Human Resource Management Class 4

Recruitment in labor markets, selection and placement Pcs, 26 February 2013

Concepts and learning objectives

To describe the phases in strategic recruiting and decisions made in each phase To discuss why Internet recruiting has grown and how employers are conducting it To list and discuss the external recruiting sources To discuss factors to consider when evaluating recruiting efforts Describe the sequence of a typical selection process Identify the three types of selection tests and legal concerns about their uses Discuss several types of selection interviews and some key considerations when conducting these

Definitions
Recruiting:
the process of generating a pool of qualified applicants for organizational jobs

Labor markets:
the external supply pool from which organizations attract employees

Benefits of a Strategic Approach

Strategic Approach to Recruiting

Matches recruiting activity with organizational and human resource plans.

Acquiring the Right Human Capital Entails:

Knowing the business and industry to successfully recruit qualified employees Identifying keys to success in the labor market, including ways to deal with competitors recruiting efforts Cultivating networks and relationships with sources of prospective employees Promoting the company brand so that the organization becomes known as a good place to work Creating recruiting metrics in order to measure the effectiveness of recruiting efforts

Strategic Recruiting Stages

Labor Market Components 1

Labor markets:
External supply pool from which organizations attract employees

Tight versus Loose Labor Markets

Low unemployment creates competition for employees, raising labor costs. High unemployment results the availability of more applicants and more qualified applicants.

Labor Market Components 2

Labor force population:
All individuals who are available for selection if all possible recruitment strategies are used

Applicant population: a subset of the labor force population that is available for selection using a particular recruiting approach is influenced by:
recruiting method recruiting message applicant qualifications required administrative procedures

Labor Market Components 3

Applicant pool
all persons who are actually evaluated for selection

Recruiting Decisions that Affect the Applicant Population

Recruiting method
Advertising medium chosen, including use of employment agencies

Recruiting message
What is said about the job and how it is said

Applicant qualifications required

Education level and amount of experience necessary, for example

Administrative procedures
When recruiting is done, applicant follow-up, and use of previous applicant files

Geographic labor markets Local Regional markets: vary in terms of workforce availability and quality Global labor markets Controversial issue Requires different approaches and understanding compared to local labor markets Regulations of the local government Industry and occupational labor markets
Occupational labor markets are based on the KSAs required for the jobs

Labor Markets and Recruiting Issues

Educational and technical qualifications

Strategic Recruiting Decisions

Organization-Based vs. Outsourced Recruiting
HR knows organization best Outsourcing frees up time and decreases HR Staff

Professional Employer Organizations (PEOs) and Employee Leasing

Saves HR costs but increases total payroll costs Increases compliance with government regulations and requirements. Benefits may be more available

Typical Division of HR Responsibilities: Recruiting

Effective Recruiting
Recruiting Presence and Image
Training of Recruiters Regular vs. Flexible Staffing Effective Recruiting

Recruiting Presence and Image

Continuous
Employer is kept in the recruiting market College recruiting a relationship is built with the school

Intensive
Campaign May be a sign of ineffective HR planning

Image
It has a significant effect on the number of applicants! Should be part of the organizations marketing efforts, and linked to the overall image and reputation of the organization and industry

Training of Recruiters
What should they be trained in?
Interviewing techniques Communications skills Knowledge of the jobs being filled Equal opportunity regulations Sensitivity to diversity issues

Recruiters behaviors and actions should be regularly monitored!

Regular vs. Flexible Staffing

Flexible Staffing
The use of workers who are not traditional employees. Temporary workers
Hiring temporary staff members or contracting with agencies supplying temporary workers on a rate-per-day or rate-per-week basis.

Independent contractors
Workers who perform specific services on a contract basis.

Recruiting and Diversity Considerations

Recruiting and EEO considerations

Employment advertising
No direct or indirect references implying gender of age are permitted Equal employment opportunity employer

Recruiting Diverse Workers

Older Workers
Mid-life career changers: Those who are burned out in their jobs and career fields and leave voluntarily to try new fields Displaced older workers: Those who have worked but have been displaced, often involuntarily, through job reductions or plant closings Retirees: Those who took early retirement buyouts or formally retired from prior jobs

Individuals with Disabilities

Recruiting source choices: Internal

Internal: promoting from within the organization Advantages:
morale of promotee and other employees
Can support the culture of employee engagement

better assessment of abilities lower cost for some jobs motivator for good performance causes a succession of promotions have to hire only at entry level Transfers save orientation and training costs

Recruiting source choices: Internal

Disadvantages:
Inbreeding - employee cloning possible morale problems of those not promoted political infighting for promotions Jobs that require specialized training and experience cannot be easily filled from the inside need for management development program Hiring for gaining business secrets P&G, Wal-Mart sued Amazon.com

Recruiting source choices: External

External: hiring from outside the organization Advantages:
new blood brings new perspectives cheaper and faster than training professionals no group of political supporters in organization already may bring new industry insights

Recruiting source choices: External

Disadvantages:
may not select someone who will fit the job or the organization may cause morale problems for internal candidates not selected longer adjustment or orientation time

Internal recruiting
Internal recruiting processes
Organizational databases
Profiles containing background and KSA information on current employees that allow for key word searches to locate suitable candidates for open positions and career development.

Job posting: a system in which the employer provides notices of job openings and employees respond to apply the purpose of the job posting system is to provide employees more opportunities to move within the organization

Job posting potential questions

What happens if no qualified employees respond to postings? Must employees inform their supervisors that they are applying for another job? Are there restrictions on how long an employee must stay in a job before applying to another one? How much notice should an employee required to give before transferring to a new department? What types of or levels of job will not be posted?

Promotions and job transfers

Most often successful but:
A persons performance on one job may not be a good predictor of performance on another because different skills may be required in the new job! The created vacancies must be filled

Planning should occur before promotions not afterwards! Flat organizations - less chances for promotions Glass ceilings

Employee-Focused Recruiting
Current-Employee Referrals
A reliable source composed of acquaintances, friends, and family members of employees that are recommended by current employees. Can violate EEO regulations if it is the sole source of applicants.

Re-recruiting of Former Employees and Applicants

Individuals who have left for other jobs might be willing to return.

External Recruiting
College and University Recruiting High Schools and Technical Schools

Media Sources and Job Fairs

External Recruiting Sources

Labor Unions

Competitive Sources

Employment Agencies and Headhunters

External recruiting
College and university recruiting Determinants of college and university selection:
Current and anticipated job openings College reputation Experiences with placement offices and previous graduates Organizational budget constraints Cost of available talent and typical salaries Market competition

Recruiting sources 1
School recruiting
High schools Vocational/or technical schools

Labor unions Employment agencies and search firms

fees can be high! Contingency firms Retainer firm CEOs hired from the outside or promoted from inside?

Recruiting sources 2
Competitive sources
Professional and trade associations Trade publications
Mediabistro.com

Competitors

Media sources
Newspapers, magazines, radio, tv, direct mail Judging the success of the ad by the number of responses is a mistake! Follow up: which sources produced employees who stayed longer and performed better

Job fairs and special events State employment agencies unemployment agency

What to Include in an Effective Recruiting Ad

Internet Recruiting Methods

Job Boards

Professional/ Career Web Sites

E-Recruiting Methods

Employer Web Sites

Internet Recruiting 2
Advantages Disadvantages

Recruiting cost savings

Recruiting time savings Expanded pool of applicants Morale building for current employees

More unqualified applicants

Additional work for HR staff members Many applicants are not seriously seeking employment

Access limited or unavailable to some applicants

Web
http://www.quintcareers.com/jobseeker_job_sit es.html http://www.quintcareers.com/career_centers/ http://jobline.hu//Default.aspx http://www.hrportal.hu/ http://www.profession.hu http://jobpilot.hu/ http://www.monster.com http://www.monster.hu http://cvonline.hu

Recruiting Evaluation and Metrics

Evaluating Recruiting Efforts

Evaluating Recruiting Quality and Quantity

Evaluating the Time Required to Fill Openings

Evaluating Recruiting Costs and Benefits

Evaluating Recruiting Satisfaction

Recruiting Source Value Index for Employers

Source: Recruiting Source Value Index, Workforce Recruiting, workforcerecruiting@email.workforceonline.com, November 9, 2006, 3.

General Recruiting Process Metrics

Yield ratios
A comparison of the number of applicants at one stage of the recruiting process to the number at the next stage.

Selection rate
The percentage hired from a given group of candidates.

Acceptance Rate
The percent of applicants hired divided by total number of applicants.

Success Base Rate

Comparing the percentage rate of past applicants who were good employees to that of current employees.

Sample Recruiting Evaluation Pyramid

Increasing Recruiting Effectiveness

Technical Approaches
Resume mining software Applicant tracking Employer career websites Internal mobility tracking system

Non-Technical Approaches
Personable recruiters Emphasizing positives about the job and employer within a realistic job preview Fair and considerate treatment in the recruiting process Enhancing applicants perceived fit with the organization

Selection and placement

Selection:
process of choosing individuals who have needed qualifications to fill jobs in an organization Good training will not make up for bad selection Hire hard, manage easy

Placement
Placement:
fitting a person to the right job

Person-job fit:
Matching the knowledge, skills and abilities (KSAs) of people to the characteristics of jobs (tasks, duties and responsibilitiesTDRs).

Benefits of person-job fit

Higher employee performance Lower turnover and absenteeism

Person-Organization fit
Individual
Goals Values

Organization
Objectives and strategies Rewards Culture

Interests
Expectatio Values ns

KSAs The congruence between individuals and organizational factors.

Structure and management

Criteria, predictors and job performance 1

In an effective selection system you have to know:
What constitutes effective job performance? What employee characteristics are associated with that performance?

Selection criterion:
characteristic that a person must have to do a job successfully

Criteria, predictors and job performance II

Predictors
The measurable or visible indicators of a selection criterion

Validity:
correlation between a predictor and job performance

Concurrent and Predictive Validity

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Job Performance, Selection Criteria, and Predictors

Criteria, predictors and job performance 2

Reliability:
of a predictor is the extent to which it repeatedly produces the same results over time

One predictor Multiple hurdles

Compensatory approach

Combining Predictors
Multiple Hurdles
Establishing a minimum cutoff (level of performance) for each predictor, and requiring that each applicant must score at least the minimum on each predictor to be considered for hiring.

Compensatory Approach
Scores on all predictors are added together, allowing a higher score on one predictor to offset a lower score on another predictor.

Selection process flowchart

Applicant job interest Pre-employment screening Application form Test Interview Background investigation Additional interview (optional) Conditional job offer Medical exam/drug test Job placement

The Selection Process 1

Legal Concerns in the Selection Process
Equal employment opportunity (EEO) laws and regulations
Non-discriminatory job-related selection practices

Who is an applicant?
The employer must have taken steps to fill a particular job. The individual must follow the application procedure. The individual must have expressed interest in a particular position.

The Selection Process 2

Applicant Flow Documentation
Employers must collect data on the race, sex, and other demographics of applicants to fulfill EEO reporting requirements.

Applicant Job Interest

Realistic Job Preview
The process through which a job applicant receives an accurate picture of the organizational realities of the job.
Prevents the development of unrealistic job expectations that cause disenchantment, dissatisfaction, and turnover in new employees.

Pre-Employment Screening
Pre-Screening Interview
Purpose: verify minimum qualifications

Electronic Screening
There is a large volume of applicants Quality of hires needs to be increased

When To Use Electronic Screening

Hiring cycles need to be shortened The cost of hiring needs to be reduced There is a need to reach unvisited geographic areas

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Applications
Purposes of Applications
Record of applicants interest in the job Provides a profile of the applicant Basic record for applicants hired Research effectiveness of the selection process

Resumes as Applications
Resumes are applications for EEO purposes. Resumes should be retained for at least three years.

Application Disclaimers and Notices

Employment-At-Will

References Contacts

Employment Testing

Application Form

Application Time Limit

Information Falsification

Application 5
Immigration forms EEO considerations and application forms
Illegal questions:
Marital status Height/weight Number and age of dependents Information on spouse Date of high school graduation Contact in case of emergency

Resumes as applications

Application 6
Reviewing application forms and resumes
Gaps in employment Education completion Responsibility and job levels Qualifications and accomplishments

Selection testing 1
Ability tests
Cognitive ability tests: tests that measure an individuals thinking, memory, reasoning, and verbal and mathematical abilities
Wonderlic Personnel Test, General Aptitude Test Battery

Physical ability tests: measure individual abilities such as strength, endurance and muscular movement Psychomotor tests: measure dexterity, handeye coordination, arm-hand steadiness and other factors

Selection testing 2
Ability tests
Work sample tests: require an applicant to perform simulated job task

Situational Judgment Tests

Measure a persons judgment in work settings.

Assessment centers
A series of evaluation exercises and tests used for the selection and development of managerial personnel.

Selection testing 3
Assessment centers
Multiple raters assess participants in multiple exercises and problems that are job content-related to the jobs for which the individuals are being screened.

Personality tests
Minnesota Multiphasic Personality Inventory Myers-Briggs Big Five

Myers-Briggs Type Indicator

Extroversion versus introversion Sensing versus intuition Thinking versus feeling Judging versus perceiving

Courtesy of Thompson Doyle Hennessey & Everest

The big five

Paul Costa and Robert McRae NOT personality types! Super traits Six traits under five headings

openness extroversion neuroticism conscientiousness agreeableness

Big Five Personality Characteristics

Selection testing 4
Honesty/integrity testing
overt integrity tests personality-oriented integrity tests negative public relations impact! invasion of individual privacy

Polygraph tests (lie detector)

Polygraph testing in pre-employment is prohibited (in most instances) by the Employee Polygraph Protection Act. Exempt! In the US Federal, state, local government agencies, security companies, pharmaceutical companies

Predictive validity of different employee assessment methods 1

Measure Validity coeffcient

astrology
graphology Years of education

Years of job experience

references biodata assessment centres

0,0 ! 0,02 ! 0,10 0,18 0,26 0,35 0,37

Predictive validity of different employee assessment methods 2

Measure Validity coefficient personality assessments 0,40 integrity tests 0,41 structured interviews 0,51 intelligence tests 0,51 work sampling 0,54 intelligence tests and work sampling 0,60 intelligence tests and structured interviews 0,63 intelligence and integrity tests 0,65 perfect selection 1,0

Selection interviewing 1
Conducted at 2 levels
initial: done by the HR department in-depth: done by supervisors and the HR department

Aim:
obtain additional information about the applicant clarify information gathered throughout the selection process

Reliability and Validity of Interviews

Intra-rater reliability: interviewers who are consistent in their ability to select individuals who will perform well. Inter-rater reliability: the extent to which different interviewers agree in the selection of individuals who will perform well. Face validity: a test that appears to be valid because external observers assume, without proof, that it is. Unstructured interviews are less reliable and less valid than structured interviews.

Selection interviewing 2
To minimize EEO concerns:
identify objective criteria related to the job sought by the interview specify decision-making criteria used provide multiple levels of review for difficult or controversial decisions use structured interviews

Types of selection interviews

Most effective Structured interviews
Biographical Behavioral Competency Situational

Less structured interviews

Non-directive Stress

Least effective interviews

Unstructured

Structured interviews 1
Uses a set of standardized questions asked of all job applicants Especially useful in initial screening Reliable and valid Ensures that you have similar information about each candidate Biographical Interview
Focuses on a chronological exploration of the candidates past experiences.

Structured interviews 2
Behavioral interview
applicants are asked to give specific examples of how they performed a task or handled a problem in the past
Assumes that past behaviors are good predictors of future actions Helps discover applicants suitability for current jobs based on past behaviors. Assumes that applicants have had experience related to the problem.

Structured interviews 3
Competency Interview
Similar to the behavioral interview except that the questions are designed specifically to provide the interviewer with something to measure the applicants response againstthat is, the competency profile for the position, which includes a list of competencies necessary to do that particular job. Describe your most significant accomplishment one question interview

Structured interviews 4
Situational interview
it is composed of questions about how applicants might handle specific job situations questions are based on job analysis and checked by job experts

Less structured interviews

Nondirective interview
uses questions that are developed from the answers to previous questions difficulty: to keep it job related subjective

Stress interview:
designed to create anxiety and put pressure on the applicant to see how the person responds high-risk approach for the employer

Types of Selection Interviews

Who does interviews?

Panel interview
several interviewers interview the candidate at the same time

Team interview
applicants are interviewed by the team members with whom they will work

Video interviewing

Effective interviewing
Planning!
Review:
pre-employment screening information The application or the cv The job description Identify specific areas for questioning

Controlling the interview: knowing in advance what information must be collected Questioning techniques Avoid listening responses be friendly and neutral

Questions Commonly Used in Selection Interviews

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Questions to be avoided
Yes/No questions Obvious questions Questions that rarely produce a true answer Leading questions Illegal questions Questions that are not job related

Problems in the Interview

Problems in the Interview

Snap Judgments

Negative Emphasis

Halo Effect

Biases and Stereotyping

Cultural Noise

Sources of Background Information

Goals of background screening

To show that the employer exercised due diligence in hiring to provide factual information about a candidate to discourage applicants with something to hide to encourage applicants to be honest on applications and during interviews

Legal Issues in Background Investigations

Risks of negligent hiring and retention
Employers are liable for employees actions. Federal Privacy Act of 1974 requires signed releases from applicants to avoid privacy issues.

Negligent hiring
Occurs when an employer fails to check the background of an employee who injures someone.

Negligent retention
Occurs when an employer is aware an employee may be unfit for employment, continues to employ the person, and the person injures someone.

Medical examinations and inquiries

ADA and medical inquiries Drug testing Genetic testing reasons: link workplace health hazards and individuals with certain genetic characteristics make workers aware of genetic problems that could occur in certain work situations exclude individuals from certain jobs if they have genetic conditions that increase their health risks

Final step of selection

Making the job offer

Offer Guidelines
Formalize the offer with a letter to the applicant clearly stating the terms and conditions of employment. Avoid vague, general statements and promises. Require return of a signed acceptance of the offer.

Recruiting is a process of generating a pool of qualified applicants for organizational jobs through a series of activities Must be viewed strategically Evaluation of recruitment helps to identify successful recruiting strategies and methods Selection is a process that matches individuals and their qualifications to jobs in an organization The selection process must be handled by trained, knowledgeable individuals Tools that are used: tests, interviews, background investigations

Summary and implications for future HR specialists