Introduction Show
Staffing is an important organizational function concerned with the acquisition, deployment, and retention of the employees. It is arguably the most import function underlying organizational effectiveness, because “the people make the place”, because labor costs are high organizational costs, and because poor hiring decisions are crucial. The nature of staffing The big picture Physical, human, and financial capital together form an organization. Human capital is the ability, knowledge and skills of people and their motivation to use them successfully on the job. Human capital is equal to ‘workforce quality’. The organization’s workforce is therefore a stock of human capital that it acquires, deploys, and retains in pursuit of organizational outcomes like profits, market share, the satisfaction of customers, and sustainability of the environment. Staffing is the organizational function used to build this workforce through such systems as HR planning, staffing strategy, recruitment, selection, employment and retention. Today, employees are not just a cost of doing business anymore, employees are valuable and human capital creates competitive advantage. Organizations are increasingly recognizing the value creation that can occur through staffing. Definition Staffing = the process of acquiring, deploying, and retaining a workforce of sufficient quantity and quality to create positive impacts on the organization’s effectiveness (Heneman, Judge & Kammeyer, p. 8, 2012). Implications of definition
Staffing models Staffing quantity: levels Both, the organization in total and the units, forecasts workforce quantity requirements ( the needed head count) and compares these with the forecasted workforce availabilities ( the likely employee head count) to determine its likely staffing level position. The organization will be fully staffed, when the head-count requirements match availabilities. When the requirements exceed the availabilities, the organization is understaffed, and if the availabilities exceed the requirements, the organization is overstaffed. Staffing quality: person/job match The goals of the person/job match is to align characteristics of individuals and jobs in ways that will result in desired HR outcomes. In the model, the job has some requirements and rewards related to it. The person has some qualifications (KSAOs) and motivations. To the extent that the person matches the job, it will likely have a positive impact on HR outcomes like attraction, performance, retention, attendance, satisfaction and other. Job requirements should align with the KSAOs and job rewards with the person’s motivation, this is the matching process. Several point can be made about the person/job match model:
Staffing quality: person/organization match A person should not only match the job (requirements and rewards) but also the organization. There are four other matching concerns in the staffing process next to the person/job match: organizational values (norms and desired behaviors), new job duties, multiple jobs, and future jobs. New job duties are tasks that will be added to the job in the future. Hires should be able to perform those tasks in the future. Flexibility issues are also part of the staffing process, in terms of hiring people who can provide multiple tasks. Future jobs refers to forward thinking on part of the organization as to which job assignments the person might assume beyond the initial job. It is about long-term matching. The staffing system should first focus on the person/job match and after that, the person/organization match possibilities can be explored. In the book the term person/job match is used to refer to both types of matches for simplicity. Staffing systems components There are several components that represent steps and activities in the staffing process. The starting point of staffing is the interaction between the applicant and the organization. The initial stage in staffing is the recruitment phase. This consist of identification and attraction activities by both the organization and the applicant like posting advertisements and reading advertisements. The next phase is the selection stage, emphasizing assessment and evaluation through both the organization and the applicant. The information, self-assessment of KSAOs and motivation is evaluated against the applicant’s understanding of job requirements and rewards to determine whether a good person/job match is likely. The final core component of staffing is employment. This component consists of decision making and final match activities by the organization and applicant. Finally, the organization should decide to which applicant it will make a job offer. When the applicant accepts the job offer the final match is complete a formal employment relationship has developed. On part of the applicant, the employment stage involves self-selection, meaning that the applicant should decide whether or not to continue the staffing process. This decision can occur anywhere in the selection process. Staffing organizations This overall staffing organizations model is the framework for this book. It shows that the mission, goals and objectives of the organization are input for both the organization strategy and HR and staffing strategy. And they interact, once formulated. As a result, staffing policies and programs develop, consisting of support activities and core staffing activities. The staffing levels and quality are the key factors of staffing strategy, policy and programs. Employee retention and staffing system management concerns cut across these support and core staffing activities. Organization, HR, and Staffing strategy A strategy is formulated to express an overall purpose or mission and to set up broad goals and objectives helping the organization to reach its mission. These objectives have certain assumptions about the size and types of workforces that will need to be developed, trained, managed, rewarded, and retained. To handle these workforce assumptions there is the HR strategy. This strategy both flows from the organization strategy and also contribute to the organization strategy. An outgrowth of the organization and HR strategy is the staffing strategy. It is directly concerned with decisions regarding the acquisition, deployment, and retention of the workforce. Support activities Fundamental for the conduct of core staffing activities are the support activities. The support activities consists of legal compliance, planning, and job analysis and rewards. This latter represents the key mechanism by which the organization identifies and establishes the KSAO requirements for jobs, and also the rewards that the job will give. Legal compliance refers to the knowledge of the laws and regulations, especially employment opportunity (eo) and affirmative action (aa), and incorporation of their requirements into all stages of the core staffing activities. Planning helps to become aware of key external influences on the staffing process, like economic conditions, labor market, and labor unions. It shapes the formulation the staffing levels: requirements and availability. Core staffing activities The core staffing activities consists of recruitment, selection, and employment. The emphasis lies on staffing quality to ensure that successful person/ job and person/organization matches will be made. Staffing and retention system management The role of staffing and retention system management is to guide, coordinate, control, and evaluate all the different support and core staffing activities. Staffing strategy Staffing strategy involves key decisions about the acquisition, deployment, and retention of the organization’s workforce. We can distinguish thirteen different decisions. Staffing levels decisions
Staffing quality decisions:
Staffing ethics Multiple individuals are involved in staffing the organization and thus in the recruitment, selection, and employment activities as well as decision making. Therefore, there should be boundaries on these individuals’ actions and decisions to prevent negative outcomes and decisions. Ethics is about determining moral principles and guidelines for acceptable practice. It emphasizes ‘knowing organizational codes and guidelines and behaving within these boundaries when faced with dilemmas in business or professional work’. Organizational ethics involves the following:
Individuals who deal with staffing issues should know and follow their organization’s code of ethics. There are suggestions that can guide a person’s ethical conduct:
Because organizations have different ethical climates and cultures there are two implications for staffing:
Introduction Human resource planning involves forecasting the organization’s future employment needs and then developing action plans and programs to fulfill these needs in ways conform the staffing strategy. It is a process. Shortly, HR planning consists of learning about the environment, determining how many employees and organization will need in the future, and assessing the availability of employees in both the internal and external markets. It consists of several components, namely: making initial planning decisions, forecasting HR requirements and availabilities, determining employee shortages and surpluses, and developing action plans. External influences We can distinguish 4 kinds of external influences on staffing.
The degree of economic expansion and contraction depends on numerous macro economic forces like, product and labor market competition, inflation, interest rates, currency exchange rates, and government fiscal and monetary policy. As a result of expansion and contraction forces is the amount of job growth and opportunities. Positive job growth result in expanding job opportunities for individuals, while slowdowns or contractions in job growth yield dwindling job opportunities. Depending on the amount of job growth, people are moved throughout the organization (mobility). When there is slow job growth or job contraction, the movement flows will decrease.
Labor demand is a result of consumer demands for the organization’s products and services. The organization respond to consumer demands through acquiring and deploying its workforce. National employment statistics are available that provide information about labor demand, employment patterns and projections for industries, occupation, and organization size. A very thorough and systematic source of information about KSAOs needed for jobs is the Occupational Outlook Handbook. It provides detailed information about the nature of work and the training and KSAOs required for the entire spectrum of occupations in the USA. Critical thinking skills, creativity, diversity, ethics, and lifelong learning are especially relevant for today’s employees.
Periodically, the quantity of labor supplied is measured and reported. For example, the labor force has become more diverse and there is a strong rise in the number of working hours. It appears that the problem is that demand for advanced skills is increasing. However, data showed that 40% of employers indicated that high school graduates lack certain basic skills.
When labor demand exceeds labor supply for a given pay rate, the labor market is said to be ‘tight’ and the organization experiences labor shortages. The shortages cause many responses:
The employment arrangements can have many forms. For example, whether the employee will be employed full-time or part-time. Another form is the issue of flexible scheduling and shift work. Two other types of arrangements are (1) various alternative arrangements to the traditional employer-employee relationship and (2) the use of contingent employees. Alternative arrangements include the organization filling its staffing needs through the use of independent contractors, on-call workers and day laborers, temporary help agency employees, and employees provided by a contract firm that provides a specific service. Contingent employees do not have an explicit or implicit contract for long-term employment; they expect their employment to be temporary rather than long term.
The use of technology can lead to a decreased number of jobs, since it can serve as a substitute for labor. On the other hand, technology can also lead to higher demand for higher skilled people and highly educated specialists.
Labor unions are legally protected authorities that organize employees and bargain with management to establish terms and conditions of employment via labor contract. Almost all aspects of the staffing process are influenced by negotiations and the labor agreement as result. Human resource planning The process of human resource planning (HRP) are actions undertaken to forecast an organization’s labor demand (requirements) and internal labor supply (availabilities). Those projections are compared to determine employment gaps and to make action plans for addressing these gaps. Actions plans are staffing planning to arrive at desired levels and staffing quality. The HRP process consists of 4 sequential steps:
When the requirements exceeds the availabilities then there is a labor shortage. When the availabilities exceeds the requirements then there is a labor surplus. These are also called the gaps and are the basis input for action planning. Hopefully, the resultant staffing plans will bring staffing into an orderly balance of requirements and availabilities during the planning period. Initital decisions Several critical decisions must be made, before the HRP can be undertaken. These decisions influences the outcomes of the process and the nature of the HRP process. Strategic planning Those involved in the HRP should be aware of environmental influences and strategic goals that will affect the size of various business units. HRP can take place as an integral component of an organization’s strategic planning process. If this is the case it is referred to as plan-based HRP. This approach helps integrate the strategic planning process with HR implications. However, unexpected and rapid changes are not always captured in formal business plans. Organizational responses to these changes often occur in the form of special projects, instead of changing the total business plan. Some responses require consideration of HR implication, resulting in project-based HRP. In this type of planning changes are undertaken systematically and without undue-interruption. There is also population-based HRP, meaning that for a specific employee group the planning falls outside the formal planning cycle. This is because in these groups are always shortages internally and externally. A firm grasp of an organization’s internal environment is also important to HRP. Planners must be out and about in their organization’s and take benefits of opportunities to learn what is going on. Also important to HRP are the values and attitudes of managers toward HR. Attitudes can conflict with the business plan, which requires change in the business plan or in the attitudes. Planning time frame Plans can be divided into long-term ( >3 years), intermediate (1-3 years), and short term (< 1 year). The planning time frame differs per organization, because it depends on which of the three types of HRP is used. For plan-based HRP and business plan, the planning time frame is between three and five years for the strategic planning and less than three years for the operational planning. For project-based HRP the planning time frame differ per project. The population-based HRP also have varying time frames, depending on the time necessary for labor supply to become available. Job Categories and levels Human resource planning and analysis is composed of job categories and hierarchical levels among jobs. These job category/level combinations, and the types and paths of employee movement among them, form the structure of an internal labor market. The management must choose which job categories and which hierarchical levels to use for HRP. Head count (current workforce) To account for the amount of scheduled time worker by each employee, and employee head count may be made and stated in terms of full-time equivalents, or FTEs. You should first define what constitutes full-time work in terms of hours. For example, If full-time is 40 hours and someone is working 20 hours than it is 0,50 FTE (20*100/40), working 30 hours means 0,75 FTE (30*100/40). Roles and responsibilities HR staff and line managers are both involved in the HRP, and therefore their roles and responsibilities must be determined. Often, the HR staff takes the lead in proposing which types of HRP will be undertaken and when, and in making suggestions with regard to comprehensiveness, planning time frame, job categories and levels, and head counts. The line management makes the final decisions on these topics. Forecasting requirements A direct output of business and organizational planning is forecasting HR requirements. There are two ways by which forecasting can be done: statistical and judgmental. Statistical techniques Regression analysis, ratio analysis, trend analysis, time series analysis, and stochastic analysis are the most prominent statistical techniques. Using statistical techniques provides hard data to back up proposals of HR practitioners.
Judgmental techniques Using judgmental techniques means that the decisions maker collects and weighs the information subjectively and then turns into a forecasts of HR requirements. It can be top-down, meaning that top managers of the organization, organizational units, or functions rely on their knowledge of business and organizational plans to predict what future head counts will be. The other approach is bottom-up, meaning that lower-level managers make initial estimated for their unit on the basis of what they have been told or presume are the business and organizational plans. These estimated are told to the top management and they established HR requirements in terms of numbers. Forecasting HR availabilities There are three approaches which can be used to forecast HR availabilities: manager judgment, Markov Analysis, and replacement and succession planning. Manager judgment This method is mostly used in smaller organizations, or in ones that have no centralized workforce internal mobility data and statistical forecasting capabilities. You should look at the current staffing level in a given job category/level. Then you look at the inflows. Are there promotions from lower levels, transfers, or demotions from higher levels? You will count it on. Then you look at the outflow. Do people get promotion, transfer, demotion or leave the organization? This will decrease the availabilities. So: time 1 + inflows – outflows = time 2. Determining the inflow and outflow number requires judgmental estimates Promotions are upward changes of job level within the same or to another job category. Transfers are lateral moves at the same level across job categories, and demotions are going to a lower job level in the same or in another job category. To make good judgments it requires knowledge of business plans and employee plans. The former provides information about internal mobility opportunities for employees. The latter helps judging which employees are likely to change jobs or leave the work unit or organization. This method uses current knowledge of business and employees’ plans to forecast employee movements. Problems arise when the manager lacks information about the business and employee plans. No solid estimates can be made. And the larger the number of employees, the more complex it is. Markov analysis This technique uses historical mobility data and probabilities to forecast future availabilities. Consider a unit with 2 job categories and levels ( A1, A2, B1, B2). In the internal labor market there are 5 possibilities for each employee:
Past flows and rates may be measured and in turn used to predict the future availability of current employees. Therefore, the first step is to make a transition probability matrix. I explain it by an example (see exhibit 3.9).
There are at time T in job A1 400 employees and at time T+1 there are 240 employees in job A1. 40 people had been promoted to A2, 80 had been transferred to B1, o had been promoted to B2, and 40 had exited the company/unit. The resulting transition probabilities are: From A1 to A1: 240/400 = 0.60 From A1 to A2: 40/400 = 0.10 From A1 to B1: 80/400 = 0.20 From A1 to B2: 0.00 From A1 to exit: 40/400 = 0.10 In sum it is exactly: 1.00 For every job/level category you will do this. With these historical transitional probabilities, it becomes possible to forecast the future availability of the current workforce, assuming that the historical rates will be repeated over time and that staffing policy and procedures will not change. To forecast the availabilities you look at the current workforce column and multiply it by the transition probability matrix. Read the tables in a horizontal way. Transition probability matrix job category and level T1
Forecast of availabilities
Exit: 335 – 71 -22 -140 - 22 = 80. Limitation of the markov analysis The first limitation is the rule, that it is desirable to have at least 20 employees in each job category/level. Because transition probabilities based on small sample sizes yield unstable estimated of future availabilities. The second limitation is that it only classifies employees and counts their movement according to their beginning (T) and ending (t+1) job category/level and it ignores thus any intermittent moves. Therefore, the time interval should be kept short to minimize the number of undetected multiple moves. The third limitation is that the job categories/level combinations must be meaningful to the organization for the HRP purposes. Extremely broad categories should be avoided. The fourth limitation is that the transition probabilities does not show the underlying causes of the movement. Replacement and succession planning Replacement and succession planning focus on identifying individual employees who will be considered for promotion, along with thorough assessment of their current capabilities and deficiencies, coupled with training and development plans to erase any deficiencies. Replacements planning comes before succession planning. Replacement planning Replacement planning focuses on identifying individual employees who will be considered for promotion and thoroughly assessing their current capabilities and deficiencies. The fit between capabilities and requirements is improved through training and development plans. The output of replacement planning is shown in a replacement chart. The chart includes the organization unit and jobs covered by replacement planning and the minimum criteria for promotion eligibility. Furthermore, there is key data about tenure, promotability rating, and overall performance rating. Succession planning With succession planning each promotable employee will be assessed with regard to KSAO or competency gaps in order to develop training and development plans. Effective performance appraisal and training and development systems are necessary in order to have useful succession planning. Software is often used in succession planning and manager’s time and expertise are also important ingredients. Reconciliation and gaps This column in the human resource planning table shows the results of bringing together requirement and availability forecasts with the results of external and internal environmental scanning. It is important to identify the reasons for the possible gaps. For example, decreased requirements and increased availabilities can together lead to a labor surplus. So finally, you can fill in the whole HRP table by using the different techniques described. Staffing planning Now the HRP is complete, we move to the development of specific plans for staffing. In this phase staffing objectives and alternative staffing objectives are developed. Staffing objectives Based on identified gaps between requirements and availabilities staffing objectives can be developed. They involve objectives responding to shortages and surpluses and may require quantitative or qualitative targets. With quantitative target we mean head count or FTE for each job category/level. A forecast shortage of 39 for instance, will result in a staffing objective of 39 accessions to be achieved by the end of the forecasting time interval. The objective is to close each gap exactly. Quality staffing objectives refer to the qualities of people qua KSAOs. Generating alternative staffing activities In exhibit 3.14. there are numerous options available for initial consideration in dealing with employee shortages and surpluses. Employee shortages short-term options:
Employee shortages long-term options:
Employee surplus short-term options:
Employee surplus long-term options:
Assessing and choosing alternatives There are numerous alternative staffing activities available to reduce staffing gaps. These alternatives need to be assessed systematically, so that the decision maker can easily choose from them and identify one or more preferred activities. The preferred activity offers the highest likelihood of attaining the staffing goal within the limited time, at tolerable costs, and with the fewest negative side effects. First the assessment criteria should be identified and then each alternative will be assessed on the criteria. Core workforce The core workforce is often the bulk of an organization’s workforce and it includes regular full-time and part-time employees of the organization. Key advantages of a core workforce are stability, continuity, and predictability. Furthermore, the consistency of the employment relationship enhances a sense of commitment and shared purpose toward the organization’s mission. Next, the organization has a legal right to control employees working in terms of work process and expected results. And finally, the organization can directly control how it acquires its workforce and the qualifications of those it employs. There are also disadvantages. A permanent workforce can lead to a potential loss of staffing flexibility to rapidly increase, reduce, and redeploy its workforce in response to environmental changes. Reducing the core workforce can reduce the reputation of an organization and is most of the time costly. Furthermore, a core workforce has higher costs since there are higher wages, salaries and benefits and there are fixed labor costs. And a core workforce asks for numerous legal obligations by tax and employment laws. Finally it may deprive the organization of new technical and administrative knowledge that could be infused into it by use of flexible workers such as programmers. Staffing planners should do a unique core workforce analysis for a job category/level. This analysis should result in a decision to use full-time or part-time core workers for the job category/level. After that, specific staffing planning for effective acquisition must occur. However, the staffing philosophy is an overarching issue in all those activities (recruitment, selection, and employment activities. Staffing philosophy The staffing philosophy focuses on the following issues: internal vs. external staffing, equal employment opportunities, and affirmative action practices (EEO/AA) and applicant reactions. Internal or external staffing directly shapes the nature of the staffing system, as well as sending signals to applicants and employees alike about the organization as an employer
Looking at EEO/AA, the organization must consider or develop a sense of importance attached to being an EEO/AA-conscious employer and the commitment it is willing to make in incorporating EEO/AA elements into all stages of the staffing system. It should be clear, that the stance the organization adopts toward EEO/AA have important impact on its operational staffing system, and on job applicants and employees. Managers should keep in mind that staffing involves self-selection on part of the applicant. Those involved in the staffing planning should consider how the applicant will react to the staffing system and if they want to encourage or discourage applicant self-selection. Flexible workforce The flexible workforce consist of two major components: temporary employees provided by a staffing firm and independent contractors. The key advantage is staffing flexibility used for adjusting staffing levels quickly in response to increased or decreased demand. Next, the ability to quickly staff new areas or projects and the ability to fill in core workers absent due to illness, vacations and holidays. A flexible workforce has also labor cost advantages in terms of lower pay and benefits, more variable costs and lesser training costs. The flexible workforce can be important source of new knowledge about organizational best practices and bring in new skills. Finally, using a flexible workforce relieves organizations from the need to design and manage its own staffing systems, because a flexible workforce provider will do this. Flexible workers can also be used as a tryout basis. There are also disadvantages. There is a legal loss of control over flexible workers, because they are not employees of the organization. There is a very limited amount of supervision and performance management. There can also arise frictions between core and flexible workers. Furthermore, flexible workers are not familiar with equipment, policies, procedures, and important customers. Finally, the quality of the flexible workforce will depend heavily on the quality of the staffing and training systems used by the provider of the flexible workers. Staffing firms (temporary help agencies) Staffing firms are the legal employers of the flexible workers supplied by them. However, there could also be something like co employment. The staffing firm provides all the services like training and performance appraisal and get a general fee for its labor costs plus a markup percentage of labor costs to cover these service costs and provide a profit. There are several factors to consider when choosing a staffing firm, like reputation, services provided and costs. Independent contractors Independent contractors provide assistance to organizations with regard to specific tasks and projects. For example, maintenance, bookkeeping, advertising, programming and consulting. The organization must take initiative to identify and check out independent contractors for possible use in advance of when they are actually needed. The IC and the organization make a written agreement between them. Outsourcing This is the transfer of a business process to an external organization. This means that an organization will receive a complete finished product from the external organization. Normative for organizations is to completely outsource payroll tasks, meaning that data from the organization are sent to a third-party vendor that will assess taxed and withholdings and takes care of either directly depositing or sending out paychecks for employees. Why do organizations outsource?
Diversity planning With diversity planning a strategy is developed in order to recruit and select a diverse workforce and the assimilation and adaptation of them. Different diversity programs and activities have developed to foster the workforce diversity. Business case for diversity When using passive diversity planning, organizations review all policies and practices to ensure that there is no discrimination on the basis of religion, race, national origin, age, disability status, or gender. When using active diversity planning, organizations go further by stimulating underrepresented minorities to apply for positions, actively recruiting underrepresented minorities, and providing additional mentoring and training to stimulate the advancement of underrepresented groups. Advantages of an active diversity planning are:
The downside, however, are the costs involved in active diversity planning. Research has shown that diverse teams are not more effective than homogeneous teams. Moreover, sometimes the demographic majority feel less welcome in the organizations. Planning for diversity Within the staffing planning process the diversity strategy should be taken into account. First of all, higher managers must state that diversity goals are important and will be measured. Clear and up-to-date communications about diversity should be made within the organizations. Next to this, many recruiting activities can increase diversity even as some techniques in the selection process. For example non-discriminatory policies. Research showed that diversity-oriented practices, including work/family accommodations, targeted recruitment, diversity councils, inclusion of women and African Americans on the top management team, and the creation of AAPs may enhance the racial and gender diversity of the organization’s total workforce. Legal issues The most common legal issues in HR and staffing planning involves Affirmative Action Plans (AAPs) and diversity programs. While diversity programs are developed for competitive reasons, AAPs have a legal origin and basis. AAPs seek to rectify the effects of past employment discrimination by increasing the representation of certain groups. It consists of three major components, namely identifying the availability of women and minorities, setting placement goals, and action-oriented programs in order to meet the placement goals. Changing nature of jobs Job are designed in ways that stimulate the production of the organization’s goods and services. Therefore, the nature of jobs is constantly changing. Job analysis can be defined as the process of studying jobs in order to gather, analyze, synthesize, and report information about job requirements. A job requirements job analysis seeks to identify and describe the specific tasks, KSAOs, and job context for a particular job. Another type of job analysis is competency-based. This analysis identifies and describes job requirements in the form of general KSAOs, required across a range of jobs; task and work context requirements are less important. The original way of designing a job is to identify and define its elements and tasks precisely and then place them into a job description. There are some terms frequently used in discussions of traditional jobs:
There are challenges to the traditional perspective. Since jobs are constantly evolving, there will also be task changes which lead to new KSAO requirements. This can also result in changes of job title. The second challenge to the traditional view is the need for flexibility. Flexible jobs have fast changing task and KSAOs. The third challenge to the traditional view is the need for new general skills or competencies. For example teamwork and engagement. Job requirements job analysis Job requirement job analysis identifies the tasks, KSAOs, and context for a job. It yields information which can help during the selection, recruitment, and employment domains in such activities as communicating job requirements to applicants, developing selection plans for KSAOs to focus on when staffing a job , identifying appropriate assessment methods to identify applicants’ KSAOs, establishing hiring qualifications, and complying with relevant laws and regulations. Effective staffing definitely requires job requirement information, and possibly competency information. For traditional and evolving job this is not very difficult. But for idiosyncratic, flexible, team-based, and telework jobs, job analysis is more difficult. Since these jobs are often ambiguous and have a fluid, changing nature, the organization may focus on analyzing and defining them in terms of competencies rather than specific tasks and KSAOs. Job analysis can be seen as a support activity to the various functional staffing activities. Accurate information about job requirements will lead to effective human resource outcomes such as performance, satisfaction, and retention. Job analysis is thus a basis requirement for successful staffing systems. The beginning of a job analysis is identifying the specific tasks and job context for a particular job. Thereafter, the KSAOs required to perform these tasks within the work context are inferred. The task and job context information are recorded in a job description, while the KSAO requirements are place into a job specification. Job requirement matrix In a job requirement matrix they key components of job requirements job analysis are shown. When the matrix is completed it serves as the basic informational source or document for any job in terms of its requirements. And it is the basic input and guide to all subsequent staffing activities. In the matrix the specific tasks and its task dimension are shown and the time spent on it. For each task dimension with its specific tasks, the necessary KSAOs are specified and is rated on 5-point scale how important it is for the performance of the task dimension. The bottom of the matrix consists of job context factors regarding the work setting, privacy of work area, attire, body positioning, and physical work conditions. Task statements Task statements are the beginning of job analysis and are objectively written descriptions of the major tasks an employee performs in a job. The statements are simple declarative sentences. Each statement show 4 things:
There is a special sentence analysis technique which can be very helpful during writing task statements. Other suggestions for effectively writing task statements are:
Task dimensions It is useful to group sets of task statements into task dimensions and give a name to each dimension. Task dimensions are also called: duties, accountability areas, responsibilities, and performance dimensions. Each task statement should be assigned to only one task dimension. Some points should be kept in mind however:
Importance of tasks/dimensions Two decisions must be made before weighting can take place: (1) the specific attribute to be assessed in terms of importance must be decided, and (2) whether the attribute will be measured in categorical terms or continuous terms. After this, every task/dimension can be weighted in terms of importance. KSAOs Analysts think in cause-and-effect terms for each task. The analysts asks himself exactly which KSAOs will be necessary for performance on the specific task or dimension and why is this so. This is the inferential logic. It is however important to distinguish between knowledge, skill, ability, and other characteristics.
KSAO Importance The same as with task importance, KSAO importance should also be weighted and again the same questions should be asked before the weighing. Job context Tasks and KSAOs arise within a broader job context. Therefore, a job context should be included in a job requirements job analysis matrix. This is important because it can influence tasks and KSAOs and further information about the factors may be used in the recruitment and selection of job applicants. There are also work context factors pertaining interpersonal relationships which also should be considered in the job analysis. Job descriptions and job specifications The results of job requirements job analysis will be expressed in written job descriptions and specifications. Looking at the job requirements matrix, mentioned earlier, its section referring to tasks and job context are similar to a job description, and the section about KSAOs is similar to job specifications. A job description should include the following: job family, job title, job summary, task statements and dimensions, importance indicators, job context indicators, and the date conducted. Collecting job requirements information There are many alternative to choose from for developing an overall job analysis system for any particular situation. Methods Job analysis methods involve procedures or techniques used for collecting job information.
Prior information is always available for any job and this information should continuously be searched for. It is the starting point of the job analysis. For example current job descriptions, job specific policies or procedures, or job information from other employers. There are also sample job descriptions online. The job analyst can also use the existing ratings as benchmark to compare with.
To learn about tasks you can observe job incumbents performing the job. There are limitations to this method.
Interviewing job incumbents and others respects the interviewee’s vast source of information about the job. The interview format allows the interviewer to explain the purpose of the job analysis and how the results will be used. There are limitations to this method.
This is a list of task statements that cut across many different job titles and is administered to incumbents in these job titles. The incumbent can answer on a rating scale. PAQ is a very popular method which distinguishes 6 major divisions: information input, mental processes, work output, interpersonal activities, work situation and job context, miscellaneous aspects. There are different advantages:
The development of such task questionnaires has also enhanced the development of linkages between task dimensions and required KSAOs. There are also limitations.
Committee of task force Members of this committee are job experts managers and employees and also an HR representative. They will do a number of activities like: reviewing available information and gathering job descriptions, interviewing job incumbents and managers, overseeing the administration of job analysis surveys and analyzing the results, developing task statements and grouping them into task dimensions and rating their importance, specifying the KSAOs and rating their importance.
Often multiple methods are used to make a job analysis. Therefore it is a complicated process . Criteria for choice of method Regarding the different methods of job analysis, some choices should be made. An organization should decide whether to use or not to use a particular method of information collection. And also how to blend together a set of methods that will be used in varying ways and degrees in the actual job analysis. Sources to be used Organizations should decide who they will use to get information from. 1. Job analyst This is someone who is available and suited to conduct job analysis and to guide the job analysis process. The job analyst is neither manager nor incumbent of the jobs analyzed. Limitations are:
2. Job incumbents Job incumbent are very familiar with the tasks, KSAOs and job context. They may also become more accepting of the job analysis process and its results through their participation in it. But there are also limitations:
3. Supervisors They supervise employees on their performance and play a major role in defining job tasks, adding or deleting job tasks. They have to accept the job description as supervisors and are therefore important sources. 4. Subject matter experts Subject matter experts is name used for job analyst, job incumbents, and supervisors which have recent, firsthand knowledge of the job being analyzed. 5. Combined sources Combinations of sources are often used in a job analysis. Job analysis process Collecting job information by using job analysis is a process which has to be taylor-made to fit the specifics of the situation in which it occurs. There are many key issues which must be dealt with in construction and operation of the process: Purpose: job analysis has a purpose which should be agreed on and clearly identified. The format and the exactly type of information must be determined. The job requirement matrix is very useful in this. If the desired output is determined, then a process can be planned that will yield the desired results. Scope: this tells which job to include in the job analysis. The actual scope is based on consideration of: (1) the importance of the job to the functioning of the organization. (2) the number of job applicants and incumbents. (3) which level is the job. (4) the frequency with which job requirements change. (5) the amount of time that has lapsed since the previous job analysis. Internal staff or consultant: there are several factors to consider in choosing between internal staff or consultant. Organizations face a trade-off. Communication: clear and open communication enhances the job analysis process. Work flow and time frame: the project manager should make up a flow chart in which different steps and time frames will be presented for project phases. Analysis, synthesis, and documentation: provisions need to be made for preparation of written documents, especially job descriptions and specification, and their incorporation into relevant policy and procedure manuals. Maintenance of the system mechanisms must be developed to maintain the job analysis and information system over time. It is an ongoing process so when descriptions and requirements change, the job analysis will also change. Competency-based job analysis This is an innovative and potentially fruitful approach to the identification, definition, and establishment of job requirements. Nature of competencies Competencies are underlying characteristics of an individual that contribute to job or role performance and to organizational success. Competency requirements go further than job-specific ones to those of multiple jobs, general job categories, or the entire organization. These competencies are more general or generic KSAOs, such as technical expertise or adaptability. The competency model exist of the different necessary competencies for a particular role or job. Usage of competencies or competency models in staffing reflects a desire to:
While there are strong similarities between KSAOs and competencies, there are two major differences:
Competency example A job can have general competency requirements, to help fulfill the mission and goals of the whole organization, like being innovative. These requirements are part of every job in the organization. On the business unit level, job-specific competency requirements and job-spanning competency requirements are developed (for example, team orientation, adaptability, and communication). Organization usage There are 3 key strategic HR reasons why organizations use competency models:
Most of the time emphasis lies on establishing general competencies:
Competency models are used for example for staffing planning. Current workforce competency levels are measured and compared with the requirements to identify possible competency gaps. There are, however, some barriers when adopting competency models:
Competency-based approaches can be valid and accurate at the moment that raters are trained in how to use this approach and know how to make their ratings. Collecting competency information Top management, with guidance of HR managers, are most likely to be concerned with the establishment of general competencies. There are three demands to be followed for an effective establishment of general competencies:
Several tasks should be undertaken to ensure effective identification and definition:
Job rewards Using rewards is a key staffing strategy for motivating several HR outcomes like applicant attraction, employee performance, and employee retention. Matching the rewards provided with the rewards desired will be critical in attaining the HR outcomes. Doing so first requires specifying the types of rewards potentially available and desired. Types of rewards Each reward should be classified in either extrinsic or intrinsic in nature. Extrinsic rewards are tangible factors external to the job itself that are explicitly designed and granted to employees by representatives of the organization ( e.g. pay, benefits, work schedule, advancement, job security). Intrinsic rewards are the intangibles that are more internal to the job itself and experienced by the employee as an outgrowth of actually doing the job and being a member of the organization ( e.g. variety in work tasks, decision rights, feedback, relationships at work). Employee value proposition (EVP) The employee value proposition is related to the bundle of rewards provided to employees and to which employees respond by joining, performing, or remaining with the organization. The EVP binds the employee and the organization, in exchange for the EVP, the employee should provide certain behaviors. The challenge of the organization is to figure out attractive and affordable rewards and its costs associated with it. The dual affordable-attractive requirements for EVPs may create some potential problems: wrong magnitude, wrong mix, or not distinctive. Wrong magnitude is a package of rewards that is either too small or too great monetarily. Too small a package may be viewed as simply inadequate, non-competitive, or an insult, none of which are desirable perceptions. Such perceptions may arise very early in the applicant’s job search. Too large a package create affordability problems to the organization on the long-term. Wrong mix is the situation in which the composition of the rewards package is out of sync with the preferences of prospective or current employees. Not distinctive are individual reward packages that are viewed as ho-hum in nature. They have no uniqueness or special appeal that would either win or retain employees. So, creating successful EVPs is difficult. Organizations should seek to systematically collect information about rewards that are important or unimportant to employees. Collecting job rewards information The goals of collecting job rewards information is to know which rewards are most preferred and which are least preferred. After that, the organization can start with building EVPs that are of the right magnitude, mix, and distinctiveness. There are two approaches to collect job rewards information: using the preferences of the organization’s own employees or learn about the preferences of rewards and actual provided rewards in other organizations.
Interview with employees or surveys can be used to gather information about reward preferences. Interview with employees A person with special expertise in the employee interview should guide the total process. The interviews should be structured and guided. The questions should be tested on small sample of employees regarding the understanding and wording of it. Employees from throughout the company should be part of the sample. Furthermore, it is strongly advised that the interviews be treated as confidential and that the responses of individuals be seen only by those recording and analyzing the data. Demographic and organizational information will be very useful in decisions about whether to create separate EVPs for separate employee groups or organizational units. The interview responses should be recorded by taking notes to guarantee confidentiality. Advantages:
Disadvantages:
Surveys of employees A survey of employees should follow the same recommendations as for an interview described above. The major differences is the way of gathering data. To construct the survey, a list of the rewards to be included on the survey must be developed. These could be chosen from the list or organization’s current extrinsic rewards and a few questions about intrinsic rewards. Advantages:
Disadvantages:
Which to choose A combined interview and survey approach would be best to use. Outside the organization Other employees Data of employees of other organizations is likely to provide a useful barometer of preferences to the extent these employees are similar to the organization’s own applicants. Organizational practices This way is to examine the actual rewards that other organizations provide their employees. The assumption here is that these organizations are attuned to their employees’ preferences and try to provide rewards that are consistent with them. Since pay and benefits loom large in most employees’ reward preferences, it is particularly important to become knowledgeable of other organization’s pay and benefit practices to assist in the development of EVP. The best single source of pay and benefit information comes from the National Compensation Survey. Another source of information is from the Society for Human Resource Management Annual Benefits Survey. Job analysis for teams A work team is an independent collection of employees who share responsibility for achieving a specific goal. Teams are often formed around projects or as part of a task force to address some critical issue or crisis. Every team has identifiable collection of tasks to perform. Normally, these tasks are grouped in specific clusters, and each cluster constitutes a position or job. A global virtual team is composed of members who are geographically dispersed, are from multiple cultures, and are working in collaboration electronically. While teams differ in many ways, two differences are very important in terms of job analysis and staffing implications. Many team members perform multiple jobs. When this is the case, staffing must emphasize recruitment and selection for both job-specific KSAOs and job spanning KSAOs. Next to this, the degree of task interdependence is also an important difference. The greater the task interdependence, the greater the importance of KSAOs pertaining to interpersonal qualities and team self-management qualities. Thus, tasks interdependence brings behaviorally oriented KSAOs to the forefront of job requirements for team-based jobs. Legal issues Job analysis plays a crucial role in establishing the foundations for staffing activities, and that role continues from a legal perspective. Job relatedness and court cases In equal employment opportunity and affirmative action (EEO/AA) court cases, the organization is confronted with the need to justify its challenged staffing practices being job related. An examination of court cases indicates that for purposes of legal defensibility the organization should conform to the following recommendations according to the Uniform Guidelines on Employee Selection Procedure:
Essential job functions According to the Americans with Disabilities Act, organizations must not discriminate against a qualified individuals with a disability who can perform the essential functions of the job, with or without reasonable accommodation. Essential functions
Evidence of essential functions Any particular function is in fact an essential one. That is what employment regulations want to indicate and there is some not limited evidence:
External recruitment a process to identify and attract job applicant from outside the organization. The recruitment process starts with a planning stage in which both organizational and administrative issues, as well as those pertaining to recruiters, are addressed. The second stage consist of forming a recruitment strategy. This is the communicated message to job applicants and the medium to use for the message. Recruitment planning Two issues must be resolved before applicants can be identified and attracted to the organization. Organizational plans must should be developed to coordinate the identification and attraction of applicants in the first place. Next, administrative issues need to be considered. Organizational issues Issue 1: In-house versus external recruitment agency Smaller organizations sometimes have no budget or staff to run their own recruitment functions and focus on external recruitment agencies. This is also preferred by organizations with low turnover rates. Larger organizations recruit more frequent and have commonly their own in-house recruitment function. Hereby, recruitment costs are minimal, recruitment searches are the same from opening to closing, and the specific needs of the organization are being met. Issue 2: Centralized versus decentralized recruitment Organization using centralized recruitment, one central group coordinates the recruitment activities, normally HR professionals in the corporate offices. Individual business units or individuals managers coordinate the recruitment activities in decentralized recruitment approaches. Advantages of centralized recruitment is that efforts are not duplicated and it ensures that policy is being interpreted consistently among business units. An advantage to decentralized recruitment is that recruitment can takes place more quickly, especially when a there are a few people to recruit. And it will better align with the unit needs since they know as best the day-to-day activities. Administrative issues Many organizations use the human resources information systems (HIRSs) to integrate the filing of requisitions, to develop recruitment budgets and process flows. Requisitions This is a formal document that authorizes the filling of a job opening, indicated by the signatures of top management. The approval of top management is needed to ensure that recruitment activities are coordinated with planning staffing activities. The requisition specifies both the quantity and quality of the hire. It also lists the number of job openings per job and the minimum qualifications an applicant must have. Timing Lead time concerns and time sequence concerns are two factors that drive the time of when to look for job applicants. As staffing managers have been increasingly called on to show concrete results for their work, the importance of documenting the time to fill requisitions has grown. Lead time concerns Planning for openings in advance of their actual occurrence, helps to fulfill vacancies faster. This requires knowledge about the availability of labor in the marketplace, that top managers prioritize job openings so that they can be filled in the order that best meets the needs of the business and it requires that recruiters are prepared to conduct the search. Time sequence concerns Successful recruitment processes have sequential steps to follow. A staffing flowchart will be used to organize all components of the recruitment process. The sequence will affect the amount of the time needed to fill in job vacancies. Time-lapse statistics is a very useful tool for time sequence concerns. Number of contacts Because some applicants’ interest in a vacancy will suffer or applicants cannot be qualified, the pool of applicants should always be larger than the number of vacant positions. It is difficult however, to determine how much contacts are needed to fill a particular vacancy. Historical data can be very helpful in establishing the targeted number of contacts by using a yield ratio. A yield ratio expresses the relationship of applicant inputs to outputs at various decision points. A yield ration of 90:1 means that to fill in one vacancy you need 90 number of contacts. Types of contacts There are two factors that influences the type of contacts. Firstly, it is essential that the qualifications needed to perform the job are clearly established through job analysis, job requirement matrix or competency system. The clearer these requirements, the smaller the number of applicant who must be contacted to yield a successful candidate. Next, the organization must be aware of where prospective applicant search for employment opportunities and what it will take to attract them to the organization. Recruitment budget and return on investment Recruitment involves high costs and therefore a recruitment budget should be developed. Two issues needs to be addressed in developing a recruitment budget. First a top-down (top management sets a budget for recruitment) or bottom-up approach ( recruitment budget is set on the basis of specific needs of business units) can be used to gather the information needed to formulate the budget. The second issue is deciding whether to charge recruitment costs to business unit users. Applicant tracking systems can calculate the costs per applicant (total media cost / number of applicants) and the cost per hire (total media costs / number of hires). Cost-effective methods for attracting candidates can then become the focal part of organization’s recruiting strategy, and those with lower returns on investments can be eliminated. Development of a recruitment guide A recruitment guide give detailed information about the process that should be followed to attract applicants to a job. Time, money and staff required are also part of the recruitment guide. It helps to ensure that all sequential steps are taken in alignment with organization policy, regulations and laws. It safeguards the interests of the employer, applicant and the recruiter. Process flow and record keeping Process flow and record keeping issues should be addressed, otherwise the organization may become overwhelmed with correspondence that is not dealt with in a professional way and on time. It can lead to the loss of well-qualified people. An effective information can support recruitment efforts because it provides up-to-date information about the candidates status. Recruiters Selecting recruiters A good recruiter should possess the following characteristics: strong interpersonal skills; knowledge about the organization jobs, and career related issues; technology skills; enthusiasm about the organization and job candidates. Recruiters can come from HR professionals, line managers or employees. HR professionals may lack knowledge about specific job responsibilities, while line managers may have this specific knowledge. But they lack knowledge about other HR issues like career development. This knowledge is common by HR professionals. Employees have detailed knowledge about their jobs, but have no knowledge of the total organization. Training recruiters Recruiters should receive training in the following areas: interviewing skills, job analysis, interpersonal aspects of recruiting, laws and regulations, forms and reports, organization and job characteristics, recruitment targets. Next to this, they should be trained in technology skills, marketing and sales techniques, and ethical issues. Strategy development After the recruitment planning stage, an HR strategy will be developed. Developing a strategy means dealing with different issues. Issue 1: Open versus targeted recruitment Open recruitment Using an open recruitment approach, organizations use a wide net to identify potential applicants for specific job openings. Anyone can apply for an job opening and it is therefore seen as fair because there is equal opportunity. It is very useful when a large amount of applicants need to be hired. However, it is very time-consuming to review all applicants and maybe qualified applicants will be overlooked during the process. Targeted recruitment In this approach the organization identifies segments in the labor market where qualified applicants are likely to be. This is often done to find people with certain characteristics. Some targeted recruitment groups can be:
Making the choice The choice between open and targeted recruitment influences the recruitment sources. It is not necessary to choose one strategy. A open approach might be used for jobs that are not core to an organization’s performance. For jobs where highly specified KSAOs are necessary, a targeted approach might be more useful.
Issue 2: recruitment sources Employers do not have to identify each possible job applicant when they are searching for applicants. There are institutions in our economy where job seekers come together. These recruitment sources or methods in staffing act as intermediaries between the applicant and the employer to ensure that a match can be found. Applicant initiated Job applicants can physically walk into the organization to apply for a job or who send in résumés. Unsolicited applications are increasingly being sent electronically. Website design is therefore important since it will make-or-break recruiting opportunities. There are seven features of high-impact websites:
Employee referrals This means that employees currently working for an organization can refer to people they know to their employer for consideration. Sometimes, a bonus is given to the employee who referred to a good performing candidate. This method has low costs per hire, less hiring time, an opportunity to strengthen bonds with current employees. And individuals hired through referrals are less likely to leave. Employee networks There are informal and formal networks. The latter is an active database of professional contacts. There can also be social networks, where connections take place through websites like LinkedIn. Current employees can be used as information sources about potential candidates. Advertisements Attracting job applicants can by placing an advertisement in newspapers, and on the Internet, television, radio. It is however very costly and need to be monitored very closely. Employment websites Employers pay a fee in return for website advertising and services, video advertising, pre-employment screening examinations, and applicant tracking. Job seekers can submit their résumés to employment websites. Posting jobs on general employment websites General employment websites are not limited to only advertising. Services are rapidly evolving for these websites. Many now offer the ability to create and approve job requisitions online, manager recruiting tasks, track the progress of open positions and candidates and report on recruiting metrics like time to hire, cost per hire, and equal employment opportunities. Posting jobs on niche employment websites It is also possible to conduct a more targeted web-based recruitment effort through niche employment websites instead of general employment websites. These websites focus on specific industries, occupations, locations or regions, or demographic groups. Searching web-based databases In this process, applicants submit their résumés online, and are in turn forwarded to employers when they meet certain criteria the employer is asking for. Advantages and disadvantages of employment websites Website recruiting reaches many people quickly. This is especially important when large number of positions have to be fulfilled, when the labor market is national or international, or when the qualifications have a unique character and requires a wide net. Website recruitment also provides faster access to candidates. Furthermore, there is a cost advantage and administrative convenience since it eliminates much paper pushing and colleagues can also have access to the database. Colleges and placement offices Colleges are a source of people with specialized skills for professional positions. The placement officer ensures that a match is made between the interests of the employer and interests of the graduating student. The placement officer is the contact point for and with colleagues. The employer faces the difficult choice which colleges and universities to target for recruiting efforts. Important factors to consider this choice are:
An organization want to establish a high-quality relationship with a school. This can be done through establish a good relationship with the placement director, by maintaining a presence (financial support). And care must be taken to get permission for all activities. Employment agencies Employment agencies contact, screen, and present applicants to employers for a certain fee. The fee is paid when a successful placement took place and is a percentage of the starting salary of the candidate. It is a source of nonexempt or lower-level exempt employees. Selecting a good employment agency is important to create a good match. Executive search firms Executive search firms or headhunter are used for higher-level professional positions with salaries of $100.000 and higher. These firms contact, screen, and present résumés to employers. It is however not an employment agency, because search firms deal with higher-level positions than employment agencies do, and search firms operate more on the basis of a retainer than on a contingency. Operate on a retainer means that you get paid regardless of a successful placement took place. So, search firms operating on retainer are not trying to fulfill a vacancy as quickly as much to get their fees. Executive search firms are increasingly involved in the appraisal business. They are asked to provide an assessment. This can however lead to conflicts of interest. Professional associations and meetings Many professional and technical organization have meetings around the country once per year at least. Many of these groups run a placement service for their members, and some may charge a fee to recruit at these meetings. This is a source that represents a way to attract applicants with specialized skills or professional competencies. Some meetings offer opportunities to attract women and minorities. Social service agencies These agencies are funded by employer-paid payroll taxes and are provided by the state to help secure employment for those who are unemployed. They are especially focused on low- to middle-level employees to employers. Job Corps is program designed to help individuals between 16 and 24 years to obtain employment. Individuals of lower levels of education are prepared for entry-level jobs through training and skills. Outplacement services Organizations can retain an outplacement firm to provide assistance to employees who are losing their jobs. They offer job seekers assistance in the form of counseling and training to help facilitate a good person/job match. Job Fairs Organizations can hold job fairs to attract job applicants. The sponsors of a job fair will meet in a central location with a large facility in order to provide information, collect résumés, and screen applicants. The organization may identify qualified applicants in the short term. And it may be able to enhance its visibility in the community which can improve its image and ability to attract applicants in the long run. Job fairs should be advertised in advance in order to yield a large number of applicants. Although the organization can reach many people during a job fair, there are many applicants vying for the attention of a little amount employers. Co-ops and internships Co-ops and internships are part-time working arrangements. A co-op means that a student works with one employer on an alternating quarter basis. In one quarter the student works full-time and in the next quarter the students attend school full-time. An internship arrangement means that the student has a continuous period of employment with an employer for a specified period of time. This is one of the best talent-search opportunities available to managers is often said. Moreover, interns have better employment opportunities since they have relevant experience. Both the employer and the student benefit from this. Alternative resources There are several innovative sources. Interest groups These associations help facilitate the interests of their members. Real estate agents The real estate agent can help the trailing partner to find a new job since they offer employment services. Alternative media outlets There are more media outlets than internet, radio, television etcetera that might offer a competitive advantage for attracting candidates. For example, advertising for jobs in a movie theatre. Talent pipeline This includes individuals who may not take a job immediately but may be attracted into the organization in the future. This means that establishing effective relationships even before a job opening is coming up. Former employees Organizations can recruit former employees for coming back or by asking them to provide referrals. These employees know all the ins and outs of the organization and get into the flow of the work more quickly. Issue 3: recruitment metrics Organizations should assess the costs and benefits of each recruiting source and then select the optimal combination to meet the organization strategic needs. Therefore, they make a recruiting metric. In the recruitment metric the different recruiting sources are written down together with the quantity, quality, costs and impact on HR information. The more broadly transmitted the organization’s search method, the more likely it is that a large number of individuals will be attracted to apply. For example, advertising might be reach thousands of people, but attracting too much applicants is very costly because of the costs for processing all applicants. When employers are linked to a database with employees with exceptional skills will enable an employer a cost advantage on screening and selecting (quality). If an organization needs to attract a large number of individuals, when KSAOs are in a short supply, or when a job is crucial for an organizational success, some costly methods are it worth to use. Less important jobs and lesser KSAO jobs can use lower-cost methods. Research has defined effectiveness as the impact of recruitment sources on increased employee satisfaction, job performance, diversity, and retention. Referrals and job trials are all positively related to these HR outcomes. Newspaper advertising and employment agencies can produce employees who are less satisfied and productive. Searching After completing the recruitment planning stage and strategy development stage, it is time to actively conduct the search. The first step is developing a message and then selecting a medium to communicate that message. Communication message There are three different types of messages to applicants. Realistic recruitment message This message is realistic and shows the organization and job as they really are, rather than describing what the organization thinks job applicant want to hear. The job applicants will self-select into or out of the organization. This reduces the number of applicants, but increases commitment. When an applicant self-selects out, the organization does not face the costs associated with recruiting, selecting, training, and compensating an employee. Realistic job previews may also lead to higher job satisfaction and lower turnover. A negative consequence is that there is slightly reduced ability to hire high-quality applicants, because they have more opportunities. Research found that realistic job previews should be given verbally and that it is probably best to reserve their use for later in the recruiting process. Employment brand message An employment brand message is used when organization want to portray an appealing message to potential applicants. An employment brand is a ‘good-company-tag’ that places the image of ‘being a great place to work’ or ‘employer of choice’ in the minds of job candidates. Organizations that are already well-known by potential applicants may not need to engage in as much advertising for their jobs. They often have many more applicant than needed. Therefore this is especially for not well-known organizations. This technique helps attract desired applicants to the organization, it may breed organizational commitment on the part of newly hired employees and it can be best used in early recruitment activities. Targeted message Improving matching people with jobs can be done by targeting the message to a particular audience. Different audience may be looking for different rewards from organizations. Choice of messages The message to choose depends on the labor market, vacancy characteristics and applicant characteristics. In a tight labor market, applicants are difficult to come by and realism is not an effective message. This is because the chance that an applicant self-select out of the applicants pool is larger. To fulfill a job opening quickly in the short run, then a realistic message will have counterproductive effects. When organizations engage in a tight market they can better use branded and targeted messages since they are more effective in attracting applicants. Communication medium Effective communication media are high in richness and credibility. Rich media channels allow for timely personal feedback and a variety of methods for conveying messages, and they are customized to each respondent’s specific needs. Credible media channels transmit information that is honest, accurate, and thorough. Research found evidence that respondents will have more positive images of organizations that use communication media high in richness and credibility. Word of mouth This is the informal information with respect to an organization’s reputation, employment practices, and policies that can exert a powerful impact on job seekers’ impressions of an employer. Recruitment brochures This brochure includes information about the job, the organization and the location. These various means of demonstrating the features of the organization increases the richness of its recruiting technique. Benefits are that the organization controls who receives a brochure and there it provides more information than an advertisement. However, it is costly to develop. A successful brochure consists of a unique theme or point of view relative to other comparable organizations, and a visual distinctiveness terms of design. Videos and video conferencing A brochure can be used to communicate general information, and a video can be used in addition to communicate the culture and climate. Videoconferencing means meeting applicants face to face on a monitor without traveling. It leads to time and cost savings. Advertisements Advertisements have mostly a short duration, whereby they cannot provide rich information. Ads appear in a variety of places other than business publications and can therefore be used to reach a broad market segment. There are many different types of ads:
Organizational websites The web can have a dual function in recruitment, namely it functions as a source and as a medium. Websites are a powerful means of both communicating information about jobs and reaching applicants who otherwise would not bother to apply. Therefore, it is important that the website is appealing to potential job candidates. The three core attributes driving the appeal of an organizational website are engagement, functionality and content. In the first place, the website must be vivid and attractive to applicants. Next, the website must be functional, meaning that it is quick to load, easily navigated, and interactive. Third, the website must convey the information prospective applicants want to see, including current job openings, job requirements and steps for applying. Finally, always take into account that communication with an applicant shouldn’t end with his or her online application. Applicants want to be informed about the status of their application. Other factors which should be taken into account when designing a website:
Direct contact Some organizations contact applicants directly to enhance recruiting outcomes. The most used media for direct contact are telephone and e-mail and are very personal. Because applicants can ask personally relevant questions, it enhances the richness of the information. E-mail recruitment should be highly personal and reflecting an understanding of the candidate’s unique qualifications. However, using personal and customized responding increases the cost per individual contacted. Applicant reactions Attitudinal and behavioral reactions to components of the recruitment system are important. Reactions to recruiters A lot of research has focused on the reactions of applicants to the behavior and characteristics of recruiters. First, the influence of the recruiter on job applicant reactions does not have as much influence on them as do actual characteristics of the job. The interest in a job is strongly predicted by the work environment, the image of the organization, and the location. So, having good recruiters is not enough to attract individuals. Second, the influence of the recruiter is more likely to be felt in the attitudes rather than in the behaviors of the job applicant. An applicant will not accept a job on the basis of the interaction with the recruiter. But it can lead to good publicity which in turn lead to a larger applicant pool to choose from in the future. Third, demographic characteristics of the applicant have not much impact on applicant reactions. Fourth, the level of warmth the recruiter shows toward the applicant and being knowledgeable about the job are important behaviors which influences applicant reactions. Finally, recruiters who show interest in the applicant are viewed more positively. Reactions to the recruitment process Applicants want a system that is fair. First, more favorable reactions are likely when the screening devices used to narrow the applicant pool are seen as job related ( use job requirement matrix). Second, delay times in the recruitment process have a negative effect on applicant’s reactions. Third, the influence of the recruiter on the applicant is more likely to occur during the initial stages of the recruitment process. Finally, an applicants’ reaction to an organizational website drive their reactions to the recruitment process. Reactions to diversity issues The most common method for increasing the diversity of applicants is to advertise in publications targeted at women and minorities. Women and minorities are interested in organizations that endorse diversity through policy statements and recruitment stuff. Transition to selection After identifying and attracting a job seeker to the organization, it needs to prepare the person to the selection process. The applicants should given information about the hiring process and what will be required of them. Legal issues As a result of the law, organizations cannot exclude certain applicant groups, as well as deceive in its dealing with applicants. Definition of job applicant Equal Employment Opportunity Commission (EEOC) and the Office of Federal Contracts Compliance Programs (OFCCP) require the organization to keep applicant records. What job applicants exactly are should be answered in terms of hard-copy applicants and Internet applicants. Hard-copy applicants An applicant is a person who has indicated interest for being considered for hiring, promotion or other employment opportunities. This definition is coming from the EEOC. This interest can be expressed by completing an application form, or might be expressed orally, depending on the employer’s practice. Internet applicants According to OFCCP you are an Internet applicant if you meet the following criteria:
The employer must keep records of the following:
Affirmative action programs AAP regulation from the OFCCP require that the organization identify problem areas impeding equal employment opportunity and undertake action-oriented programs to correct these problem areas and achieve the placement goals. The OFCCP offered considerable guidance to the organization for its recruitment actions. Electronic recruitment Technology has flooded the recruitment process for the organization and the job applicant. Regarding access to employment, organizations should supplement online recruitment with other widely used sources of recruitment that are frequently used by women and minorities. The OFCCP provides specific regulations for people with disabilities. If only an online application system is used, it should be accessible to anyone. The organization can also choose to use varied methods. Video résumés can reveal protected characteristics like race, color of an applicant which can lead to illegal discrimination. Therefore, organizations should create specific KSAO requirements against which applicants can be screened. Second, the initial screening process should be designed in a manner that only the applicant’s résumé is reviewed. Next, disallow video résumés or only allow them in a later stage. Finally, provide training to recruiters on how to evaluate applicants’ video résumé information against job requirements. Regarding social networks, recruiters might be tempted to troll for and access private information placed on social networks. This gathered information can create problems. Job advertising that indicates preferences or limitation for applicants based on legally protected characteristics is generally prohibited. Fraud means false statements intentionally or unintentionally and misinterpretation are reasonable grounds for a claim by an applicant or newly hired employee. Therefore, organizations should avoid fraud and misinterpretations by:
The process of identifying and attracting current employees for open jobs is called internal recruitment. It has a lot of advantages to recruit internally. Those currently working for the organization are familiar with the culture, they have developed relationships with colleagues, and they may require less training than external candidates. Recruitment planning It is important to pay attention to organizational and administrative issues to facilitate the effective matching of those applicants with available positions, before identifying and attracting internal applicants to vacant jobs. Organizational issues At an informal level, organizations divide their internal labor market into segments of workers believed to be desirable job applicants. For example, a group of employees are called ‘high potential employees’. At the formal level, organizations must create a structured set of jobs for their employees and paths of mobility for them to create internal labor markets. Internal labor markets consists of mobility paths and mobility policies. This latter cover the operational requirements needed to move people between jobs. Mobility paths A mobility path gives information about possible employee movements within the internal labor market structure. There are hierarchical and alternative labor path, which both determine who is eligible for a new job in the organization. There are many factors that help determine mobility paths: workforce, organization, labor union, and labor market characteristics. Hierarchical mobility paths Primarily the emphasis lies on upward mobility in the organization. Therefore, it is also called promotion ladders. Promotions are seen as prizes where employees compete for. Hierarchical mobility paths help to identify where to look for applicants in the organization. It is a very straightforward system, but it lacks flexibility which can inhibit finding the best match. Alternative mobility paths The emphasis here is on the movement in the organization in any direction, up, down, and side to side. In the hierarchical mobility paths the goals is to achieve a position with ever-higher status, while the goal of alternative mobility paths is that each employee is continuously learning and can make the greatest contribution to the organization. Many organization use the alternative mobility path because:
Parallel tracks allow employees to specialize in work. With a lateral track system, there may be no upward mobility at all. The individual greatest contribution to the organization may be to stay at a certain level for an extended period of time while serving in a variety of capacities. A lattice mobility path has upward, lateral and downward movement. The downside to alternative mobility paths is that they are difficult to administer. Neat categories of where to look do not exist to the same degree as with hierarchical mobility paths. On the other hand, due to the flexibility of the system, talented inside candidates can be identified which was not the case in the hierarchical system. In organizations where upward mobility is limited, it is important to take steps to make work more meaningful:
Mobility policies These are the rules by which people move between jobs specified in written policies and specify eligibility criteria. A well-defined mobility path policy statement is needed for both hierarchical and alternative mobility paths and has the following characteristics:
It is important to have a well-articulated and well-executed mobility path, otherwise it can lead to employee claims of favoritism and discrimination. A policy should be fair in the eyes of employees. In the eligibility criteria is a list of criteria by which the organization will decide who is eligible to be considered for a vacancy in the mobility path. Normally, the criteria is based on the amount of seniority level, experience level, KSAOs, and job duties required. Administrative issues Administrative issues include requisitions, coordination, budget, and the recruitment guide. Requisitions Requisitions are formal authorizations by higher-level management to fill a job opening. Requiring a formal requisition is important because it shows fair and objective procedures. A supervisor can have a special good relationship with one employee for example. By specifying the characteristics of successful applicants for internal positions prior to the recruiting process, it is easier to ensure that internal movements are made consistent with organizational standards and goals and that it is legally defendable. Coordination With the use of the organization’s staffing philosophy, internal and external recruitment efforts need to be coordinated and synchronized. Internal and external professionals must work together with the line managers to coordinate efforts before the search for candidates begins. Policies need to be created that specify the number and types of candidates sought internally and externally to coordinate the activities. Budget Also for the internal recruitment should an organization set up a budgeting process. The cost per hire can be more or less costly than external recruitment, depending on the methods used. Recruitment guide Internal recruitment activities also involve the development of a recruitment guide. This is a formal document that details the processes to be followed to attract applicants to a vacant job. All the steps needed to be taken are described and the details about money, time, and staff activities. Timing When to look for internal candidates is the final strategic consideration an organization must make. It involves the calculation of lead time and time sequence concerns. Lead time Internal recruitment not only fills vacancies but also creates new vacancies in contrast to external vacancies. As a result of this difference, it is incumbent on the organization to do HR planning along with internal recruitment. Internal and external lead time considerations also differ because in an internal market, the employer can actively participate in identifying and developing knowledge and skills of the pool of eligible internal candidates. Strategic talent management means identifying crucial skills that will be needed for future positions and begins cultivating these skills in the workforce well in advance. As a result, the organization will be able to reduce the lead time to fill positions with very specific KSAO requirements. Time sequence concerns Timing and sequencing of event must be carefully laid out for both recruitment and placement personnel. Most organizations begin with internal recruitment, and after that external recruitment to fill a vacancy. Topics to be addressed include how long the internal search will take place, whether external recruitment can be done concurrently with internal recruitment, and who will be selected when internal and external candidates are of equal quality. Strategy development The strategy must consider where to look, how to look, and when to look. By developing the strategy the general eligibility criteria for mobility should be taken into account. Within these constraints, a knowledge of closed, open, and hybrid systems is required. Closed internal recruitment system A closed system means that employees are not made aware of job vacancies. Only those involves in the process, HR, line managers with vacancies, contacted employees. It is very efficient, since it involves minimal time and costs. However, it only works when the files show the candidates’ KSAOs and are up-to-date. Open internal recruitment system In this systems employees are informed of job vacancies by a job posting and bidding system. This system minimized that supervisors will select favorite employees, and it often uncovers hidden talent. However, it is very time-consuming to screen and respond to all candidates and it enhances competition. Hybrid recruitment system In this system both open and closed steps are followed at the same time. The large applicant pool will be narrowed down by KSAOs, seniority eligibility, demographics, and availability of applicants. There are four advantages of the hybrid system: qualified candidates are identified in advance, a thorough search is conducted, people have equal opportunity to apply for postings, and hidden talent is uncovered. Criteria for choice of system Open: can be best used when issues exist about perceived fairness; and when hidden talent might be overlooked. Closed: can be best used when managers need the new candidate to start immediately and when jobs require a very narrow and specialized set of KSAOs. Hybrid: can be best used when there are adequate resources to run such a hybrid system and when jobs are especially key to organizational success. Recruitment sources Now is specified where and how to found candidates, organizations should decide which recruitment source to use. Job postings A job posting is almost the same as the advertisement used in external recruitment. Based on the job requirement matrix, it specifies the duties and requirements of the job and tells how applicants can apply. When a job vacancy occurs, a position announcement is posted through a bulletin board, a newsletter, e-mail or intranet. Applicants respond to job postings using a bid sheet. Organizations can first limit the job posting to a certain department if they want. A good job posting system will clearly define the requisite KSAOs for the job. So, by having a good job requirement matrix, employees, HR staff, and managers can do a more effective and efficient job of screening. Another important issue with posting systems is feedback. Employees want to know why they didn’t get the job. This is important for two purposes:
Job posting systems lead to high satisfaction by users. Intranet and intraplacement Intranet is similar to Internet, but it is only confined to the organization. Job can quickly posted for all employees to see. It can also be extended to provide more information about for example KSAOs. Talent management system A talent management system is a comprehensive method for monitoring and tracking the utilization of employee skills and abilities throughout the organization. Key component in this system is tracking employees’ KSAOs and their use in the organization. The first stage in the process is identifying the KSAOs required for all jobs in the organization. When there are job openings, managers can determine through this system which employees are ready to come into open positions. A process should be in place to make regular comprehensive examinations of the changing nature of KSAOs requirement throughout the organization. This information in turn, can be used to develop comprehensive plans for training and development. Some factors should be taken into account when developing a user-friendly talent management system:
Nominations Supervisors and peers can nominate internal candidates to apply for open positions. They are familiar with the requirements of the position and can search for eligible candidates. Organizations can also use self-nominations. Qualified candidates will not be overlooked, especially minorities and women. In-house temporary pools In-house temporary pools can also be used a source of permanent internal employment. Those employees hired through in-house temporary pools are legally treated as employees. The full legal liability for these employees falls exclusively on the employer. The use this approach has advantages. It requires less orientation to the organization than external hires. There are no fees to pay at the staffing agencies, and this cost savings can be applied to higher levels of compensation and benefits. Ensuring the person/organization fit will be easier. Temporary employment can also deal as an audition for full-time employment. Replacement and succession plans Most succession plans include replacement charts, which indicates positions and who is scheduled to fill those positions when they become vacant. They also indicate when the employee will be ready for the position. Succession plans are organized by position and list the skills needed for the prospective position. Organizations can use the Saba Succession software to make the succession planning. Career development centers Career development centers provide employees with opportunities to take interest inventories, assess their personal career goals, and interview with representatives across the organization. It has two goals: (1) employees get a chance to think about what they really want in their careers and they learn about themselves. (2) employers have a chance to explain the career options within the organization and develop methods to structure internal career paths that match the interests of their employees. The interest inventories are measured by using a survey among employees. But the developing career development centers has too much costs for small- and medium organizations. By providing employees with a clear sense of how they can direct their own careers, it is hoped that job satisfaction will increase and thus lead to increased retention. Recruiting metrics Each internal recruitment source has strengths and weaknesses. Most internal recruiting methods will have low costs compared to external recruitment methods, because the internal labor pool will be smaller. The sufficient quantity will be lower. Organizations using internal recruitment methods have an huge advantage in assessing applicant characteristics, which increases the sufficient quality. Regular performance appraisals coupled with talent management systems to track KSAOs, are a vital part of an effective internal recruiting system. A career center or an intranet can be very costly, but simply sending an email with the message of vacation is very cheap. Internal career opportunities can reduce turnover intentions, and it may reduce time it takes for employees to reach full performance once placed. Communication message and medium The same as external recruitment, the search for internal candidates is activated with a requisition. Once the requisition has been approved, the message and medium must be developed to communicate the vacancy to applicants. Communication message A realistic message tells how the job really is, so including both positives and negatives. It can be communicated using a realistic job preview, especially when employees move to an unknown job, a newly created job. A targeted message points out how the job matches the needs of the applicant. This message should directly come from the job rewards matrix. A branded message states the value, culture, and identity of the unit in order to attract applicants who fit the brand label. Communication medium By using job postings, the duties and requirements of the job are clearly defined even as the eligibility criteria. Other written documents to use should include a description of the organization, the job, and the location. Furthermore, a brochure or a video can be developed. Potential supervisors and peers can be used to describe to the internal applicant how the position he or she is considering fits into the larger organizational picture. They can also convey the mobility paths and requirements for future movement by applicants. Also informal systems whereby members communicate with one another about job vacancies. This can however be highly inaccurate, selective, and haphazard method of communicating information, meaning that minorities can be overlooked. Applicant reactions Issues of fairness often arise over mobility decisions within an organization. Distributive justice measures how fair the employee perceives the actual decision to be. Procedural justice measures how fair the employee perceives the process that leads to the promotion or transfer decision to be. Transition to selection The organization needs to prepare the candidate for the selection process, once a job seeker has been identified and attracted to a new job. They should become familiar with the selection procedure. Legal issues Affirmative Action Programs Regulations This program sets placement goals where there are discrepancies between percentages of minorities and women employed and available internally in job groups. There are several suggestions to use in identifying problem areas:
Bona Fide Seniority Systems Past discrimination may have resulted in a workforce dominated by white males. Due to the discriminatory staffing systems the number of women and minorities has increased within organizations. However, promotions systems are often based on seniority. Thus, the seniority systems will have an adverse impact on women and minorities, while there is no intention to discriminate. The use of bona fide seniority systems is however explicitly permitted as long as they are not the result of an intention to discriminate. The Glass Ceiling This term is used to characterize strong but invisible barriers to promotion in the organization, especially to the highest levels, for minorities and women. In the staffing process, measurement is used to gather and express information about people and jobs in numerical form. Selection decisions will be based on these numerical information. Importance and use of measures Measures are methods or techniques for describing and assessing attributes of objects that are concern to us. These assessments are collected through the measurement process. This process involves:
The results of this measurement process are expressed in numbers, for instance applicant’s score on an ability test. These scores are the indicators of the attribute. Key concepts Now we are looking to the key concepts of measurement, scores, and correlation between scores.
The definition of measurement is: the process of assigning numbers to objects to represent quantities of an attribute of the objects. The general process of the use of measures in staffing consists of 6 steps:
Following each step is important, and reaching agreements at each step of the way, otherwise selection errors are more likely. Standardization Standardization is a process of controlling the outside influencing factors on the scores to ensure that the scores obtained reflect the attribute measured. A standardized measure has 3 basic characteristics:
Levels of measurement Measures can fall into one of the four levels of measurement described below. Nominal: a given attribute is categorized, and numbers are assigned to the categories. There is no rank order among the categories. Ordinal: objects are rank ordered according to how much of the attribute they possess. The rank orderings only show the relative differences, not the absolute differences. Interval: objects are rank ordered and the differences between those rank ordered 1 and 2 is the same as the difference between 3 and 4. This in-between level of measurement ( between ordinal and interval scale) is characteristic of many of the measures used in staffing. Ratio: this is the same as interval, but these scales have a absolute true zero point. Therefore, how much of the attribute each object possesses can be stated in absolute terms. Objective and subjective measures Using objective measures means that the rules are predetermined and usually communicated and applied through some sort of scoring key or system (paper-and-pencil). Using subjective measures means that there is a rater involved who assigns the numbers. For example, employment interviewers. When an attribute is measured by using both objective and subjective means, there is often relatively low agreement among the scores. Scores The scores are the numerical indicator of the attribute. Scores can be manipulated once derived, in order to give them greater meaning and better describe characteristics of the objects being scored. Central tendency and variability Central tendency is the mean, median and mode of all the test scores derived from applicants of a certain job. Ordinal data cannot compute the mean and with nominal data, only the mode would be appropriate. Variability is the range and the standard deviation of the scores. This latter shows the spread in the scores. The larger the standard deviation, the greater the variability in the data. Percentiles The percentile score for an applicant shows the percentage of applicants scoring below the applicant in a distribution of scores. Standard scores To correctly interpret the scores, compares an individuals’ score with the mean, but corrected for the amount of variability. This means that you will calculate the standard score Z. When the outcome of the formula is 1.5, then applicant scored about 1.5 standard deviations above the mean. When an applicant has done 2 test, the Z-scores of both tests can be compared. The highest Z-score indicates which test was best performed by the applicant. Correlation between scores Often, there are more scores on different measures for a group of individuals. Examination of the relationship between two sets of scores proceeds through the plotting of scatter diagrams, and calculation of the coefficient. Scatter diagrams The scatter diagram plots the joint distribution of the two sets of scores. The two sets of scores are combined for each individual and shown in the diagram. The more distrusted together, the stronger the relationship between the two sets of scores. Correlation coefficient This also shows the relationship between two sets of scores and is noted as r. The r can range from -1.0 to 1.0. The larger the value, the stronger the relationship. The r shows both the strength of the relationship and the direction of it. There are some interpretation notes:
Significance of the correlation coefficient The statistical significance is the likelih0ood that a correlation exists in a population, based on the value of r. The r is calculated from a sample, but you want to know if there is also a correlation within the whole population. Therefore, you have to calculate the t value. Often the significance level is expressed by p< .05. The p-level tells the probability of concluding that there is a correlation in the population when in fact there is no relationship. Quality of measures In staffing, score are a major input for decision making about individuals. For example, performance ratings can help decide who will be eligible for a promotion. Therefore, there is a lot at stake in the quality of the measures used in staffing. These concerns are best viewed in terms of reliability and validity measures. Reliability measures A measure is reliable to the extent of consistency of the measurement. There will always occur some measurement error. Reliability of measurement is of concern both within a single time period in which the attribute is being measured and between time period. Furthermore, objective and subjective measures are matter of concern. Comparisons within t1 or t2 Comparing sets of scores in either t1 or t2 is called internal consistency reliability. Within a time slot you compare the two variables (x1 and y1) Comparing scores coming from the subjective measure is called interrater reliability. It is hoped that the comparisons will show high similarity, since both are focusing on a single attribute at a single moment in time. Comparisons between t1 and t2. Comparing scores between time period means assessment of measurement stability. When scores from an objective measure are used, then we call it test-retest reliability. The relevant comparisons are x1 and x2, meaning that you measure x for the two different time slots. When scores from subjective measure are compared, we call it intrarater reliability. Measurement error The occurrence of a measurement error means that the measure did not yield perfectly consistent scores, or true-scores. The scores actually obtained from the measure have two components to them: a true-score and a measurement error. Together they form the actual score. The error component represents unreliability of measurement. Unreliability is a fact of life for the types of measures used in staffing. In the staffing process deficiency error and contamination error are common. Deficiency error This means that there is failure to measure some portion or aspect of the attribute assessed. So an important aspect is not measured. A deficiency error can occur in the following ways:
Contamination error This represents the occurrence of unwanted or undesirable influence on the measure and on individuals for whom the measure is being used. Contamination error can come from the content domain, standardization, chance response tendencies, rater, and rating situation. Calculation of reliability estimates Reliability within a single time period:
Reliability between two time periods:
Implications of reliability
The scores on tests reflect both true knowledge and error. Since only a single score is obtained from each applicant the critical issue is how accurately that particular score indicates the applicant’s true level of knowledge for example. The standard error provides a way to state a person’s likely score on a measure. For example if the score of an applicant is 22. And the SEM is 5. Than the applicant’s true score will be between 12-32, namely 22± 2(5).
This is the degree to which it measures the attribute it is supposed to be measuring. There is a relationship between validity and reliability. The reliability of a measure places an upper limit on the possible validity of the measure. But, reliability does not guarantee validity, it only makes validity possible. Validity of measures Can we make accurate inferences from the scores on the measure? Therefore we need more information about the accuracy of measurement and accuracy of prediction. In turn, these concepts may be used to demonstrate how validation of measures occurs in staffing. Accuracy of measurement The Venn diagram form can be used. In this diagram there are two circles. One is the construct to measure (attribute) and the other is the actual test to measure the construct (attribute). The greater the overlap between those circles, the greater the accuracy of measurement. When there is no perfect overlap there are measurement errors: deficiency of measurement and contamination of measurement. Accuracy of measurement goes further than reliability. Accuracy requires reliability, but is also requires more by way of evidence. Accuracy of prediction Measures are used to gather information and make decisions based on it. For example, if you test someone’s knowledge about technical principles, this test is the predictor. The criterion is for example the overall job performance. When applicants score high on the predictor and also high on the criterion or when applicants score low on the predictor and low on the criterion it represents correct predictions. Accuracy of prediction is the percentage of total correct predictions.
Accuracy = (45 + 25) / (45 + 10+ 25 + 20) * 100 = 70%. Validation of measures in staffing It is important to have and use predictors that accurately represent the KSAOs to be measured, and those predictors need to be accurate in their predictions of job success. Two types of validation studies are typically conducted. The first is criterion-related validation and the second is content validation. Criterion-related validation This is a sequencing process. The process starts with job analysis in which the job requirement matrix is developed including the tasks required and the relevant KSAOs for each task. This is input for the criterion measures (i.e. job performance) and predictor measures (assessment methods, i.e. IQ test). After this the scores on the predictor and criterion are obtained for a sample of individuals. If current employees are used a concurrent validation design is used. When job applicants are used, a predictive validation design is used. Finally, the relationship between the scores will be examined to make judgments about the predictor’s validity. Therefore, the significance will be calculated. Content validation The major difference between content validation and criterion-related validity is that in content validity no criterion measure is used. Predictor scores cannot be correlated with criterion scores, but a judgment is made about the probable correlation, had there been a criterion measure. Content validation is most likely used when: (1) there are too few people to form a sample (<30) and (2) when criterion-measures are not available, or of questionable quality. Content validation consists of two steps: first, conducting a job analysis and second choosing or developing predictor measures, assessment methods. Validity generalization Validity is not viewed as situation specific. Meaning that if a predictor is valid for a certain job in organization X, it would also be valid for the same type of job in organization Y. In a first glance the values can be very different for different organizations, but if these differences are controlled statistically, the variation in values would shrink and converge toward an estimate of the true validity of x. if that true validity is significant, then the validity can be generalized of x across situations. Organizations should however keep in mind that organizations or specific jobs can sometimes be unusual. The result may be inapplicable to the organization or job. Second, validity generalization efforts are not perfect. Therefore, organizations should still conduct validation studies of their own. Meta-analysis is very useful in comparing the relative validity of selection measures. Staffing metrics and benchmarks Most HR managers may have limited insights and knowledge about job analysis, validation, and measurement. They are more familiar with benchmarking. This is a process where organizations evaluate their practices against those used by leaders in the industry. Commonly used benchmarks are cost per hire, forecasted hiring and vacancies filled. Collection of assessment data After evaluating the selection measures assessment data on external and internal applicants should be gathered. When a predictor is purchases, support services are needed. Consulting firms and test publishers can provide this support for scoring of tests. Compliance with laws and regulations is also important, as well as validity studies and training in how to administer the predictor. Testing procedures For every kind of test, certain guidelines need to be kept in mind. Qualification: many test publishers want the purchaser have certain knowledge to properly use the test. Security: a security agreement should be signed in order to protect people to share the answers of the test. The predictor and the results of the predictor should be kept in secure to ensure the privacy of the applicant. ‘ Standardization: all applicants should be assess with standardized procedures and the same circumstances. Internet-based test administration as long as special care is taken to ensure that the actual applicant is the test taker and that the tests are validated, then web-based tests work as well as paper-and-pencil tests. Acquisition of tests and test manuals There are many publishers of selection tests and all require some start-up costs in terms of time and effort required to contact these test publishers. Often sample copies of the test and a user’s manual are provided by the publishers so that selection decision makers may consult it before purchasing the test. The manual describes the development and validation of the test and it included administration instructions, scoring and interpretation instructions and normative data. Professional standards There is a guide book named: ‘the principles for the validation and use of personnel selection procedures’ which provides testing standard for use in selection decisions. A related set of standards has been promulgated by the APA: ‘the rights and responsibilities of test takers: guidelines and expectations’. Legal issues Determining adverse impact To determine whether staffing practices have potentially illegal impacts on individuals because of sex, race, etcetera. To determine this, applicant flow and applicant stock statistics are used. Applicant flow statistics This requires the calculation of selection rates for different groups and the comparison of those rates. Several point need to be made regarding the determination of disparate impact analysis. First, the UGESP require the organization the keep records in order to calculate the selection rates (flow statistics). In this manner, compliance with the law is judged. Next, the UGESP require calculation of selection rates for each job category, for internal and external selection decisions, for each step in the selection process, and by race and sex of applicants. Thirdly, comparisons of selection rates should be based on the 80% rule meaning that a selection rate for any race, sex or ethnic group which is less than 80% of the rate for the group with the highest rate will generally be regarded by federal enforcement agencies as evidence of adverse impact. For example, when the selection rate of men is 50% and for women 11%. Men has the highest rate. 80% of 50% is 40% and the rate of women should be within it. Since the rate of women is only 11% it suggests the occurrence of adverse impact. Fourth, the 80% rule is truly only a guideline. Applicant stock statistics To calculate stock statistics, the calculation of the percentages of women and minorities in the (1) employed area and in the (2) available for employment in the population area are needed. To identify disparities these percentages will be compared. This is called an utilization analysis. When the availability is higher than the employed one, there is an underutilization and placement goals must be set. This analysis is the starting point for the Affirmative Action Programs. The regulations demand that the availabilities take into account the following factors: (1) the % of women or minorities with requisite skills in the recruitment area and (2) the % of women or minorities among those promotable, transferable, and trainable within the organization. Standardization Discrimination in staffing occurs due to a lack of constancy in applicants treatment as a result of no standardization in measurement. For example, different type of questions are asked to minorities and nonminorities. The information should also be evaluated in the same manner for every applicant. Reducing this inconsistency asks a straightforward application of the three properties of standardized measures. Best practices Several best practices in measurement and selection are developed to apply to all selection procedures or tools:
Before implementing tests and selection methods, the effectiveness and limitations, its appropriateness for a specific job and whether it can be appropriately administered and scores should be understand. External selection can be defined as the assessment and evaluation of external job applicants. Different preliminary issues that guide the use of assessment methods will be discussed. Preliminary issues The logic of prediction The selecting process is based on the logic of prediction, meaning that indicators of a person’s degree of success in past situations should be predictive for the success in new situations. As a result of past experience, a person has certain KSAOs. In the selection procedure these KSAOs and motivation are assessed and the results indicate the person’s overall qualification for the new situation or job. These qualifications are used to predict how successful the person is likely to be in that new situation with respect to HR outcomes attraction, performance, satisfaction, retention, and attendance. This logic of prediction shows the importance of scrutinizing the applicant’s past situation when making selection decisions. The logic of prediction shows that a point-to-point comparison needs to be made between requirements of the job to be filled and the qualifications applicants have acquired from a variety of past situations. The nature of predictors Content The content of what is being assessed with a predictor varies considerably and may range from a sign, to a sample, to a criterion. A sign is a predisposition of the person that is thought to related to performance on the job. For example the predictor personality. Personality leads to a certain behavior which influences the performance on the job. A sample is closer to actual on-the-job results. For example monitoring the interaction between a sales applicant and a customer. Criterion is closes to actual job performance, for example sales during a probationary period. Form
Development of the selection plan A selection plans tells which predictors will be used to assess the KSAOs necessary to perform the job. First the KSAOs from the job requirement matrix are written down. Then, for each KSAO a ‘yes’ or ‘no’ should be chosen to show whether it needs to be assessed in the selection process. Third, possible methods of assessment are listed for the required KSAOs and the specific method to be used is chosen. Selection sequence Before selecting job applicants a series of decisions are made:
Initial assessment methods With initial assessment methods the number of people assessed will be reduced and thereby also the costs associated with substantive assessment. Résumés and cover letters Often this is the first introduction of the applicant to the organization. Résumés and cover letters always need to be verified with other predictors to ensure that there are accurate and complete data across all job applicants with which to make informed selection decisions. This is because the applicant controls the introduction due to the amount, type, and accuracy of information provided. One important issue of this selection tool is the volume that organizations must possess. Résumé collection can also be outsources to résumé-tracking services. Often large organizations encourage submission of résumés via e-mail or via online forms on the website. Video résumés This is becoming more popular. With a video résumé applicants talk about their qualifications to the camera. However employers should be aware of subjective biasing factors. Résumé issues With résumés the applicant can control the information provided to the employers. Employers, therefore, should be aware of fabrications and distortions. And applicants want to know how to get their résumés noticed. Résumé fabrications and distortions There are various degrees of accuracy in résumés ranging from small, unintentional mistakes to outright fabrications. The thee biggest areas of distortions or misinformation are:
In order to combat this fraud or fudging is conducting careful background check. Getting a résumé noticed Important to know is that typos and other mistakes are killing your chances. Second, customize your résumé to the position if at all possible, try to address how your background, skills, and accomplishment match job requirements. Brevity is highly valued by hiring managers. Furthermore, you should be factual and truthful. Finally, a résumé is no time to underplay your accomplishments. Evaluation When using résumés and cover letters in selection organizations should carefully evaluate their effectiveness and make sure to independently verify information they are using in hiring decisions. Application Blanks Most application blanks involve the following sections: personal information, employment desired, educational background, special interests and abilities, work experience, and suggested references. The organizations dictates which information is presented rather than the applicant itself. Asking applicants to sign a disclaimer may decrease the incentive to distort or falsify information. Educational requirements There are important areas pertaining to educational requirement information on application blanks:
Training and experience requirements Most experience used for predicting future performance come from life experiences rather than classroom experience. Licensing, certification, and job knowledge Mastery of certain knowledge can be measured through two distinct methods: licensure and certification. A license is required of people by law to perform an activity and the goal is to protect the public interest. A certification is voluntary and is not demanded by the law and the goal is to identify an individual who has met a minimum standard of proficiency. While license and certification demonstrate mastery of a general body of knowledge, job knowledge tests assess a specific body of knowledge within a certain organization. When licensing and certification are used as an initial method, then they are used to eliminate applicants who fail to possess these credentials. When it is used as contingent method, the selection process proceeds on the assumption that the applicant has the required credentials. For which purpose it is used depends on the moment that the information is considered in the selection process. Limitations in using licensing and certification are:
Weighted applicant blanks This are procedures that help to weigh application blank information by the degree to which the information differentiates low and high-performing individuals. It helps to learn which items should be excluded in the application blank, depending on how well they predict performance. Evaluation of application blanks Scored evaluations of the unweighted application blank are not particularly valid predictors of job performance. Distortion is another factor that may undermine the validity of application blanks, because a lot of misrepresentation of applicants occurs on the application blank. Weighted application blanks have a much more positive validation, however they are more time-consuming. Unweigthed application blanks are very inexpensive and can help acquire some basic information about applicants. Biographical information This is information of a personal history on an applicant’s background and interests. It tells the history of a person’s life. It is useful since past behavior may reflect ability and motivation of the future. It can be used for both initial assessment and substantive assessment. While biographical data and background checks are almost the same they differ in two things. First, a background check is used to turn up any ‘buried bones’ while biodata is used to predict future performance. Second, biodata information is collected by survey, while background tests (or reference checks) are conducted through checks of records and conversations with references. Measures A questionnaire is used to collect biographical information. Each biodata item can be classified according to ten criteria:
Evaluation of biographical information Research on the validity and reliability of biographical data showed positive results. It showed valid predictors of job performance, turnover, and student academic performance. It has however some limitations:
Reference and background checks There are three methods which can be used in order to get background information about the job applicant solicited from others. Letters of recommendation Two problems arise when using letters of recommendations written by others. It does not help to distinguish the more qualified from the less qualified applicants, since less qualified people are unable to arrange for positive letters about their accomplishments. Next, most recommendations are unstructured and not standardized, meaning that the data is not consistent among different organizations. Research showed that the letters have more to do with the letter writer than with the person being written about. Improvements on these letters can be made by providing structured forms and using a standardized scoring key. Reference checks The problems that can occur by letters of recommendation can also occur with reference checks. Furthermore, there is the reluctance of organizations to give out the requested information due to privacy concerns. Increasingly websites like LinkedIn are used to locate a reference contact. Background checks there are several reasons why organizations engage background checking. In the first place it is a result of terrorist attacks. Next to this, there are ethical elapses. Thirdly, legal protection against responsibility for malfeasance, and defense against claims of negligent hiring. Furthermore, the most important reason is technological. Due to new technology it is much easier to perform background checks ($25 per applicant). Of course there are limitations to background checks:
The use of multiple sources and only job specific background information will reduce these problems. Evaluation of recommendations, references, and background checks Research shows that the validity of reference checks is low to moderate. It depends however on who is providing the information. The information is not very valid if it comes from the personnel officer, a coworker, or a relative. Reference reports from supervisors and acquaintances are more valid. Reference checks are a good investment since references are a relatively cheap method of collecting data, screening out the occasional unstable applicants, and learning something new. Initial interview The initial interview is the first personal contact with the applicant and begins with a process of differentiation by screening out the most obvious person/job mismatches. This interview is very costly, and computer and video interviews can reduce these cost. Computer and video interviews Skype has become a platform for conducting computer-based initial interviews. Video-interviews can reduce the costs of initial interview enormous. Furthermore, the interview can be arranged on short notice. However, they do not permit face-to-face contact and sometimes there can be poor quality of the video. Computer-based interviews utilize software that asks applicant questions or presents real-life scenarios. Evaluation of initial interview There are some guidelines to follow which make the initial interview more useful:
Choice of initial assessment methods For all different assessment methods, ratings are developed according to several criteria which will be discussed below. Use Use means how frequently the surveyed organizations use each predictor. In this way you can use benchmarking. But it doesn’t mean that when many companies are using a predictor it is also a good idea for a particular organization. Organizations can better rely on effectiveness criteria (validity, utility, adverse impact). Furthermore, there is a severe lack of timely and broad surveys of selection practices. In terms of classification, high use means that more than 2/3 of the organization uses the assessment method. Moderate use means 1/3-2/3 of the organizations uses it and low refers to less than 1/3 of the organization uses the assessment method. Cost This are the expenses incurred in using the predictor. The major costs involved are administration. Although costs need to be considered in evaluating assessment methods, more consideration should be given to the fact that valid selection measures pay off handsomely and will return many times their costs. Reliability This means the consistency of the measurement. Since reliability is a requirement for validity, it is unlikely that a predictor has low reliability and high validity and the reverse. Validity This refers to the strength of the relationship between the predictor and the performance on the job. Low validity is .00-.15 ; moderate is .16-.30 ; high validity is .31 and higher. Most initial assessment methods have low to moderate validity since it is only used for making rough cuts. Utility This is the monetary return associated with using the predictor, relative to the costs. It is unusual to have a valid selection method and a low utility. Validity and utility correspond with each other. Applicant reactions This is the favorability of applicants’ reactions to the predictor. Positive reactions leads to more positive attitudes toward the organization and recommendations of the organization. Selection measures that are perceived as job related, present applicants with an opportunity to perform, are administered consistently, and provide applicants with feedback about their performance are generating favorable applicant reactions. Adverse impact This is the possibility that a disproportionate number of protected-class members may be rejected using this predictor. Page 401 of the book provides an overview of all predictors and the above mentioned criteria. Legal issues There are 5 major matters of concern with respect to legal issues.
Disclaimers are written statements that provide explicit rights to the employer as part of the employment contract and that are shown to job applicants. Three kinds of rights are usually suggested for inclusion in a disclaimer policy: employment-at-will, verification consent and false statement warning.
Credit checks The first legal requirement for the organization is complying with the federal Fair Credit Reporting Act. The next legal requirement is to comply with the state and local laws that govern background checks. Criminal checks This is generally an attempt to head off potential problems of workplace violence, theft, and fraud. States places restrictions on criminal check usage.
At both federal and state level there are particular legal issues, because preemployment inquiries have a great potential for discriminatory manner early on in the selection process. The law indicates that it is illegal to use PI information that has disparate impact based on a protect characteristic (race, color), unless such disparate impact can be shown to be job related. The EEOC guide provides these principles. The Americans with Disabilities Act regulations says that organizations may not ask disability-related questions and may not conduct medical examinations until after it makes a conditional job offer to the applicant.
An analysis of BFOC claims involving sec reveals four types of justification usually presented by the employer: inability to perform the work, personal contact with other that requires the same sex, customers’ preference of dealing with one sex, and pregnancy or fertility of protection concerns. After the initial assessment we come to the substantive, discretionary and contingent assessment methods. Substantive and contingent selection are the highlight of the actual hiring decision. Substantive assessment methods With the initial assessment method rough cuts among applicants are made, weeding out the unqualified. Substantive assessment methods are used to make more precise distinctions between qualified applicants. Substantive assessment methods are also developed along the logic of prediction and the selection plan as discussed earlier. The different predictors used will be described now. Personality tests The Big Five Personality Traits are used to describe behavioral traits that may capture up to 75% of an individual’s personality. They are very stable over time. Personality measures The most common measurement method are self-report surveys. There are different surveys developed like the International Personality Item Pool, The Personal Characteristics Inventory, NEO Personality Inventory, and Hogan Personality Inventory. Today, most surveys are online and thus unmonitored which give rise to potential problems:
Steps should be taken to reduce these problems. The tests should be kept as brief as possible. Furthermore, identification codes should be assigned by applicants and basic background data should be gathered, even as breaking down the test into sections. Third, the chance of faking can be reduced by following some of the steps outlined shortly. Finally, use item banking to enhance test security. Evaluation of personality tests Each Big Five trait has advantages and disadvantages. Conscientiousness, emotional stability, and extroversion have the strongest correlates with job performance and appear to be most useful in selection contexts. There are however some criticisms about the usefulness of personality tests: the validities are trivial, faking undermines their usefulness, and applicants react negatively to them.
This test assesses an individual’s capacity to function in a certain way. Aptitude test identifies a person’s innate capacity to function. Achievement tests identifies a person’s learned capacity to function. These differences are difficult to separate in reality. There are 4 major classes of ability tests discussed below:
This test assess abilities involved in thinking, memory, reasoning, verbal and mathematical abilities, and the expression of ideas. It reflects general intelligence. General intelligence causes individuals to have similar scores on measures of specific abilities. Measures of cognitive ability The tests are the least expensive of any substantive assessment method. Examples are the Employee Aptitude Survey or the Wonderlic Personnel Test. Evaluation of cognitive ability tests
Some degree of intelligence is important for any type of job and therefore, cognitive ability tests are useful for any type of job. Intelligent employees learn more on the job and have more job knowledge, and this is why cognitive ability tests predict performance. Furthermore, intelligent employees adapt better to changing job conditions. Potential limitations One limitation of cognitive ability tests is that it has adverse impact against minorities. If a test predicts job performance with equal accuracy for two groups, then most people would say the test is fair. The problem however is that even though the test is equally accurate for both groups, the average test score may be different between the two groups. This will cause some degree of adverse impact. To reduce this, tests should be developed in an open-ended manner since it reduces the differences in test scores between two groups. Furthermore, the negative effects of cognitive ability testing can be reduced by recruiting for diversity and also for cognitive ability and personality. A second limitation of the test is that there are mixed employee reactions on it.
This test is used to measure the correlation of thought of bodily movement. It involves processes like reaction time, arm-hand steadiness, control precision etcetera.
This test is used to measure muscular strength, cardiovascular endurance, and quality of movement. A reason to use this test is to screen out individuals susceptible to repetitive stress injuries. It may also be necessary for equal employment opportunity reasons or to avoid injuries on the job.
This test is used to assess the ability to detect and recognize environmental stimuli. For example a flight simulator to assess airline pilots. Job knowledge tests This test is used to directly identify an applicant’s ability to understand job requirements. There are two types. The first type asks questions that directly assess knowledge of the duties involves in a certain job. The second type of knowledge tests assesses the level of experience with, and corresponding knowledge about, critical job tasks and tool necessary to perform the job. Emotional intelligence tests Emotional intelligence consists of three components:
Measurement Emotional intelligence is often tested in two ways. Some measures are very similar to items from the personality test, and are strongly related to emotional stability and conscientiousness. Second, some measures are more ability focused. The personality-like variety is most common, Research showed that EI is modestly related to job performance. Emotion regulation has the highest correlation with job performance. Criticisms
Performance tests and work samples These tests are used in order to assess actual performance instead of underlying capacity or disposition. There are different types of test. Performance test vs. work sample What a person actually does on the job is measured with a performance test (e.g. internship). A work sample is developed to capture parts of the job, like a programming test for a computer programmer. While a performance test is more expensive than a work sample, it is also a better predictor of job performance. Motor vs. verbal work samples Physical manipulations of things is done through a motor work sample test (e.g. driving test). A verbal working sample test involves a problem situation requiring language skills and interaction skills (e.g. role playing). High- vs. low-fidelity tests With a high-fidelity test, realistic equipment and scenarios are used to stimulate the actual tasks of the job. With a low-fidelity test a written or verbal response is asked from the job applicant. Computer interaction performance test vs. paper-and-pencil tests Computers can be used to capture the complex and dynamic nature of work. Reactions of the candidates like motor and mental reactions can be assessed. Evaluation Performing or work sample tests have a high degree of validity in predicting job performance. Furthermore, these measures are widely accepted by applicant as being job related. Moreover, they have low degrees of adverse impact. There are also limitations with regard to work samples. There are high costs associated with work samples. Also, it is very job specific meaning that a different test will need to be developed for each job. Finally, if substantial training-on-the-job is involved and some or many of the applicants would require this training, work samples simply will not be feasible. Situational judgment tests This test contains some elements of an ability test and some elements of a work sample. Applicants are placed in job-related situations and they are asked to choose a course of action from alternatives. For instance, the applicant is confronted with a project team in conflict and should choose the best method to solve the conflict. While a job knowledge test explicitly taps the content of the job (areas that applicants are expected to know immediately upon hire), situational judgment tests are more likely to deal with future hypothetical job situations. It also involves more realistic material rather than the less holistic job knowledge tests. Situational judgements tests present applicants with multiple-choice responses to the scenarios, while work samples asks applicants to actually engage in behavior that is observed by others. Research showed that situational judgment test are reasonable valid correlates of job performance and have less adverse impact against minorities. Also, video-based situational judgment test generate positive applicant reactions. They are however not as valid as work samples and job knowledge tests. When using situational judgment test, three important decisions must be made:
Integrity tests The desired qualities of job applicants are rated as integrity, communication skills, interpersonal skills, motivation/initiative, strong work ethic, and teamwork skills respectively. Integrity tests can be computerized tests or paper-and-pencil tests. These tests are most likely in situations where theft, safety, or malfeasance is an important concern. With an integrity test, the one most prone to these counterproductive work behaviors are weed out. Measures The first type of integrity test: clear purpose directly assess employees attitudes toward theft. The questions go about antitheft attitudes and about the frequency and degree of involvement in theft or other counterproductive behavior. Examples of these tests are the Personnel Selection Inventory, the Reid Report, and the Stanton Survey. The second type of integrity test: veiled purpose assess employees personality with the idea that personality influences dishonest behavior. The most common test for this type are Personnel Reaction Blank, and the PDI Employment survey. Both tests are valid predictors of counterproductive behaviors and job performance. The tests have no adverse impact against women and minorities. Integrity test can therefore be used for a wide array of jobs. Criticisms and concerns Faking: applicants can fake their responses when they want to do so. But we never know when an applicant has faked or not. When faking is a problem, it is not sufficient enough to undermine the validity of the test. Misclassification and stigmatization: since not all selection methods are perfect, some applicants will be misclassified as dishonest. There is also possible stigmatization of applicants who are thought to be dishonest due to their test scores. Negative applicant reactions: compared to other selection tests, integrity tests were the less favorable among applicants. Interest, values, and preference inventories This is used to identify the activities individuals prefer to on the job and off the job. Many standardized tests measure vocational interests rather than organizational interests. The Strong Vocational Interest Blank and the Meyers Briggs Type Inventory tests are commonly used. Interest inventories are moderate predictors of job performance, but they do predict job satisfaction levels. Interest and value inventories become more valid when they consider person/organization fit. Structured interview A structured interview has higher validity and reliability than unstructured interviews and has the following characteristics:
Situational interviews identifies an individuals’ ability in order to predict future behavior. Experience-based interviews or job-related interviews identifies past behaviors connected with the prospective job, since past behavior is a good predictor for future behavior. Both methods are reliable and valid and attempt to identify applicant behavior. Applicants react positive to the interview. Constructing a structured interview Following the steps below will help develop a structured interview:
For each KSAO the decision must be made if individuals should bring it or acquire it on the job. Furthermore, it must be decided whether the structured interview is the preferred method to assess the individual KSAOs.
Interviewers differ in their accurateness of judgments than others. Therefore, interviewers should be trained in order to increase the validity of structured interviews.
Within the process an evaluation of the structured interview should be available. Selection for team environments Teams are more flexible and responsive when there are changing events, they operate more efficiently, and it will increase employee motivation. There are 4 categories in which teams can be clustered. The first is problem-solving teams in which members share ideas or offer suggestions for the improvement of work processes. Second, self-managed work teams in which a group of employees perform highly related or interdependent jobs. Third, cross-functional teams which are teams made up of employees from the same hierarchical level but from different work areas. Finally, virtual teams are physically dispersed member working together to achieve the same goal. The KSAs required for the teamwork should be determined. Another important decision to be made is who should make the hiring decision. Choices of substantive assessment methods For each substantive assessment method the use, cost, reliability, validity, utility, applicant reactions, and adverse impact are researched.
P=positive, N= negative, M=moderate Discretionary assessment methods These assessment methods are used to distinguish those who receive a job offer from the list of finalists and those who do not. This is very subjective and the intuition of the decision maker is important. In this stage, KSAOs are not tested anymore. The focus is more on the person/organization match. The organization’s staffing philosophy regarding equal employment opportunity and affirmative action should be involved in the discretionary assessments. Also demographic characteristics are taken into account in this stage. Contingent assessment methods Depending on the nature of the job and legal mandates organizations use contingent assessments methods or not. Drug testing One of the major cause of workplace violence, accidents, absenteeism, and increased health care costs is a result of substance abuse. Therefore, many organization use drug testing programs to weed out drug users. Type of tests
Administration There are specific guidelines to follow by federal agencies. Two steps should be taken to carefully administer the test. (1) take care in selecting a drug testing firm to ensure that accurate procedures are followed. (2) to ensure reliability, a positive drug test should always be re-test. Exhibit 9.16 shows the steps of an organizational drug testing program. Smokers are increasingly banned out from hiring consideration. Few employers test applicants for alcohol use. In the first place because alcohol use is legal and far more socially accepted. Furthermore, it remains in the system for only 1 day. Evaluation Drug testing result in a high amount of false positives (test indicates drug use when none occurred). But the use of the strict procedures, the results are very accurate and error rates are low. Job performance is not a logical criterion, but drug tests appear to predict other work behaviors such as accidents and other counterproductive behavior. Finally, drug testing programs showed a moderate to high degree of adverse impact against black and Hispanic applicants. Employee reactions are positive to drug tests. Medical exams This is used to assess potential health risks in job candidates. The use of medical exams is strictly regulated by the ADA. The exam should be based on job-related medical standards in order to make it reliable and valid. Legal issues Uniform Guidelines on Employee Selection Procedures (UGESP) This is a detailed set of federal regulations which specifies the requirements for the selection systems of organizations. It consists of four major sections. Selecting internals means the assessment and evaluation of employees from within the organization as they move from job to job via transfers and promotions. Preliminary issues The logic of prediction Past situations like someone’s current job or previous job and their success are predictive of their success in new situations: the internal vacancy. The most valid external selection measures are biographical data, cognitive ability tests and work samples. These assessments have also validity in internal selection decisions. When selecting leaders personality tests are a valid predictor. When predicting long-term job performance cognitive ability is a valid predictor and work samples are a valid predictor of advancement. While the logic of prediction is useful for both internal and external selection, it has several advantages for internal selection:
Disadvantages of the logic of prediction for internal selection are:
Types of predictors Selection plan Often internal selection rely on subjective opinions and a lot of decision errors are made as a result. Relying only on others’ feelings about the job applicant will result in lowered hiring standards for some employees, discrimination, and low validity decisions. Therefore, a selection plan should be used which lists the predictors to be used for assessment of each KSAO. Initial assessment methods Initial assessment methods are used to weed out applicants who do not meet the minimum requirements to become an candidate. Below the predictors used for internal recruitment will be discussed. Talent management/ succession systems Internal recruiting is the desire of most organizations. You have better knowledge about the applicant and valued employees may be motivated and retained, based on the expectation of future promotion. Talent management/succession systems record the capabilities, skills and talents of the organization’s employees in order to inform HR decisions and to facilitate internal recruitment. However, a lot of organizations do not use these kind of systems because they believe it is too costly or the expertise to make a system is not available. However, SAP and Oracle/Peoplesoft are useful software for talent management. One should imaging that it is time-consuming to keep the system up-to-date. The latest skills acquired by employees should be entered in the database. Furthermore, the database should be specific, aligned with the organizational strategies and be used when internal selection decisions are made. Peer assessments Peer ratings, peer rankings, peer nominations can be used in order to evaluate the promotability of an internal applicant. Peer assessments may encourage friendship bias. Furthermore, it may undermine moral in a work group by enhancing a competitive environment and the KSAOs needed are not always clear. Peer assessments are perceived as fair and are mostly used with open recruitment. Self-assessment In this method employees are asked to evaluate their own skills for determining promotability. Especially with open recruitment systems. Managerial sponsorship Organizations rely increasingly on higher-ups to identify and develop the KSAOs of the employees at lower organizational levels. The higher-ups are persons at higher levels who does not have direct responsibility for the person being rated. They can be coaches, sponsor, and mentor and have considerable influence in promotion decisions. Informal discussions and recommendations A lot of promotions are a result of informal discussions and recommendations. Since this is a quite subjective method there is low validity. Choice of an initial assessment method Each assessment method has its own effectiveness. However there is nothing known about utility and adverse impact.
Many organizations rely on closed rather than open internal recruitment systems, since talent management and informal methods are mostly used. Peer assessment is highly valid and reliable, but not highly used. Organizations can use it as screening tool. Substantive assessment methods To decide which internal candidates will become finalist different substantive assessment methods can be used: Seniority and experience Seniority is the tenure with the organization, the job, or the department and is only a quantitative measure. Experience also reflects the type and included the different positions undertaken in the organization and the different activities performed. Seniority is mostly used for promotions in small, unionized, and capital-intensive organizations. There are many reasons why seniority and experience is widely used by organizations:
Research on those two aspects has found the following:
Job knowledge test Job knowledge measures ones ability to perform certain work. It includes both ability and seniority. Paper-and-pencil tests are used, but also video-based job knowledge tests which are interactive. Job knowledge is a great predictor of job performance, since it reflects previous experiences and cognitive ability. Performance appraisal Employees performance is collected due to performance appraisal and can be used for internal selection. Advantages are that it captures both ability and motivations and is readily available in many organizations. However, performance appraisal results are subject to many influence that are not related to success in a future job. Promotability ratings Together with performance appraisal ratings an assessment of promotability is often made to look if someone is able to fulfill a higher-level job. By discussing what is needed to get a promotion, employee development may be encouraged as well as coupled with organizational sponsorship of the opportunities needed to develop. Assessment centers With assessment centers a collection of different predictors is used in order to make a forecasting of future success. The KSAOs should be identified and assessed with the help of multiple methods. When using assessment centers, a selection plans should be developed. The largest part of assessment centers are simulations in which employees participate in exercises and their performance will be evaluated. The assessor examines all the information gathered and translates it into ratings on several dimensions of managerial jobs. There are different exercises used at a center, especially in-basket exercise, (information is given and the applicant should response to it), group discussion ( a given problem should be solved and there is looked for communication and leadership skills f.i.) and case analysis (candidates should write an analysis of the case). Assessment centers are a valid predictor for job performance and there is no adverse impact against women and minorities. Furthermore, assessment centers add incremental validity over personality and cognitive ability. There are however also problems with assessment centers. It is a very expensive method. Furthermore, the construct validity of assessment centers is questionable. Interview simulations This can be used as part of the assessment center but also as a separate predictor. There are different forms of interview simulations:
Promotion panels and review boards A panel or board of people to review the qualifications of candidates is often used in the public sector. The panel of boards consists of Hr professionals, job experts, and representatives from constituencies in the community that the boards presents. The advantage is that there are multiple assessors with which to ensure a complete and accurate assessment of the candidates qualifications. Furthermore, the constituents are more committed in the decision making process. Choice of substantive assessment methods
Discretionary assessment methods There are two areas that need to be considered in deciding who get a job offer and are different from external recruitment. Earlier finalists should be taken into account and will be given an offer over a first-time finalist. Second, there are multiple assessors used in deciding who get the job offer. As a result evaluations by people other than the hiring manager may be accorded substantial weight in the decision making process. Legal issues Most issues are already discussed with external selection and also apply for internal selection. Uniform Guidelines on Employee Selection Procedures (UGESP) UGESP states requirements that apply to any employment decisions and should always be taken into account. It is important to ensure that internal selection methods are valid if adverse selection occurs. The organization should pay close attention to the validation and documentation requirements for content validation in the UGESP. The Glass Ceiling To reduce glass ceiling effects, organizations should make greater use of selection plans and more objective internal assessment methods, as well as help providing the required KSAOs for advancement. Now we have identified different techniques to assess candidates, we now discuss how this information can be used to make an optimal hiring decision. Choice of assessment method We have already discussed validity, adverse impact, utility and correlation with other predictors, but we go in further detail now. Validity coefficient The validity coefficient is the correlation between predictor and criterion scores. The practical and statistical significance of the validity coefficient determines the usefulness of the predictor. Remember, that reliability is necessary for validity. Practical significance is the extent to which the predictor adds value to the prediction of job success. Through examining the sign and magnitude of the validity coefficient, the practical significance will be assessed. With the sign of the validity we mean the direction of the relationship (positive/negative) between the predictor and the criterion. With the magnitude we mean the size in which a coefficient of 0 is not least desirable and a coefficient of 1 is most desirable, because then the predictor is more useful. Validities higher than .15 are moderately useful, and validities above .30 are highly useful. Statistical significance is shown by the p-value. A p-value lower than .05 is a reasonable level. Face validity This concerns whether the selection measure is valid in the eyes of the applicant. Correlation with other predictors A predictor is useful when it adds value to the prediction of job success. When a predictor has a high correlation with the criterion and a smaller correlation with other predictors, it is most useful. Adverse impact A predictor has adverse impact when it discriminate by screening out a disproportionate number of minorities and women. Utility When using a predictor there are gains to be expected, this is called utility. There are two types of gains. Hiring success gain: this is the increased proportion of successful new hires as a result of adding a new predictor to the selection system. Utility increases when the expected hiring success gain also increases. This gain is influences by both the selection ratio and base rate. Selection ratio: number of people hired / number of applicants. The lower, the more useful. A lower selection ration can be due to a large denominator. This means that the organization reviews a large number of applicants for the job. A lower selection ratio can also due to a low nominator. This means that the organization is very strict with its hiring standards. Base rate: the number of successful employees / number of employees. The higher the better. To decide whether using a certain test or not ( to use a new predictor), you should take into account the validity, selection ratio and base ratio. Sometimes validity is low, but in the context of the selection and base ratio, there can be highly successful hiring gain. When this is the case, the low validity is not a problem. On the other hand, sometimes a new test can increase the hiring success gain enormously and should be used when this is the case. Example Taylor-Russell tables: Base rate = .30
As you can see, when the base rate is .30 and the selection ratio is .10, than you can better use the new test 2, because the hiring success gain will increase from 43% to 77%. But when the selection ratio is .70 then the hiring success gain will only increase from 33% to 40% by using the new test. Then it doesn’t really matter which one to use.
Limitations of utility analysis The greatest concern is that utility estimates lack realism because of the following:
Determining assessment scores Single predictor The easiest method in selection decisions is to use a single predictor, because the scores on this predictor is directly the final score. The disadvantage of this method is that it does not feel comfortable to hire someone on only one predictor. Furthermore, using more valid predictors increases the utility. Multiple predictors Since there is no predictor with a perfect validity, organization often use multiple predictors. This means that decisions must be made about combining the resultant scores. These decisions can be addressed through consideration of three approaches:
Using this model means that a low score on one predictor can be compensated with a high score on another model and the applicant may still get the job in this case. The model recognized that people have multiple talents and that different combinations of it may produce success on the job. A downside of this method is that the level of proficiency for specific talents cannot be compensated for by other proficiencies. Using this compensatory model to make decisions, four procedures may be followed:
Choosing among weighting schemes Beside the fact that statistical weighing is more valid than clinical weighing, combining these weighing method produces the highest validity.
In this approach, each predictor should earn a passing score by the applicant before advancing in the selection process. This approach is used when each requirement measured by a predictor is critical to success on the job.
This models involves both the multiple hurdles model and the compensatory model and is used when not all requirements are critical to job success. This process begins with multiple hurdles which should be passed by the applicant. Failure leads to rejection. The process ends with the compensatory model. Hiring standards and cut scores With hiring standards and cut scores we mean what forms a passing score. Description of the process Cut scores represents scores trough which a distinction can be made between those who stay in the process and those who are rejected. For instance, when scores on a test may range from 0-50 point, those with a cut score of 35 may stay and others will be rejected. Consequences of cut scores
The horizontal axis entails the criterion score at which is determined whether the individual is successful or not. The vertical axis shows the predictor cut score. Box 1 and 3 represents correct decisions. True positives means that applicants were assessed to have a high chance of success using the predictor and would have succeeded if hired. True negatives means that it was assessed that those applicants had a little chance for success, and that they indeed, would not be successful when hired. False negative means that applicant where assessed as not being likely successful, but had they been hired, they turned out to be successful. False positives means that applicants were assessed as being likely to succeed, but would have end up as unsuccessful performers. High cut scores results in less false positives, but more number of false negatives. Depending on the kind of job a decision should be made about the height of cut scores. For example, for a pilot job false positives should be minimized. Low cut scores results in more less false negatives, and more true positives, but more positives are hired. For organizations with a strict EEO/AA policy it may be desirable to have a low cut score, so that the number of false negatives for minorities and women is minimized. Determining cut scores There are three methods which can be used in order to determine cut scores:
When using a band of 10-point band width, all candidates who score 71-80 are given the same score 7 for example. This method reduces the differences between higher- and lower scoring groups and as a result lowers adverse impact. Often, the band width is established on the basis of the standard error of measurement. The standard error of measurement is part of the reliability, meaning that a low reliability result in larger band widths. Methods of final choice With the methods of final choice the assessments are translated into job offer decisions. The methods include random selection, ranking, and grouping.
Ongoing hiring There are organizations who continuously search for applicants and always collect résumés. Everyone who passes the minimum requirements for open jobs will be called for an interview. Often, this is like the method of hiring the first qualified candidate for jobs with high turnover rates. It generates a large pool of applicants, but careful consideration is often the case. Decision makers The final question to ask is who should have an influence in the decision making process. HR professionals as well as line managers should play a role in this. The primary role of the HR professional will be especially in terms of the process. The managers should be consulted about these processes. Legal issues At the moment that cut scores lead to adverse impact the UGESP come into play. Moreover, organizations should use job-related hiring standards and should use the same selection techniques and weights for all individuals. After selection and decision making a considerable overlap between the candidate’s KSAOs, the job requirements and rewards is determined and a final match occurs. Employment contracts Requirements for an enforceable contract
Parties to the contract
Form of the contract
Disclaimers With disclaimers a statement is made that limits an employee right and reserves it for the employer. The use of disclaimers is enforceable and can serve as an important component of the contract. There are some recommendations in their use:
Contingencies It is possible that the employer wants to make a job offer that is contingent on certain other conditions being fulfilled by the offer receiver. For example, after passing the medical exam, or after a satisfied reference check. There are however defined limits to the use of contingencies. Therefore, contingencies should not be used in employment contracts without prior legal counsel. Other employment contract sources Employment contract terms may be established as a result of unintentional and intentional acts by the employer. Handbooks and oral statements made by the employer can specify terms and conditions. Unfulfilled promises Making promises to offer receivers about terms and conditions is involved in the job offer process. As a result employers should (1) not make promises it is unwilling to keep, and (2) be sure that promises made are actually kept. Unfulfilled promises can pursue claims. The claim of breach of contract may be pursued for written and oral promises. Another claim is that of promissory estoppel, in which employees may claim that they relied on promises made by the organization, to their subsequent detriment, since the actual or presumed job offer was withdrawn. A third claim is that of fraud in which the employee claims that the promises made by the organization had no intention of keeping. Job offers Accepting job offers by the receiver established the relationship between the organization and the offer receiver in the form of legally binding employment contract. But what is a strategic approach to job offers? Strategic approach to job offers With the use of a strategic approach there is a higher possibility of serving the interests of both the organization and the finalists. Moreover, it helps the organization deciding whether there will be a standard offer for all finalists or whether enhanced offers will be possible for some finalists. The strategic approach to job offers indicates that there are 4 forces to consider when creating job offers:
In tight labor markets, organizations are not in the position to provide standard offers, but they should provide many job offer alternatives to attract more potential job offer receivers. Next to this, when organizations strive for long-term outcomes as performance and promotion success, job offers which enhance this goals should be offered. Furthermore, reward preferences of applicants should be identified. Finally, there are legal issues. Contract language will need to be reviewed for clarity and completeness of the promised rewards and other terms, and for consistency with organizational employment policies. Especially with regard to the EEO/AA goals. Job offer content While there is considerable latitude in terms of conditions of employment, it is apparent that job offers should be carefully constructed. The different subject are discussed below. Starting date In the job offer the organization defines the starting date of the employment relationship. Duration of the contract The use of a fixed-term contract specifies the duration of the employment relationship to both parties. When using an indeterminate-term employment, the relationship may be ended by either party at any time, for any reason. This should carefully stated in the written contract. A compromise between these two types of contract is the employment relationship for an indefinite term, in which the employer may end the agreement at any time for good cause, and that either the employee or the employer may end the agreement on 30 days’ written notice. Compensation The most important reward the organization has to offer is compensation. It should be carefully thought out and planned with regard to starting pay, variable pay and benefits.
Restrictions on employees In order to protect the organizations own interests, certain restrictions can be placed on employees. For example confidentiality clauses that prohibit current or departing employees from the unauthorized use or disclosure of confidential information during or after employment. This information is not made public because it gives the organization competitive advantage. Another restriction called as the noncompete agreement, seeks to keep departed employees from competing against the organization. It must be carefully crafted in order to be enforceable and should be limited in time and geographical area. Finally, there is the golden handcuff. This is used to retain new hires for some period of time and to financially discourage them from leaving the organization, particularly soon after they have entered. It can require the employee to pay-back up-front payments made when the employee departs within the first year of employment. Other terms and conditions There are more terms and conditions organization may want to provide in order to willing commit itself to them as part of a legally binding contract. Acceptance terms The receiver should be required to accept or reject the offer in total without revision. It should also specify a lapse date so that certainty and closure are brought to the offer process. Job offer process The content of different job offers should always being formulated within the broader context of the job offer process. Formulation of the job offer Consideration of several factors is important in order to formulate the job offer: Knowledge of competitors With regard to the demand side, the organization must become knowledgeable about their competitors and the terms and conditions of job contracts provided by their competitors. This can be done by performing salary surveys, looking at websites of their competitors, or consulting with trade associations. Informal information gathering is also possible. Terms and conditions fall within a range and the organization need to determined where within these ranges it wants to position itself in general and for each particular job offer. With regard to the supply side, the needs concerning labor quantity and quality should be considered. Applicant truthfulness Information about KSAOs is gathered as part of assessment process, but how truthful is this information? While there is no evidence, there are indications that there is often lack of truthfulness for current salary, salary history, job title, job duties and accomplishments. Therefore, organizations are increasingly verifying all applicant information. But, organizations should not base their job offers on information provided by finalists. Expected reactions of offer receivers The organization wants to construct an job offer which is acceptable to the receiver. Therefore, preliminary discussions and communications should be hold in order to gather information about preferences from the offer receiver. Policies on negotiations and initial offers Organizations should decide if negotiations about the job offer is possible or not. Helpful in making this decision is to consider what components of the salary and benefits part of the offer are negotiable and to which extent. In order to formulate these strategies and policies for making job offers, several considerations should be taken into account. First, the type of job offer influences the strategy and policy. For a new hire a different approach can be taken than for an internal candidate who switch from job and you want to retain. Second, the costs of not accepting the job offer should be considered. Next, be aware that many people to whom you provide job offers may in turn be seeking and receiving counteroffers from their current employer. Fourth, an offer to someone currently employed means that the receiver normally incurs costs for leaving and will expect a ‘make whole’ offer from the organization. Finally, virtually every term and condition of employment should be presented to the receiver. Once the organization has decided whether it will negotiates on a specific term and conditions it may determine its posture regarding the presentation of the initial offer to the receiver. There are three basis strategies to choose from:
After chosen a strategy, negotiation policies should also be considered. Give- and- take negotiations do it better than a take-it-or-leave it approach. Presentation of the job offer There many different ways in which job offers can be present. We discuss the two extreme approaches. Mechanical approach In this approach a one-way communication from the organization to the offer receiver exist. A written offer is send to the receiver and the organization waits for a response. When the offer is accepted, communication is stopped with the receiver. When the offer is rejected, a letter with the receipt of the rejection is sent. This approach is highly efficient and cheap, but there are also downsides to it. Sales approach In this approach the job offer can be seen as a product that must be developed and sold to the receiver. There is active communication between the two parties before, during and after the offer has been presented. It is a time-consuming and expensive approach, but the chance that the receiver accepts the offer is higher. Timing of the offer Research showed that the more quickly an offer is made, the higher the chance of acceptance. Organizations can increase the acceptance of job offers and reduce vacancy times if they make offers in a timely manner. Job offer acceptance Two important things should be done when the offer receiver accepts a job offer. First, the receivers actual acceptance should be checked to ensure that it has been accepted as required in the offer. Next, the organization should keep contact with the new hire. Rejection by the organization When an offer is accepted by one candidate, the organization have to reject others. Records should be kept of those who are rejected in order to have a pool of potential applicants and for legal issues. The reason for rejection should be candid and truthful, and matching the reasons recorded and maintained on other documents by the organization. Rejection by the offer receiver When a job offer is rejected, the organization must decide whether to provide a new offer or to accept the rejection. In the case there are policies about this in the organization, these should be followed. Reneging Sometimes reneging is necessary, such as in cases of economic downturns or health problems. The organization should try to minimize reneging through taking steps. Organizations should try to be fair to the offer receiver and at the same time representing the interests of the organization. Steps which can be taken are for instance: only extending offers for positions known to exist and be vacant, require top management for approval of all reneging, discourage offer receiver from accepting offer, etcetera. New employee orientation and socialization Newcomers should be guided by orientation (immediate) and socialization activities (long-term). The newcomer is likely entering a situation of uncertainties and unknowns. The more the organization reduces this, the more the newcomer adapts to the job and remains with the organization. For example:
Orientation Normally, the HR department is responsible for the design and conduct of the orientation. Several activities should take place during different days. Effective programs provides an understanding of the organization’s culture, norms and values, help the employee to understand his or her role, and how this fit within the total organization, and help the new employee achieve objectives and shorten the learning curve. Orientation activities include for example: introducing the newcomer to other staff members and provide required keys, tour the employee’s assigned work space etcetera. This orientations begins before the employee arrives like enrolling in the systems of the company and within the first month. Socialization A natural extension of orientation is socialization. The goal is to achieve effective person/job and person/organization matches. It is focused on long-term success. Effective socialization may increase role clarity self-efficacy, and fosters social acceptance. In order to create effective socialization two issues regarding content and delivery should be discussed. Content The content of the socialization process consists of 6 different elements:
Delivery There are some people especially responsible in helping socialize the newcomer. In the first place the newcomer’s supervisor particularly in terms of performance proficiency and organization goals and values. Next to this should peers assist in the socialization. They should be helpful with respect to politics, language, and history drawing on their experiences. More formal is assigning a mentor of sponsor to the newcomer who actively interacts with the newcomer. Computer technology is more and more used in the socialization process. Finally, the HR department can help establish special events, informational presentations and organization-wide socialization activities. Legal issues Within the employment contract, the actual employment relationship together with its conditions and terms are specified. The organization have to deal with certain responsibilities and obligations when developing the contract. These involve:
The establishment of effective systems for retaining employees is a crucial part of the staffing process. The goal of retention management is to ensure that the organization is able to keep enough employees with important knowledge, skill, ability and other characteristics to generate future success. Some turnover is however desirable, but the turnover of a key employee can inhibit the organization’s ability to achieve strategic goals. Turnover and its causes Nature of the problem Turnover can have both advantages and disadvantages for organizational effectiveness. Therefore, it is important that the retention strategy and tactics involve careful assessment of both retention costs and benefits and the design of retention initiatives that provide positive benefits at reasonable costs to the organization. It should focus on exactly who is retained, and thus making special efforts to retain ‘high-value employees’. Employees can voluntarily leave the organization for a number of reasons, only some of which are avoidable on part of the organization. Retention management must be based, therefore, on a gather and analysis of employees’ reasons for leaving. Types of turnover Voluntary turnover There is avoidable and unavoidable voluntary turnover. Avoidable turnover: turnover that potentially could have been prevented by certain organization actions, such as pay rise or a new challenge. Unavoidable turnover: the exit of an employee that the organization could probably not have prevented, such as employees who return to school, retire, have healthcare problems, childcare etc. Regarding avoidable turnover, the organization will try to prevent high-value employees from quitting - those employees with high job performance, strong KSAOs, key intellectual capital, high promotion potential, high training and development investments, high experience and difficult to replace. The organization is less likely to try to retain low-value employees. Unavoidable turnover cannot be prevented and thus there is no attempt to prevent regardless of value. Involuntary Involuntary turnover is divided into discharge and downsizing types. Discharge turnover arises when an employee has discipline or performance problems. Downsizing turnover is a reduction in force with respect to target groups of employees. This can be the result of a cost-reduction program, or an increase in shareholder value. Reduction in force can be a result of mergers and acquisition, relocation, plant closing. Causes of turnover For each turnover type there are different causes. Causes of voluntary turnover There are 3 general factors that influences the intention to quit:
Retention must be directed toward the avoidable types of turnover: turnover due to job dissatisfaction, employee possession of general and transferable KSAOs, a low cost of leaving, the availability of other job opportunities within the organization, and the employees’ receipt of a job offer. Causes of discharge turnover Extremely poor person/job matches, mismatch between job requirements and KSAOs, not following the rules and procedures are all cause of discharge turnover. Most of the time it is the cumulative effect of multiple incidents that results in discharge. Causes of downsizing turnover Downsizing is a result of overstaffing. An organization might be overstaffed through:
Analysis of turnover In order to analyse turnover, three types of turnover must be measured and benchmarked, specific reasons for leaving must be identified and the costs and benefits of each type of turnover must be assessed. Measurement Turnover rate = Number of employees leaving -------------------------------------------- * 100 Average number of employees To calculate the turnover rate will require data on, and decisions about, (1) what is the time period of interest, (2) what is an employee that counts, (3) how to calculate the average number of employees over the time period. Breakouts and benchmarks Analysis and interpretation of turnover data are aided by making breakouts of the data according to various factors: type of turnover, type of employee, job category, geographic location. These data serve as the foundation for development of strategic retention initiatives. Also the HRIS provides information about when, where, and even why employee turnover is occurring. Benchmarking is useful when interpreting the turnover data. You can look at internal trends of turnover in the organization. With external benchmarking, the organization compares its own data with the current rates and turnover trends of other organizations. One major benchmarking source is from the Job Openings and Labor Turnover Survey. Reasons for leaving The reasons for leaving is essential information for measuring and analyzing turnover. Exit reasons should be classified as a voluntary, discharge, or downsizing exit. Moreover, calculating the turnover rates should be done. Tools which can help to learn about the underlying reasons for leaving are exit interviews, postexit surveys, and employee satisfaction surveys. Exit interviews This are formally planned and conducted interviews with departing employees. It is also used to explain rehiring rights, benefits, and confidentiality agreements. The organization can use the pattern of results that emerges over many interviews. Sometimes, employees do not give exactly the true reasons in an exit interview. An anonymous survey feels saver. There are some suggestions for conducting an appropriate interview to gather truthful information from the leaver:
Postexit surveys This survey should include the same areas as the exit interview and the survey should be sent shortly after the employee’s last day. Online surveys are convenient and inexpensive. Employees satisfaction surveys Job dissatisfaction is an important predictor of voluntary turnover, and it therefore provides information about the types of job rewards that are most dissatisfying to employees and might be reasons for leaving. It provides information about all employees and it can help to increase the job satisfaction. Sometimes a consultant is retained to analyse this data. Cost and benefits For each of the three turnover types the costs and benefits may be estimated. Voluntary turnover This can be very expensive for organizations. Organizations with high turnover rate often have a low stock price, a low return on investment, low revenues, and other low financial returns. On the cost side there are separation, replacement, and training costs, both financial and nonfinancial. Financial costs involve HR staff and manager time, accrued paid time off, and temporary coverage. Other costs are teamwork disruption, loss of workforce diversity, production and service delay. Those costs are less discernible and harder to estimate, but may have a huge impact on the organizational effectiveness. To estimate time costs, it is necessary to know the average amount of time each person spends in the specific activity, plus each person’s compensation. For example:
In replacement and training costs the material and equipment costs are likely to be most prevalent. In the cost estimate each type of cost (separation, replacement, and training) is described in terms of their time costs, material and equipment costs and other costs. Discharge Separation, replacement and training costs are still incurred. Compared with voluntary turnover, discharge is a more costly, and unfavorable, type of turnover to experience. In unionized settings, discharge problems may create a threat to labor management relations. There are also some advantages. First, the organization get rid of a truly low-value employee whose presence has caused considerable disruption, ineffective performance, and possibly declines in organizational effectiveness. Next, there is the opportunity to replace this person with a high-quality new hire. Furthermore, many members of the organization will gain improved disciplinary and performance management skills and the HR department’s awareness of the need for better discipline and performance management systems may be heightened and lead to these necessary changes. Downsizing Downsizing costs can be divided in separation costs since there will be no replacement, and other costs. The major economic cost areas are time cost, cash outlays for various severance and buyout packages, and increased unemployment compensation insurance premiums. Time costs HR and manager’s time in planning, implementing, and handling the reduction in force. Severance costs pay for accrued time off, early retirement packages, voluntary severance package. Other costs shareholder value will not improve, loss of critical employees and KSAOs, contagion, difficulty in attracting new employees. There are some advantages of downsizing: There will be lower payroll and benefits costs. The organization may gain production and staffing flexibility, an opportunity to outsource or redesign and relocate facilities. And new promotion and transfer opportunities may open up as the restructuring lead to the hoped-for rebound in organizational effectiveness. Retention initiatives: voluntary turnover Voluntary turnover is most common in organizations and therefore the one they choose to focus on in the continual ‘war for talent’. We now focus on how to influence the three major causes of turnover: desirability of leaving, ease of leaving, and alternatives. Current practices and deciding to act The turnover analysis data serves as an input to the critical decisions of whether to act to solve a perceived turnover problem, and if so, how to intervene to attack the problem and ultimately assess how effective the intervention was. What do organizations do? SHRM Survey This survey measured the reasons for turnover. The top 10 reasons were the following:
Organizations set up retention initiatives. The most effective ones are:
The least effective retention initiatives:
WorldatWork Survey These conduct regular surveys of HR managers regarding the implementation and success of retention initiatives. Very effective tools for improving retention were paid vacation, medical benefits, deferred compensation plans. The best 100 companies Each year the 100 best companies are reported in the Fortune magazine. Organizations apply to be on the list and randomly assigned employees fill in surveys regarding the workplace and culture. High-ranked organization give an indication of what employees like, and those organizations have low turnover rates. The results give information what organizations are doing to make themselves attractive to job applicants and employees, which may aid in retention enhancement. Retention bundles To be effective, retention practices need to be integrated into a comprehensive system, or as a bundle of practices. Focusing on only compensation have less influence on turnover, than focusing on both compensation and communication as a bundle. So, managers should examine all the characteristics in the work environment that might lead to turnover and address them in a comprehensive manner. Specific retention initiatives Organizations can develop specific ways to improve their retention outcomes. These programs include both extrinsic and intrinsic rewards. Decision process The decision process is making complex trade-offs inherent in developing retention initiatives. There are 5 questions to consider in this process. First, do we think turnover is a problem? If turnover is higher than benchmarks, or is getting higher there is a cause for concern. It also involves the cost/benefit analysis. The second question asks how might we attack the problem? This involves searching for ways in which the desirability of leaving, the ease of leaving, and the alternatives can be decreased. Increasing job satisfaction, improving organizational justice and improving the social environment are ways to change the desirability to leave. By providing organization-specific KSAOs and by increasing the cost of leaving for the employee, the ease for leaving will be decreased. The third question is what do we need to decide? Specific numerical turnover rates should be specified and who the target group will be and if and how high-value employees will be treated. The next question to ask is should we proceed? This depends on judgments about feasibility, like the ease of implementation and also the costs and time involved. The final question before any plan is implemented is: how should we evaluate initiatives? The same criteria as in question 1, that led to the conclusion that turnover was problematic will be used to determine whether the chosen solution actually works. Reducing/influencing the desirability of leaving Employees’ desire to leave can come from their job dissatisfaction, shocks they experience, and personal reasons. Only job dissatisfaction can usually be influence by the organization. Therefore, improving the job satisfaction is the first strategy to decrease turnover. Increasing the job satisfaction can be done through intrinsic and extrinsic rewards. The person/job fit model emphasizes that job satisfaction results from a match between the rewards desired by employees and rewards provided by the job. Rewards preferences of employees may be assessed at all stages of the staffing process through:
There are some guidelines for extrinsic and intrinsic rewards for increasing job satisfaction and retention: Extrinsic rewards:
Intrinsic rewards:
How can intrinsic rewards be improved? Through increase the skill variety with job rotation programs and allowing personal growth on the job. Or relate pay to demonstrated proficiency or acquisition of knowledge and skills. Furthermore, enhancing job autonomy and training and development opportunities. Improving task identity, task significance and feedback should also be considered. Next, distributive justice and procedural justice are highly correlated with commitment. Violation of justice can lead to dissatisfaction and turnover. Justice perceptions are influenced by reward system design and communication, as well as the role of the supervisor as direct source of reward and punishment. Finally, helping to integrate work and non-work lives of employees is also important. Individual dispositions Despite trying to influence turnover rates by intrinsic and extrinsic satisfying rewards, some people are more likely to quit than others because of their personality dispositions. Organization with a high concern for turnover might consider assessing applicants tendency to voluntarily quit during their selection. Also measuring consciousness, agreeableness, and emotional stability measures can be tested, meaning that high score are associated with less quitting. Reduce/influence the ease of leaving There are 3 factors that can influence the ease of leaving. The first is changing the labor market conditions. This factor cannot be influenced and represents a factor that will continuously influence the organization’s voluntary turnover. The other 2 factors, can be influences by the organization: providing organization-specific training and increasing the cost of leaving.
Reduce/influence alternatives
Retention initiatives: discharge Performance management Using a performance management system allows the organization to systematically seek out and treat performance problems that employees exhibit before those problems become so damaging and intractable that discharge is the only recourse. Furthermore, it can be very helpful for the organization to defend itself against legal challenges to discharges that do occur. Performance management is a process: organization strategy drives work unit plans, which in turn become operational and doable for employees through a four-stage process. Stage 1 is the performance planning. It deals with setting performance goals and identify the specific competencies the employee will be evaluated on. The second stage is the performance execution and focus on how the employee actually performs the job. Resources, coaching, and feedback give assistance to the employee to reach the goals. Stage 3 is performance appraisal in which the employee’s success in reaching established goals and competencies is measured, written comments on it will be given, and feedback on how to improve performance will be given. The final stage is decisions. Based on the performance review, decisions about pay, training/career plans, performance problems, and retention are made. It is an ongoing process, since each decision will lead to a new cycle of performance planning. When an employee has performance problems, a process of performance counseling and discipline will be started before the employee will be discharged. This process consists of 6 stages:
In the model job performance is divided into 3 categories: Task performance = the completion of the tasks as defined in the job description. Citizenship = involves the social and psychological environment of work created by employees. Counterproductivity = actions that directly ignore organizational rules or that undermine job performance. Manager training and rewards In order to be an effective performance manager, it requires to have complex knowledge and skill for the performance execution and appraisal. Therefore managers should be trained on performance management. Progressive discipline In progressive discipline, employees are being aware of their misconduct and are provided the opportunity to change their behavior. There are 5 requirements for a progressive discipline system: (1) make employees aware of the rules of conduct and misconduct, (2) make employees aware of the consequences of violating the rules, (3) treat employees equally, (4) allow for full investigation of the alleged misconduct and defense by the employee, and (5) employees should given the right to appeal a decision. Actions to take To address the fairness requirements several things can be done. In the first place, define what constitutes misconduct and the penalties of it. Penalties start with an oral warning, then written warning, suspension, and finally termination. Second, training should be provided to employees and managers so that they are given notice of the types of misconduct, penalties, investigation and documentation requirements, and appeal rights. Next, it should be ensured that there is no favoritism. Finally, an appeals procedure should be developed in which employees may challenge disciplinary actions. Retention initiatives: downsizing There are many reasons why organizations choose to downsize: decreased profits, restructuring of the organization, mergers and acquisitions, obsolete job or work unit, technological changes, productivity improvements etcetera. Retentions matters involve balancing the advantages and disadvantages of downsizing, staffing levels and quality, alternatives to layoffs, and dealing with employees who remain after downsizing. Weighing the advantages and disadvantages We have summarized the benefits and costs of downsizing which can be seen as the advantages and disadvantages. Downsizing does not improve profitability, but is showed better stock returns. Furthermore, the amount of downsizing had a significant negative impact on sales offices’ profitability, productivity, and customer satisfaction. Is also has a negative impact on employee morale and health, workgroup creativity and communication, and workforce quality. Downsizing is not a panacea for financial problems. Because it has many negative impacts on employees, it should be combined with a well-planned total restructuring if it is to be effective. Staffing levels and quality Reductions in staffing levels should be mindful of retention for two reasons. Once downsized employees may be unlikely to return when economic circumstance will be better. Organizations should engage in costly restaffing. Therefore, the organization should consider alternatives to downsizing. If cuts are to be made, who should be retained? You can choose to retain the most senior employees in each work unit. You can also make performance-based retention decisions, in which the highest performers will retain. You can also choose to retain high-value employees. Alternatives to downsizing No-layoffs strategies is a dramatic alternative, which require considerable organization and HR planning, and high commitment. When this strategy is lost, is will damage employees loyalty and trust. Others use a strategy of layoff minimization through many different programs. Employees who remain Employees who remain after a downsizing should not be ignored, because it can creates a new problem: survivors who are stressed and critical of the downsizing process. To reduce this survivor stress, organizations can include active communication, involving the current workforce in redesigns of jobs, and discussing career-related issues. However, increased job satisfaction seems to not overcome. Legal issues Unsuccessful retention initiatives result in voluntary or involuntary separation of the employee from the organization. Therefore, the retention initiatives must be approached in part by the laws and regulations governing separations. Separation laws and regulations To provide protection and safeguards to employees leaving the organization, there are some regulations regarding the separation process:
Underlying these restrictions is the need for fair and consistent treatment of employees. Performance appraisal Many specific suggestions are developed to guide the organization in the design and use of its performance appraisal system:
Which of the following is true of applicant reactions to diversity and inclusion in the recruitment process?Which of the following is true of applicant reactions to diversity and inclusion in the recruitment process? The depiction of workforce diversity in recruitment materials tend to attract women, minorities, and even majority group job seekers.
Which of the following is an advantage of external recruiting?What are the advantages of external recruiting? Advantages: Larger pool of applicants, which increases its chance of finding the right person for the job.
Which method of recruiting is most effective for tight labor markets and highly valued jobs realistic targeted considerate branded?Research suggests that realistic job previews lead to massive reductions in turnover. A realistic job preview strategy is best for tight labor markets or higher-value jobs.
What is the main reason for taking a realistic job preview approach?A Realistic Job Preview (RJP) is a recruiting tool used to communicate both the good and bad aspects of a job. Essentially, it is used to provide a prospective employee a realistic view of what the job entails.
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Large employment websites have which potential disadvantage relative to niche websites?
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