5-1 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Recruiting and Selecting Employees Chapter 5

5-2 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall  HR Supply and Demand  The Hiring Process  Challenges in Hiring Process  Meeting the Challenges of Effective Staffing  The Recruitment Process  The Selection Process  Legal Issues in Staffing Chapter 5 Overview

5-3 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall  Process used to ensure that an org has the “right” people when needed  Right number  With right skills Human Resource Planning   Failure to plan has sig. financial costs   Forecast future labor demand   Forecast future labor supply   Compare forecasted supply and demand

5-4 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Human Resource Supply and Demand

5-5 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall The Hiring Process  Three components in hiring process:

5-6 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall  Above average employee worth about 40% more than average employee Costs of Turnover   Turnover costs about 25% of salary   Costs both direct and indirect   Major costs include:   Separation   Recruitment   Selection   Hiring   Productivity

5-7 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall  What characteristics most important? Challenges in the Hiring Process   How do you measure the characteristics?   How do you account for motivation?   Performance = ability x motivation   Context dependent   Who makes the hiring decision?

5-8 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall  A “sales activity” Recruitment   Sources of recruiting   Current employees (ILM)   Referrals from current employees   Former employees   Former military   Customers

5-9 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Recruitment  Sources of Recruiting (continued)  Print and radio advertisements  Internet advertising and career sites  Employment agencies  Temporary workers  College recruiting  Nontraditional Recruiting

5-10 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall  Internal vs. External Recruiting  External—fresh perspectives o Is learning curve associated with new hires  Internal—less costly o Signals opportunity to workforce o May not have as many new ideas Recruitment   Evaluating recruiting sources   Cost of sources?   How long do employees recruited from different sources stay?

5-11 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall  Planning recruitment efforts  Should be tied to HRP  How many candidates to attract?  Depends on Yield ratios o Applicant to Interview o Interview to Offer o Offer to Acceptance Recruitment   Recruiting protected classes   Target potential recruits through media that focuses on minorities

5-12 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall  Reliability— consistency of measurement  Across time and judges  Almost always involves “noise” Selection   Validity — does the device do what you want?   Content — degree which selection device measures actual job content   Empirical — measures relationship between selection device and job performance

5-13 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall  Letters of recommendation  Poor predictors of job performance  Look at traits instead of tone  Application forms  Ability tests  Cognitive and Physical ability tests  Work Sample  Honesty tests  Psychology tests Selection Tools

5-14 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Selection Tools  Personality tests  Extroversion  Agreeableness  Conscientiousness  Emotional stability  Openness to experience

5-15 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall  Interviews Selection Tools   Structured Interview

5-16 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall  Assessment centers  Usually for managerial positions  In basket exercise Selection Tools   Drug tests   Reference checks   Background checks   Handwriting analysis

5-17 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Reactions to Selection Devices Selection   Applicant reactions to selection devices   Prefer job simulations and interview   Dislike personality and cognitive ability tests   Manager reaction to selection systems   Little research   Need devices that are quick, easy to administer and easy to interpret

5-18 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Legal Issues in Staffing  Discrimination Laws  Develop clear policies for  Hiring, disciplining and dismissing employees   Affirmative Action   Not just for govt. and govt. contractors   Can apply if guilty of discrimination   Negligent Hiring   Learn as much as possible about past work-related behavior

5-19 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall  HR Planning is essential Summary and Conclusions   Hiring process—3 activities and all impt.   Many challenges in the hiring process   Each step of hiring process must be managed   Recruiting—look everywhere!   Best selection tools both reliable and valid   If not job-related, don’t ask