worker’s vacations or personal time off. Do not routinely include contingent workers in your company’s employee

functions. Do not allow contingent workers to utilize facilities intended for

employees. Do not let managers issue company business cards, nameplates, or

employee badges to contingent workers without HR and legal approval. Do not let managers discuss harassment or discrimination issues with

contingent workers. Do not discuss job opportunities and the contingent worker’s suitability for

them directly. Do not terminate a contingent worker directly.

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Recruitment - College recruitingRecruitment - College recruiting

College recruiting Recruiting goals

To determine if the candidate is worthy of further consideration To attract good candidates

On-site visits Invitation letters Assigned hosts Information package Planned interviews Timely employment offer Follow-up

Internships

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Employee referralsApplicants who are referred to the organization by

current employees Referring employees become stakeholders. Referral is a cost-effective recruitment program. Referral can speed up diversifying the workforce

Walk-insDirect applicants who seek employment with or

without encouragement from other sources.Courteous treatment of any applicant is a good

business practice.

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Recruiting via the InternetMore firms and applicants are utilizing the Internet in

the job search process. Advantages of Internet recruiting

Cost-effective way to publicize job openingsMore applicants attracted over a longer period Immediate applicant responsesOnline prescreening of applicantsLinks to other job search sitesAutomation of applicant tracking and evaluation

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Recruitment - Finding External Candidates Recruitment - Finding External Candidates Recruiting a Diverse WorkforceRecruiting a Diverse Workforce

Single parents Providing work schedule flexibility.

Older workers Revising polices that make it difficult or unattractive for older

workers to remain employed. Recruiting minorities and women

Understanding recruitment barriers. Formulating recruitment plans.

Welfare-to-work Developing pre-training programs to overcome difficulties in

hiring and assimilating persons previously on welfare.

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Recruitment - Finding External Candidates Recruitment - Finding External Candidates Recruiting a Diverse WorkforceRecruiting a Diverse Workforce

Minority student associations College organizations of students with disabilities Targeted radio announcements Professional organizations Minority organizations

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Meeting the Challenges of Meeting the Challenges of Effective Staffing- Effective Staffing- SelectionSelection

Reliability and validityReliability and validity Selection tools as predictors of job Selection tools as predictors of job

performanceperformance Combining predictorsCombining predictors Selection and the person/organization fitSelection and the person/organization fit Reactions to selection devicesReactions to selection devices

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The Problem: Selecting the best Employees from Applicant Pool

The Solution: Implementing Targeted Selection Firms must:

Identify the critical job elements required for the position Organize selection element into a comprehensive system Use past behavior to predict future behavior Apply effective interviewing skills and techniques Involve several interviewers in organized data-exchange discussions Augment the interview with observations from behavior simulations

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Reliability Reliability Consistency of measurement, usually across time but also Consistency of measurement, usually across time but also

across judges.across judges. Validity Validity

The extent to which the technique measures the intended The extent to which the technique measures the intended knowledge, skill, or ability. In the selection context, it is the knowledge, skill, or ability. In the selection context, it is the extent to which scores on a test or interview correspond to extent to which scores on a test or interview correspond to actual job performance.actual job performance.

Concurrent: correlation between selection and performance when measured at the same time

Predictive: extent to which selection scores correlate with performance scores when performance is measured later in time

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Selection - Selection - Equal Employment Opportunity (EEO) Equal Employment Opportunity (EEO) and the Aspects of Testingand the Aspects of Testing

A organization must be able to prove: That its tests are related to success or failure on the job

(validity) That its tests don’t unfairly discriminate against minority or

non-minority subgroups (disparate impact). EEO guidelines and laws apply to all selection devices,

including interviews, applications, and references. Testing alternatives if a selection device has disparate

impact: Institute a different, valid selection procedure that does not

have an adverse impact. Show that the test is valid—in other words, that it is a valid

predictor of performance on the job. Monitor the selection test to see if it has disparate impact.

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Selection - Selection - Test Takers’ Individual Rights and TestTest Takers’ Individual Rights and TestSecuritySecurity

Under the American Psychological Association’s standard for educational and psychological tests, test takers have the right:To privacy and information.To the confidentiality of test results.To informed consent regarding use of these results.To expect that only people qualified to interpret the

scores will have access to them.To expect the test is fair to all.

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SelectionSelection

Major types of tests used by employersBasic skills tests (45%)Drug tests (47%)Psychological tests (33%)

Use of testingLess overall testing now but more testing is used as

specific job skills and work demands increase. Screen out bad or dishonest employees Reduce turnover by personality profiling

Source of testsTest publishers

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Selection ToolsSelection Tools

Selection tools as predictors of job performance Selection tools as predictors of job performance Letters of recommendationLetters of recommendation Application formsApplication forms Ability testsAbility tests Personality testsPersonality tests Psychology testsPsychology tests Honesty testsHonesty tests

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Selection Tools Selection Tools

Selection tools as predictors of job performanceSelection tools as predictors of job performance Interviews – Structured & UnstructuredInterviews – Structured & Unstructured Assessment centersAssessment centers Drug testsDrug tests Reference checksReference checks Background checksBackground checks Handwriting analysisHandwriting analysis

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Selection ToolsSelection Tools

Personality TestsPersonality Tests Extraversion

The tendency to be sociable, assertive, active, and to experience positive effects, such as energy and zeal.

Emotional stability/neuroticism The tendency to exhibit poor emotional adjustment and experience

negative effects, such as anxiety, insecurity, and hostility.

Openness to experience The disposition to be imaginative, nonconforming, unconventional, and

autonomous.

Agreeableness The tendency to be trusting, compliant, caring, and gentle.

Conscientiousness Is comprised of two related facets: achievement and dependability.

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Selection - Structured Job InterviewSelection - Structured Job Interview

Situational Interview QuestionsSituational Interview Questions Supervisors and workers rewrite critical incidents of Supervisors and workers rewrite critical incidents of

behavior as situational interview questions then behavior as situational interview questions then generate and score possible answers as benchmark generate and score possible answers as benchmark

Job Knowledge QuestionsJob Knowledge Questions Assess whether or not candidate has the basic Assess whether or not candidate has the basic

knowledge needed to perform the jobknowledge needed to perform the job Worker Requirements QuestionsWorker Requirements Questions

Assess whether or not worker is willing to perform Assess whether or not worker is willing to perform the job under prevailing job conditions the job under prevailing job conditions

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Selection - Unstructured Job InterviewSelection - Unstructured Job Interview

Unstructured InterviewsUnstructured InterviewsBe preparedBe preparedPut applicants at ease in the first few minutesPut applicants at ease in the first few minutesDon’t be ruled by snap judgments or stereotypesDon’t be ruled by snap judgments or stereotypesAsk results-oriented questionsAsk results-oriented questionsDon’t underestimate the power of silenceDon’t underestimate the power of silenceClose the interview with careClose the interview with care

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Selection - Legal Issues in StaffingSelection - Legal Issues in Staffing

Discrimination LawsDiscrimination Laws

Affirmative ActionAffirmative Action

Negligent HiringNegligent Hiring

Develop clear policies on Develop clear policies on hiring as well as on hiring as well as on disciplining and disciplining and dismissing employeesdismissing employees

Check state laws Check state laws regarding hiring regarding hiring applicants with criminal applicants with criminal recordsrecords

Learn as much as possible Learn as much as possible about applicants’ past about applicants’ past work-related behavior work-related behavior

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Selection - Selection - Background Investigations and Reference Background Investigations and Reference ChecksChecks

Extent of investigations and checksReference checks (87%)Background employment checks (69%)Criminal records (61%)Driving records (56%)Credit checks (35%)

Reasons for investigations and checksTo verify factual information provided by applicants.To uncover damaging information

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Selection - The Polygraph Selection - The Polygraph

The polygraph (or lie detector)A device that measures physiological changes,The assumption is that such changes reflect changes

in emotional state that accompany lying. Employee Polygraph Protection Act of 1988.

Prohibits employers (in most all cases) from conducting polygraph examinations of all job applicants and most employees.

Also prohibited are other mechanical or electrical devices including psychological stress evaluators and voice stress analyzers

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Selection - The Polygraph Selection - The Polygraph

Employers with contracts involving:National defense or securityNuclear-power (Department of Energy)Access to highly classified informationCounterintelligence (the FBI or Department of

Justice) Other exceptions

Hiring of private security personnelHiring persons with access to drugsConducting ongoing investigations involving

economic loss or injury to an employer’s business

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Selection – Honesty TestsSelection – Honesty Tests

Paper-and-pencil honesty tests

Psychological tests designed to predict job applicants’ proneness to dishonesty and other forms of counter productivity.

Measure attitudes regarding things like tolerance of others who steal, acceptance of rationalizations for theft, and admission of theft-related activities

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Selection - Antitheft Screening ProcedureSelection - Antitheft Screening Procedure

Ask blunt questions. Listen, rather than talk. Do a credit check. Check all employment and personal references. Use paper-and-pencil honesty tests and

psychological tests. Test for drugs.

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SelectionSelection

Reactions to Selection DevicesReactions to Selection Devices Applicant reactions to selection devicesApplicant reactions to selection devices Manager reaction to selection systemsManager reaction to selection systems

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Selection - Avoiding Negligent Hiring ClaimsSelection - Avoiding Negligent Hiring Claims

Carefully scrutinize information supplied by the applicant on his or her employment application.

Get the applicant’s written authorization for reference checks, and carefully check references.

Save all records and information you obtain about the applicant.

Reject applicants who make false statements of material facts or who have conviction records for offenses directly related and important to the job in question.

Balance the applicant’s privacy rights with others’ “need to know,” especially when you discover damaging information.

Take immediate disciplinary action if problems arise.

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Selection - Avoiding Negligent Hiring ClaimsSelection - Avoiding Negligent Hiring Claims

Include on the application form a statement for applicants to sign explicitly authorizing a background check.

Use telephone references if possible. Be persistent in obtaining information. Ask open-ended questions to elicit more

information from references. Use references provided by the candidate as a

source for other references.

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Selection Selection

Concerns about checking applicant historiesVarious equal employment laws discourage or

prohibit the use of such information in employee screening.

Courts view making employment decisions based on solely on someone’s arrest record as unfairly discriminatory.

The EEOC says a poor credit history should not by itself preclude someone from getting a job.

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Selection – Additional ConsiderationsSelection – Additional Considerations

1. Check all applicable state laws.

2. Review the impact of federal equal employment laws.

3. Remember the Federal Fair Credit Reporting Act.

4. Do not obtain information that you’re not going to use.

5. Remember that using arrest information will be highly suspect.

6. Avoid blanket policies (such as “we hire no one with a record of workers’ compensation claims”).

7. Use information that is specific and job related.

8. Keep information confidential and up to date.

9. Never authorize an unreasonable investigation.

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Selection - Additional ConsiderationsSelection - Additional Considerations

10. Make sure you always get at least two forms of identification from the applicant.

11. Always require applicants to fill out a job application.

12. Compare the application to the résumé

13. Particularly for executive candidates, include background checks of such things as involvement in lawsuits, and of articles about the candidate in local or national newspapers.

14. Separate the tasks of (1) hiring and (2) doing the background check.

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Marital Status Inappropriate:

Are you married? Is this your maiden or married name? With whom do you live?

Appropriate: After hiring, marital status on tax and insurance forms

Parental Status Inappropriate:

How many kids do you have? Do you plan to have children?

Are you pregnant? Appropriate:

After hiring, asking for dependent information on tax and insurance forms

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Age Inappropriate:

How old are you? What year were you born? When did you graduate from high school?

Appropriate: Before hiring, asking if you are over the legal minimum age for the hours or

working conditions, in compliance with state or Federal labor laws. After hiring, verifying legal minimum age with a birth certificate or other ID,

and asking age on insurance forms National Origin

Inappropriate: Where were you born? Where are your parents from? What's your heritage?

Appropriate: Verifying legal U.S. residence or work visa status

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Race or Skin Color Inappropriate:

What race are you? Are you a member of a minority group?

Appropriate: Generally indicate equal opportunity employment. Asking race only as required for affirmative-action programs

Religion or Creed Inappropriate:

What religion are you? Which religious holidays will you be taking off from work? Do you attend church regularly?

Appropriate: Contact religious or other organizations related to your beliefs, that you

list as employers or references

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Criminal Record Inappropriate

Have you ever been arrested? Have you ever spent a night in jail?

Appropriate: Questions about convictions by civil or military courts, if accompanied by a

disclaimer that answers will not necessarily cause loss of job opportunity. Specific convictions, if related to fitness to perform the job. Generally,

employers can ask only about convictions and not arrests, except for law-enforcement and security-clearance agencies.

Disability Inappropriate:

Do you have any disabilities? What's your medical history? How does your condition affect your abilities?

Appropriate Ask if you can perform specific duties of the job. After hiring, ask about medical history on insurance forms

5-1 chapter five recruiting & selecting employees

Documents

demand slide

labor demand labor demand

matching labor supply

firms labor demand

external recruiting

job search slide

human resource supply

recruitment effort