2 Hiring the Best Employees: Employee Selection Learning Objectives After reading this chapter, you should be able to 1. Describe the critical stages of a job analysis 2. Explain why recruiting practices are important to organizations 3. Be familiar with initial screening tools for employee selection 4. Apply laws that impact employee selection practices 5. Create effective employee interviews 6. Apply positive psychology to employee selection © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 29 3/26/12 3:19 PM Section 2.1 The Importance of Employee Selection CHAPTER 2 2.1 The Importance of Employee Selection Think about the following scenario: XYZ Corporation is experiencing significant growth and needs to hire 20 new customer service representatives over the next two months. This can be an exciting situation for the organization. The company is growing, and additional employees will ensure continued growth and increased revenue. Hiring these new employees, however, may pose some challenges. First, where will the company find qualified candidates for the new positions, and how will it encourage them to apply for the jobs? The company anticipates more than 200 applicants for the 20 open positions. How will it screen the résumés and applications so as to identify the most qualified individuals? Additionally, who will conduct the interviews, and, more importantly, how will the interviewers discern which applicants have the skills and abilities to best serve the company’s customers? Finally, how will the company ensure that each stage of the selection process is legally and ethically fair? Most organizations encounter concerns such as these whenever they are faced with the prospect of hiring new employees. Consider This: Can You Afford Not to Hire the Best? Hiring can be very expensive. Consider the costs of hiring a new employee: There is the cost of advertising the job opening, which may include print ads, online ads, posting to a bulletin board, renting a booth at a job fair, or even paying a recruitment agency. Then, there are the costs of processing the applications, screening the applicants, contacting prospective interviewees, and then testing and interviewing applicants. These costs include not only the time of your human resources employees and hiring managers but also the opportunity costs, or productivity sacrificed because their time is not being spent on other productive activities. Then, once an employee is selected, there are the costs of orientation and training to get that employee ready to perform. Because the new employee is now on the organization’s payroll, the costs of this orientation and training phase include both the manager’s and the employee’s time and opportunity costs. Although hiring costs are high, hiring the wrong person can be even more costly. A Harvard University Study estimated that 80% of turnover can be attributed to faulty hiring decisions (Mengel, 2001). Turnover rate is the percentage of all the employees in an organization who leave in a given year. Turnover can be more expensive than hiring. When employees choose to leave an organization, not only does the hiring process have to be repeated to fill the vacancy, but there are also the costs of separating the departing employee, including the time of human resources employees and hiring managers as well as any severance pay that may be due to the employee. The organization may never recover any returns on its investment in the departing employee’s training, or worse, this knowledge as well as any intellectual property that the employee might have learned about can go directly to a competitor who hires the separated employee. (continued) The expense of placing advertisements for a job opening is just one of the many costs associated with hiring a new employee. © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 30 3/26/12 3:19 PM Section 2.2 Job Analysis CHAPTER 2 Consider This (continued) Many of the problems that can lead to turnover—or to the less extreme but still counterproductive and costly alternatives such as absenteeism, disengagement, job dissatisfaction, and lack of organizational commitment—can be avoided through better hiring, which should start with a careful process of proactive planning and analysis. I/O psychologists play an important role in helping organizations design and implement effective selection processes. In this chapter, we will describe how I/O psychologists gather information about the work functions of an open job position as well as the worker characteristics needed for that job to be done successfully. Then, we will review the most effective ways to recruit candidates for a job, design initial screening methods, and establish fair selection processes. Find Out for Yourself: Hiring Costs • Visit several recruitment websites such as monster.com and theladders.com. How much does it cost to advertise a job opening? • Research turnover rates at http://www.bls.gov/jlt/ in industries that are of interest to you. Are you surprised by the numbers you found? • Contact an organization that you have access to, such as your employer, the employer of a family member or a friend, your bank, your grocery store, or your favorite fast food restaurant or café. Ask how many applicants they usually get per job opening. How much time does the manager spend in processing each applicant? How long does it take to train a new employee? • How many employees are employed at that location, and how many left last year? Calculate the turnover rate. 2.2 Job Analysis Let’s start this section with a short exercise. Think about your current or past job. Begin by listing all the tasks and duties you must complete to perform the job. If you have trouble coming up with a complete list, start by thinking about a specific day, like last Monday. What did you do to start your day? What happened after lunch? Before you left for the day? Now that you’ve identified your regular job tasks, think about activities that you perform less frequently, perhaps on a monthly, quarterly, or annual basis. Be sure to add these to your list. Once you’ve identified as many tasks as possible, indicate the level of importance for and amount of time spent on each one. © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 31 3/26/12 3:19 PM Section 2.2 Job Analysis CHAPTER 2 Now take a moment to think about the characteristics that would enable a person to perform these tasks successfully. For example, what technical knowledge might someone need to do your job? Would a worker need certain innate abilities, such as good judgment, critical thinking ability, or strong communication skills? What other knowledge, skills, and abilities are necessary for a person to perform this job? After you’ve completed this exercise, you will have created a rudimentary job analysis, or the systematic study of a specific job based on the collection of information about the directly observable and verifiable job tasks and worker behaviors for that job (Harvey, 1991). Organizations use a similar process to collect information about jobs and the people who perform them. What Is Job Analysis? The goal of a job analysis is to clearly understand what work is performed for a specific job. Typically, a job analysis will include three pieces of information: • • • job tasks, worker requirements, and contextual factors. The foundation for all job analyses is a clear definition of a specific job’s tasks. Analysis of tasks provides a clear picture of what the worker does in the job. Tasks should be observable or verifiable and recorded in the form of action statements. Here are examples of a few of the major tasks performed by a bank teller: • • • greeting customers who enter the bank, counting money back to a client, and answering customers’ questions about their account. Greeting customers and counting money are observable behaviors. Whether the teller has adequately and correctly answered a customer’s question may not be as readily observable, but it can be verified by assessing the customer’s satisfaction with the answer (e.g., using a customer survey) or by comparing the answer the teller gave with an accurate source of information (e.g., a policy manual or a product brochure). Sometimes, tasks will be combined into broader categories called responsibilities. Responsibilities are groups of related tasks that represent a generic behavior, which helps to accomplish major goals (Cunningham, 1996). The three tasks listed for the bank teller, for example, could form a responsibility called “providing customer service.” Second, a job analysis will include information about the specific worker characteristics needed to perform a job’s tasks (Sackett & Laczo, 2003). These worker requirements are unique to each job; they are composed of specific knowledge, skills, abilities, and other characteristics. Knowledge is a set of related facts and information about a specific field or work domain. For example, a bank teller may need to know bank policies and procedures, industry regulations, and bank product and service information. Skills are the minimum level of competency at which a worker must perform a task or learned activity. © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 32 3/26/12 3:19 PM Section 2.2 Job Analysis CHAPTER 2 Our bank teller may need to show competency in many different skills, such as typing, money counting, and data entry. Although workers can acquire skills, abilities are innate characteristics, such as cognitive, psychomotor, and physical capabilities. In short, they are a person’s enduring basic aptitude for performing a range of activities (Fleishman, Costanza, & Marshall-Mies, 1999). Other characteristics are all other relevant personal factors needed for a particular job, such as personality and motivational traits, experience, licensure, education, and certification. For example, a bank teller might ideally need an extroverted personality, motivation to serve customers, previous customer service experience, a high school diploma, and a cleared criminal background check. The final piece of a job analysis deals with the context in which a job is performed (Berry, 2003). Job context is the external factors that influence the way work is performed, and it can be examined according to a variety of aspects. For example, the social context of a job includes a worker’s interactions with team members, customers, and managers. Jobs that require significant interpersonal interaction will require employees with exceptional teamwork and social skills. The same job could also be examined according to its physical context, which includes all the environmental factors, such as background noise, temperature, and lighting, as well as whether a person sits or stands while working and whether the job is performed inside or outdoors. As you can see, job context is important in determining what is needed for a worker to perform at his or her best. The organizational data a company needs can often be generated only by a systematic study of its jobs—in other words, by performing job analyses. One example is job descriptions, which require an accurate job analysis. At its most basic, a job description identifies what a worker is expected to do to perform a job. A job description can also be used to design job-recruitment postings or compensation programs. Additionally, job analysis data can be used to classify jobs into job families, which is necessary for constructing effective multi-level systems of compensation as well as appropriate paths for employees to follow as they change jobs within the company. Perhaps the most important use of job analysis data is the development and preparation of measures for employee selection and performance appraisal. The physical context encompasses all of the environmental Table 2.1 summarizes some of factors of a job. Therefore, the physical context of an office job differs from that of an assembly-line job. the uses of job analysis. © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 33 3/26/12 3:19 PM CHAPTER 2 Section 2.2 Job Analysis Table 2.1: Uses of job analysis information Type of Uses Types of Job Analysis Information Job descriptions Tasks performed, worker requirements, contextual information Recruiting Tasks performed, worker requirements, contextual information Employee selection Tasks performed, worker requirements Compensation evaluation Tasks performed Training and development Tasks performed, worker requirements Job classification Tasks performed, contextual information Placement Tasks performed, worker requirements Find Out for Yourself: Jobs in Your Area • • • • Search online for several job openings in one or two areas of interest to you. Read the details posted about each job. Create a job analysis for each position using the steps above. Rank the positions according to their fit with your knowledge, skills, and abilities; past experience; personal characteristics and interests; and work context preferences. Consider This: Your Ideal Job • Create a job analysis for a job that would be ideal to you. • What would the job duties and responsibilities be? • What specific knowledge, skills, abilities, and other characteristics do you have that would make you the best fit for this job? • Describe the job context. • How would you use your job analysis to determine the best compensation, career path, training and development, and performance appraisal plan for this job? Information Sources Considering the importance of the job analysis, you may be asking yourself how I/O psychologists manage to gather all of the information they need to construct this useful tool. Although they vary from job to job, information sources fall into several basic categories: • • • • documentation, role incumbents, supervisors, and other sources of information. © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 34 4/9/12 11:03 AM Section 2.2 Job Analysis CHAPTER 2 Each of these sources provides a different perspective of a job; using all of them increases the accuracy and efficacy of the information collected to create a job analysis. Documentation Organizations may already have documents that describe certain aspects of a job. Examples include job descriptions, previous work analyses, training manuals, and operating guidelines. Generally, it’s good to start with such documents when beginning a job analysis because they are easily obtainable, contain a lot of good information, and provide a quick and efficient explanation of the job being analyzed. Even out-of-date documentation can provide useful comparative information as the job analysis progresses. In addition to these internal sources, it’s useful to review external documents. The U.S. government supplies job-relevant information for many different types of jobs in the Dictionary of Occupational Titles (DOT) as well as online through the Occupational Information Network (O*NET) at http://www.onetonline.org/. Perusing job postings on national online job boards, such as monster.com and careerbuilder.com, can provide insight on how other organizations define similar jobs. Finally, some professional associations for widely held jobs document the work of their members. Find Out for Yourself: External Information Sources for Job Analysis • Visit the Occupational Information Network (O*NET) website at http://www.onetonline.org/ • In the keyword search box, type the word teller. • Click on the closest match to see the details provided for the job of bank teller. Is it what you expected the job to be? Which details were new to you? • Search for a few more jobs that are familiar to you. Are the descriptions accurate? Do they adequately cover the job requirements as you know them? • Visit national online job boards, such as monster.com, the ladders.com, or careerbuilder.com. Search for positions similar to the ones you have explored above. • To what extent do the job postings reflect the descriptions on O*NET? Role Incumbents Because accuracy is critical for a good job analysis, it’s crucial to talk to people who truly understand the job being analyzed. Role incumbents—that is, people who hold the job or have held it in the past—understand the intricate details of the job and how it is performed in the field. These finer points are not often available from written documentation sources. Communicating with role incumbents is also ethically and politically appropriate. When incumbents help to define their jobs, they provide insight into the job’s psychological and social contexts, and they are likely to be more committed to the outcomes of other human resource processes based on the job analysis, such as performance appraisals, compensation, and promotions. Despite the invaluable information role incumbents can provide for a job analysis, keep in mind that this information is not infallible. Not all incumbents have equal ability to share © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 35 3/26/12 3:19 PM Section 2.2 Job Analysis CHAPTER 2 information about their jobs, perhaps because they lack communication skills or have poor memories. Some may intentionally provide incomplete or inaccurate information because they perceive the process as too time-consuming or unimportant, or because they fear how the information will be used. It is therefore critical for the person performing the job analysis to explain clearly and effectively the reasons for the study as well as the way in which the information will be used. Supervisors An immediate supervisor also has a good understanding of the work performed for a specific job. Although supervisors are not typically as well acquainted as job incumbents with the day-to-day minutiae of a specific job, supervisors can usually validate the incumbent’s information as well Because they currently hold the job or have previous as provide additional insight into experience in the position, role incumbents can provide the performance expectations for valuable insight into a job’s psychological and social contexts. the job. Additionally, unlike job incumbents, supervisors have little motivation to distort information. They also tend to have experience with multiple incumbents with the same job title, so they may be able to give more detailed descriptions of the job. Other Sources of Information Sometimes, other sources are needed to accurately describe a job. For example, if a job involves frequent customer interaction, such as sales or customer service jobs, gathering information from customers can be very beneficial. Customers know how they want workers to perform their jobs. Keep in mind, though, that customer-provided information encompasses only a small portion of the job being performed. Technical experts are another source of valuable, but limited, information. These experts can provide insights into technical or complex aspects of a job. Examples of technical experts are engineers, lawyers, scientists, and machine technicians. Conducting a Job Analysis After determining what job information to measure and from whom or where to get it, the I/O psychologist must next determine how to gather it. Although there are many methods, there is really no one best way of gathering information (Brannick, Levine, & Morgeson, 2007). The goal of a job analysis is to gather as much information about the job as possible, and doing so requires more than one method (Gael, 1988). In this section, we will review the most common methods of gathering information and discuss different considerations for each one. © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 36 3/26/12 3:20 PM Section 2.2 Job Analysis CHAPTER 2 Observation One of the most common ways to collect job information is by simply observing people at work. With this method, the objective observer records specific actions performed by the worker and documents the importance of each task. Observation sessions may be as short as one 60-minute session or as long as several sessions over the course of many weeks. Typically, job analysts will observe a representative sample of job incumbents in order to get an accurate picture of the work being done. Observation yields such information as the tasks that are performed; the materials and equipment used; the work processes and procedures followed; and interactions with coworkers, subordinates, and supervisors. As a method of gathering information, observation has mixed reviews. On the positive side, because this technique relies on direct observation, it overcomes the limitation of being dependent on the worker’s ability to recall all the relevant job details, which remains a challenge for all other collection methods. Additionally, observation enables the job analyst to learn firsthand how and why work is performed, which in turn allows for a more accurate evaluation of the quality of information provided from other methods. Despite these advantages, however, observation can be time-consuming, and some jobs are not conducive to direct observation. Consider how difficult it would be to observe such people as doctors, engineers, scientists, or high-level managers with any sort of meaningful understanding! Finally, observation can easily fall prey to the Hawthorne effect, which was described in chapter 1. In order to keep workers from acting abnormally while being observed, the job analyst must remain as unobtrusive as possible. Find Out for Yourself: Job Analysis Through Observation • Plan to observe three jobs this week. They can be at your favorite restaurant or at your doctor’s office, bank, company cafeteria, gym, or anywhere else. Try to make your observation as unobtrusive as possible. For example, arrive early to appointments and observe as you wait. • Using your observations, attempt to create a job description for each position. • Describe the knowledge, skills, abilities, and other characteristics that you would expect in the job incumbent. • Describe the job context. • Now search online for job openings that describe comparable positions. Compare your analysis to the advertised positions to assess its accuracy. Interviews Interviews are used to collect information from people who have direct contact with the job being analyzed, including job incumbents, supervisors, customers, and trainers for the position. The job analyst will create a structured interview that asks these people about various aspects of the job, such as tasks performed, materials and equipment used, work processes and procedures followed, and interactions with coworkers, subordinates, and supervisors. Interview questions are refined, and the process continues until workers begin to provide redundant information. In general, job analysts favor interviews as a method of gathering information because they allow the analyst to ask clarifying questions. © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 37 3/26/12 3:20 PM Section 2.2 Job Analysis CHAPTER 2 Subject Matter Expert (SME) Panels An even more efficient interview technique involves collecting information from a group of subject matter experts (SMEs) at the same time. Members of an SME panel could be job incumbents, supervisors, technical experts, or other people familiar with the work being analyzed. The analyst facilitates discussion among the panel members in order to create a list of the job’s major tasks and worker requirements. The group dynamic allows the SMEs to establish consensus about information the analyst has already gathered; however, panels can sometimes become dysfunctional and produce inaccurate information. For example, when one participant dominates discussion, other knowledgeable participants may not feel comfortable sharing openly. Additionally, some participants may feel intimidated by supervisors and other higher-status members of the panel, resulting in information that is skewed toward the input and opinions of the supervisor. To counteract these challenges, the job analyst must be a skilled facilitator. Limiting panel size to between five and ten participants is also helpful, as is grouping SMEs into panels based on management level. Questionnaires The information gathered from observations and interviews can be used to develop a job analysis questionnaire. A large number of SMEs can then rate each item on the questionnaire according to criteria such as importance, frequency of task performance, difficulty, length of time to learn a task, and relationship of the item to the job as a whole. One advantage of the questionnaire is the large number of easily analyzed responses such tools can generate. With the advent of online survey tools, gathering data through questionnaires has become quicker and easier than ever before. However, long questionnaires (some contain hundreds of questions) can quickly fatigue participants, which often leads to careless or incomplete responses. Naturally, such data will only increase the inaccuracy and unreliability of the resulting job information. Questionnaires are a tool for job analysis when a large number of responses are desired. A number of popular job analysis questionnaires are available commercially. One widely used example is the Position Analysis Questionnaire (PAQ) developed by McCormick, Jenneret, and Mecham (1972). The PAQ focuses on identifying worker characteristics or “elements” required by the job rather than on the specific tasks performed. The PAQ’s 194 job elements are rated by managers and employees on areas of importance, difficulty, and time required. The elements are organized into the © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 38 3/26/12 3:20 PM Section 2.2 Job Analysis CHAPTER 2 following categories: information input, mental processes, work output, relationships with persons, job context, and other job activities and conditions. Although widely used, the PAQ seems to be better suited for blue-collar than for professional jobs. Work Logs A work log is a detailed record of work being done. Typically, supervisors and job incumbents create work logs by pausing several times a day over the course of the job analyst’s observation period and recording all of their work actions. Although used infrequently, the work log is valuable both for its low cost and the insights it provides. Critical Incidents Technique Originally designed to establish job requirements for military jobs, the critical incidents technique (Flanagan, 1954) is a specialized job analysis technique. Unlike those discussed thus far, this technique does not endeavor to gather information about tasks or worker requirements. Instead, it attempts to identify behaviors that predict success and failure. Pinpointing these behaviors begins with job incumbents’ written or oral descriptions of behaviors that make the difference between success and failure in a job. These descriptions include information about the situation leading up to the success or failure; what exactly the individual did that made the action effective or ineffective; key contextual information, such as when and where the incident occurred; and the consequences of the action. Although this technique is time-consuming, and infrequently used for that reason, it is a very effective method of designing performance appraisals. Job Analysis Errors If two people perform the same job, it seems logical to assume they will describe the work in nearly the same way. As noted earlier, however, memory recall and communication skills can affect the quality of information they provide. Indeed, researchers have identified a number of additional factors that influence job analysis information: • • • • Cognitive ability affects a worker’s capacity to explain the nuances of job functions (Hunter, 1986). Workers with higher conscientiousness tend to provide more detailed and accurate descriptions of their work. Contrary to what one might expect, workers with more job experience do not seem to provide greater information and insight about their jobs. A study by Richman and Quinones (1996) found that for new employees, each job experience is unique and can be easily recalled. Experienced workers, on the other hand, have performed their tasks so often that they seem to blend together. The way workers spend their time on the job can also influence the manner in which they describe their work. For example, high performers tend to spend more effort on important job tasks (Mullins & Kimbrough, 1988), so they may emphasize these tasks. Similarly, workers who receive more or less autonomy may change the amount of time they spend on various tasks, resulting in differences in perceived task importance. © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 39 3/26/12 3:20 PM Section 2.3 Employee Selection CHAPTER 2 2.3 Employee Selection A fundamental role of the I/O psychologist is to design selection processes that identify candidates who can successfully perform the functions of a specific job. Doing so requires a number of key processes. First, the organization must attract the most qualified candidates to apply for the position. Next, the organization must use tools that help identify the applicants who possess the requisite skills to do the job. Finally, all selection processes must be fair and must not discriminate against segments of the population. The critical aspects of each of these processes will be discussed for the remainder of this chapter. Recruitment Today, recruiting quality candidates involves so much more than simply placing an ad in the paper or putting a Help Wanted sign on the front door. An organization must be able to set itself apart from others. Indeed, in 1997, Steven Hankin coined the phrase war for talent to describe the increasingly competitive world of recruiting and retaining talented employees. Hiring the best talent is big business and can ultimately mean the difference between a company’s success and failure. Recruitment Sources Organizations utilize a number of sources in their quest to identify and attract highly qualified job candidates. Some of the major types of recruitment sources are explained below. Job postings. The most common job posting is the help-wanted ad. Job postings provide applicants with information about a job’s major functions as well as information about the organization. If an organization wants to reach a wide audience, it can place postings in local or national newspapers; if, however, it is searching for an applicant with very specific skills, it may post the job in a business or trade publication. Advertising in print media, however, is costly, and such ads reach only a limited number of high-quality applicants—only those who happen to be looking for a job when the job posting is published. Internet recruitment. Almost every organization uses the Internet for recruitment, through its corporate website, online publications, or job posting sites such as careerbuilder.com or monster.com. Although Internet advertising can reach large numbers of applicants quickly, it also tends to attract many unqualified candidates, and sorting through all the applications can be difficult and expensive. Employment agencies. Employment agencies offer a full spectrum of recruitment services and will locate job candidates for a broad range of jobs. The United Way, U.S. Department of Labor, and local employment service agencies will post jobs on their websites, allowing organizations to reach a large number of people. Other agencies are more specific and focus on certain types of jobs, such as sales, management, or information technology. Executive search firms are agencies that specialize in identifying senior management candidates. College recruitment. Colleges have long been a source of professional, technical, and management recruits. Companies are encouraged to post jobs in career centers, © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 40 3/26/12 3:20 PM Section 2.3 Employee Selection CHAPTER 2 on campus bulletin boards, and on college Intranet sites. Additionally, collegesponsored career fairs allow company representatives to discuss job opportunities with a large number of students. During career fairs, representatives can conduct interviews with qualified candidates, discuss internship assignments, or even make job offers. Employee referrals. One of a company’s best sources of recruitment is its own employees. Research has shown that applicants who have been referred by an active employee generally have lower turnover rates (Rynes, 1991). Because people who are referred can learn detailed information from the current employee about the organization, its jobs, and environment, these applicants are able to evaluate job fit more accurately than other applicants. In fact, Saks (1994) found that informally recruited applicants received more accurate job information, which resulted in their being better able to cope once they were on the job. Companies post job openings on university Intranet sites and sponsor career fairs in order to recruit the most qualified college graduates for jobs and internships. Often, organizations will notify their employees of a job opening. Employees are encouraged to refer someone who would be a good fit for the position, and they usually receive compensation if the referral is hired. Organizations often compensate employees significantly more for hard-to-recruit positions. Insurance companies, for example, can pay between $500 and $5,000 for a successful actuarial referral. With so many job posting options available, it may seem difficult to decide which is the most successful at attracting qualified candidates. Breaugh, Greising, Taggart, and Chen (2003) found that employee referrals (12.4%) and direct applicants (8.1%) were hired at higher rates than people recruited through job fairs (4.8%), newspapers (1.1%), or colleges (1.3%). Contrary to what you might think, then, traditional job postings are often less effective than more informal, relationship-based recruitment techniques. Generating Applicant Pools Once a job is posted, the first step in recruitment is to attract applicants whose knowledge, skills, abilities, and other characteristics match the requirements of the job. In order to do so, an organization will attempt to show how it differs from other organizations, perhaps by advertising a low-stress work environment, family-friendly benefits, great pay, or challenging and interesting work. The goal is for the organization to distinguish itself from others in a positive way, thus attracting the best job candidates for the job. According to much of the research, certain characteristics of a job or organization influence applicants’ perceptions of the organization. Applicants are attracted to organizations © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 41 3/26/12 3:20 PM Section 2.3 Employee Selection CHAPTER 2 according to job types, organizational characteristics, recruiter characteristics, perceptions of the recruitment process, perceived job fit, and hiring expectations (Chapman, Uggerslev, Carroll, Piasentin, & Jones, 2005). For example, a study by Turban and Cable (2003) found that organizations with positive reputations in their communities attract more highly qualified job applicants than organizations that are deemed less community-centric. Organizational characteristics such as flexible work schedules and dependent-care assistance have also been shown to influence applicant attraction (Casper & Buffardi, 2004). Interestingly, job factors such as potential for career growth and challenging work have greater influence on organizational attraction than does either pay or benefits (Lievens & Highhouse, 2003). It is important, then, that organizations consider enticements other than the traditional high pay and good benefits when actively attracting job applicants. Maintaining Viable Applicants The recruitment process does not stop once an individual applies for a position. Both recruiter and applicant continue to gather information about each other in order to determine if there is an adequate fit (Bretz & Judge, 1994). Applicants use their early experiences with an organization to develop ideas and opinions about as-yet unknowable aspects of that organization (Rynes & Miller, 1983). Specifically, research has shown that recruiters’ interactions with job applicants influence applicants’ attraction and intentions toward the organization. For example, Chapman and Webster (2006) found that recruiter friendliness is related both to applicant attraction and perceived fairness of the recruitment process. In a study of 361 on-campus interviews, Turban, Forret, and Hendrickson (1998) found that recruiters’ actions during the interview were instrumental in increasing applicants’ perceptions of both the job and the organization. Other factors influence applicant perceptions. Timeliness of the selection process is particularly significant (Rynes, Bretz, & Gerhart, 1991). Applicants lose patience with long, drawn-out selection processes and will be quick to exit the applicant pool Job factors such as potential for career advancement and challenging work have a greater influence on the attractiveness if another company is faster at extending a job offer. Another of an organization than salary or benefits. important factor, especially for minority candidates, involves site visits. Studies show that if minority applicants perceive the organization to have a diverse climate, they will be more attracted to that organization (McKay & Avery, 2006). Ultimately, then, the goal is to keep applicants interested in the organization until a final job offer can be made to the right candidate. Post-Offer Closure Very often, an organization’s most valued applicants are also the ones who receive multiple job offers. It is therefore critical for organizations to persuade top candidates to accept © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 42 3/26/12 3:20 PM Section 2.4 Employment Law CHAPTER 2 their job offers. Over the course of several recruitment phases, Boswell, Roehling, LePine, and Moynihan (2003) examined the way in which 14 job and organizational factors influenced whether applicants decided to accept or reject job offers. Results indicated that the factors with the greatest influence on acceptance decisions were nature of work (37.6%), location (37.6%), company culture (36.5%), and advancement opportunities (25.8%). This research suggests that the recruiters must continue to work with applicants to emphasize the appeal of such factors until the applicant accepts the organization’s offer. Realistic Job Previews Realistic job previews attempt to give applicants a better idea of what a job is “really” like, in order to acquaint them with both positive and negative aspects of a job. This information can come in print materials such as brochures or job descriptions, interviews, videos, work samples, or even a trial period on the job. Although companies must of course create a positive recruitment experience in order to attract superior candidates, a realistic job preview, complete with the negatives, is also necessary to keep applicants from forming overly optimistic or unrealistic expectations about the job. One large Fortune 500 company in the meat-processing industry experienced high turnover rates among its meat processors. When asked why they were leaving, many of these employees described the continuous sorting of meat parts as boring; others pointed out that standing in the same place for 10–12 hours a day was exceedingly difficult. Although recruiters had explained these and other challenges during the recruitment process, the exiting employees simply admitted that they “did not know it would be this hard.” To stem the departure of meat processors, the company decided to take a bold step, creating a realistic three-day job preview, during which applicants would perform all functions of the job for six hours a day. During the preview period, the applicant could leave at any time, no questions asked. Almost immediately, turnover rates were cut in half. Even though more applicants chose to self-select out of the job offer during the preview period, the company was, in the end, able to find and hire more individuals who enjoyed doing the work. In addition to reduced turnover, the use of realistic job previews correlates positively with job satisfaction, job performance, and organizational commitment (Ganzach, Pazy, Ohayun, & Brainin, 2002; Kammeyer-Mueller & Wanberg, 2003). There are a number of hypotheses as to why realistic job previews are so effective. One theory is that sharing a job’s negative aspects early in the recruitment process allows applicants to self-select out of jobs that are unappealing or otherwise inappropriate for them (Bretz & Judge, 1994). Additionally, evidence suggests that applicants perceive an organization that is willing to share both positive and negative information about a job as having a caring, honest, and trustworthy culture—an environment to which applicants aspire to belong (Meglino, DeNisi, Youngblood, & Williams, 1988). 2.4 Employment Law By its very nature, employee selection methods attempt to differentiate between candidates who possess requisite job skills and those who do not. When selection methods treat applicants differently based on other factors such as race, age, or sex, they are said to be discriminatory. It is imperative for HR professionals to understand the rights and © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 43 3/26/12 3:20 PM Section 2.4 Employment Law CHAPTER 2 obligations of both the company and the job candidate in order to protect the legal rights of both parties and avoid the litigation costs and the damage to the organization’s reputation and employees’ trust that may result from discriminatory practices. This next section, although not exhaustive, highlights landmark discrimination legislation and how it has affected organizations’ selection processes. Equal Employment Opportunity The Civil Rights Act of 1964 (amended in 1979 and 1991) is divided into several sections, or titles, each dealing with a different facet of discrimination, such as voting rights, public accommodations, and public education. For an employer, discrimination occurs when an employee is treated differently due to a legally protected characteristic (such as sex, race, or religion). Title VII of the Civil Rights Act guarantees equal opportunity in employment and prompted the establishment of the Equal Employment Opportunities Commission (EEOC) to administer and enforce federal civil rights laws. Today, the EEOC enforces laws that prohibit discrimination based on race, color, religion, sex, national origin, disability, or age. These laws apply not only to selection but also to other employment practices such as compensation, training, and apprenticeships. Age Discrimination Age discrimination occurs when an employer treats an employee differently based on his or her age; it is legally defined in the Age Discrimination in Employment Act (ADEA) of 1967 (amended in 1978, 1986, and 1993). The ADEA is a federal law and protects all workers in the United States over the age of 40 from the moment they contact an employer about a job opening. Specifically, this law forbids employers from making any kind of employment decision based on a person’s age. For example, employers cannot terminate employment, deny a bonus or raise, or refuse to hire or promote someone simply because they think that person is too old. However, it is important to note that people under age 40 are not protected under ADEA. Thus, it is possible for an organization to discriminate against an individual for being too young without legal repercussions. Discrimination Based on Disability People who are physically or mentally disabled are protected from discrimination in the workplace. Starting with the Vocational Rehabilitation Act of 1973, organizations were required to recruit and hire disabled workers. The Americans with Disabilities Act (ADA) of 1990 makes it unlawful for an employer with 15 or more employees to discriminate against © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 44 3/26/12 3:20 PM CHAPTER 2 Section 2.4 Employment Law a qualified individual with a disability in hiring practices, testing, firing, promotion, job training, or wages. ADA requires employers to provide a reasonable accommodation if a person with a disability needs one to apply for a job or perform a job. However, the employer has the right to withhold accommodation that would impose an undue hardship on the organization. The Americans with Disabilities Act makes it unlawful for an employer with 15 or more employees to discriminate against a qualified individual with a disability. Other Employment Laws Several other laws are also relevant for employment in general and for employee selection in particular. For example, over 75 years ago, the National Labor Relations Act (NLRA) of 1935 legalized unionization and collective bargaining. Just before the Civil Rights Act of 1964, the Equal Pay Act of 1963 prohibited pay differentials for equal jobs across genders. The Pregnancy Discrimination Act of 1978 prohibits dismissal of an employee due to pregnancy and ensures job security during maternity leave. More recently, the Immigration Reform and Control Act of 1986 prohibited hiring illegal immigrants. The Worker Adjustment and Retraining Notification Act (WARN) of 1988 requires a 60-day notice prior to shutdown or massive layoffs. The Employee Polygraph Protection Act of 1988 limits the scope of lie detector use and prohibits it as the sole determinant in hiring and firing decisions. Finally, the Family and Medical Leave Act (FMLA) of 1993 grants employees who have worked for one or more years for an organization that employs 50 or more workers up to 12 weeks of unpaid leave for family or medical reasons in any given one-year period. Interpretation and Enforcement of Employment Laws Several concepts are critical for the implementation and enforcement of the above employment laws. For example, illegal discriminatory practices can be in the form of disparate treatment or disparate impact. Just because a policy or selection procedure does not explicitly discriminate against members of a protected class (which would be a form of disparate treatment) does not make that procedure legal. If the procedure has a discriminatory effect (disparate impact), even if unintended, it can be illegal. For example, setting height or weight requirements for a particular job may not be intended as a discriminatory practice. However, because they exclude more women than men and members of racial groups that tend to be shorter or lighter, these requirements can be found to be discriminatory, unless they can be justified by specific job requirements. These job requirements must be what is referred to as a business necessity. © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 45 3/26/12 3:20 PM Section 2.4 Employment Law CHAPTER 2 As a case in point, denying an individual in a wheelchair a job as a firefighter has been found justifiable. On the other hand, for the same job category, height and weight requirements have been replaced with job sample tests through which applicants are evaluated on their fitness level and ability to successfully carry out the physical job requirements. Like discrimination, harassment in the workplace can assume two forms: quid pro quo or a hostile work environment. Quid pro quo (Latin for “this for that”) is a more explicit form of harassment where the harassing employee requires the harassed employee to exchange favors against his or her will. However, the more subtle but equally illegal form of harassment, a hostile work environment, can be created by some employees, offending others, causing them undue hardship, and hindering their ability to adequately perform their jobs. Examples include sexual or racial remarks and displays of inappropriate forms of art (e.g., revealing posters that would make female employees uncomfortable). Unfortunately, many employees are unaware that their actions can cause their employers to be held legally liable for a hostile work environment. For example, employees who use company e-mail to forward jokes with sexual, racial, or religious connotations are exposing their employers to such risks. It is also important to note that discrimination laws protect not only minorities but also members of majority groups. For example, in attempts to appear less discriminatory and more diverse, some organizations may consider hiring less qualified women and minorities. However, these attempts can be found discriminatory against more qualified white male applicants, who have traditionally constituted the majority of the working population. This “overcompensation” effect is referred to as reverse discrimination and is illegal. It is important to note that filing a claim with EEOC costs nothing to the employee, which often results in large numbers of unsubstantiated claims. Moreover, most of the laws discussed above also have no-retaliation clauses that prohibit employers from retaliating against employees who choose to report discriminatory practices. Once an employee provides basic evidence of the occurrence, the burden of proof shifts to the employer, which with the lack of documentation and evidence can be impossible. Discrimination lawsuits can cost the employer millions of dollars in punitive damages. Employment laws cover not only current employees but also job applicants and past employees, which makes these laws particularly relevant for selection as well as for all HR practices. © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 46 3/26/12 3:20 PM Section 2.5 Selection Techniques CHAPTER 2 Find Out For Yourself: More on Employment Laws Employment laws, statutes, and regulations are continuously evolving and changing. Furthermore, like other legal matters, their interpretation and implementation are influenced by case law, or court rulings in prior cases, also commonly referred to as precedent. Regulatory agencies of the government also regularly issue guidelines to help employers interpret and comply with the law. The following websites can help you expand your knowledge of employment laws: • Uniform Guidelines on Employee Selection Procedures (UGESP): http://www.doi.gov/hrm/ pmanager/st13d.html This website provides a brief background about the 1978 UGESP from the U.S. Department of Interior. • UGESP: A Free Resource for HR Professionals: http://www.uniformguidelines.com/ uniformguidelines.html This website provides more detailed information on UGESP. • Employment Tests and Selection Procedures: http://www.eeoc.gov/policy/docs/factemployment _procedures.html This website provides a summary of EEO laws governing employment tests and selection procedures, with illustrative recent examples of EEOC litigation and settlements. • Enforcement and Litigation Statistics: http://www.eeoc.gov/eeoc/statistics/enforcement/ index.cfm This website provides statistical reports by EEOC on enforcement of various employment laws. Be sure to click on the “Definition of Terms” links under each table to better understand the information in them. Also note the relative weight of different types of litigation and resolutions (many of which are out-of-court settlements), the large percentage of EEOC claims that are found to have “no reasonable cause,” and the substantial numbers of claims that are retaliation-based. 2.5 Selection Techniques Because hiring the right employees is a vital part of creating an efficient workforce, it is important to use a variety of selection techniques when choosing possible candidates. Collecting personal history data, conducting thorough interviews, and checking references are three of the most commonly used techniques in the selection process. Personal History Data Organizations commonly collect biographical information, or biodata, about applicants’ backgrounds, based on the assumption that past experiences or job performance can be used to predict future work behavior or potential for success. Because many behaviors, values, and attitudes remain constant throughout a person’s life, this is not an unreasonable assumption. Below are some common methods of biodata collection. Application Forms One of the most widely used selection tools is the application form. In any given year, large businesses may receive applications from millions of people. The application form © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 47 3/26/12 3:20 PM Section 2.5 Selection Techniques CHAPTER 2 is a quick and efficient way to begin the applicant screening process. The typical application form gathers two kinds of information. Some is used in the HR department for record-keeping purposes, such as the applicant’s name, address, phone number, Social Security number, and emergency contact information. Other information, such as education and work experience, is used to screen applicants against job requirements. Although application forms can be used to sample past or present behaviors quickly, they also have a number of critical limitations. A study of 200 organizations found that even though most questions on application forms gathered information that was job-related and necessary for the employment decision, 95% of the applications contained one or more legally indefensible questions (Lowell & DeLoach, 1982). Another potential drawback of the application form is the accuracy of information provided by An application is a quick and easy way to the applicant. A large number of people provide screen job applicants. Therefore, application misleading or fraudulent information, especially forms are one of the most common about their previous job titles, responsibilities, pay, methods used for employment selection. or education. A few years ago, George O’Leary resigned as Notre Dame University’s football coach after only five days on the job when it was discovered that he had not won three undergraduate football letters or received a master’s degree as he had claimed in his job application material. Biodata Inventory A biodata inventory differs from an application in that it is more systematized and makes use of the principle of behavioral consistency (i.e., past behavior predicts future behavior). A biodata inventory is a standardized questionnaire that asks about job-relevant background and experiences that are predictive of job performance. Applicants respond to multiple-choice items related to their hobbies, experiences, training, education, demographics, interests, beliefs, and values. Quality items are designed to elicit factual, observable, and verifiable information, although items can also examine feelings, beliefs, and opinions, which provide insight into an applicant’s attitudes and personality. As you will learn in chapter 3, I/O psychologists use scientific procedures in order to develop and validate the quality of those items. Considerable research has found biodata inventories to be strongly predictive of job performance, though they must be designed correctly so as to not discriminate against minorities (Schmidt & Hunter, 1998). The process of developing a biodata inventory begins with reviewing the job analysis to determine the most critical knowledge, skills, abilities, and other characteristics required to perform the job. Then, subject matter experts identify background experiences that may promote the development of these critical job-related characteristics (Berry, 2003). © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 48 3/26/12 3:20 PM Section 2.5 Selection Techniques CHAPTER 2 Theoretically, applicants who share those background experiences should possess a greater capacity to perform the critical job functions. Often biodata inventories can be quite long, up to 100 items, due to the need to establish a consistent trend of behaviors and experiences that can predict behavior in the new job. Examples of biodata items include the following: How many books have your read in the last six months? How often have you started a new assignment, before completing the first assignment? From a list of responses, the applicant must choose the one that most closely represents his or her behavior in the given situation. In order to ensure the biodata items predict job success, the responses from a large group of applicants are correlated with their subsequent job performance. One common limitation of the biodata measure is its susceptibility to false applicant information. Ultimately, applicants desire to impress the hiring organization and will often respond to biodata items according to how they think the organization wants them to respond or in a way that suggests they have the skills, abilities, values, motivation, and experiences necessary to perform the job. One way to counteract this pitfall is to design items that are observable and factual and to tell applicants that their responses may be verified for accuracy. Employment Interviews After application forms, the second most frequently used selection technique is the employment interview. The interview is used for two basic purposes: first, to promote the organization and recruit applicants and, second, to evaluate applicants’ suitability for a job with the organization. Most businesses will not hire an applicant without first meeting him or her in person. Interviews help recruiters fill information gaps in the application, and they are effective for examining an applicant’s personality, knowledge, skills, abilities, and other characteristics related to job fit. Job interviews may be designed and conducted in several ways, with varying results. The usual unstructured interview, which is what most businesses conduct, is the least effective option. Such interviews tend to be an indirect and nonstandardized conversation between recruiter and applicant. The interviewer has not previously decided on specific questions to ask and will most likely ask different applicants different questions. Often, questions are vague, such as, “What do you think is your biggest strength?” Many interviewers do not take notes on what the applicant says, and, once the interview is over, interviewers often make a subjective judgment as to the applicant’s suitability for employment. With no numerical grading or other objective evaluation of the applicant’s interview performance, the unstructured interview can be ineffective at identifying quality candidates (Conway, Jako, & Goodman, 1995) and can lead to biased and even discriminatory decisions. Structured Interviews Interview structure relates to the level of personal discretion an interviewer has in conducting the interview. When administering a structured interview, applicants are all asked the same questions, follow-up questions are kept to a minimum, and the manner in which the interview is evaluated is consistent for all applicants. The theory behind © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 49 3/26/12 3:20 PM Section 2.5 Selection Techniques CHAPTER 2 the structured interview is that it produces results that are consistent across interviewers and interviewees. Compared to unstructured interviews, the structured interview is superior at predicting an applicant’s potential job performance (McDaniel, Whetzel, Schmidt, & Maurer, 1994). Developing a successful structured interview requires I/O psychologists to consider a number of factors, including interview preparation, question design, the interview process, the types of questions asked, and judgments made during and after the interview. Interviewer Preparation Interviewers generally have some prior information about job candidates, such as recruiter evaluations, applications, or psychological tests. The nature of that information can predispose an interviewer to have a favorable or unfavorable impression of an applicant before he or she even arrives for the interview. For example, applicants who performed well in preliminary recruitment screenings are generally rated higher by interviewers than are those who did less well, regardless of the applicants’ actual interview performance. Prior information can also affect the focus of the interview. Interviewers will often attempt to discern or elicit information that confirms what is in the applicant’s résumé, especially when they perceive the applicant as unsuitable for the job. Specifically, interviewers will try to frame questions that result in negative responses (Binning, Goldstein, Garcia, & Scatteregia, 1988) or will ask fewer positive and more difficult questions (Macan & Dipboye, 1988). Ancillary information such as résumés and tests can often cause inconsistent questioning and evaluation of candidates, which in turn weakens the interview’s structure. Therefore, it may be better if interviewers do not review applicants’ ancillary information prior to the interview. Instead, they should prepare for the interview by reviewing the open position’s job analysis and receiving training to help them understand the job, the questions they need to ask applicants, and the interview rating criteria. Question Design Information from the job analysis process can be used to design job-relevant interview questions, which will ensure that the questions are relevant to the job and relate to worker characteristics that are essential to job performance. Indeed, research suggests that structured interviews developed with the aid of a job analysis are stronger predictors of job performance than those that are not (McDaniel et al., 1994). Basically, then, interviewers are better able to evaluate a candidate’s ability to perform a job when interview questions directly align with the job’s critical worker characteristics. Interview Process How an interview is conducted significantly influences its level of structure. Interviewers can follow a number of easy steps to maximize the quality of the interview. • First, all candidates must be asked the same questions in exactly the same order. This ensures that each candidate has an equal opportunity to present his or her capabilities and allows the organization to compare candidates accurately. © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 50 3/26/12 3:20 PM Section 2.5 Selection Techniques • • • CHAPTER 2 Second, interviewers should limit prompts and follow-up questions. Some interviewers deem these unscripted interactions as critical to an effective interview, yet they typically interfere with the time needed for the candidate to answer all the scripted questions and can be a distraction. Additionally, an applicant who looks good on paper may not wish to risk answering any questions and can attempt to distract the interviewer by asking many questions; the interviewer should try to steer the interview back to the script. If prompts or follow-up questions are necessary, the interviewer should always wait until the end of the interview to present them. Third, using multiple interviewers, either as a panel or in turn, can increase accuracy by reducing the potential biases of a single interviewer. Each interviewer will also focus on different facets of a candidate’s experience, which will result in a broader range of information gathered. Last, interviewers must use a consistent set of criteria to evaluate candidates’ interview performances. Types of Questions The types of questions asked by an interviewer have a direct effect on the structure of the interview. Campion, Palmer, and Campion (1997) identified four types of interview questions for structured interviews, samples of which can be found in Table 2.2. • • • • The first type of question examines an applicant’s background in a domain important for job success (“What experience do you have working with mainframe computers?”). Typically, these background questions produce a wide variety of answers and are difficult to use in comparisons between candidates. Further, they are less predictive of applicant success than the other three types of question. Experience-based questions examine applicants’ experience with situations similar to those faced on the job (“Describe a time when you were forced to meet strict deadlines. What did you do to ensure they were met?” or “Think about a time when you had to help an angry customer. What was the situation, what actions did you take, and how did you resolve the situation?”). This type of question is effective because it makes use of the principle of behavioral consistency. Situational questions ask applicants to describe how they would handle a number of job-related scenarios (“You are leading a project team in which you hold no formal authority. One of the team members continues to submit work late, impacting the work of the other team members. What would you do in this situation?”). Finally, job knowledge questions will look for specific job-relevant knowledge that applicants must possess in order to be successful at the job (“What type of information might you use if you were developing a strategic plan for your organization?”). As you can see, the last three types of question, if designed using a thorough job analysis, will elicit job-related responses. © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 51 3/26/12 3:20 PM CHAPTER 2 Section 2.5 Selection Techniques Table 2.2: Structured interview questions Type of Questions Example Questions Experience-based questions • Describe a time when you influenced someone to change their position on an issue. • Tell me about a project that really tested your analytical abilities. How did you handle the challenge and what were the results of the project? • Provide an example of a time you had to work with a difficult customer. What did you do to produce a positive outcome? Situational questions • If you were responsible for rolling out a new product for the company, what are the first actions you would take to manage the project? • The company has just landed a new, very profitable client. What would you do to build a strong relationship with that client? Job knowledge questions • How would you create a strategic planning presentation that would be influential for a board of directors? • Explain what procedures you would follow when putting together an expense report. • What functions do you use in Excel to create macros? Interview Judgments Several factors can bias an interviewer’s judgment about a job applicant. Often, these biases are subtle and are not intentionally discriminatory. One type of judgment is the contrast effect, which manifests itself when interviewers base their evaluation of an applicant on the performance or characteristics of the applicants they previously interviewed. For example, after interviewing three undesirable candidates, the interviewer may rate the next candidate more favorably than that candidate’s qualifications merit. Conversely, that same average candidate might be evaluated much less favorably if the previous three applicants had all been highly qualified. The contrast effect is one of several biases that can cloud an interviewer’s judgment. This occurs when a job candidate is evaluated in comparison to the performance or characteristics of the previous applicants interviewed. First impressions play a huge role in final hiring decisions, because they establish a bias that affects the interviewer’s interpretation of all other information gathered in the interview. In one study, just one unfavorable impression about a candidate resulted in a hiring rejection 90% of the time. Positive information, on the other hand, was given little, if any, weight in the final decision (Bolster & Springbett, 1961). © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 52 3/26/12 3:20 PM Section 2.5 Selection Techniques CHAPTER 2 Finally, personal prejudices, or interviewers’ personal beliefs and experiences, may affect their interviews and evaluations. Interviewers may hold beliefs about the type of person they feel can do the job, yet these beliefs may be unrelated to a candidate’s skills or abilities. For example, some interviewers may believe women to be unfit for historically maledominated job positions, such as managers, engineers, or physicians. Male applicants may suffer similarly when applying for traditionally female-dominated job positions, such as nurses, teachers, or day-care providers. Often, the effect of personal prejudices can be very subtle, and most interviewers do not admit that they are affected by them. Despite their imperfections, interviews will continue to be used by almost all organizations. Fortunately, these flaws can be reduced, if not eliminated, if an organization creates highly structured interviews and trains their interviewers to recognize and avoid personal prejudices and biases. Reference Checks Until recently, employee selection processes routinely included reference checks, or the gathering of applicant information from people who know about the applicant’s background, skills, and work history (such as a former teacher, previous employer or co-worker, or friend). The purpose was to learn other people’s impressions of the applicant and to verify the information reported in applications or interviews. As you can guess, the applicant’s references were often deliberately misleading. For example, a past employer might wish to be kind and say only favorable things about a valued former employee. Alternately, a former employer might skew his or her information positively out of fear of lawsuits for written (libelous) or oral (slanderous) defamation (Ryan & Lasek, 1991). Thousands of costly lawsuits have been filed against U.S. corporations for defamation, and the mere possibility of legal action keeps many companies from cooperating in even the most basic reference-checking (Korkki, 2007). There is, however, some legal precedent for punishing organizations that do not openly share information. Employers can be held negligent if they did not inform another employer that a former worker has a propensity for violence and that worker subsequently causes harm to an individual at the new organization (Gregory, 1988; Ryan & Lasek, 1991). Despite legal considerations, many companies still make at least a cursory attempt to check references. It is unadvisable, however, for the previous employer to reveal information beyond a person’s dates of employment, job title, and final salary. Should the company choose to go further, it should, for its own protection, keep written evidence in the form of an objective performance appraisal. Specific historical examples of an employee’s past performance should be documented by date, time, and location. Additionally, managers © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 53 3/26/12 3:20 PM Section 2.6 Quantifying the Return on Investment in Effective Selection CHAPTER 2 and supervisors should always assume that a judge or jury might one day scrutinize anything they include in a letter of recommendation. Given the potential risks, it is easy to see why reference checks are used much less frequently today than they were in the past. 2.6 Quantifying the Return on Investment in Effective Selection Although effective selection can be expensive, the costs of selection mistakes can be even higher. One of the recognized scientific approaches to quantifying the return on investment in effective selection is utility analysis. Utility analysis uses statistical formulas to calculate these returns over time. Although the calculations for utility analysis are beyond the scope of this course, it may be helpful to gain a conceptual understanding and appreciation of what this technique has to offer. Utility analysis takes into consideration several aspects of the selection process. For example, it accounts for the predictive capacity of one selection tool or process versus another or for the joint predictive capacities of multiple selection devices, such as a combination of structured interviews and aptitude tests. Furthermore, it also accounts for the importance of the job for the organization in terms of the financial impact of more effective selection in a particular job. Some jobs may exhibit higher variability in performance, warranting more accurate selection; others may not have as much variation across incumbents, limiting the scope for improvement in selection. Utility analysis also accounts for factors such as labor demand and supply, which may be out of the organization’s control. When the desired talent is in abundant supply, organizations can afford to be more selective, which can increase the return on investment in more effective selection procedures. On the other hand, the cost may outweigh the benefits when the organization intends to select the majority of applicants due to a talent shortage. The primary difference between an investment and an expense is that returns on investments accrue over more than one year. If effective selection is indeed an investment, its benefits should accrue beyond the current year. Statistical methods such as utility analysis go beyond the costs of using various selection devices and even the opportunity costs of effective selection (e.g., managers’ time and energy redirected away from other activities to engage in more effective selection). They also take into consideration time-sensitive factors such as employee flows, which in turn are affected by the number of employees hired using one or more selection procedures, as Hiring the right employees is essential for organizational effectiveness. To increase the potential for success, the well as these employees’ retenemployer’s and the prospective employees’ values should align. tion and turnover rates. © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 54 3/26/12 3:20 PM Section 2.7 Select For Positivity: Applying Positive Psychology to Selection CHAPTER 2 2.7 Select For Positivity: Applying Positive Psychology to Selection There is increasing evidence that positivity, just like knowledge, skills, and abilities, can predict productivity, as well as numerous other desirable outcomes in the workplace, such as job satisfaction and organizational commitment (Avey, Reichard, Luthans, & Mhatre, 2011). Numerous studies over decades of research have also demonstrated that positivity functions as an effective predictor of work performance. The logical question then becomes whether organizations should select more positive employees. Based on studies conducted by Martin Seligman, the founder of positive psychology, especially those of the sales force of Metropolitan Life Insurance, the answer is a resounding yes. At the time Seligman conducted his studies, Metropolitan Life was basing selection decisions on the results of an industryrecognized test of applicants’ technical knowledge. However, selling insurance requires more than technical skills; being a successful salesperson requires a high level of positivity. Evidence suggests that positivity increases productivity, job satisfaction, and organizational commitment. By selecting employees based on positivity, employers can foster a healthy and productive work environment. Seligman suggested to Metropolitan Life that positivity may be even more important than technical skills. To test this notion, Seligman convinced Metropolitan Life to hire a “special force” of applicants who had failed the industry’s technical test but who scored highly on a test that he had designed to measure optimism, a recognized dimension of positivity. The optimists who had failed the industry test went on to outperform pessimists who had passed it, indicating that hiring for positivity may be more important than hiring for skills! Obviously, it is advantageous to hire candidates who possess every desirable quality that can predict job performance, but such candidates are rare and can be expensive to locate, hire, and retain. Thus, selection should focus only on job requirements that are difficult, expensive, or impractical to develop within a short time after an employee is hired and thus are necessary for the employee to possess from the start. Other qualities that are open to development can be the emphasis of training (which is covered in chapter 5). An organization should adopt a balanced perspective about selection versus development, comparable to make-versus-buy decisions in other business areas. Although technical skills are important, they can be easily acquired and developed through training. The question, then, is whether positivity can be taught. Contrary to what you might expect, research shows that only about 10% of positivity depends on circumstances such as income, material belongings, physical attractiveness, marital status, or where one lives or works (Lyubomirsky, 2007). Fifty percent of positivity is a set point that is determined by genetics or is hardwired into the brain at a very © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 55 4/9/12 2:24 PM CHAPTER 2 Concept Check Numerous factors should be taken into consideration when hiring new employees including positivity, knowledge, experience, and interpersonal skills and abilities. early age. Although positivity is consequential in terms of selection decisions in the workplace as well as in other life domains (e.g., selecting a friend or a spouse), about 40% of positivity is evidently malleable and thus open to development. Some approaches to developing positivity are discussed in chapter 5. However, I/O psychologists must remember that whenever possible, positivity should be only one of the selection criteria, along with other factors such as technical, conceptual, and interpersonal skills and abilities. Summary and Conclusion Hiring the right employees is not just an added benefit, a good use of resources, or an ethical concern. It is essential for organizational success and effectiveness. I/O psychologists will often find it necessary to educate managers on the benefits of effective selection and the various tools available to better design and implement the selection processes of their organizations. Furthermore, accurate selection is an elaborate process that should start with formal planning and a deep understanding of each job, followed by systematic and objective implementation of measurement and selection procedures. Concept Check 1. It has been estimated that 80% of turnover can be attributed to a. b. c. d. faulty hiring decisions. the economic downturn. poor leadership. ineffective incentive structures. 2. Of the following, which kind of information is not included in a job analysis? a. b. c. d. job tasks worker requirements contextual factors worker demographics © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 56 3/26/12 3:20 PM CHAPTER 2 Key Terms 3. ______ are the minimum level of competency at which a worker must perform a task or learned activity. a. b. c. d. Skills Responsibilities Abilities Past experiences 4. People who hold the job being analyzed or who have held the job in the past are called a. b. c. d. former employees. role incumbents. subject matter experts. supervisors. 5. _________ occur(s) when interviewers base their evaluation of an applicant on the performance or characteristics of the applicant(s) they previously interviewed. a. b. c. d. Personal prejudices The contrast effect The first impression effect The similarity effect Answers: 1) a 2) d 3) a 4) b 5) b Key Terms abilities Innate, enduring basic aptitudes for performing a range of activities. Age Discrimination in Employment Act (ADEA) A law that prohibits discrimination against employees over the age of 40. Americans with Disabilities Act (ADA) A law that prohibits discrimination against and requires reasonable accommodations for physically or mentally disabled people who are otherwise qualified for a job. disparate impact An illegal situation where a policy or selection procedure that does not explicitly discriminate against members of a protected class has a discriminatory effect, whether intended or unintended. disparate treatment An illegal situation in which an organization explicitly discriminates against an individual based on one of the protected classes. Employee Polygraph Protection Act A law that limits the scope of lie detector use and prohibits it as the sole determinant in hiring and firing decisions. Equal Employment Opportunities Commission (EEOC) An agency that enforces anti-discriminatory laws and facilitates their application in organizations through education and technical assistance. Equal Pay Act A law that prohibits pay differentials for equal jobs across genders. © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 57 3/26/12 3:20 PM Key Terms Family and Medical Leave Act (FMLA) A law that grants employees who have worked for one or more years for an organization that employs 50 or more workers up to 12 weeks of unpaid leave for family or medical reasons in any given one-year period. CHAPTER 2 responsibilities Groups of related tasks that represent a generic behavior, which helps to accomplish major goals. reverse discrimination An illegal practice in which the majority group is discriminated against in favor of a minority group. hostile work environment A discriminatory and thus illegal form of harassment where some employees create an uncomfortable or offensive environment for others, causing them undue hardship, and hindering their ability to adequately perform their jobs. role incumbents People who currently hold a particular job or have held it in the past. Immigration Reform and Control Act A law that prohibits hiring illegal aliens. Title VII of the Civil Rights Act A law that prohibits discrimination based on sex, religion, race, color, or national origin in hiring, promoting, firing, setting wages, testing, training, apprenticeship, and other terms and conditions of employment. job analysis The systematic study of a job based on the collection of information about the directly observable and verifiable job tasks and worker behaviors for that specific job. job context External factors that influence the way work is performed. knowledge A set of related facts and information about a specific field or work domain. National Labor Relations Act (NLRA) A law that legalizes unionization and collective bargaining. Pregnancy Discrimination Act A law that prohibits dismissal of an employee due to pregnancy and ensures job security during maternity leave. quid pro quo Latin for “this for that”; when used in regards to harassment, it refers to the discriminatory and thus illegal practice of requiring the harassed employee to exchange sexual favors against his or her will. skills The minimum level of competency at which a worker must perform a task or learned activity. turnover rate The percentage of all the employees in an organization who leave in a given year. utility analysis A scientific approach using statistical formulas to quantify the return on investment in effective selection and other organizational practices related to people. Worker Adjustment and Retraining Notification Act (WARN) A law that requires employers to give employees a 60-day notice prior to shutdown or massive layoffs. work log A detailed record of work being done. © 2013 Bridgepoint Education, Inc. All Rights Reserved. Not for resale. Use of this e-book is subject to the Terms of Service available at https://www.thuze.com/terms_and_conditions.php you66807_02_c02_029-058.indd 58 3/26/12 3:20 PM
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