1. STRATEGIC STAFFING Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-1 Chapter 11 – Candidate Choice and Hiring

2. Learning Objectives 11-2 After studying this chapter, you should be able to:  Describe three different ways of making a final choice of whom to hire.  Discuss the factors that influence the content of a company’s job offer.  Describe the four different job offer strategies.  Explain why candidates’ perceptions of fairness are important to staffing.

3. Combining Assessment Scores 11-3  When using more than one assessment method, as is usually the case because the validity of the candidate’s assessment is more valid when using multiple predictors, a candidate’s scores must be meaningfully combined to calculate an overall score that can be compared across candidates or to a minimum hiring standard.  There are two ways of combining assessment scores: multiple hurdles and compensatory approaches.

4. Multiple Hurdles 11-4  Multiple hurdles: candidates must receive a passing score on an assessment before being allowed to continue in the selection process  Costly and take more time due to the need for candidates to make repeated visits for the different assessments  Used when the cost of poor performance on that characteristic is high  For example, when safety is at risk

5. Compensatory Approaches 11-5  Compensatory approach: high scores on some assessments can compensate for low scores on other assessments.  This approach is less useful for jobs in which specific talents must exist at a minimum level.

6. Preference for Diversity During Final Choice 11-6  Affirmative action and diversity programs need to be carefully implemented to avoid the potential for legal trouble.  Pursuing diverse hires should not begin during the assessment stage of the hiring process.  If qualified diverse candidates do not become part of the applicant pool, no selection system can identify them.  If sourcing and recruiting activities identify and attract qualified diverse applicants, then applying a valid assessment system that has little to no adverse impact should generate quality, diverse hires.  Successfully attracting qualified diverse applicants eliminates the need to consider any protected characteristic as a “plus factor” in the final candidate choice.

7. Job Offer Strategies 11-7  Particularly for firms with a talent philosophy of viewing employees as investors rather than assets, the job offer should maximize the employee value proposition offered to the finalist.  Before extending a job offer or deciding on the content of the job offer it is always a good idea to verify the truthfulness of any statements made by the applicant that were relied on in assessing the candidate or deciding on the offer’s contents  Grade point average, prior work experience, prior salary, etc.  It is also a good idea to identify a backup hire in case your first choice does not take the job.

8. Factors Influencing Job Offer Content 11-8 Figure 11-1

9. Compensation Decisions 11-9  Low job offer: below-market total rewards package  Competitive job offer: total rewards package is competitive with the market  High job offer: total rewards package is above the market  Maximum job offer: the company’s best and final offer

10. Employment Contract 11-10  Implicit employment contract: an understanding that is not part of a written or verbal contract.  Because binding contracts for employment or for future compensation can be created verbally, great care should be taken during discussions with prospective new hires.  To be legally binding and enforceable, any contract must consist of an offer outlining the terms and conditions of employment (and possibly a deadline for accepting the contract) that is accepted on the terms offered.  An agent authorized by the receiver can negotiate on the finalist’s behalf, and agents authorized by the organization such as executive recruiters and search consultants can negotiate on behalf of the company.  Offer letter: written letter describing in clear and precise terms exactly what the compensation structure and terms of employment will be.

11. Employment Contracts 11-11  Statements on a job application blank (e.g., a statement that providing false information is grounds for termination), statements in employee handbooks, and statements in other documents may become interpreted as enforceable contracts.  Often focus more on termination issues than on employment.

12. Additional Agreements 11-12  First rights to their inventions and patents  Nondisclosure agreements  Noncompete agreements  Nonsolicitation agreements  It is a good idea to consult legal counsel before preparing any contract forms or statements on application forms  Because states’ laws differ, employment law counsel should also be consulted to determine whether your state’s law enforces non-compete covenants and, if so, under what circumstances

13. Presenting a Job Offer 11-13  In writing  Verbally  Showing your company as a unique or exciting place to work can help close the deal  Emphasizing the selling points of the job itself and the career development opportunities that exist, as well as selling the company’s image and brand can increase the appeal of the opportunity to the candidate  The job rewards analysis should help identify some of a job’s most attractive features

14. Presenting a Job Offer 11-14  Should reinforce the company image and the positive impression formed by the candidate during the hiring process  While the candidate is considering the offer, it is a good idea to stay in contact with him or her to reinforce your enthusiasm

15. Negotiable Job Offer Elements 11-15 Table 11-5

16. Salary Negotiating Zone 11-16 Figure 11-3

17. Job Offer Negotiation Tips 11-17  Do not look at a negotiation as an either/or proposition  Identify what you can and cannot part with  Try to identify and use sources of leverage  Suppress your emotions  Know your BATNA  Take time to evaluate the offer  Be realistic  Practice your negotiation skills  Document and be prepared to discuss your skills and accomplishments  Be appreciative and respectful  Remember that employment is an ongoing relationship

18. Closing the Deal 11-18  For job offer acceptances:  Ensure that the finalist followed the proper procedures, accepted the job offer as written, and responded before the deadline.  Congratulate the new hire and express your enthusiasm about having him or her onboard. It can also be helpful to ask what persuaded the person to say yes, and what he or she thought of each company contact and the hiring process.  To begin the new hire’s transition into the company, stay in contact with the new hire and encourage his or her supervisor and coworkers to do the same.  Once a job offer has been accepted, the recruiter’s role is to begin building the new hire’s commitment to the company and enhancing his or her ability to succeed on the job.

19. Closing the Deal 11-19  When the company rejects a candidate:  Do so respectfully.  Distributive fairness will be perceived as low, and to reduce negative spillover effects efforts should be made to enhance the procedural and interactional fairness perceptions of rejected applicants.  Negative reactions of rejected internal candidates may be reduced by explaining why they were not chosen and what they can do to be more competitive for the position in the future. Development plans can be created to help the rejected employees enhance their experience and qualifications.

20. Closing the Deal 11-20  When a finalist rejects a job offer:  Try to find out why and whether an enhanced offer might be acceptable if the firm is willing to negotiate.  Promptly and respectfully acknowledge the job offer rejection.  Be sure to keep appropriate records of all applicants for EEO/AA computations such as applicant flow.  If a rejected applicant is qualified for a different position or if they might be hirable in the future for the job to which he or she applied, requesting permission to retain the applicant’s information for a period of time can help to build a talent pipeline and facilitate the future sourcing and recruiting of pre-qualified applicants.

21. Reneging 11-21  Reneging: backing out of a contract after it is accepted.  Employers should never pressure candidates to renege on other employers.  Although reneging is sometimes unavoidable due to changing health or family circumstances, it should not be taken lightly.  Employers sometimes renege on extended and even accepted job offers due to a changing business environment, unexpected business slump, or reorganization.  Often companies that renege on a job offer will give the job offer receiver compensation for breaking the contract to reduce negative feelings and reduce negative spillover effects.  Instead of reneging, it may be possible to defer the new hire’s start date and offer partial salary in the interim, or hire the individual as a consultant and convert him or her to a full-time hire as soon as possible (e.g., when a hiring freeze is lifted).  Treating the new hire with respect during the reneging process can reduce feelings of inequity and anger, and keep the individual interested in working for the firm in the future.