humamn resources

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timer Asked: Nov 14th, 2016

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respond to 2 questions.

Question 1: E*Recruiting Today's HRMs more so than ever before are relying on e-recruiting techniques. What qualities of electronic recruiting do you think contribute to the rise in this practice? Please be sure to explain your opinions. You always want to support your arguments with logic and citations from sound research sources. OR Question 2: Internal vs External Recruiting To respond to this topic, you first want to define and discuss INTERNAL vs. EXTERNAL recruitment practices. You want to demonstrate your understanding of the pros and cons of each approach. Include in you discussion an example of a situation in which each of these approaches might be particularly effective. Be sure to conduct independent research and include an expert's ideas (with proper citations) to support your argument. Question 3: What haven’t we focused on? (Everyone responds) There is a wealth of information available in our texts, isn't there? I cannot possibly ask you questions about every topic and concept - but I want to make sure you know the material. For example, we didn't talk about INTERVIEWS and the various interviewing techniques an HRM can use. Then, there are the important topics of NEGOTIATING with and PLACING employees, once they have been hired! For this last topic, I would ask you to select one of the topics above or a topic that sparked your interest this week and summarize your understanding about the topic. I would like to see at least two paragraphs in which you explain your understanding about any aspect of the employee recruitment and selection processes issues or techniques. Conduct outside/independent research and include your sources. You get to choose your focus.
“Recruitment” from Human Resource Management was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 license without attribution as requested by the work’s original creator or licensee. Chapter 4: Recruitment Keeping Up with Growth Over the last two years, the company where Melinda works as HR manager, Dragon Enterprises, has seen plenty of growth. Much of this growth has created a need for a strategic, specific recruiting processes. In the past, Dragon Enterprises recruited simply on the basis of the applications they received, rather than actively searching for the right person for the job. The first thing Melinda did when arriving at the company was to develop a job analysis questionnaire, which she had all employees fill out using the website SurveyMonkey. The goal was to create a job analysis for each position that existed at the company. This happened to be the point where the organization started seeing rapid growth, as a result of increased demand for the types of parts the company sells. Luckily, since Melinda followed the industry closely and worked closely with management, part of her strategic outline planned for the hiring of several new positions, so she was mostly ready for it. Keeping in mind the Equal Employment Opportunity Commission (EEOC) laws and the company’s position on a diverse workforce, Melinda set out to write new job descriptions for the job analysis she had performed. She knew the job analysis should be tied to the job description, and both of these should be tied to the job qualifications. Obviously, to recruit for these positions, she needed to develop a recruitment plan. Over the next year, the organization needed to hire three more floor management positions, three office positions, and fifteen factory floor positions. Next, she needed to determine a time line to recruit candidates and a method by which to accept the applications she would receive. After sharing this time line with her colleague, the chief operating officer, she went to work recruiting. She sent an e-mail to all employees asking them to refer a friend and receive a $500 bonus. Next, part of her strategy was to try to find very specialized talent in management to fill those positions. For this, she thought working with a recruiting company might be the best way to go. She also used her Twitter and Facebook accounts to broadcast the job openings. After a three-week period, Melinda had 54 applications for the management positions, 78 for the office positions, and 110 for the factory floor positions. Pleased with the way recruiting had gone, she started reviewing the résumés to continue with the selection process. Saylor URL: http://www.saylor.org/books Saylor.org 84 4.1 1. The Recruitment Process LEARNING OBJECTIVES Discuss the need for forecasting human resource needs and techniques for forecasting. 2. Be able to explain the steps to an effective recruitment strategy. 3. Be able to develop a job analysis and job description. The recruitment process is an important part of human resource management (HRM). It isn’t done without proper strategic planning. Recruitment is defined as a process that provides the organization with a pool of qualified job candidates from which to choose. Before companies recruit, they must implement proper staffing plans and forecasting to determine how many people they will need. The basis of the forecast will be the annual budget of the organization and the short- to long-term plans of the organization—for example, the possibility of expansion. In addition to this, the organizational life cycle will be a factor. Organization life cycle is discussed in Chapter 2 "Developing and Implementing Strategic HRM Plans". Forecasting is based on both internal and external factors. Internal factors include the following: 1. Budget constraints 2. Expected or trend of employee separations 3. Production levels 4. Sales increases or decreases 5. Global expansion plans External factors might include the following: 1. Changes in technology 2. Changes in laws 3. Unemployment rates 4. Shifts in population 5. Shifts in urban, suburban, and rural areas 6. Competition Once the forecasting data are gathered and analyzed, the HR professional can see where gaps exist and then begin to recruit individuals with the right skills, education, and backgrounds. This section will discuss this step in HR planning. Saylor URL: http://www.saylor.org/books Saylor.org 85 Recruitment Strategy Although it might seem easy, recruitment of the right talent, at the right place and at the right time, takes skill and practice, but more importantly, it takes strategic planning. In Chapter 2 "Developing and Implementing Strategic HRM Plans", development of staffing plans is discussed. An understanding of the labor market and the factors determining the relevant aspects of the labor market is key to being strategic about your recruiting processes. Based on this information, when a job opening occurs, the HRM professional should be ready to fill that position. Here are the aspects of developing a recruitment strategy: 1. Refer to a staffing plan. This is discussed in Chapter 2 "Developing and Implementing Strategic HRM Plans". 2. Confirm the job analysis is correct through questionnaires. 3. Write the job description and job specifications. 4. Have a bidding system to recruit and review internal candidate qualifications for possible promotions. 5. Determine the best recruitment strategies for the position. 6. Implement a recruiting strategy. The first step in the recruitment process is acknowledgment of a job opening. At this time, the manager and/or the HRM look at the job description for the job opening (assuming it isn’t a new job). We discuss how to write a job analysis and job description in Section 4.1.2 "Job Analysis and Job Descriptions". Assuming the job analysis and job description are ready, an organization may decide to look at internal candidates’ qualifications first. Internal candidates are people who are already working for the company. If an internal candidate meets the qualifications, this person might be encouraged to apply for the job, and the job opening may not be published. Many organizations have formal job posting procedures andbidding systems in place for internal candidates. For example, job postings may be sent to a listserv or other avenue so all employees have access to them. However, the advantage of publishing open positions to everyone in and outside the company is to ensure the organization is diverse. Diversity is discussed in Chapter 3 "Diversity and Multiculturalism". We discuss more about internal and external candidates and bidding systems in Chapter 5 "Selection". Then the best recruiting strategies for the type of position are determined. For example, for a high-level executive position, it may be decided to hire an outside head-hunting firm. For an entry-level position, Saylor URL: http://www.saylor.org/books Saylor.org 86 advertising on social networking websites might be the best strategy. Most organizations will use a variety of methods to obtain the best results. We discuss specific strategies in Section 4.3 "Recruitment Strategies". Another consideration is how the recruiting process will be managed under constraining circumstances such as a short deadline or a low number of applications. In addition, establishing a protocol for how applications and résumés will be processed will save time later. For example, some HRM professionals may use software such as Microsoft Excel to communicate the time line of the hiring process to key managers. Once these tasks are accomplished, the hope is that you will have a diverse group of people to interview (called the selection process). Before this is done, though, it is important to have information to ensure the right people are recruited. This is where the job analysis and job description come in. We discuss this in Section 4.1.2 "Job Analysis and Job Descriptions". Job Analysis and Job Descriptions The job analysis is a formal system developed to determine what tasks people actually perform in their jobs. The purpose of a job analysis is to ensure creation of the right fit between the job and the employee and to determine how employee performance will be assessed. A major part of the job analysis includes research, which may mean reviewing job responsibilities of current employees, researching job descriptions for similar jobs with competitors, and analyzing any new responsibilities that need to be accomplished by the person with the position. According to research by Hackman and Oldham, [1] a job diagnostic survey should be used to diagnose job characteristics prior to any redesign of a job. This is discussed in Chapter 7 "Retention and Motivation". To start writing a job analysis, data need to be gathered and analyzed, keeping in mind Hackman and Oldham’s model. Figure 4.1 "Process for Writing the Job Analysis"shows the process of writing a job analysis. Please note, though, that a job analysis is different from a job design. Job design refers to how a job can be modified or changed to be more effective—for example, changing tasks as new technology becomes available. We discuss job design in Chapter 7 "Retention and Motivation" and Chapter 11 "Employee Assessment". Saylor URL: http://www.saylor.org/books Saylor.org 87 Figure 4.1 Process for Writing the Job Analysis The information gathered from the job analysis is used to develop both the job description and the job specifications. A job description is a list of tasks, duties, and responsibilities of a job. Job specifications, on the other hand, discuss the skills and abilities the person must have to perform the job. The two are tied together, as job descriptions are usually written to include job specifications. A job analysis must be performed first, and then based on that data, we can successfully write the job description and job specifications. Think of the analysis as “everything an employee is required and expected to do.” Saylor URL: http://www.saylor.org/books Saylor.org 88 Figure 4.2 Sample Job Analysis Questionnaire This questionnaire shows how an HR professional might gather data for a job analysis. Questionnaires can be completed on paper or online. Saylor URL: http://www.saylor.org/books Saylor.org 89 Two types of job analyses can be performed: a task-based analysis and a competency- or skills-based analysis. A task-based analysis focuses on the duties of the job, as opposed to a competency-based analysis, which focuses on the specific knowledge and abilities an employee must have to perform the job. An example of a task-based analysis might include information on the following: 1. Write performance evaluations for employees. 2. Prepare reports. 3. Answer incoming phone calls. 4. Assist customers with product questions. 5. Cold-call three customers a day. With task job analysis, the specific tasks are listed and it is clear. With competency based, it is less clear and more objective. However, competency-based analysis might be more appropriate for specific, highlevel positions. For example, a competency-based analysis might include the following: 1. Able to utilize data analysis tools 2. Able to work within teams 3. Adaptable 4. Innovative You can clearly see the difference between the two. The focus of task-based analyses is the job duties required, while the focus of competency-based analyses is on how a person can apply their skills to perform the job. One is not better than the other but is simply used for different purposes and different Saylor URL: http://www.saylor.org/books Saylor.org 90 types of jobs. For example, a task-based analysis might be used for a receptionist, while a competencybased analysis might be used for a vice president of sales position. Consider the legal implications, however, of which job analysis is used. Because a competency-based job analysis is more subjective, it might be more difficult to tell whether someone has met the criteria. Once you have decided if a competency-based or task-based analysis is more appropriate for the job, you can prepare to write the job analysis. Of course, this isn’t something that should be done alone. Feedback from managers should be taken into consideration to make this task useful in all levels of the organization. Organization is a key component to preparing for your job analysis. For example, will you perform an analysis on all jobs in the organization or just focus on one department? Once you have determined how you will conduct the analysis, a tool to conduct the analysis should be chosen. Most organizations use questionnaires (online or hard copy) to determine the duties of each job title. Some organizations will use face-to-face interviews to perform this task, depending on time constraints and the size of the organization. A job analysis questionnaire usually includes the following types of questions, obviously depending on the type of industry: 1. Employee information such as job title, how long in position, education level, how many years of experience in the industry 2. Key tasks and responsibilities 3. Decision making and problem solving: this section asks employees to list situations in which problems needed to be solved and the types of decisions made or solutions provided. 4. Level of contact with colleagues, managers, outside vendors, and customers 5. Physical demands of the job, such as the amount of heavy lifting or ability to see, hear, or walk 6. Personal abilities required to do the job—that is, personal characteristics needed to perform well in this position 7. Specific skills required to do the job—for example, the ability to run a particular computer program 8. Certifications to perform the job Once all employees (or the ones you have identified) have completed the questionnaire, you can organize the data, which is helpful in creating job descriptions. If there is more than one person completing a questionnaire for one job title, the data should be combined to create one job analysis for one job title. Saylor URL: http://www.saylor.org/books Saylor.org 91 There are a number of software packages available to help human resources perform this task, such as AutoGOJA. Once the job analysis has been completed, it is time to write the job description and specifications, using the data you collected. Job descriptions should always include the following components: 1. Job functions (the tasks the employee performs) 2. Knowledge, skills, and abilities (what an employee is expected to know and be able to do, as well as personal attributes) 3. Education and experience required 4. Physical requirements of the job (ability to lift, see, or hear, for example) Figure 4.3 Sample Job Description Notice how the job description includes the job function; knowledge, skills, and abilities required to do the job; education and experience required; and the physical requirements of the job. Once the job description has been written, obtaining approval from the hiring manager is the next step. Then the HR professional can begin to recruit for the position. Before we discuss specific recruitment strategies, we should address the law and how it relates to hiring. This is the topic of Section 4.2 "The Law and Recruitment". Saylor URL: http://www.saylor.org/books Saylor.org 92 TIPS TO WRITING A GOOD JOB DESCRIPTION • Be sure to include the pertinent information: o Title o Department o Reports to o Duties and responsibilities o terms of employment o qualifications needed • Think of the job description as a snapshot of the job. • Communicate clearly and concisely. • Make sure the job description is interesting to the right candidate applying for the job. • Avoid acronyms. • Don’t try to fit all job aspects into the job description. • Proofread the job description. HUMAN RESOURCE RECALL Does your current job or past job have a job description? Did it closely match the tasks you actually performed? KEY TAKEAWAYS • The recruitment process provides the organization with a pool of qualified applicants. • Some companies choose to hire internal candidates—that is, candidates who are already working for the organization. However, diversity is a consideration here as well. • A job analysis is a systematic approach to determine what a person actually does in his or her job. This process might involve a questionnaire to all employees. Based on this analysis, an accurate job description and job specifications can be written. A job description lists the components of the job, while job specifications list the requirements to perform the job. EXERCISES 1. Do an Internet search for “job description.” Review three different job descriptions and then answer the following questions for each of the jobs: Saylor URL: http://www.saylor.org/books Saylor.org 93 a. What are the job specifications? b. Are the physical demands mentioned? c. Is the job description task based or competency based? d. How might you change this job description to obtain more qualified candidates? Why do the five steps of the recruitment process require input from other parts of the organization? How might you handle a situation in which the employees or management are reluctant to complete a job analysis? [1] J. Richard Hackman and Greg R. Oldham, “Motivation through the Design of Work: Test of a Theory,” Organizational Behavior and Human Performance 16, no. 2 (August 1976): 250–79. Saylor URL: http://www.saylor.org/books Saylor.org 94 4.2 1. The Law and Recruitment LEARNING OBJECTIVE Explain the Immigration Reform and Control Act (IRCA), Patriot Act, and equal employment opportunity (EEO) laws and how they relate to recruiting. One of the most important parts of HRM is to know and apply the law in all activities the HR department handles. Specifically with hiring processes, the law is very clear on a fair hiring that is inclusive to all individuals applying for a job. The laws discussed here are applied specifically to the recruiting of new employees. Immigration Reform and Control Act The Immigration Reform and Control Act (IRCA) was adopted by Congress in 1986. [1] This law requires employers to attest to their employees’ immigration status. It also makes it illegal to hire or recruit illegal immigrants. The purpose of this law is to preserve jobs for those who have legal documentation to work in the United States. The implications for human resources lie in the recruitment process, because before entering employees into the selection process (interviewing, for example), it is important to know they are eligible to work in the United States. This is why many application forms ask, “Are you legally able to work in the United States?” Dealing with the IRCA is a balancing act, however, because organizations cannot discriminate against legal aliens seeking work in the United States. The IRCA relates not only to workers you hire but also to subcontractors. In a subcontractor situation (e.g., your organization hires an outside firm to clean the building after hours), your organization can still be held liable if it is determined your organization exercises control over how and when the subcontractors perform their jobs. In 2005, undocumented janitorial workers sued Walmart, arguing that the contracting company they worked for didn’t pay them a minimum wage. [2] Because the retailer controlled many of the details of their work, Walmart was considered to be a coemployer, and as a result, Walmart was held responsible not only for back wages but for the fact their subcontractor had hired undocumented workers. HR professionals must verify both the identity and employment eligibility of all employees, even if they are temporary employees. The INS I-9 form (Employment Eligibility Verification form) is the reporting form that determines the identity and legal work status of a worker. Saylor URL: http://www.saylor.org/books Saylor.org 95 If an audit is performed on your company, you would be required to show I-9 forms for all your workers. If an employer hires temporary workers, it is important to manage data on when work visas are to expire, to ensure compliance. Organizations that hire illegal workers can be penalized $100 to $1,000 per hire. There is a software solution for management of this process, such as HR Data Manager. Once all data about workers are inputted, the manager is sent reminders if work authorization visas are about to expire. Employers are required to have the employee fill out the I-9 form on their first day of work, and the second section must be filled out within three days after the first day of employment. The documentation must be kept on file three years after the date of hire or for one year after termination. Some states, though, require the I-9 form be kept on file for as long as the person is employed with the organization. In 2010, new rules about the electronic storage of forms were developed. The US Department of Figure 4.4 The I-9 form must be completed by management within three days of hire and be kept for at least three years, but in some states, it must be kept on file for the duration of employment. Homeland Security said that employees can have these forms electronically signed and stored. Patriot Act Saylor URL: http://www.saylor.org/books Saylor.org 96 In response to the September 11, 2001, terrorist attacks against the United States, thePatriot Act was signed, introducing legislative changes to enhance the federal government’s ability to conduct domestic and international investigations and surveillance activities. As a result, employers needed to implement new procedures to maintain employee privacy rights while also creating a system that allowed for release of information requested by the government. The act also amended the Electronic Communications Privacy Act, allowing the federal government easier access to electronic communications. For example, only a search warrant is required for the government to access voice mail and e-mail messages. The act also amended the Foreign Intelligence Surveillance Act. The government is allowed to view communications if an employee is suspected of terrorism, and the government does not have to reveal this surveillance to the employer. It is prudent for HR professionals and managers to let potential employees know of these new requirements, before the hiring process begins. HOW WOULD YOU HANDLE THIS? Wrong Job Description Aimee, a highly motivated salesperson, has come to you with a complaint. She states that she had her performance evaluation, but all the items on her evaluation didn’t relate to her actual job. In the past two years, she explains, her job has changed because of the increase of new business development using technology. How would you handle this? How Would You Handle This? https://api.wistia.com/v1/medias/1371475/embed The author discusses the How Would You Handle This situation in this chapter at:https://api.wistia.com/v1/medias/1371475/embed. EEO Set of Laws We discuss Equal Employment Opportunity (EEO) laws in Chapter 3. They are worth mentioning again here in relation to the recruitment process. The Equal Employment Opportunity Commission (EEOC) is a federal agency charged with the task of enforcing federal employment discrimination laws. While there are restrictions on the type of company covered (companies with at least fifteen employees), the EEOC Saylor URL: http://www.saylor.org/books Saylor.org 97 requires collection of data and investigates discrimination claims, again, for organizations with more than fifteen employees. Under EEO law related to the recruitment process, employers cannot discriminate based on age (forty years or older), disability, genetic information, national origin, sex, pregnancy, race, and religion. In a job announcement, organizations usually have an EEO statement. Here are some examples: 1. (Company name) is fully committed to Equal Employment Opportunity and to attracting, retaining, developing, and promoting the most qualified employees without regard to their race, gender, color, religion, sexual orientation, national origin, age, physical or mental disability, citizenship status, veteran status, or any other characteristic prohibited by state or local law. We are dedicated to providing a work environment free from discrimination and harassment, and where employees are treated with respect and dignity. 2. (Company name) does not unlawfully discriminate on the basis of race, color, religion, national origin, age, height, weight, marital status, familial status, handicap/disability, sexual orientation, or veteran status in employment or the provision of services, and provides, upon request, reasonable accommodation including auxiliary aids and services necessary to afford individuals with disabilities an equal opportunity to participate in all programs and activities. 3. It is the policy of (college name), in full accordance with the law, not to discriminate in employment, student admissions, and student services on the basis of race, color, religion, age, political affiliation or belief, sex, national origin, ancestry, disability, place of birth, general education development certification (GED), marital status, sexual orientation, gender identity or expression, veteran status, or any other legally protected classification. (College name) recognizes its responsibility to promote the principles of equal opportunity for employment, student admissions, and student services taking active steps to recruit minorities and women. 4. (Company name) will not discriminate against or harass any employee or applicant for employment on the basis of race, color, creed, religion, national origin, sex, sexual orientation, disability, age, marital status, or status with regard to public assistance. (Company name) will take affirmative action to ensure that all practices are free of such discrimination. Such employment practices include, but are not limited to, the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, selection, Saylor URL: http://www.saylor.org/books Saylor.org 98 layoff, disciplinary action, termination, rates of pay or other forms of compensation, and selection for training. In addition to including the EEO policy in the job announcement, HR is required to post notices of EEOC policies in a visible part of the work environment (such as the break room). Although the EEOC laws in hiring are clear about discrimination, an exception may occur, called the bona fide occupational qualification (BFOQ). BFOQ is a quality or attribute that is reasonably necessary to the normal operation of the business and that can be used when considering applicants. To obtain a BFOQ exception, a company must prove that a particular person could not perform the job duties because of sex, age, religion, disability, and national origin. Examples of BFOQ exceptions might include the following: 1. A private religious school may require a faculty member to be of the same denomination. 2. Mandatory retirement is required for airline pilots at a certain age. 3. A clothing store that sells male clothing is allowed to hire only male models. 4. If an essence of a restaurant relies on one sex versus another (e.g., Hooters), they may not be required to hire male servers. However, many arguments for BFOQ would not be considered valid. For example, race has never been a BFOQ, nor has customers’ having a preference for a particular gender. Generally speaking, when going through the recruitment process and writing job descriptions, assuming a BFOQ would apply might be a mistake. Seeking legal council before writing a job description would be prudent. Other aspects to consider in the development of the job description are disparate impact and disparate treatment. These are the two ways to classify employment discrimination cases. Disparate impact occurs when an organization discriminates through the use of a process, affecting a protected group as a whole, rather than consciously intending to discriminate. Some examples of disparate impact might include the following: 1. Requirement of a high school diploma, which may not be important to employment, could discriminate against racial groups 2. A height requirement, which could limit the ability of women or persons of certain races to apply for the position 3. Written tests that do not relate directly to the job Saylor URL: http://www.saylor.org/books Saylor.org 99 4. Awarding of pay raises on the basis of, say, fewer than five years of experience, which could discriminate against people older than forty Disparate treatment, when one person is intentionally treated differently than another, does not necessarily impact the larger protected group as a whole, as in disparate impact. The challenge in these cases is to determine if someone was treated differently because of their race or gender or if there was another reason for the different treatment. Here are two examples: 1. Both a male and a female miss work, and the female is fired but the male is not. 2. A company does not hire people of a certain race or gender, without a BFOQ. HUMAN RESOURCE RECALL Can you think of other examples of disparate impact that might affect a certain protected group of people under EEOC? • KEY TAKEAWAYS IRCA stands for Immigration and Reform Act. This law requires all employers to determine eligibility of an employee to work in the United States. The reporting form is called an I-9 and must be completed and kept on file (paper or electronic) for at least three years, but some states require this documentation to be kept on file for the duration of the employee’s period of employment. • The Patriot Act allows the government access to data that would normally be considered private—for example, an employee’s records and work voice mails and e-mails (without the company’s consent). The HR professional might consider letting employees know of the compliance with this law. • The EEOC is a federal agency charged with ensuring discrimination does not occur in the workplace. They oversee the equal employment opportunity (EEO) set of laws. Organizations must post EEO laws in a visible location at their workplace and also include them on job announcements. • Related to the EEOC, the bona fide occupational qualification (BFOQ) makes it legal to discriminate in hiring based on special circumstances—for example, requiring the retirement of airline pilots at a certain age due to safety concerns. Saylor URL: http://www.saylor.org/books Saylor.org 100 • Disparate impact refers to a policy that may limit a protected EEO group from receiving fair treatment. Disparate impact might include a test or requirement that negatively impacts someone based on protected group status. An example is requiring a high school diploma, which may not directly impact the job. Disparate treatment refers to discrimination against an individual, such as the hiring of one person over another based on race or gender. EXERCISES 1. Describe the difference between disparate treatment and disparate impact. 2. Explain a situation (other than the ones described in this section) in which a BFOQ might be appropriate. Then research to see if in the past this reasoning has been accepted as a BFOQ. [1] U.S. Citizenship and Immigration Services website. Accessed January 17, 2011.http://www.uscis.gov/portal/site/uscis/menuitem.5af9bb95919f35e66f614176543f6d1a/?vgnextchannel=b3 28194d3e88d010VgnVCM10000048f3d6a1RCRD&vgnextoid =04a295c4f635f010VgnVCM1000000ecd190aRCRD. [2] Zavala v. Wal-Mart, No. 03-5309, DC NJ (2005). Saylor URL: http://www.saylor.org/books Saylor.org 101 4.3 1. Recruitment Strategies LEARNING OBJECTIVE Explain the various strategies that can be used in recruitment. Now that we have discussed development of the job analysis, job description, and job specifications, and you are aware of the laws relating to recruitment, it is time to start recruiting. It is important to mention, though, that a recruitment plan should be in place. This plan can be informal, but you should outline where you plan to recruit and your expected time lines. For example, if one of your methods is to submit an ad to a trade publication website, you should know their deadlines. Also of consideration is to ensure you are recruiting from a variety of sources to ensure diversity. Lastly, consider the economic situation of the country. With high unemployment, you may receive hundreds of applications for one job. In an up economy, you may not receive many applications and should consider using a variety of sources. Some companies, such as Southwest Airlines, are known for their innovative recruitment methods. Southwest looks for “the right kind of people” and are less focused on the skills than on the personality of the individual. [1] When Southwest recruits, it looks for positive team players that match the underdog, quirky company culture. Applicants are observed in group interviews, and those who exhibit encouragement for their fellow applicants are usually those who continue with the recruitment process. This section will discuss some of the ways Southwest and many other Fortune 500 companies find this kind of talent. Recruiters Some organizations choose to have specific individuals working for them who focus solely on the recruiting function of HR. Recruiters use similar sources to recruit individuals, such as professional organizations, websites, and other methods discussed in this chapter. Recruiters are excellent at networking and usually attend many events where possible candidates will be present. Recruiters keep a constant pipeline of possible candidates in case a position should arise that would be a good match. There are three main types of recruiters: 1. Executive search firm. These companies are focused on high-level positions, such as management and CEO roles. They typically charge 10–20 percent of the first year salary, so they can be quite expensive. However, they do much of the upfront work, sending candidates who meet the qualifications. Saylor URL: http://www.saylor.org/books Saylor.org 102 2. Temporary recruitment or staffing firm. Suppose your receptionist is going on medical leave and you need to hire somebody to replace him, but you don’t want a long-term hire. You can utilize the services of a temporary recruitment firm to send you qualified candidates who are willing to work shorter contracts. Usually, the firm pays the salary of the employee and the company pays the recruitment firm, so you don’t have to add this person to your payroll. If the person does a good job, there may be opportunities for you to offer him or her a full-time, permanent position. Kelly Services, Manpower, and Snelling Staffing Services are examples of staffing firms. 3. Corporate recruiter. A corporate recruiter is an employee within a company who focuses entirely on recruiting for his or her company. Corporate recruiters are employed by the company for which they are recruiting. This type of recruiter may be focused on a specific area, such as technical recruiting. A contingent recruiter is paid only when the recruiter starts working, which is often the case with temporary recruitment or staffing firms. A retained recruiter gets paid up front (in full or a portion of the fee) to perform a specific search for a company. While the HR professional, when using recruiters, may not be responsible for the details of managing the search process, he or she is still responsible for managing the process and the recruiters. The job analysis, job description, and job specifications still need to be developed and candidates will still need to be interviewed. FORTUNE 500 FOCUS In 2009, when Amazon purchased Zappos for 10 million shares of Amazon stock (roughly $900 million in 2009), the strategic move for Amazon didn’t change the hiring and recruiting culture of Zappos. Zappos, again voted one of the best one hundred companies to work for by CNN Money [2] believes it all starts with the people they hire. The recruiting staff always asks, “On a scale of 1–10, how weird do you think you are?” This question ties directly to the company’s strategic plan and core value number three, which is “create fun and a little weirdness.” Zappos recruits people who not only have the technical abilities for the job but also are a good culture fit for the organization. Once hired, new employees go through two weeks of training. At the end of the training, newly hired employees are given “the offer.” The offer is $2,000 to quit on the spot. This ensures Zappos has committed people who have the desire to work with the organization, which all begins with the recruiting process. Campus Recruiting Saylor URL: http://www.saylor.org/books Saylor.org 103 Colleges and universities can be excellent sources of new candidates, usually at entry-level positions. Consider technical colleges that teach cooking, automotive technology, or cosmetology. These can be great sources of people with specialized training in a specific area. Universities can provide people that may lack actual experience but have formal training in a specific field. Many organizations use their campus recruiting programs to develop new talent, who will eventually develop into managers. For this type of program to work, it requires the establishment of relationships with campus communities, such as campus career services departments. It can also require time to attend campus events, such as job fairs. IBM, for example, has an excellent campus recruiting program. For IBM, recruiting out of college ensures a large number of people to grow with the organization. [3] Setting up a formal internship program might also be a way to utilize college and university contacts. Walgreens, for example, partners with Apollo College to recruit interns; this can result in full-time employment for the motivated intern and money saved for Walgreens by having a constant flow of talent. Professional Associations Professional associations are usually nonprofit organizations whose goal is to further a particular profession. Almost every profession has its own professional organization. For example, in the field of human resources, the Society for Human Resource Management allows companies to post jobs relating to HR. The American Marketing Association, also a professional organization, allows job postings as well. Usually, there is a fee involved, and membership in this association may be required to post jobs. Here are some examples of professional associations: 1. Professional Nursing Association 2. Society of Women Engineers Saylor URL: http://www.saylor.org/books Saylor.org 104 Figure 4.5 Overview of the Steps to the Recruitment Process 3. International Federation of Accountants 4. Institute of Management Consultants 5. United Professional Sales Association 6. National Lawyers Guild 7. National Organization of Minority Architects 8. International Federation of Journalists (union) 9. International Metalworkers Federation (union) 10. Association of Flight Attendants (union) Labor unions can also be excellent sources of candidates, and some unions also allow job postings on their website. We will discuss unions further in Chapter 12 "Working with Labor Unions". The key to using this as a successful recruitment strategy is to identify the organizations that relate to your business and to develop relationships with members in these organizations. This type of networking can help introduce you to people in your industry who may be looking for a job or know of someone who needs a job. HUMAN RESOURCE RECALL What do you think is the best way to determine the right set of recruitment methods for your organization? What methods would be best for your current job? Websites If you have ever had to look for a job, you know there are numerous websites to help you do that. From the HR Saylor URL: http://www.saylor.org/books Saylor.org 105 perspective, there are many options to place an ad, most of which are inexpensive. The downside to this method is the immense number of résumés you may receive from these websites, all of which may or may not be qualified. Many organizations, to combat this, implement software that searches for keywords in résumés, which can help combat this problem. We discuss more about this in Chapter 5 "Selection". Some examples of websites might include the following: Some examples of websites might include the following: • Your own company website • Yahoo HotJobs • Monster • CareerBuilder • JobCentral Social Media Facebook, Twitter, LinkedIn, YouTube, and MySpace are excellent places to obtain a media presence to attract a variety of workers. In 2007, Sodexo, which provides services such as food service and facilities management, started using social media to help spread the word about their company culture. Since then, they have saved $300,000 on traditional recruiting methods. [4] Sodexo’s fifty recruiters share updates on Twitter about their excellent company culture. Use of this media has driven traffic to the careers page on Sodexo’s website, from 52,000 to 181,000. The goal of using social media as a recruiting tool is to create a buzz about your organization, share stories of successful employees, and tout an interesting culture. Even smaller companies can utilize this technology by posting job openings as their status updates. This technique is relatively inexpensive, but there are some things to consider. For example, tweeting about a job opening might spark interest in some candidates, but the trick is to show your personality as an employer early on. According to Bruce Morton of Allegis Group Services, using social media is about getting engaged and having conversations with people before they’re even thinking about you as an employer. [5] Debbie Fisher, an HR manager for a large advertising agency, Campbell Mithun, says that while tweeting may be a good way to recruit people who can be open about their job hunt, using tools such as LinkedIn might be a better way to obtain more seasoned candidates who cannot be open about their search for a new job, because of their current Saylor URL: http://www.saylor.org/books Saylor.org 106 employment situation. She says that LinkedIn has given people permission to put their résumé online without fear of retribution from current employers. Creativity with a social media campaign also counts. Campbell Mithun hired thirteen interns over the summer using a unique twist on social media. They asked interested candidates to submit thirteen tweets over thirteen days and chose the interns based on their creativity. Many organizations, including Zappos (Video 4.4), use YouTube videos to promote the company. Within the videos is a link that directs viewers to the company’s website to apply for a position in the company. Facebook allows free job postings in Facebook Marketplace, and the company Facebook page can also be used as a recruiting tool. Some organizations decide to use Facebook ads, which are paid on a “per click” or per impression (how many people potentially see the ad) basis. Facebook ad technology allows specific regions and Facebook keywords to be targeted. [6] Some individuals even use their personal Facebook page to post status updates listing job opportunities and asking people to respond privately if they are interested. Events Many organizations, such as Microsoft, hold events annually to allow people to network and learn about new technologies. Microsoft’s Professional Developer Conference (PDC), usually held in July, hosts thousands of web developers and other professionals looking to update their skills and meet new people. Some organizations, such as Choice Career Fairs, host job fairs all over the country; participating in this type of job fair may be an excellent way to meet a large variety of candidates. Other events may not be specifically for recruiting, but attending these events may allow you to meet people who could possibly fill a position or future position. For example, in the world of fashion, Fashion Group International (FGI) hosts events internationally on a weekly basis, which may allow the opportunity to meet qualified candidates. Special/Specific Interest Groups (SIGs) Special/specific interest groups (SIGs), which may require membership of individuals, focus on specific topics for members. Often SIGs will have areas for job posting, or a variety of discussion boards where jobs can be posted. For example, the Women in Project Management SIG provides news on project management and also has a place for job advertisements. Other examples of SIGs might include the following: Saylor URL: http://www.saylor.org/books Saylor.org 107 • Oracle Developer SIG • African American Medical Librarians Alliance SIG • American Marketing Association Global Marketing SIG • Special Interest Group for Accounting Information Systems (SIG-ASYS) • Junior Lawyer SIG Recruiting using SIGs can be a great way to target a specific group of people who are trained in a specific area or who have a certain specialty. Referrals Most recruiting plans include asking current employees, “Who do you know?” The quality of referred applicants is usually high, since most people would not recommend someone they thought incapable of doing the job. E-mailing a job opening to current employees and offering incentives to refer a friend can be a quick way of recruiting individuals. Due to the success of most formalized referral programs, it is suggested that a program be part of the overall HRM strategic plan and recruitment strategy. However, be wary of using referrals as the only method for recruitment, as this can lead to lack of diversity in a workplace. Nepotism means a preference for hiring relatives of current employees, which can also lead to lack of diversity and management issues in the workplace. For example, the University of Washington offers $1,200 any time a current employee successfully refers a friend to work at their medical centers. Usually, most incentives require the new employee to be hired and stay a specified period of time. Some examples of incentives that can be used to refer a friend might include the following: • A gift card to the employee • A financial incentive • Raffles for most referrals These types of programs are called employee referral programs (ERPs) and tend to generate one of the highest returns on investment per hire. [7] To make an ERP program effective, some key components should be put into place: 1. Communicate the program to existing employees. 2. Track the success of the program using metrics of successful hires. 3. Be aware of the administrative aspect and the time it takes to implement the program effectively. Saylor URL: http://www.saylor.org/books Saylor.org 108 4. Set measureable goals up front for a specialized program. Accenture recently won the ERE Media Award for one of the most innovative ERPs. Its program has increased new hires from referrals from 14 percent to 32 percent, and employee awareness of the program jumped from just 20 percent to 99 percent. [8] The uniqueness of their program lies with the reward the employee receives. Instead of offering personal financial compensation, Accenture makes a donation to the charity of the employee’s choice, such as a local elementary school. Their program also seeks to decrease casual referrals, so the employee is asked to fill out an online form to explain the skills of the individual they are referring. The company has also developed a website where current employees can go to track the progress of referrals. In addition, employee referral applications are flagged online and fasttracked through the process—in fact, every referral is acted upon. As you can see, Accenture has made their ERP a success through the use of strategic planning in the recruitment process. Table 4.1 Advantages and Disadvantages of Recruiting Methods Recruitment Method Advantages Disadvantages Expensive Outside recruiters, executive search firms, and temporary employment agencies Can be time saving Campus recruiting/educational institutions Professional organizations and associations Websites/Internet recruiting Less control over final candidates to be interviewed Can hire people to grow with the organization Time consuming Plentiful source of talent Only appropriate for certain types of experience levels Industry specific May be a fee to place an ad Networking May be time-consuming to network Diversity friendly Could be too broad Low cost Be prepared to deal with Saylor URL: http://www.saylor.org/books Saylor.org 109 Recruitment Method Advantages Quick Disadvantages hundreds of résumés Time consuming Social media Inexpensive Overwhelming response Can be expensive Access to specific target markets of candidates May not be the right target market Industry specific Research required for specific SIGS tied to jobs Higher quality people Concern for lack of diversity Referrals Retention Nepotism Unsolicited résumés and applications Inexpensive, especially with time-saving keyword résumé search software Time consuming Internet and/or traditional advertisements Can target a specific audience Can be expensive Events SIG For smaller organizations, it means someone does not have to administer compensation and benefits, as this is handled by leasing company Possible costs Employee leasing Can be a good alternative to temporary employment if the job is permanent Less control of who interviews for the position The potential ability to recruit a more diverse workforce No cost, since it’s a government agency Public employment agencies 2,300 points of service nationwide May receive many résumés, which can be time-consuming Labor unions Access to specialized skills May not apply to some Saylor URL: http://www.saylor.org/books Saylor.org 110 Recruitment Method Advantages Disadvantages jobs or industries Builds relationship with the union Costs of Recruitment Part of recruitment planning includes budgeting the cost of finding applicants. For example, let’s say you have three positions you need to fill, with one being a temporary hire. You have determined your advertising costs will be $400, and your temporary agency costs will be approximately $700 for the month. You expect at least one of the two positions will be recruited as a referral, so you will pay a referral bonus of $500. Here is how you can calculate the cost of recruitment for the month: cost per hire = advertising costs + recruiter costs + referral costs + social media costs + event costs. $400 + $700 + $500 = $1600/3 = $533 recruitment cost per hire. In addition, when we look at how effective our recruiting methods are, we can look at a figure called the yield ratio. A yield ratio is the percentage of applicants from one source who make it to the next stage in the selection process (e.g., they get an interview). For example, if you received two hundred résumés from a professional organization ad you placed, and fifty-two of those make it to the interview state, this means a 26 percent yield (52/200). By using these calculations, we can determine the best place to recruit for a particular position. Note, too, that some yield ratios may vary for particular jobs, and a higher yield ratio must also consider the cost of that method, too. For an entry-level job, campus recruiting may yield a better ratio than, say, a corporate recruiter, but the corporate recruiter may have higher cost per hires. After we have finished the recruiting process, we can begin the selection process. This is the focus of Chapter 5 "Selection". • KEY TAKEAWAYS HR professionals must have a recruiting plan before posting any job description. The plan should outline where the job announcements will be posted and how the management of candidate Saylor URL: http://www.saylor.org/books Saylor.org 111 materials, such as résumés, will occur. Part of the plan should also include the expected cost of recruitment. • Many organizations use recruiters. Recruiters can be executive recruiters, which means an outside firm performs the search. For temporary positions, a temporary or staffing firm such as Kelly Services might be used. Corporate recruiters work for the organization and function as a part of the HR team. • Campus recruiting can be an effective way of recruiting for entry-level positions. This type of recruiting may require considerable effort in developing relationships with college campuses. • Almost every profession has at least one professional association. Posting announcements on their websites can be an effective way of targeting for a specific job. • Most companies will also use their own website for job postings, as well as other websites such as Monster and CareerBuilder. • Social media is also a popular way to recruit. Usage of websites such as Twitter and Facebook can get the word out about a specific job opening, or give information about the company, which can result in more traffic being directed to the company’s website. • Recruiting at special events such as job fairs is another option. Some organizations have specific job fairs for their company, depending on the size. Others may attend industry or job-specific fairs to recruit specific individuals. • SIGs, or special/specific interest groups, are usually very specialized. For example, female project managers may have an interest group that includes a discussion board for posting of job announcements. • Employee referrals can be a great way to get interest for a posted position. Usually, incentives are offered to the employee for referring people they know. However, diversity can be an issue, as can nepotism. • Our last consideration in the recruitment process is recruitment costs. We can determine this by looking at the total amount we have spent on all recruiting efforts compared to the number of hires. A yield ratio is used to determine how effective recruiting efforts are in one area. For example, we can look at the number of total applicants received from a particular form of media, Saylor URL: http://www.saylor.org/books Saylor.org 112 and divide that by the number of those applicants who make it to the next step in the process (e.g., they receive an interview). 1. EXERCISES Perform an Internet search on professional associations for your particular career choice. List at least three associations, and discuss recruiting options listed on their websites (e.g., do they have discussion boards or job advertisements links?). 2. Have you ever experienced nepotism in the workplace? If yes, describe the experience. What do you think are the upsides and downsides to asking current employees to refer someone they know? [1] W. P. Carey, “Employees First: Strategy for Success,” Knowledge @ W. P. Carey, W. P. Carey School of Business, Arizona State University, June 26, 2008, accessed July 11, 2011,http://knowledge.wpcarey.asu.edu/article.cfm?articleid=1620. [2] Cheryl Sowa, “Going Above and Beyond,” America’s Best, September/October 2008, accessed July 11, 2011, http://www.americasbestcompanies.com/magazine/articles/going-above-and-beyond.aspx. [3] “University Students,” IBM, n.d., accessed January 17, 2011, http://www03.ibm.com/employment/start_university.html. [4] Sodexo, “Sodexo Earns SNCR Excellent Award for Innovative Use of Social Media,” news release, December 2, 2009, accessed January 17, 2011,http://www.sodexousa.com/usen/newsroom/press/press09/sncrexcellenceaward.asp. [5] Anna Lindow, “How to Use Social Media for Recruiting,” Mashable, June 11, 2011, accessed July 12, 2011, http://mashable.com/2011/06/11/social-media-recruiting. [6] Tiffany Black, “How to Use Social Media as a Recruiting Tool,” Inc., April 22, 2010, accessed July 12, 2011, http://www.inc.com/guides/2010/04/social-media-recruiting.html. [7] Dave Lefkow, “Improving Your Employee Referral Program and Justifying Your Investment,” ERE.net, February 21, 2002, accessed July 12, 2011,http://www.ere.net/2002/02/21/improving-your-employee-referral-programand-justifying-your-investment. Saylor URL: http://www.saylor.org/books Saylor.org 113 [8] John Sullivan, “Amazing Practices in Recruiting—ERE Award Winners 2009,” pt. 1, ERE.net, April 13, 2009, accessed July 12, 2011, http://www.ere.net/2009/04/13/amazing-practices-in-recruiting-ere-award-winners-2009part-1-of-2. Saylor URL: http://www.saylor.org/books Saylor.org 114 4.4 Cases and Problems CHAPTER SUMMARY • The recruitment process provides the organization with a pool of qualified applicants. • Some companies choose to hire internal candidates—that is, candidates who are already working for the organization. However, diversity is a consideration here as well. • A job analysis is a systematic approach to determine what a person actually does in his or her job. This process might involve a questionnaire to all employees. Based on this analysis, an accurate job description and job specifications can be written. A job description lists the components of the job, while job specifications list the requirements to perform the job. • IRCA stands for Immigration and Reform Act. This law requires all employers to determine eligibility of an employee to work in the United States. The reporting form is called an I-9 and must be completed and kept on file (paper or electronic) for at least three years, but some states require this documentation to be kept on file for the duration of the employee’s period of employment. • The Patriot Act allows the government access to data that would normally be considered private, for example, an employee’s records and work voice mails and e-mails (without the company’s consent). The HR professional might consider letting employees know of the compliance with this law. • The Equal Employment Opportunity Commission (EEOC) is a federal agency charged with ensuring discrimination does not occur in the workplace. They oversee the EEO set of laws. Organizations must post EEO laws in a visible location at their workplace and also include them on job announcements. • Related to the EEOC, the bona fide occupational qualification (BFOQ) makes it legal to discriminate in hiring based on special circumstances, for example, requiring the retirement of airline pilots at a certain age due to safety concerns. • Disparate impact refers to a policy that may limit a protected EEO group from receiving fair treatment. Disparate impact might include a test or requirement that negatively impacts someone based on protected group status. An example is requiring a high school diploma, which may not directly impact the job.Disparate treatment refers to discrimination against an individual, such as the hiring of one person over another based on race or gender. • HR professionals must have a recruiting plan before posting any job description. Saylor URL: http://www.saylor.org/books Saylor.org 115 • Many organizations use recruiters. Recruiters can be executive recruiters, which means an outside firm performs the search. For temporary positions, a temporary or staffing firm such as Kelly Services might be used. Corporate recruiters work for the organization and function as a part of the HR team. • Campus recruiting can be an effective way of recruiting for entry-level positions. This type of recruiting may require considerable effort in developing relationships with college campuses. • Almost every profession has at least one professional association. Posting announcements on their websites can be an effective way of targeting for a specific job. • Most companies will also use their own website for job postings, as well as other websites such as Monster and CareerBuilder. • Social media is also a popular way to recruit. Usage of websites such as Twitter and Facebook can get the word out about a specific job opening, or give information about the company, which can result in more traffic being directed to the company’s website. • Recruiting at special events such as job fairs is another option. Some organizations have specific job fairs for their company, depending on the size. Others may attend industry or job specific fairs to recruit specific individuals. • SIGs or special/specific interest groups are usually very specialized. For example, female project managers may have an interest group that includes a discussion board for posting of job announcements. • Employee referrals can be a great way to get interest for a posted position. Usually, incentives are offered to the employee for referring people they know. However, diversity can be an issue, as can nepotism. • Our last consideration in the recruitment process is recruitment costs. We can determine this by looking at the total amount we have spent on all recruiting efforts compared to the number of hires. A yield ratio is used to determine how effective recruiting efforts are in one area. For example, we can look at the number of total applicants received from a particular form of media, and divide that by the number of those applicants who make it to the next step in the process (e.g., they receive an interview). CHAPTER CASE Recruitment Statistics As the assistant to the human resources director at Tally Group, you normally answer phones and set appointments for the director. You are interested in developing skills in HRM, and one day, your HR director presents you with a great opportunity for you to show what you can do. She asks you to analyze Saylor URL: http://www.saylor.org/books Saylor.org 116 last year’s recruitment data to determine which methods have worked best. As you look at the data, you aren’t sure how to start, but you remember something on this from your HRM class in college. After reviewing the data in your book, you feel confident to analyze these numbers. Please go ahead and perform calculations on these numbers, then provide answers to the questions that follow. Table 4.2 Tally Group Recruiting Numbers, 2012 Method Total Number Recruited Yearly Cost ($) Temporary placement firms 8 3,200 Campus recruiting 2 1,500 Professional association ads 10 4,500 Social media/company website 33 300 3 500 26 26,000 Job fair Referrals 1. Prepare a report summarizing your findings for the recruitment cost per hire and yield ratio for each type of recruiting method. 2. Make a recommendation to your human resource director on where the department should spend more of its time recruiting. 1. TEAM ACTIVITIES Students should be in teams of four or five. Choose a recruitment method from Table 4.2 "Tally Group Recruiting Numbers, 2012"and perform research on additional advantages and disadvantages of that method and then present ideas to the class. 2. Visit the Dictionary of Occupational Titles(http://www.occupationalinfo.org) and view the list of job titles presented on the website. Create a sample job description for a job title of your team’s choice. Saylor URL: http://www.saylor.org/books Saylor.org 117
“Selection” from Human Resource Management was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 license without attribution as requested by the work’s original creator or licensee. Chapter 5: Selection The Interview Many of us have or will sit in a waiting room with our best clothes on awaiting a job (or school) interview. You can feel your palms sweat and thoughts race as you wait for your name to be called. You look around at the office environment and imagine yourself walking through those doors everyday. People walk by and smile, and overall, you have a really good first impression of the organization. You hope they like you. You tell yourself to remember to smile, while recalling all your experience that makes you the perfect person for this job. A moment of self-doubt may occur, as you wonder about the abilities of the other people being interviewed and hope you have more experience and make a better impression than they do. You hear your name, stand up, and give a firm handshake to the HR manager. The interview has begun. As she walks you back to a conference room, you think you see encouraging smiles as you pass by people. She asks you to take a chair and then tells you what the interview process will be like. She then asks the first question, “Tell me about yourself.” As you start discussing your experience, you feel yourself relax, just a little bit. After the interview finishes, she asks you to take a quick cognitive test, which you feel good about. She tells you she will be doing reference checks and will let you know by early next week. To get to this point, the hiring manager may have reviewed hundreds of résumés and developed criteria she would use for selection of the right person for the job. She has probably planned a time line for hiring, developed hiring criteria, determined a compensation package for the job, and enlisted help of other managers to interview candidates. She may have even performed a number of phone interviews before bringing only a few of the best candidates in for interviews. It is likely she has certain qualities in mind that she is hoping you or another candidate will possess. Much work goes into the process of hiring someone, with selection being an important step in that process. A hiring process done correctly is timeconsuming and precise. The interviewer should already have questions determined and should be ready to sell the organization to the candidate as well. This chapter will discuss the main components to the selection process. Saylor URL: http://www.saylor.org/books Saylor.org 118 5.1 1. The Selection Process LEARNING OBJECTIVE Be able to name and discuss the steps in the selection process. Once you have developed your recruitment plan, recruited people, and now have plenty of people to choose from, you can begin the selection process. The selection processrefers to the steps involved in choosing people who have the right qualifications to fill a current or future job opening. Usually, managers and supervisors will be ultimately responsible for the hiring of individuals, but the role of human resource management (HRM) is to define and guide managers in this process. Similar to the recruitment process discussed in Chapter 4 "Recruitment", the selection process is expensive. The time for all involved in the hiring process to review résumés, weight the applications, and interview the best candidates takes away time (and costs money) that those individuals could spend on other activities. In addition, there are the costs of testing candidates and bringing them in from out of town for interviews. In fact, the US Department of Labor and Statistics estimates the combined direct and indirect cost of hiring someone new can reach upwards of $40,000. [1] Because of the high cost, it is important to hire the right person from the beginning and ensure a fair selection process. For example, the Austin, Texas, fire department calculated it would cost $150,000 to reinterview candidates, after the interview questions were leaked to the public, giving some candidates possibly unfair advantages in the interview process. [2] The selection process consists of five distinct aspects: 1. Criteria development. All individuals involved in the hiring process should be properly trained on the steps for interviewing, including developing criteria, reviewing résumés, developing interview questions, and weighting the candidates. The first aspect to selection is planning the interview process, which includes criteria development. Criteria development means determining which sources of information will be used and how those sources will be scored during the interview. The criteria should be related directly to the job analysis and the job specifications. This is discussed inChapter 4 "Recruitment". In fact, some aspects of the job analysis and job specifications may be the actual criteria. In addition to this, include things like personality or cultural fit, which would also be part of criteria development. This process usually involves discussing which skills, abilities, and personal characteristics are required to be successful at any given job. By developing the criteria before reviewing any résumés, the HR manager or manager can be sure he Saylor URL: http://www.saylor.org/books Saylor.org 119 or she is being fair in selecting people to interview. Some organizations may need to develop an application or a biographical information sheet. Most of these are completed online and should include information about the candidate, education, and previous job experience. 2. Application and résumé review. Once the criteria have been developed (step one), applications can be reviewed. People have different methods of going through this process, but there are also computer programs that can search for keywords in résumés and narrow down the number of résumés that must be looked at and reviewed. 3. Interviewing. After the HR manager and/or manager have determined which applications meet the minimum criteria, he or she must select those people to be interviewed. Most people do not have time to review twenty or thirty candidates, so the field is sometimes narrowed even further with a phone interview. This is discussed in Section 5.3.1 "Types of Interviews". 4. Test administration. Any number of tests may be administered before a hiring decision is made. These include drug tests, physical tests, personality tests, and cognitive tests. Some organizations also perform reference checks, credit report checks, and background checks. Types of tests are discussed in Section 5.4.1 "Testing". Once the field of candidates has been narrowed down, tests can be administered. 5. Making the offer. The last step in the selection process is to offer a position to the chosen candidate. Development of an offer via e-mail or letter is sometimes a more formal part of this process. Compensation and benefits will be defined in an offer. We discuss this in Chapter 6 "Compensation and Benefits". Saylor URL: http://www.saylor.org/books Saylor.org 120 Figure 5.2 The Selection Process at a Glance We will discuss each of these aspects in detail in this chapter. Saylor URL: http://www.saylor.org/books Saylor.org 121 FORTUNE 500 FOCUS In a 2010 interview, [3] Robert Selander, then CEO of MasterCard, cited presence as one of the most important aspects to acing an interview. He describes how, in any large organization, an employee will be expected to engage with a variety of stakeholders, from a member of Congress to a contractor replacing the carpet in the building. He says that a good employee—at any level of the organization—should be able to communicate well but also be able to communicate to a variety of stakeholders. We discuss communication in Chapter 9 "Successful Employee Communication". Selander also says he will always ask the candidate about his or her weaknesses, but more importantly, how the candidate plans to address those weaknesses to make sure they do not become a barrier to success. He always asks the question “What can you do for us?” When asked if he could pose only one interview question, what would it be, his answer was, “Share with me two situations, work related that you are proud of, where something was achieved based on your own personal initiative and the other where the achievement was a result of the team getting something done that you could not have done alone.” In other words, Selander is looking for not only personal ability but the ability to work within a team to accomplish tasks. Selander offers advice to new college grads: try to find an organization where you can be involved and see all aspects of the business and be provided training to help you with certain skills that will be needed. HUMAN RESOURCE RECALL When was the last time you interviewed for a job? Did the process seem to flow smoothly? Why or why not? • KEY TAKEAWAYS The selection process refers to the steps involved in choosing someone who has the right qualifications to fill a current or future job opening. • There are five main steps in the selection process. First, criteria are developed to determine how the person will be chosen. Second is a review of the applications and résumés, often done via a computer program that can find keywords. Next is interviewing the employee. The last steps involve testing, such as a personality test or drug test, and then finally, making the offer to the right candidate. Saylor URL: http://www.saylor.org/books EXERCISE Saylor.org 122 1. What components are included in the selection process? Which one do you think is the most important? [1] Leroy Hamm, “Pre-Employment Testing,” IHD Corporation, n.d., accessed August 2, 2011,http://www.ihdcorp.com/articles-hr/pre-employment-testing.htm. [2] KVUE News, “Re-Interview Process to Cost $150,000,” June 23, 2011, accessed August 2, 2011, http://www.kvue.com/news/local/AFD--124452379.html. [3] Adam Bryant, “The X Factor When Hiring? Call It Presence,” June 26, 2010, New York Times, accessed July 12, 2011, http://www.nytimes.com/2010/06/27/business/27corner.html?scp=1&sq=Selander&st=cse&pagewanted=1 . Saylor URL: http://www.saylor.org/books Saylor.org 123 5.2 1. Criteria Development and Résumé Review LEARNING OBJECTIVES Be able to explain why criteria development is an important part of the selection process. 2. Give examples of types of criteria that can be developed. 3. Describe the advantages and disadvantages of internal and external candidates. Before we begin to review résumés and applications, we must have a clear idea of the person we want to hire for the position. Obviously, the job specifications will help us know the minimum qualifications, such as education level and years of experience. However, additional criteria might include the attitude of the potential hire, the ability to take initiative, and other important personal characteristics and professional abilities that may not always be demonstrated in an application or résumé. A specific score on a personality test, quality of work samples, and other tools to determine qualifications should be included as part of the criteria. In other words, knowing exactly what you want before you even begin the process of looking through résumés will make this process much easier. In human resources, this is called KSAOs, or knowledge, skills, abilities, and other personal characteristics that make a person successful on the job. Some organizations, such as the United States Department of Veterans Affairs, require applicants to address each one of the KSAOs listed in the job position within their cover letter. [1] Criteria Development Considerations Many HR professionals and managers develop the criteria for hiring, as well as the interview questions, before reviewing any résumés. This allows for a streamlined process with specific guidelines already set before reviewing a résumé. For example, criteria for a project management job might include the following: 1. Two years of experience managing a $2 million or more project budget 2. A bachelor’s degree in business or closely related field 3. Ability to work on multiple projects at once 4. Problem-solving ability 5. Conflict-management ability 6. Ability to manage a team of five to six diverse workers 7. Score of at least a 70 on cognitive ability test 8. Score of excellent from most recent employer Saylor URL: http://www.saylor.org/books Saylor.org 124 By setting criteria ahead of time, the hiring team has a clear picture of exactly what qualifications they are looking for. As a result, it is easier to determine who should move forward in the selection process. For example, if someone does not have a bachelor’s degree, given this is a criterion, their application materials can be filed away, perhaps for another job opening. Likewise, the HR manager can include those résumés with two or more years of experience and bachelor’s degree in the interview pile and then develop interview questions that show the candidates’ problem-solving, multitasking, and conflict-management abilities. Résumé parsing or résumé scanning software is readily available and can make the initial screening easier. For example, Sovren software allows the HR manager to include keywords such as bachelor’s degree or management. This software scans all received résumés and selects the ones that have the keywords. While it still may be necessary to review résumés, this type of software can save time having to look through résumés that obviously do not meet the minimum qualifications. Validity and Reliablity The validity refers to how useful the tool is to measure a person’s attributes for a specific job opening. A tool may include any and all of the following: 1. Résumé-scanning software 2. Reference checks 3. Cognitive ability tests 4. Work samples 5. Credit reports 6. Biographical information blanks 7. Weighted application forms 8. Personality tests 9. Interview questions Biographical information blanks (BIBs) are a useful part of the application process. A BIB is a series of questions about a person’s history that may have shaped his or her behavior. The BIB can be scored in the same way as an interview or a résumé, assuming the organization knows which types of answers are predictable for success in a given job. Similarly, a weighted application form involves selecting an employee characteristic to be measured and then identifying which questions on the application predict Saylor URL: http://www.saylor.org/books Saylor.org 125 the desired behavior. Then scores are assigned to each predictor. Of course, the development of the scoring should be determined before any résumés and application forms have been reviewed. In other words, any tool you use to determine someone’s qualifications for a job should have validity to determine they are the right fit for the job. Reliability refers to the degree in which other selection techniques yield similar data over time. For example, if you ask the same interview question of every applicant for the project management position, and the “right” answer always yields similar, positive results, such as the hiring of a successful employee every time, the question would be considered reliable. An example of an unreliable test might occur with reference checks. Most candidates would not include a reference on their résumé who might give them a poor review, making this a less reliable method for determining skills and abilities of applicants. Fit Issues Fit includes not only the right technical expertise, education, and experience but also fit in company culture and team culture. For example, at Facebook headquarters in Palo Alto, California, engineers are selected based on their willingness to take risks, as risk taking is nurtured at Facebook. [2] In addition to this component of their company culture, the company looks for the “hacker” personality, because a hacker is someone who finds ways around the constraints placed upon a system. At Zappos, profiled inChapter 4 "Recruitment", the company culture is one focused on customer service and the willingness of people to provide the best customer service in all aspects of the business. At Amazon, the huge online retailer, a core value in their company culture is a focus on developing leaders to grow with the organization. If a potential candidate is not interested in long-term career growth, he or she might not be deemed an appropriate strategic fit with the organization. In today’s organizations, most people are required to work within teams. As a result, fit within a team is as important as company culture fit. Microsoft, for example, does an immense amount of teamwork. The company is structured so that there are marketers, accountants, developers, and many others working on one product at a time. As a result, Microsoft looks for not only company culture fit but also fit with other team members. Reviewing Résumés Once we have developed our criteria for a specific job, we can begin the review process. Everyone prefers to perform this differently. For example, all the hiring decision makers may review all résumés, list the people they would like to meet in person, and then compare the lists. Another method might be to rate Saylor URL: http://www.saylor.org/books Saylor.org 126 each candidate and interview only those above a certain score. This is discussed in Section 5.4.2 "Selection Methods". Obviously, much of the process will depend on the organization’s size and the type of job. None of this process can be done fairly without first setting criteria for the job. When looking at résumés to determine whom to interview, a manager should be concerned with the concepts of disparate impact and disparate treatment. This is discussed in Chapter 4 "Recruitment". Disparate impact is unintended discrimination against a protected group as a whole through the use of a particular requirement. Disparate impact may be present in the interviewing process, as well as other employment-related processes such as pay raises and promotions. For example, a requirement of being able to lift 110 pounds might be considered as having disparate impact on women, unless the job requires this ability. Every criteria developed should be closely considered to see if it might have disparate impact on a protected group of individuals. For example, the requirement of a certain credit score might have a negative impact on immigrants, who may not have a well-developed credit rating. However, if being able to manage money is an important requirement of the job, this requirement might not be discriminatory. Disparate treatment in hiring might include not interviewing a candidate because of one’s perception about the candidate’s age, race, or gender. The last consideration is the hiring of internal versus external candidates. Aninternal candidate is someone who already works within the organization, while anexternal candidate is someone who works outside the organization. A bidding process may occur to notify internal candidates of open positions. This is discussed inChapter 4 "Recruitment". Generally speaking, it is best to go through a formal interview process with all candidates, even if they work within the organization. This way, an HR professional can be assured that disparate treatment does not occur because of favoritism. For example, a senior executive of your organization just left, and you believe the manager in that department is qualified to take over the position. Suppose, though, that the manager has been lobbying you for the job for some time and has even taken you out to lunch to talk about the job. While this person has maintained high visibility and lobbied for the promotion, there may be equally qualified internal candidates who did not use the same lobbying techniques. Automatically offering the position to this internal candidate might undermine others who are equally qualified. So while hiring internally can be a motivator, making assumptions about a particular person may not be a motivator to others. This is why it is best, even if you Saylor URL: http://www.saylor.org/books Saylor.org 127 hire internally, to post a formal job announcement listing the job description and job qualifications, so everyone in the organization can have an equal opportunity to apply for the job. Once you have completed the criteria for the particular job and narrowed down the field, you can begin the interview process. We discuss this in Section 5.3 "Interviewing". Table 5.1 Possible Advantages and Disadvantages of Hiring an Internal versus an External Candidate Advantages Disadvantages Rewards contributions of current staff Can produce “inbreeding,” which may reduce diversity and difference perspectives Can be cost effective, as opposed to using a traditional recruitment strategy May cause political infighting between people to obtain the promotions Can improve morale Internal Candidates Knowing the past performance of the candidate Can create bad feelings if an internal can assist in knowing if they meet the criteria candidate applies for a job and doesn’t get it Brings new talent into the company Implementation of recruitment strategy can be expensive Can cause morale problems for internal Can help an organization obtain diversity goals candidates External Candidates New ideas and insight brought into the company Can take longer for training and orientation HOW WOULD YOU HANDLE THIS? Poor Interviewer As the assistant to the HR manager, one of your jobs is to help managers get ready to interview candidates. When you offer help to Johnathan, he says he has interviewed hundreds of people and doesn’t need your help in planning the interview process. When you sit in the interview with him, he asks inappropriate questions that you don’t feel really assess the abilities of a candidate. How would you handle this? How Would You Handle This? https://api.wistia.com/v1/medias/1360625/embed Saylor URL: http://www.saylor.org/books Saylor.org 128 The author discusses the How Would You Handle This situation in this chapter at:https://api.wistia.com/v1/medias/1360625/embed. KEY TAKEAWAYS • The first step in selection is to begin reviewing résumés. Even before you do this, though, it is important to develop criteria that each candidate will be measured against. This can come from the job description as well as the job qualifications. • Other tools, such as cognitive ability tests, credit checks, and personality tests, can be used to determine qualifications. When developing your criteria for interviewing, determine the level the applicant needs to meet to meet the minimum criteria, for example, a minimum score on a personality test. • We should be concerned with validity and reliability of measurement tools.Validity refers to how valid the test is, that is, how well a test measures a candidate’s abilities to do a job. Reliability refers to which selection techniques yield similar data or results over time. It is important to choose the right measurement tool used to determine whether the candidate meets the criteria. • Setting criteria before the interview process starts ensures that disparate impactor disparate treatment does not occur in the interview process. • When hiring, there is the option of internal and external candidates. Each has its own set of advantages and disadvantages. Internal candidates may be able to “hit the ground running,” but external candidates may come in with new perspectives. Even if an internal candidate seems to be the best hire, it is best to still perform the process of posting the job and interviewing, since other less vocal employees might be qualified internal candidates as well. In other words, don’t assume one person is the obvious choice for the promotion. EXERCISES 1. Develop criteria for the position of a retail salesperson working in teams. 2. Describe the advantages and disadvantages of hiring an internal and external candidate. Give an example of when you don’t think an external candidate should be considered for a position. 3. How can development of criteria or minimum standards help in a case of disparate treatment accusations? Saylor URL: http://www.saylor.org/books Saylor.org 129 [1] “What Are KSAs?” US Department of Veterans Affairs, accessed August 2, 2011,http://www.va.gov/jobs/hiring/apply/ksa.asp. [2] Ellen McGirt, “Most Innovative Companies,” Fast Company, February 2010, accessed July 12, 2011, http://www.fastcompany.com/mic/2010/profile/facebook. Saylor URL: http://www.saylor.org/books Saylor.org 130 5.3 1. Interviewing LEARNING OBJECTIVES Explain the various types of interviews and interview questions. 2. Discuss interview methods and potential mistakes in interviewing candidates. 3. Explain the interview process. Interviewing people costs money. As a result, after candidates are selected, good use of time is critical to making sure the interview process allows for selection of the right candidate. In an unstructured interview, questions are changed to match the specific applicant; for example, questions about the candidate’s background in relation to their résumé might be used. In a structured interview, there is a set of standardized questions based on the job analysis, not on individual candidates’ résumés. While a structured interview might seem the best option to find out about a particular candidate, the bigger concern is that the interview revolves around the specific job for which the candidate is interviewing. In a structured interview, the expected or desired answers are determined ahead of time, which allows the interviewer to rate responses as the candidate provides answers. This allows for a fair interview process, according to the US Office of Personnel Management. [1] For purposes of this section, we will assume that all interviews you perform will be structured, unless otherwise noted. Types of Interviews Interview processes can be time-consuming, so it makes sense to choose the right type of interview(s) for the individual job. Some jobs, for example, may necessitate only one interview, while another may necessitate a telephone interview and at least one or two traditional interviews. Keep in mind, though, that there will likely be other methods with which to evaluate a candidate’s potential, such as testing. Testing is discussed inSection 5.4.1 "Testing". Here are different types of interviews: 1. Traditional interview. This type of interview normally takes place in the office. It consists of the interviewer and the candidate, and a series of questions are asked and answered. 2. Telephone interview. A telephone interview is often used to narrow the list of people receiving a traditional interview. It can be used to determine salary requirements or other data that might automatically rule out giving someone a traditional interview. For example, if you receive two hundred résumés and narrow these down to twenty-five, it is still unrealistic to interview twenty-five people in Saylor URL: http://www.saylor.org/books Saylor.org 131 person. At this point, you may decide to conduct phone interviews of those twenty-five, which could narrow the in-person interviews to a more manageable ten or so people. 3. Panel interview. A panel interview occurs when several people are interviewing one candidate at the same time. While this type of interview can be nerve racking for the candidate, it can also be a more effective use of time. Consider some companies who require three to four people to interview candidates for a job. It would be unrealistic to ask the candidate to come in for three or four interviews, so it makes sense for them to be interviewed by everyone at once. 4. Information interview. Informational interviews are usually used when there is no specific job opening, but the candidate is exploring possibilities in a given career field. The advantage to conducting these types of interviews is the ability to find great people ahead of a job opening. 5. Meal interviews. Many organizations offer to take the candidate to lunch or dinner for the interview. This can allow for a more casual meeting where, as the interviewer, you might be able to gather more information about the person, such as their manners and treatment of waitstaff. This type of interview might be considered an unstructured interview, since it would tend to be more of a conversation as opposed to a session consisting of specific questions and answers. 6. Group interview. In a group interview, two or more candidates interview at the same time. This type of interview can be an excellent source of information if you need to know how they may relate to other people in their job. 7. Video interviews. Video interviews are the same as traditional interviews, except that video technology is used. This can be cost saving if one or more of your candidates are from out of town. Skype, for example, allows free video calls. An interview may not feel the same as a traditional interview, but the same information can be gathered about the candidate. 8. Nondirective interview (sometimes called an unstructured interview).In a nondirective interview, the candidate essentially leads the discussion. Some very general questions that are planned ahead of time may be asked, but the candidate spends more time talking than the interviewer. The questions may be more open ended; for example, instead of asking, “Do you like working with customers?” you may ask, “What did you like best about your last job?” The advantage of this type of interview is that it can give candidates a good chance to show their abilities; however, the downside is that it may be hard to compare potential candidates, since questions are not set in advance. It relies on more of a “gut feeling” approach. Saylor URL: http://www.saylor.org/books Saylor.org 132 It is likely you may use one or more of these types of interviews. For example, you may conduct phone interviews, then do a meal interview, and follow up with a traditional interview, depending on the type of job. Interview Questions Most interviews consist of many types of questions, but they usually lean toward situational interviews or behavior description interviews. A situational interview is one in which the candidate is given a sample situation and is asked how he or she might deal with the situation. In a behavior description interview, the candidate is asked questions about what he or she actually did in a variety of given situations. The assumption in this type of interview is that someone’s past experience or actions are an indicator of future behavior. These types of questions, as opposed to the old “tell me about yourself” questions, tend to assist the interviewer in knowing how a person would handle or has handled situations. These interview styles also use a structured method and provide a better basis for decision making. Examples of situational interview questions might include the following: 1. If you saw someone stealing from the company, what would you do? 2. One of your employees is performing poorly, but you know he has some personal home issues he is dealing with. How would you handle complaints from his colleagues about lack of performance? 3. A coworker has told you she called in sick three days last week because she actually decided to take a vacation. What would you do? 4. You are rolling out a new sales plan on Tuesday, which is really important to ensure success in your organization. When you present it, the team is lukewarm on the plan. What would you do? 5. You disagree with your supervisor on her handling of a situation. What would you do? Examples of behavior description interview questions might include the following: 1. Tell me about a time you had to make a hard decision. How did you handle this process? 2. Give an example of how you handled an angry customer. 3. Do you show leadership in your current or past job? What would be an example of a situation in which you did this? 4. What accomplishments have given you the most pride and why? 5. What plans have you made to achieve your career goals? Saylor URL: http://www.saylor.org/books Saylor.org 133 As you already know, there are many types of interview questions that would be considered illegal. Here are some examples: 1. National origin. You cannot ask seemingly innocent questions such as “That’s a beautiful name, where is your family from?” This could indicate national origin, which could result in bias. You also cannot ask questions about citizenship, except by asking if a candidate is legally allowed to work in the United States. Questions about the first language of the candidate shouldn’t be asked, either. However, asking “Do you have any language abilities that would be helpful in this job?” or “Are you authorized to work in the United States?” would be acceptable. 2. Age. You cannot ask someone how old they are, and it is best to avoid questions that might indicate age, such as “When did you graduate from high school?” However, asking “Are you over 18?” is acceptable. 3. Marital status. You can’t ask direct questions about marital status or ages of children. An alternative may be to ask, “Do you have any restrictions on your ability to travel, since this job requires 50 percent travel?” 4. Religion. It’s illegal to ask candidates about their religious affiliation or to ask questions that may indicate a religion-affiliated school or university. 5. Disabilities. You may not directly ask if the person has disabilities or recent illnesses. You can ask if the candidate is able to perform the functions of the job with or without reasonable accommodations. 6. Criminal record. While it is fine to perform a criminal record check, asking a candidate if they have ever been arrested is not appropriate; however, questions about convictions and guilty pleadings are acceptable. 7. Personal questions. Avoid asking personal questions, such as questions about social organizations or clubs, unless they relate to the job. Besides these questions, any specific questions about weight, height, gender, and arrest record (as opposed to allowable questions about criminal convictions) should be avoided. HR professionals and managers should be aware of their own body language in an interview. Some habits, such as nodding, can make the candidate think they are on the right track when answering a question. Also, be aware of ahalo effect or reverse halo effect. This occurs when an interviewer becomes biased because of one positive or negative trait a candidate possesses. Interview bias can occur in almost any interview situation. Interview bias is when an interviewer makes assumptions about the candidate that may not be accurate. [2] These assumptions can be detrimental to an interview process. Contrast bias is a Saylor URL: http://www.saylor.org/books Saylor.org 134 type of bias that occurs when comparing one candidate to others. It can result in one person looking particularly strong in an area, when in fact they look strong compared to the other candidates. A gut feeling bias is when an interviewer relies on an intuitive feeling about a candidate. Generalization bias can occur when an interviewer assumes that how someone behaves in an interview is how they always behave. For example, if a candidate is very nervous and stutters while talking, an assumption may be made that he or she always stutters. Another important bias called cultural noise bias occurs when a candidate thinks he or she knows what the interviewer wants to hear and answers the questions based on that assumption. Nonverbal behavior bias occurs when an interviewer likes an answer and smiles and nods, sending the wrong signal to the candidate. A similar to me bias (which could be considered discriminatory) results when an interviewer has a preference for a candidate because he or she views that person as having similar attributes as themselves. Finally, recency bias occurs when the interviewer remembers candidates interviewed most recently more so than the other candidates. HUMAN RESOURCE RECALL What are the dangers of a reverse halo effect? A halo effect occurs when a desirable trait makes us believe all traits possessed by the candidate are desirable. This can be a major danger in interviewing candidates. Interview Process Once the criteria have been selected and interview questions developed, it is time to start interviewing people. Your interviewing plan can determine the direction and process that should be followed: 1. Recruit new candidates. 2. Establish criteria for which candidates will be rated. 3. Develop interview questions based on the analysis. 4. Set a time line for interviewing and decision making. 5. Connect schedules with others involved in the interview process. 6. Set up the interviews with candidates and set up any testing procedures. 7. Interview the candidates and perform any necessary testing. 8. Once all results are back, meet with the hiring team to discuss each candidate and make a decision based on the established criteria. Saylor URL: http://www.saylor.org/books Saylor.org 135 9. Put together an offer for the candidate. As you can see, a large part of the interviewing process is planning. For example, consider the hiring manager who doesn’t know exactly the type of person and skills she is looking to hire but sets up interviews anyway. It is difficult, if not impossible, to determine who should be hired if you don’t know what you are looking for in the first place. In addition, utilizing time lines for interviewing can help keep everyone involved on track and ensure the chosen candidate starts work in a timely manner. Here are some tips to consider when working with the interview process: 1. Make sure everyone is trained on the interviewing process. Allowing someone who has poor interviewing skills to conduct the interview will likely not result in the best candidate. In a worst-case scenario, someone could ask an illegal question, and once hired, the candidate can sue the organization. UCLA [3] researchers calculated that plaintiffs win about half of hiring discrimination cases that go to trial, sometimes because of interviewers asking illegal questions. For example, “I see you speak Spanish, where did you study it?” is a seemingly harmless question that could be indirectly asking a candidate his or her ethnic background. To avoid such issues, it’s important to train managers in the proper interviewing process. 2. Listen to the candidate and try to develop a rapport with them. Understand how nervous they must be and try to put them at ease. 3. Be realistic about the job. Do not try to paint a “rosy” picture of all aspects of the job. Being honest up front helps a candidate know exactly what they will be in for when they begin their job. 4. Be aware of your own stereotypes and do not let them affect how you view a potential candidate. 5. Watch your own body language during the interview and that of the candidate. Body language is a powerful tool in seeing if someone is the right fit for a job. For example, Scott Simmons, vice president at Crist|Kolder, interviewed someone for a CFO position. The candidate had a great résumé, but during the interview, he offered a dead-fish handshake, slouched, and fidgeted in his chair. The candidate didn’t make eye contact and mumbled responses, and, of course, he didn’t get the job, [4] because his body language did not portray the expectations for the job position. 6. Stick to your criteria for hiring. Do not ask questions that have not been predetermined in your criteria. Saylor URL: http://www.saylor.org/books Saylor.org 136 7. Learn to manage disagreement and determine a fair process if not everyone on the interviewing team agrees on who should be hired. Handling these types of disagreements is discussed further in Chapter 9 "Successful Employee Communication". Once you have successfully managed the interview process, it is time to make the decision. Section 5.4.1 "Testing" discusses some of the tools we can use to determine the best candidate for the job. HUMAN RESOURCE RECALL Can you think of a time when the interviewer was not properly trained? What were the results? KEY TAKEAWAYS • Traditional, telephone, panel, informational, meal, group, and video are types of interviews. A combination of several of these may be used to determine the best candidate for the job. A structured interview format means the questions are determined ahead of time, and unstructured means the questions are based on the individual applicant. The advantage of a structured interview is that all candidates are rated on the same criteria. Before interviewing occurs, criteria and questions for a structured interview should be developed. • Interview questions can revolve around situational questions orbehavioral questions. Situational questions focus on asking someone what they would do in a given situation, while behavioral questions ask candidates what they have done in certain situations. o Interview questions about national origin, marital status, age, religion, and disabilities are illegal. To avoid any legal issues, it is important for interviewers to be trained on which questions cannot be asked. The halo effect, which assumes that one desirable trait means all traits are desirable, should also be avoided. o The process involved in interviewing a person includes the following steps: recruit new candidates; establish criteria for which candidates will be rated; develop interview questions based on the analysis; set a time line for interviewing and decision making; connect schedules with others involved in the interview process; set up interviews with candidates and set up any testing procedures; interview the candidates and perform any necessary testing; and once all results are back, meet with the hiring team to discuss each candidate and make a decision based on the established criteria; then finally, put together an offer for the candidate. Saylor URL: http://www.saylor.org/books Saylor.org 137 o Developing a rapport, being honest, and managing the interview process are tips to having a successful interview. 1. EXERCISES With a partner, develop a list of five examples (not already given in the chapter) of situational and behavioral interview questions. 2. Why is it important to determine criteria and interview questions before bringing someone in for an interview? 3. Visit Monster.com and find two examples of job postings that ask those with criminal records not to apply. Do you think, given the type of job, this is a reasonable criteria? [1] “Structured Interviews: A Practical Guide,” US Office of Personnel Management, September 2008, accessed January 25, 2011,https://apps.opm.gov/ADT/ContentFiles/SIGuide09.08.08.pdf. [2] Jeff Lipschultz, “Don’t Be a Victim of Interview Bias,” Career Builder, June 15, 2010, accessed July 12, 2011, http://jobs.aol.com/articles/2010/06/15/interview-bias/. [3] Mark Hanricks, “3 Interview Questions That Could Cost You $1 Million,” BNET, March 8, 2011, accessed August 2, 2011, http://www.bnet.com/blog/business-myths/3-interview-questions-that-could-cost-your-company-1million/791. [4] Scott Reeves, “Is Your Body Betraying You in Job Interviews?” Forbes, February 2006, accessed August 2, 2011, http://www.forbes.com/2006/02/15/employment-careers-interviews-cx_sr_0216bizbasics.html. Saylor URL: http://www.saylor.org/books Saylor.org 138 5.4 Testing and Selecting LEARNING OBJECTIVES 1. Explain the types of tests that can be administered as part of the selection process. 2. Be able to discuss the types of selection models. Besides the interview, we can also look at several other aspects that may predict success on the job. If any test is to be criteria for measuring a candidate, this should be communicated to each person interviewing, and criteria should be developed on specific test scores and expectations before interviewing and testing begins. Testing A variety of tests may be given upon successful completion of an interview. These employment tests can gauge a person’s KSAOs in relation to another candidate. The major categories of tests include the following: 1. Cognitive ability tests 2. Personality tests 3. Physical ability tests 4. Job knowledge tests 5. Work sample A number of written tests can be administered. A cognitive ability test can measure reasoning skills, math skills, and verbal skills. An aptitude test measures a person’s ability to learn new skills, while an achievement test measures someone’s current knowledge. Depending on the type of job, one or both will be better suited. A cognitive ability test measures intelligences, such as numerical ability and reasoning. The Scholastic Aptitude Test (SAT) is an example of a cognitive ability test. It is important to note that some cognitive ability tests can have disparate impact. For example, in EEOC v. Ford Motor Co. and United Automobile Workers of America, African Americans were rejected from an apprentice program after taking a cognitive test known as the Apprenticeship Training Selection System (ATSS). [1] The test showed significant disparate impact on African Americans, and it was then replaced by a different selection procedure, after costing Ford $8.55 million. Some sample test categories might include the following: 1. Reasoning questions Saylor URL: http://www.saylor.org/books Saylor.org 139 2. Mathematical questions and calculations 3. Verbal and/or vocabulary skills Aptitude tests can measure things such as mechanical aptitude and clerical aptitude (e.g., speed of typing or ability to use a particular computer program). Usually, an aptitude test asks specific questions related to the requirements of the job. To become a New York City police offer, for example, an aptitude test is required before an application will be considered. The written exam is given as a computerized test at a computerized testing center in the city. The test measures cognitive skills and observational skills (aptitude test) required for the job. [2] Personality tests such as Meyers-Briggs and the “Big Five” personality factors may be measured and then compared with successful employee scores. For example, The University of Missouri Health Care system recently launched a patient satisfaction initiative as part of its strategic plan. The plan includes training for current employees and personality testing for nursing, managerial, and physician candidates. [3] The goal of the test is to assess talent and to see if the candidate has the potential to meet the expectations of patients. They hired a private company, Talent Plus, who conducts the test via phone interviews. However, many companies administer tests themselves, and some tests are free and can be administered online. The Big Five personality test looks at extroversion, agreeableness, conscientiousness, neuroticism, and openness. Self-assessment statements might include the following: 1. I have an assertive personality. 2. I am generally trusting. 3. I am not always confident in my abilities. 4. I have a hard time dealing with change. Some institutions also require physical ability tests; for example, to earn a position in a fire department, you may have to be able to carry one hundred pounds up three flights of stairs. If you use tests in your hiring processes, the key to making them useful is to determine a minimum standard or expectation, specifically related to the requirements of the job. An HR manager should also consider the legality of such tests. In the EEOC v. Dial Corp. case, [4] women were disproportionately rejected for entry-level positions. Prior to the test, 46 percent of hires were women, but after implementation of the test, only 15 percent of the new hires were women. The Equal Employment Opportunity Commission (EEOC) Saylor URL: http://www.saylor.org/books Saylor.org 140 established that the test was considerably more difficult than the job, resulting in disparate impact. Physical ability tests need to show direct correlation with the job duties. A job knowledge test measures the candidate’s level of understanding about a particular job. For example, a job knowledge test may require an engineer to write code in a given period of time or may ask candidates to solve a case study problem related to the job. Work sample tests ask candidates to show examples of work they have already done. In the advertising business, this may include a portfolio of designs, or for a project manager, this can include past project plans or budgets. When applying for a pharmaceutical representative position, a “brag book” might be required. [5] A brag book is a list of recommendation letters, awards, and achievements that the candidate shares with the interviewer. Work sample tests can be a useful way to test for KSAOs. These work samples can often be a good indicator of someone’s abilities in a specific area. As always, before looking at samples, the interviewer should have specific criteria or expectations developed so each candidate can be measured fairly. Once the interview is completed and testing occurs, other methods of checking KSAOs, including checking references, driving records, and credit history, can be performed. Some companies even use Facebook as a way of gauging the candidate’s professionalism. Reference checking is essential to verify a candidate’s background. It is an added assurance that the candidate’s abilities are parallel with what you were told in the interview. While employment dates and job titles can be verified with previous employers, many employers will not verify more than what can be verified in the employment record because of privacy laws. However, if you do find someone who is willing to discuss more than just dates and job titles, a list of questions is appropriate. Some of these questions might include the following: 1. What was the title and responsibilities of the position the candidate had while at your company? 2. Do you think the candidate was qualified to assume those responsibilities? 3. Does this person show up on time and have good attendance? 4. Would you consider this person a team player? 5. What are the three strongest and weakest characteristics of this candidate? 6. Would you rehire this person? Saylor URL: http://www.saylor.org/books Saylor.org 141 If a candidate will be driving a company car or vehicle, such as a UPS truck, driving records may be checked. Criminal background checks may also be used if the position will include interaction with the public. If the position requires handling of money, a credit check may be required, although a written notice is required to be given to the candidate before the credit check is carried out. In addition, written permission must be provided to the credit agency, and the applicants must receive a copy of the report and a copy of their rights under the Consumer Credit Reporting Reform Act (CCRRA). All these types of tests can be used to determine if someone has been honest about their past employment. Some companies require drug testing, which causes some debate. While some organizations say this is a safety issue (and pay lower insurance premiums), others say it is an invasion of privacy. As long as drug tests are administered for a defensible reason (safety), many organizations will continue to require them. Some organizations will also require physical examinations to ensure the candidate can perform the tasks required. A final form of testing is the honesty test. A number of “what would you do” questions are asked. The challenge with this type of test is that many people know the “right” answer but may not be honest in their responses. Forty-five percent of organizations use social networking such as Facebook, Twitter, or LinkedIn to gather information about potential candidates. [6] Selection Methods A clinical selection approach is probably the most common selection method, and it involves all who will be making the decision to hire a candidate. The decision makers review the data and, based on what they learn from the candidate and the information available to them, decide who should be hired for a job. Because interviewers have a different perception about the strengths of a candidate, this method leaves room for error. One consideration is disparate treatment, in which one’s biases may result in not hiring candidates based on their age, race, or gender. One way to handle this and limit the personal stereotypes and perceptions of the interviewers is to use astatistical method in hiring. In the statistical method, a selection model is developed that assigns scores and gives more weight to specific factors, if necessary. For example, for some jobs, the ability to work in a team might be more important, while in others, knowledge of a specific computer program is more important. In this case, a weight can be assigned to each of the job criteria listed. For example, if the job is a project manager, ability to work with the client might be more important than how someone dresses for the interview. So, Saylor URL: http://www.saylor.org/books Saylor.org 142 in the example shown in Figure 5.4 "Sample Selection Model, with Sample Scores and Weighting Filled In", dress is weighted 1, while being able to give bad news to a client is weighted 5. In the example, the rating is multiplied by the weight to get the score for the particular job criteria. This method allows for a fairer process and can limit disparate treatment, although it may not limit disparate impact. A statistical method may work like this: you and the hiring team review the job analysis and job description and then determine the criteria for the job. You assign weights for each area and score ranges for each aspect of the criteria, rate candidates on each area as they interview, and then score tests or examine work samples. Once each hiring manager has scored each candidate, the hiring team can compare scores in each area and hopefully hire the best person in the best way. A sample candidate selection model is included in Figure 5.4 "Sample Selection Model, with Sample Scores and Weighting Filled In". With the statistical approach, there is more objectivity than with the clinical approach. Statistical approaches include the compensatory model, multiple cutoff model, and the multiple hurdle model. In the compensatory model, a similar method of scoring is used as the weighted model but permits a high score in an important area to make up for a lower score in another area. In our Figure 5.4 "Sample Selection Model, with Sample Scores and Weighting Filled In" example, ability to give bad news to a client might outweigh a test score. These decisions would be made before the interviews happen. A multiple cutoff model requires that a candidate has a minimum score level on all selection criteria. In our Figure 5.4 "Sample Selection Model, with Sample Scores and Weighting Filled In" example, the candidate may be required to have a score of at least 2 out of 5 on each criteria. If this was the case, the candidate in Figure 5.4 "Sample Selection Model, with Sample Scores and Weighting Filled In" scored low on “bad news to a client,” meaning he or she wouldn’t get the job in a multiple cutoff model. In themultiple hurdle model, only candidates with high (preset) scores go to the next stages of the selection process. For example, the expectations might be to score a 4 on at least three of the items in Figure 5.4 "Sample Selection Model, with Sample Scores and Weighting Filled In". If this were the case, this candidate might make it to the next level of the selection process, since he or she scored at least a 4 on three criteria areas. Once the discussion on whom to hire has occurred and a person has been selected, the final phase of the process is to make an offer to the candidate. This is discussed inSection 5.5 "Making the Offer". Saylor URL: http://www.saylor.org/books Saylor.org 143 Figure 5.4 Sample Selection Model, with Sample Scores and Weighting Filled In KEY TAKEAWAYS • Once the interview process is complete, some companies use other means of measuring candidates. For example, work samples are an excellent way of seeing how someone might perform at your company. • An aptitude test or achievement test can be given. An aptitude test measures how well someone might be able to do something, while an achievement test measures what the candidate already knows. Tests that measure cognitive ability and personality are examples. • Some organizations also perform drug tests and physical tests. A physical test might consist of being able to lift a certain amount of weight, if required for the job. Honesty tests are also given; Saylor URL: http://www.saylor.org/books Saylor.org 144 these measure the honesty level of the candidate. However, these tests may not be reliable, since someone can guess the “right” answer. • Facebook, Twitter, and other social networking websites are also used to gather information about a candidate. Calling references is another option. • Every person interviewing the candidate should have a selection model; this method utilizes a statistical approach as opposed to a clinical approach. The selection table lists the criteria on the left and asks interviewers to provide a rating for each. This method can allow for a more consistent way of measuring candidates. EXERCISES 1. Develop a sample candidate selection for your current job. 2. Visit your or another person’s Facebook page. Consider the content from an interviewer’s point of view. Should anything be removed or changed? [1] “Employment Tests and Selection Procedures,” US Equal Employment Opportunity Commission, accessed August 2, 2011,http://www.eeoc.gov/policy/docs/factemployment_procedures.html. [2] “Exam Schedule,” New York Police Department, accessed August 2, 2011,http://www.nypdrecruit.com/examcenter/exam-overview. [3] Janese Silvey, “MU Health Care to Renew Satisfaction Effort,” Columbia Daily Tribune, August 2, 2011, accessed August 2, 2011,http://www.columbiatribune.com/news/2011/aug/02/mu-health-care-to-renew-satisfactioneffort/. [4] “Employment Tests and Selection Procedures,” US Equal Employment Opportunity Commission, accessed August 2, 2011,http://www.eeoc.gov/policy/docs/factemployment_procedures.html. [5] Katharine Hansen, “So, You Want to Get into Paramedical Sales?” n.d., Quintessential Careers, accessed August 2, 2011,http://www.quintcareers.com/pharmaceutical_sales_careers.html. [6] Kit Eaton, “If You’re Applying for a Job, Censor Your Facebook Page,” Fast Company, August 19, 2009, accessed January 27, 2011, http://www.fastcompany.com/blog/kit-eaton/technomix/if-youre-applying-job-censor-yourfacebook-page. Saylor URL: http://www.saylor.org/books Saylor.org 145 5.5 1. Making the Offer LEARNING OBJECTIVE Explain the steps in making the offer to the candidate. Oftentimes once the decision is made to hire a candidate, HR professionals feel their job is finished. But making the offer to the chosen candidate can be equally as important as the interview process. If the offer is not handled properly, you can lose the candidate, or if the candidates takes the job, he or she could start off on the wrong foot. According to Paul Falcone, vice president for human resources at the Fortune 500 company Time Warner, detailed information should be asked of the candidate before the offer is even made. [1] He says that as soon as the offer is made, power is shifted to the candidate. To handle this, he suggests asking salary questions in the interview, including the following: 1. “If we were to make a job offer today, when would you be in a position to accept or reject the offer?” If the candidate answers “right now,” this indicates they do not have other job offers on the table or if they do, you are their first choice. 2. “At what point, dollar wise, would you accept our job offer and at what point, dollar wise would you reject the offer?” The advantage of using this strategy is that it gets to the point of understanding the candidate’s expectations. If the interviewee does not respond right away, you can clarify by asking, “I am asking this question because I would like to gauge your interest level. Share with me the ideal salary offer versus at what point you would be willing to walk away from this opportunity.” Asking these questions can assist in qualifying candidates, based on salary expectations. For example, if a candidate requests 20 percent more than you are able to pay for the job, this discussion can be had before the offer is even made, perhaps making this candidate no longer viable. Once you have determined in the interview process that the salary expectation is in the range of what you can offer, the first step is to make the offer as soon as the decision is made. In a tight labor market, waiting a week or two may impact your ability to hire your first choice. You probably already have a salary range in mind and can begin to narrow down the offer based on the individual’s KSAOs. Based on the range of salary you can offer, consider the following questions when making the offer to a candidate: • What is the scarcity of the particular skills set? • What are the “going” wages in your geographic area? Saylor URL: http://www.saylor.org/books Saylor.org 146 • What are the current economic conditions? • What is the current pay for similar positions in your organization? • What is your organizational compensation strategy? • What is the fair market value of the job? • What is the level of the job within the organization? • What are your budget constraints? • How soon will the employee be productive in the organization? • Are there other candidates equally qualified that might have lower salary expectations? • What are the national and regional unemployment rates? • If you cannot pay more, can you offer other perks such as a signing bonus or flexible work schedule? Once the offer has been made, it is reasonable to give the candidate some time to decide, but not too long, as this can result in losing other candidates should this candidate reject the job offer. It is likely the candidate may come back and ask for higher salary or benefits. Some tips to successfully negotiate are included below and in Video 5.4: 1. Be prepared. Know exactly what you can and can’t offer. 2. Explain the career growth the organization can provide. 3. Address the benefits of the candidate’s joining the organization. 4. Discuss the entire offer, including other benefits offered to the employee. 5. View the negotiation as a win-win situation. 6. Be able to provide salary research of similar positions and competitors for the same job title. 7. Use the trading technique. For example, “I cannot offer you the salary you are requesting right now, but what if we were able to review salary at your six-month performance review, assuming ____ objectives are met?” Once the phone call is made and the candidate accepts the offer, an e-mail or formal letter should follow, outlining details of the employment agreement. The employment agreement or offer letter should include the following: 1. Job title 2. Salary 3. Other compensation, such as bonuses or stock options Saylor URL: http://www.saylor.org/books Saylor.org 147 4. Benefits, such as health-care coverage, 401(k) 5. Vacation time/paid holidays 6. Start date 7. Noncompete agreement expectations 8. Additional considerations such as relocation expenses Once the pay and benefits package has been successfully negotiated and the offer letter (or e-mail) sent, you should clarify acceptance details in writing and receive confirmation of the start date. It is not unusual for people in higher-level positions to need a month or even two to transition from their old jobs. During this period, make sure to stay in touch and even complete the new hire paperwork in the meantime. KEY TAKEAWAYS • The HR professional’s job isn’t finished once the selection is made. The next step is to actually make the offer. This step is important, because if it isn’t done properly, you could lose the candidate or have ill feelings at the onset of the employment relationship. • Once you have made the decision to hire someone, make the offer to the candidate right away. Normally this is done through a phone call and a follow-up e-mail, outlining the details of the offer. • It is not unusual for someone to negotiate salary or benefits. Know how far you can negotiate and also be aware of how your current employees will be affected if you offer this person a higher salary. • If you are having trouble coming to an agreement, be creative in what you can offer; for example, offer flextime instead of higher pay. 1. EXERCISE Research “salary negotiation” on the Internet. What tips are provided for job seekers? Do you think these same tips could apply to the HR professional? Why or why not? [1] Paul Falcone, “The New Hire: Five Questions to Ask before Making the Job Offer,” n.d., Monster.com, accessed July 13, 2011, http://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-advice/acquiring-jobcandidates/making-a-job-offer.aspx. Saylor URL: http://www.saylor.org/books Saylor.org 148 5.6 • Cases and Problems CHAPTER SUMMARY The selection process refers to the steps involved in choosing someone who has the right qualifications to fill a current or future job opening. • There are five main steps in the selection process. First, criteria should be developed to determine how the person will be chosen. Second, a review of the applications and résumés is conducted, often via a computer program that can find keywords. Next, interview the employee. The last steps involve administering tests, such as a personality test or drug test, and making the offer to the right candidate. • The first step in selection is to review résumés. Even before you do this, though, it is important to develop criteria against which each candidate will be measured. Criteria can come from the job description as well as the job qualifications. • Other tools, such as cognitive ability tests, credit checks, or personality tests, can be used to determine qualifications. When developing your criteria for interviewing, determine the level the applicant needs to meet to meet the minimum criteria—for example, a minimum score for a personality test. • We should be concerned with validity and reliability of measurement tools.Validity refers to how valid the test is—that is, how well a test measures a candidate’s abilities to do a job. Reliability refers to which selection techniques yield similar data or results over time. It is important to choose the right measurement tool used to determine whether the candidate meets the criteria. • Use of criteria before the interview process starts is also important to make sure disparate impact or disparate treatment do not occur in the interview process. • When hiring, there is the option of internal and external candidates. Each has its own set of advantages and disadvantages. Internal candidates may be able to “hit the ground running” but external candidates may come in with new perspectives. Even if an internal candidate seems to be the best hire, it is best to still perform the process of posting the job and interviewing, since other less vocal employees might be qualified internal candidates as well. In other words, don’t assume one person is the obvious choice for the promotion. • Traditional, telephone, panel, informational, meal, group, and video are types of interviews. A combination of several of these may be used to determine the best candidate for the job. A structured interview format means the questions are determined ahead of time, and unstructured means the Saylor URL: http://www.saylor.org/books Saylor.org 149 questions are based on the individual applicant. The advantage of a structured interview is that all candidates are rated on the same criteria. Before interviewing occurs, criteria and questions for a structured interview should be developed. • Interview questions can revolve around situational questions or behavioral questions. Situational questions focus on asking someone what they would do in a given situation, while behavioral questions ask candidates what they would have done in certain situations. • Interview questions about national origin, marital status, age, religion, and disabilities are illegal. To avoid any legal issues, it is important for interviewers to be trained on which questions cannot be asked. The halo effect, which assumes that one desirable trait means all traits are desirable, should also be avoided. • The process involved in interviewing a person includes the following steps: recruit new candidates; establish criteria for which candidates will be rated; develop interview questions based on the analysis; set a time line for interviewing and decision making; connect schedules with others involved in the interview process; set up interviews with candidates and set up any testing procedures; interview the candidates and perform any necessary testing; and once all results are back, meet with the hiring team to discuss each candidate and make a decision based on the established criteria. Finally, put together an offer for the candidate. • Developing a rapport, being honest, and managing the interview process are tips to having a successful interview. • Once the interview process is complete, some companies use other means of measuring candidates. For example, work samples are an excellent way of seeing how someone might perform at your company. • An aptitude test or achievement test can be given. An aptitude test measures how well someone might be able to do something, while an achievement test measures what the candidate already knows. Tests that measure cognitive ability and personality are examples. • Some organizations also perform drug tests and physical tests. A physical test might consist of being able to lift a certain amount of weight, if required for the job. Honesty tests are also given, which measure the honesty level of the candidate. However, these tests may not be reliable, since someone can guess the “right” answer. Saylor URL: http://www.saylor.org/books Saylor.org 150 • Facebook, Twitter, and other social networking websites are used to gather information about a candidate. Calling references is another option. • Every person interviewing the candidate should have a selection model; this method utilizes a statistical approach as opposed to a clinical approach. The selection table lists the criteria on the left and asks interviewers to provide a rating for each. This method can allow for a more consistent way of measuring candidates. • The job of the HR professional isn’t finished once the selection is made. The next step is to make the offer. This step is important, because if it isn’t done properly, you could lose the candidate or have ill feelings at the onset of the employment relationship. • Once you have made the decision to hire someone, make the offer to the candidate right away. Normally this is done through a phone call and a follow-up e-mail, outlining the details of the offer. • It is not unusual for someone to negotiate salary or benefits. Know how far you can negotiate, and also be aware of how your current employees will be affected if you offer this person a higher salary. • If you are having trouble coming to an agreement, be creative in what you can offer; for example, offer flextime instead of higher pay. CHAPTER CASE The Four-Fifths Rule The four-fifths rule is a way of measuring adverse impact in selection processes of organizations. It works like this: assume your organization requires a cognitive test for employment. You set a test score of 70 as the required pass rate for the candidate to be considered for an interview. Based on our numbers, if 50 percent of men passed this test with a score of 70, then four-fifths or 40 percent of women should also be able to pass the test. You might calculate it like this: Gender Total who scored 70 or above Total who took the test Percent Male 52 62 83.8 or 84% passed Female 36 58 62.07 or 62% If you divide the total of who scored above 70 by the total number who took the test, it shows the percentage of 84 percent passed the test. If you divide the number of women who passed by the total Saylor URL: http://www.saylor.org/books Saylor.org 151 number of women who took the test, you come up with 62 percent. Then divide 62 percent by 84 percent (62/84 = 73.8%). The resulting 74 percent means that it is below the 80 percent or the four-fifths rule, and this test could be considered to have disparate impact. 52/62 = 84% of men who took the test passed the test36/58 = 62% of women who took the test passed the test62/84 = 73.8%, less than 80%, which could show disparate impact This is only an indicator as to how the selection process works for the organization, and other factors, such as sample size, can impact the reliability of this test. Using the tables below, please calculate possible disparate impact and then answer the questions that follow. National Origin Passing Test Score Total Number Taking the Test Percent Caucasians 56 89 Minority groups 48 62 Age Passing Test Score Total Number Taking the Test Percent People under 40 28 52 People over 40 23 61 Gender Passing Test Score Total Number Taking the Test Percent 1. Male 71 82 Female 64 85 Please calculate the above numbers using the four-fifths rule. Based on your calculation: a. Which group or groups might be affected negatively by this test? b. What would be your considerations before changing any selection tools based on this data? c. How might you change your selection process to ensure disparate impact isn’t occurring at your organization? Saylor URL: http://www.saylor.org/books TEAM ACTIVITY Saylor.org 152 1. In a team of two, take the Big Five personality test online (http://www.outofservice.com/bigfive/) and compare scores. 2. Assume you are hiring a retail salesperson and plan to administer the same Big Five personality test you took above. In your team, develop minimum percentile scores for each of the five areas that would be acceptable for your new hire. Saylor URL: http://www.saylor.org/books Saylor.org 153
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