1. MANA 4328 Dennis C. Veit dveit@uta.edu
Hiring Decisions
MANA 4328
Dennis C. Veit 1

2. Final Selection Top Down Selection (Rank) vs. Cutoff scores
Is the predictor linearly related to performance?
How reliable are the tests?
Top-down method – Rank order
Minimum cutoffs – Passing Scores

3. Final Decision Random Selection Ranking Grouping
Role of Discretion or “Gut Feeling”

4. Types of Contracts Legal Psychological Employment contract
Employment-at-will
Psychological
An implied contract
Employee promises: Hard work, extra effort, commitment to company goals.
Employee expects in return: Job security, fair treatment, development, pay and benefits.

5. Employment-at-will
VS.
Employment Contract

6. Employment-at-will Employment Contract
Employer not obligated to retain for specific time
Termination for any legitimate reason without liability
Disclaimers in applications and offer letter
Employment Contract
Employment for a definite period of time
Entitlements for compensation / benefits

7. Offer Letter Legal document Attraction tool Should be carefully worded
Creates obligations (intended or unintended)
Letter from HR or legal
Attraction tool
Final incentive for prospective hire
Should make new employee feel welcome
Letter from manager or company president

8. Job Offer Content Start date
Usually allows notice for previous employer
Benefits
Usually a blanket statement and refer to HR documents
Conditions of employment
Reference checks, drug screen, I-9, medical exam etc.
Other conditions
Confidentiality / Non-compete / Arbitration
Working hours
Acceptance date

9. Job Offer Content Base compensation
Based on payroll schedule rather than annual salary
Payment schedule (especially if monthly)
FLSA designation
Bonuses
As specific as possible including dates and criteria
Stock options
Consult an expert
Grant price / criteria / vesting / contingencies

10. Job Offer Content Integration clause Employment-at-will disclaimer
Letter contains all terms and conditions
Letter supercedes all other documents or conversations
Employment-at-will disclaimer
Employment is not for a specific duration
Employment terminable by either party at any time
Include the “magic words” but don’t go overboard

11. Responses Yes No Maybe / More time....
Follow immediately with positive communication
Instructions for start day (when, where, etc) No
Try to find out why
Working conditions vs. $$$
Maybe / More time....
Find out when
Answer any questions

12. Those Not Selected Maintain positive relations with fair treatment
Inform promptly
Thank them for applying and acknowledge the effort
Tell them they were a finalist with good skills to offer
Most companies do not provide details of decision
Keep applications on file
Notify by mail or by phone for higher jobs

13. Independent Contractors
“You have been retained as an independent contractor....
....for the XYZ project...
....to be completed by ABC date.”
“As a contractor you are not entitled to any benefits....
....company will not withhold any taxes, FICA or other deductions.”

14. Managing Retention Cost of turnover and replacement Types of Turnover
Involuntary turnover
Voluntary turnover out of company control
Voluntary turnover that company can control
Turnover and performance
Increases costs
Decreases productivity
Positive vs. Negative Turnover

16. Analyzing Turnover Diagnosing retention problems
Active: Employee surveys
Active: Exit interviews
Passive: Research and HRIS data mining
How much is too much turnover?
Depends on the organization
Depends on the position

17. Why Do People Leave?

18. Why Do People Leave? Desirability of Leaving General Ease of Leaving
Job satisfaction
“Shocks”
Switching costs
Career progression
General Ease of Leaving
Labor market conditions
Human capital (education and training)
Job offers