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1
CHAPTER 6
Recruitment and Selection
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Recruitment
The process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, and encouraging them to apply for jobs with an organization.
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Aims
Recruitment Initial Screening Final Selection
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Importance of recruitment and selection
Management or Professional positions vs Clerical or Shop floor levels
Value of commitment and motivation Getting people with exact skills,
qualities and attitudes Workforce is becoming increasingly
heterogeneous Unsophisticated
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Recruitment and selection at Nissan UK
Shopfloor Production jobs11,500 applied for the first 500 vacancies Sophisticated selection process Application form -Seven pages in length Focus - Attitude and approach to
problem-solving rather then simple technical knowledge.
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What does recruitment selection involve?
Recruitment is the process of finding and attracting a pool of suitable candidates for the vacancy.
Advertising is important here. Pool of candidates
Next phase concerns initial screening To reduce the field to manageable proportions
Final selection phase
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Assessment of recruitment and selection processes.
Cost In terms of financial resources
Validity refers to the extent to which a particular
recruitment or selection technique is an accurate or valid predictor of actual job performance. (0-1)
Fairness Possibility of bias
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Does a vacancy exist? Avoid ‘automatic replacement syndrome’
Really necessary to recruit a replacement or Work can be reorganized or Rescheduled amongst existing staff
Initially via promotion, or whether it should be sourced externally via recruitment
Career advancement First step is to determined the type of person
or people the company ideally wishes to recruit
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Internal Promotion and External Recruitment
A. L. Weaver
President and Chief Executive Officer
R. E. Lewis
M.L. Denney J. Hicks
G. L. Newman
R. R. Jackson
B. W. Swain
Vice President, Human Resources
Manager, Human Resource Department
Benefit Analyst
Manager, CompensationManager. Employment
Salary Analyst
Retirement
B. Massenburg
B.B.S., State University
Promotion
Promotion
Promotion
External Recruit
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Conduct a job analysis Two components: a job specification and a person
specification Functional flexibility Wide range of job tasks when the workload requires Rapidly changing environments Completely different role in the near future (Bratton
and Gold, 1999) Identification of candidates that are willing to be
flexible, and that have the right attitudes and motivational qualities rather than searching for candidates that have a specific set of skills
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The Recruitment strategy
Internal advertisements, External advertisements in press
publications, Recruitment agencies, Executive search agencies, or Encouraging current employees to
ask friends and relatives to apply (so-called ‘grapevine’ Recruitment)
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Outside Sources of Recruitment
Advertisements Unsolicited
applications and resumes
Internet recruiting Employee referrals Executive search firms Educational institutions Professional
organizations
Labor unions Public employment
agencies Private
employment agencies
Temporary help agencies
Employee leasing
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The Recruitment strategy
The Recruitment process is a marketing exercise
Strength of their brands Reputations
By merging their recruitment strategy with their product marketing strategy. Such an approach involves adopting similar formats, styles and colours in recruitment advertisements as are used in product marketing advertisements (Capelli, 2001)
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E-recruitment
Online application forms Online assessment tests
More viable or more effective than traditional recruitment methods
McKinseys, Bain, Accenture, and PriceWaterhouseCoopers
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E-recruitment
IPD’s annual recruitment survey (Institute of Personnel and Development, 1999), 32 per cent of UK employers were recruiting through the Internet in 1999(up from 14 per cent in 1997)
In the US, 90 per cent of large US employers are already using e-recruitment (Capelli, 2001)
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Benefits of e-recruitment
Monster.com 18 million employee profiles and CV’s
available on-line (Capelli, 2001) Some companies have also established
Internet alumni networks. Re-establish contacts with former
employees that have left the company to work for competitor organisations.
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Benefits of e-recruitment (Capelli, 2001)
43 days to recruit - Using traditional techniques
6 days by posting jobs online 4 days if on-line application forms were used Further 7 days if applications were screened
electronically (e-rec - 17 days) Cost benefits Recruitment advertisements are expensive Quality of applicants higher
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Hot Recruiting SitesCareer Builder: http://www.careerbuilder.com Carries its own listings and offers links to sixteen
specialized career sites.Employment Guide: http://www.employmentguide.com Another leading career resource site, has thousands of
job listings from hundreds of major companies.FlipDog: http://www.flipdog.com Features more than 400,000 jobs and 57,000 employers
in 3,700 locations.HotJobs: http://www.hotjobs.com Owned by Yahoo, offers advanced management features
and smart agents to streamline the recruiting process.
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Hot Recruiting SitesJOBTRAK: http://www.jobtrak.com
A leading college recruiting site, has more than 40,000 listings and links to 750 campuses in the United States.JobWeb: http://www.jobweb.com
A college recruiting site run by the National Association of Colleges and Employers.Monster.com: http://www.monster.com
One of the oldest and largest general recruiting sites on the Internet, with more than 50,000 listings.Net-Temps: http://www.nettemps.com
The web’s leading site for recruiting tempsSpherion (formerly E. Span): http://www.spherion.com
One of the largest and best-known web recruiting sites.
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e-recruitment at British Airways www.britishairwaysjobs.com
Merrick, N. ‘Wel.com aboard’, People Management, 17 may 2001
“Leaders for Business” Management Training Programme - can apply through e-mail only
Ads posted traditionally & on web Received 5000 instead of 12000 (usual) Dealing with high quality base - valid way to
screen out people who are not conversant with web technology.
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Which recruitment techniques should a company use?
Type and level of vacancy Managerial or executive job as
opposed to a semi-skilled manual job
Time constraints Cost limitations
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Recruitment Techniques
Yield analysis A systematic yield analysis Ensuring fairness
Time-lapse analysis (Cascio, 1998) Executive search agencies tend to take a long time,
whereas employee referrals can be very quick Cost-per-hire
Executive search agencies - expensive Walk-ins & employee referrals - Cheaper
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Recruitment Techniques
Yield Ratio Percentage of applicants from a
recruitment source that make it to the next stage of the selection process.
100 resumes received, 50 found acceptable = 50% yield.
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Recruitment Techniques
Cost of Recruitment (per employee hired)
SC = source cost AC = advertising costs, total monthly expenditure (example:
$28,000) AF = agency fees, total for the month (example: $19,000) RB = referral bonuses, total paid (example: $2,300) NC = no-cost hires, walk-ins, nonprofit agencies, etc. (example:
$0) H = total hires (example: 119)
Cost to hire one employee = $414
HNCRBAFAC
HSC
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Initial screening
Application form Many countries have regulations
Biodata inventories Using psychometric techniques
Realistic job previews Case studies, job sampling or videos(Permack and Wanous, 1985)
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Initial screening Drug screening
Approximately 20 per cent of US private sector firms now drug-screen their applicants (Cascio, 1991)
Evidence to suggest that drug use predicts poorer job performance
Graphology Accuracy is unproven Experts argue that the tests can be ‘beaten’ (Saxe,
Dougherty and Cross, 1985)
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Initial screening
On-line tests Highly sophisticated psychometric
instruments For example, JP Morgan Chase contains
a clever on-line application for college students: a game based on job hunting and investment decisions, which elicits information about applicants’ interests, attitudes and abilities (Capelli, 2001)
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Initial screening
Online Tests Unsupervised Quite easily seek assistance Non-controlled and non-supervised
environment, may well be less than rigorous
Some companies retest candidates when they attend interview (People Management, 2001)
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Final selection
Companies include selection techniques like Interviews Assessment centres Tests and work samples
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Selection Techniques and the Frequency of Use
Technique Percentage of firms reporting use
Reference checking 96% Interviews 94%Application forms 87%Ability tests 78%Medical examinations 50%Mental ability 31%Drug tests 26%Personality inventory 17%Weighted application forms 11%Honesty tests 7%Lie detector tests 5%SOURCE: A.M. Ryan and P. Sackett, “A Survey of Individual Assessment Practices by I/O Psychologists,” Personnel
Psychology 40 (1987), pp. 455-488; Bureau of National Affairs, 1988-89 Survey of Fortune 500 Companies, Washington, D.C.; I.T. Robertson and P.J. Jakin, “Management Selection in Britain: A Survey and Critique,” Journal of Occupational Psychology 59, pp. 45-57.
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Percentage of Job Skills Testing in Selected Industries
TEST ALL JOB ONLY SELECTINDUSTRY APPLICANTS JOB CATEGORIES
Manufacturing 7% 49%
Financial Services 4% 68%
Wholesale and Retail 0% 53%
Business and Professional Services 2% 57%
Other Services 6% 63%
Source: American Management Association: “Job Skills Testing Questionnaire,” 1998.
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Final selection
Interviewing Focused interview Structured interviews Unstructured interviews
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Effectiveness of interview
A lot of evidence to suggest that their effectiveness ids poor
Structured interviews that are effective as predictors of future job performance
Validity of 0.62 Unstructured interviews Validity rating
of 0.31 (Anderson and Shackleton, 1993)
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Effectiveness of interview
Why are structured interviews so much more effective than unstructured interviews? Easier to objectively compare Necessarily asked the same set of
questions Extremely difficult
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Effectiveness of interview
Structured interviews as Behavioural interviews rather than as a situational interview (Barclay, 2001)
When interviews are unstructured –difficult
Highly subjective Reduces the validity of the process
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QUESTION:It is the night before your scheduled vacation. You are all packed and ready to go. Just before you get into bed, you receive a phone call from the plant. A problem has arisen that only you can handle. You are asked to come in to take care of things. What would you do in this situation?
RECORD ANSWER:
SCORING GUIDE:Good: “I would go in to work and make certain that everything is O.K.
Then I would go on vacation.” Good: “There are no problems that only I can handle. I would make
certain that someone qualified was there to handle things.” Fair: “I would try to find someone else to deal with the problem.” Fair: “I would go on vacation.”
Sample Situational Interview Question
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Effectiveness of interview
Researchers have found that subjectivity within the unstructured interview process takes a number of forms. Expectancy effect Primacy effect Contrast effect Quota effect Similar-to-me effect (Managing diversity at
Marks and Spencer, and British Telecom)
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Effectiveness of interview Researchers have found that
subjectivity within the unstructured interview process takes a number of forms. (Continued) Personal liking bias (Eg. Common sporting
grounds) Physical cues (Wearing Glasses are often
equated to intelligence) Ability to recall information (Memory of
interviewers??)
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Effectiveness of interview
Unstructured interviewing can be said as a Hallmark of an incompetent interviewer
US suggest that only about 35 per cent of companies use structured interviews (Cascio, 1991)
Implication is - 65 per cent of companies rely on unstructured interviewing
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Final selection tests
Cognitive ability tests - Numerical and verbal reasoning tests. Ability tests fall into two categories: attainment tests (which assess the skills a
candidate already possesses, such as typing skills), and
aptitude tests (which assess the likely ability of candidates to acquire new skills).
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Final selection tests
Work sample tests/job simulation tests Candidate is placed in a situation that they
are likely to face in the job itself Example - In-tray tests, asked to prioritize
the hypothetical workload in a logical manner
Mostly assess the methods and processes the candidates utilises rather than results they achieve
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Final selection tests Personality tests
100000 psychometric tests are taken every day in Western countries (Wilson, 1999:30).
Ability, aptitude and personality questionnaires are used mainly for managerial posts, while literacy and numeracy tests are more popular for clerical and secretarial positions (Beardwell and Holden, 2001)
Complementary to interviews, rather than replacing them
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Effectiveness of tests Ability, attainment and aptitude tests
Ability tests – 0.54 vs Work sample tests- 0.55 (Anderson and Shackleton, 1993)
Criticized by Robert Stenberg,Professor, Yale University, People Management, 1998 argues that successful people have 3 kinds of abilities
Analytical abilities Creative abilities Practical abilities
Conventional ability tests focus primarily on measurement of Analytical or abstract skills
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Effectiveness of tests
Personality tests (Beardwell and Holden, 2001) The extent to which personality is measurable The extent to which personality remains stable
over time The extent to which personality traits can be
identified The extent to which the completion of a
questionnaire
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Effectiveness of tests
Personality tests Problem of cultural bias
Need for achievement Assessing sales drive PA consulting (HR consultancy firm) iron
out Cultural inconsistencies
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Effectiveness of tests Assessment centres
Participants undertake a variety of tests, group exercises and interviews
observed by a team of multiple assessors Final decision based on pooled information Several days to complete -- costly process Accuracy is high but should be conducted
properly Reserved for management and graduate
selection - due to high costs
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Effectiveness of tests
Reference checks Reference request from previous and
current employers Mostly positive?? Debatable - Referee’s knowledge on
candidate’s on the job performance?? More used as factual check relating to
candidate’s qualifications and prior experience.
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Is there an ideal, or ‘one best way’ approach to final selection?
Vary depending upon the position being recruited to(such as whether managerial/professional as opposed to non-managerial)
Irrespective of the level of vacancy must carry out the processes of recruitment, initial screening and final selection in a through, systematic manner (Else no guarantee on suitable candidate)
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Is there an ideal, or ‘one best way’ approach to final selection?
Final selection Tests can be highly accurate predictors of future
job performance (better to study candidate’s ability and personality)
Interviews should be freed up to assess other issues (speech, poise and appearance)
Person’s level of friendliness-ratings of a candidate’s friendliness in interviews frequently match supervisor assessments of friendliness in later appraisals??
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Is there an ideal, or ‘one best way’ approach to final selection?
Public relations perspective Disheartening for applicants to be
rejected A candidate rejected today may well be
a potential customer in the future, so it makes good business sense to treat them with courtesy and respect
Interviews are to be structured if they are to prove effective.
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Recruitment and Selection: Country Differences
Anti-discrimination law in the US means that any R&S process has
to be undertaken very carefully.
Eg, words and phrases such as – man/girl; saleswoman; bar maid;
waitress; college student; recently retired; bilingual, are all
potentially illegal.
Each of these indicates a preference – gender, age, education and
nationality.
Selection procedures are also subject to legal constraints in US.
Application forms, interviews etc should all conform to the
requirement of being job related.
52
Recruitment and Selection: Country Differences
In HK recruitment has traditionally occurred through
family networks (Torrington and Tan, 1995), although it
has been noted that ‘western’ methods have grown since
the 1980’s with the increasing use of advertising
(Kirkbride and Tang, 1989).
In Singapore only 53% of women are economically
active. One challenge is to attract women into the
workforce.
53
Recruitment and Selection: Country Differences
The MOM in Singapore offers CareerLink@mom. This is an
advisory centre that provides job seekers with
information on employment and learning opportunities to
enhance employability.
It also provides employers with labour market trends and
information and they can source for suitable employees
from the database.
NTUC has an Employment Assistance Programme. The
SHRI also offers such services.
54
Recruitment and Selection: Country Differences
There are also Tripartite Guidelines on Non-Discriminatory Job
Advertisements. These do not have legal force but aim to
reduce discrimination in this process.
Criteria that should not be used in job advertisements – race,
religion (unless required), marital status, age, gender (unless
required).
Acceptable criteria are – educational qualifications, releveant
skills and knowledge (‘proficient in both English and Malay’),
relevant attributes, relevant experience, other job
requirements.
55
Recruitment and Selection: Country Differences
Core workers in Japanese corporations are recruited and selected
through rigorous processes requiring – resume, photograph, an
official family record, physical examination, letters of
recommendation. An entrance examination will also be
administered.
Japanese employers will seek the following – stability,
commitment, teamworking capability, and generalist rather than
specialist skills. Japanese companies tend to operate the
‘core’/’peripheral’ split. Women in Japan are recruited more
casually as their role is perceived as homemaker.
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Recruitment and Selection: Country Differences
In Korea employees are separated into 3 types of
employees – core, basic (permanent employees),
temporary employees.
Elements of the selection process in Korea would include –
test for specialist knowledge, test of English proficiency, a
personal interview.
The split between core and peripheral workers is again an
important one.
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Factors That Motivate Top Talent
Source: E. G. Chambers, H. Hanafield-Jones, S. M. Hankin, and E. G. Michaels, III, “Win the War for Top Talent,” Workforce 77, no. 12 (December 1998): 50–56. Used with permission of McKinsey & Co.
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Best and Worst Majors for Job-Hunting Graduates
Source: Patrick Scheetz, Employment Research Institute, Michigan State University.
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Occupational Breakdown of Temporary Help Agency
Placements
Source: Steve Jones, “You’ve Come a Long Way, Baby: What the Staffing Industry Offers Today,” Canadian HR Reporter 14, no. 19 (November 5, 2001): 15.
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