CHAPTER 6

Recruitment and Selection

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.
2

Aims

Recruitment
Initial Screening
Final Selection

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
4

Recruitment and
selection at Nissan UK
Shopfloor Production jobs
11,500 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.

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.

Next phase concerns initial screening

Pool of candidates
To reduce the field to manageable proportions

Final selection phase

6

Assessment of
recruitment and
selection processes.

Cost

Validity

In terms of financial resources

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
7

Does a vacancy exist?

Avoid automatic replacement syndrome

Really necessary to recruit a replacement or

Work can be reorganized or
Rescheduled amongst existing staf

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
8

Internal Promotion and External Recruitment

President and Chief
Executive Officer
Promotion

A. L. Weaver

Retirement

Vice President, Human

Resources
R. E. Lewis

Manager.
Employment
R. R. Jackson

Manager, Human
Resource Department
M.L. Denney

Promotion

Manager, Compensation
J. Hicks

Promotion

B. Massenburg
B.B.S., State University
External Recruit

Salary Analyst

Benefit Analyst

G. L. Newman

B. W. Swain

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 diferent 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
10

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 (socalled grapevine Recruitment)
11

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
12

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)
13

E-recruitment

Online application forms

Online assessment tests

More viable or more efective than

traditional recruitment methods

McKinseys, Bain, Accenture, and

PriceWaterhouseCoopers

14

E-recruitment

IPDs 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 erecruitment (Capelli, 2001)
15

Benefits of e-recruitment
Monster.com
18 million employee profiles and CVs
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.
16

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
17

Hot Recruiting Sites

Career 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.
18

Hot Recruiting Sites

JOBTRAK: 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 webs leading site for recruiting temps
Spherion (formerly E. Span): http://www.spherion.com
One of the largest and best-known web recruiting sites.

19

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.
20

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

21

Recruitment Techniques

Yield analysis

Time-lapse analysis (Cascio, 1998)

A systematic yield analysis

Ensuring fairness
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
22

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.

23

Recruitment Techniques
Cost of Recruitment (per employee hired)

SC AC AF RB NC

H
H

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

24

Initial screening

Application form

Biodata inventories

Many countries have regulations

Using psychometric techniques

Realistic job previews

Case studies, job sampling or videos
(Permack and Wanous, 1985)

25

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)

26

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)
27

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)
28

Final selection

Companies include selection

techniques like

Interviews
Assessment centres
Tests and work samples

29

Selection Techniques and

the Frequency of Use
Technique Percentage of firms reporting use
Reference checking 96%
Interviews94%
Application forms
87%
Ability tests
78%
Medical examinations
50%
Mental ability 31%
Drug tests26%
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.

30

Percentage of Job Skills

Testing in Selected
TEST ALL JOB
ONLY SELECT
Industries
INDUSTRY
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.

31

Final selection

Interviewing

Focused interview
Structured interviews
Unstructured interviews

32

Effectiveness of
interview

A lot of evidence to suggest that their

efectiveness ids poor
Structured interviews that are efective
as predictors of future job performance
Validity of 0.62
Unstructured interviews Validity rating
of 0.31 (Anderson and Shackleton,
1993)
33

Effectiveness of
interview

Why are structured interviews so

much more efective than
unstructured interviews?

Easier to objectively compare

Necessarily asked the same set of
questions
Extremely difficult
34

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
35

Sample Situational Interview

Question
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.

36

Effectiveness of
interview

Researchers have found that subjectivity

within the unstructured interview process
takes a number of forms.

Expectancy efect
Primacy efect
Contrast efect
Quota efect
Similar-to-me efect (Managing diversity at
Marks and Spencer, and British Telecom)
37

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??)
38

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
39

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).
40

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
41

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
42

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
43

Effectiveness of tests

Personality tests (Beardwell and Holden,

2001)

The extent to which

The extent to which
stable over time
The extent to which
identified
The extent to which
questionnaire

personality is measurable
personality remains
personality traits can be
the completion of a

44

Effectiveness of tests

Personality tests
Problem of cultural bias

Need for achievement

Assessing sales drive
PA consulting (HR consultancy firm) iron
out Cultural inconsistencies

45

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
46

Effectiveness of tests

Reference checks

Reference request from previous and

current employers
Mostly positive??
Debatable - Referees knowledge on
candidates on the job performance??
More used as factual check relating to
candidates qualifications and prior
experience.
47

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)
48

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 candidates
ability and personality)
Interviews should be freed up to assess other
issues (speech, poise and appearance)
Persons level of friendliness-ratings of a
candidates friendliness in interviews frequently
match supervisor assessments of friendliness in
later appraisals??
49

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 efective.
50

Recruitment and
Selection: Country
Diferences

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.

51

Recruitment and
Selection: Country
In HK Diferences
recruitment has traditionally occurred through
family networks (Torrington and Tan, 1995), although it
has been noted that western methods have grown since
the 1980s 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.
52

Recruitment and
Selection: Country
TheDiferences
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.
53

Recruitment and
Selection: Country
Diferences

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.

54

Recruitment and
Selection: Country
Core workers
in Japanese corporations are recruited and selected
Diferences
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.

55

Recruitment and
Selection: Country
In Korea
employees are separated into 3 types of
Diferences
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.
56

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):
5056. Used with permission of McKinsey & Co.

57

Best and Worst Majors for

Job-Hunting Graduates

Source: Patrick Scheetz, Employment Research Institute, Michigan State University.

58

Occupational Breakdown of
Temporary Help Agency
Placements

Source: Steve Jones, Youve Come a Long Way, Baby: What the Staffing Industry
Offers Today, Canadian HR Reporter 14, no. 19 (November 5, 2001): 15.

59