session 5 - hiring and recruiting
DESCRIPTION
steps in hiring and recruitingTRANSCRIPT
B6310 Advanced Human Resource ManagementB8204 Human Resource
Management
BUSI8204 HRM – Session 05
Recruiting Human Resources
Practice or activity carried out by the organization with primary purpose of identifying and attracting a pool of qualified applicants for a job
Influences selection process (How big is applicant pool? What skills do they have? How diverse are job candidates?)
Influences motivation and retention
© 2005 McGraw-Hill Ryerson Ltd.
BUSI8204 HRM – Session 05
Sources
Selection
Most important part of the cycle, but often not enough thought is given to it.
Key to organizational effectiveness
Failures can lead to labor shortages, layoffs, etc.
Sounds simple: match employees with jobs
Selection methods that predict employee effectiveness
Void between what research indicates and how organizations actually do personnel selection
BUSI8204 HRM – Session 05
Effective selection process are...
Valid
Are the tests accurate?
Cost of making a mistake:
Total cost of hiring is 25%+ of the position’s first year salary.
Soured relationship
What to do with the mistake?
Transfer? Retrain? Fire?
2/3 do serious reference checking
Should try to keep it job related; personal information only if it affected work.
When giving references, one should have evidence to support claims.
References can be a bit dishonest for various reasons:
Legal concerns; trying to lose an employee, dislike of judging others
References can also be intentionally vague
BUSI8204 HRM – Session 05
Structure Interviews
Uses pre-determined questions that assess these KSAs
Asks all candidates same questions
Usually uses a panel and score guide
More valid and reliable than ‘unstructured” or conversational interview (see Campion, Pursell, & Brown, 1988
BUSI8204 HRM – Session 05
Use job analysis to determine core competencies
Asks dilemma - based questions based on the competencies
Intention predicts future performance
“What would you do if…?”
Valid and reliable
use job analysis to determine core competencies
past behavior predicts future behavior
usually uses a panel
“Tell me about a time when…?”
valid and reliable
BUSI8204 HRM – Session 05
Perception and biases
Can be subjective!!!
Still used because:
Very practical when there is a small number of applicants
Serves other purposes (i.e., PR)
Interviewers maintain great faith and confidence in their judgments
BUSI8204 HRM – Session 05
Work Sample
Designed to have high content validity through a close relationship with the job.
Based on the premise that the best predictor of future behaviour is observed behaviour under similar situations.
These tests require the examinee to perform tasks that are similar to those that are performed on the job.
Advantages
high reliability
high content validity - work samples are a sample of the actual work performed on the job
low adverse impact
because of their relationship to the job, these tests are typically viewed more favorable by examinees than aptitude or personality tests
difficult for applicants to fake job proficiency which helps to increase the relationship between score on the test and performance on the job
Disadvantages
costly to administer; often can only be administered to one applicant at a time
although useful for jobs where tasks and duties can be completed in a short period of time, these tests have less ability to predict performance on jobs where tasks may take days or weeks to complete
BUSI8204 HRM – Session 05
the “good”, the “bad”, the “ugly” about
city
company
manager
co-workers
Why?
Employee Separations
An employee separation occurs when an employee ceases to be a member of an organization.
The rate of employee separation in an organization, the turnover rate, is a measure of a rate at which employees leave the organization.
BUSI8204 HRM – Session 05
Recruitment Costs
Selection Costs
Training Costs
Separation Costs
Severance pay
Exit interview
Outplacement Assistance
Quit, retire, early retirement (challenges??)
What affects retention?
Dismissal (after progressive discipline procedure), layoffs, downsizing, rightsizing
Job Displacement: No longer stigma attached??
BUSI8204 HRM – Session 05
Business Needs to
Reduce Labour Costs
subcontract to in-house staff
Notify employees
“be brief”
Media Relations
Security
Outplacement
ASAP
“You cannot change the present – you can change the future”
External to company with resources (computers etc)
Dealing with survivors
BUSI8204 HRM – Session 05
Daydreaming
BUSI8204 HRM – Session 05
Missing scheduled work for any reason.
Of course, being on a scheduled vacation, recognized holidays, approved leaves of absences, jury time, family responsibility leave, bereavement time and so forth does not count as absenteeism.
BUSI8204 HRM – Session 05
Estimating Absenteeism
All things considered, how many days do you think it would be “normal” or “typical” for someone doing your kind of work to be absent during one year?
When employees at one organization were asked the following…..
Currently, approximately how many days per year does the average employee in your work group miss due to absenteeism?
In a typical year, how many days do you personally miss work due to absenteeism?
BUSI8204 HRM – Session 05
Contrasting Views of the Causes of Absenteeism (Deviance, Health, Attitudes, Stress)
Deviance
Absence is the most frequent reason for arbitration hearings
Absence control is then achieved by control, discipline, and punishment
Health
Health in western countries has increased, as has absence
Hamilton study: absence increases when you know you are sick or know that you have a good reason
BUSI8204 HRM – Session 05
Stress Perspective
Perhaps the most logical short-term strategy for coping with severe work stressors is to avoid them, i.e., stay away
Unauthorized “mental health” breaks
BUSI8204 HRM – Session 05
Turnover
The process in which employees leave the organization and have to be replaced.
Impact of Turnover
Loss of “image” to attract other individuals
High costs of turnover and replacement
Increasing turnover rates having significant impact on organizational success
Costs associated with turnover, especially of high performers, continues to escalate
BUSI8204 HRM – Session 05
Retention Measurement and Assessment
Employee Surveys
Attitude survey—focuses on employees’ feelings and beliefs about their jobs and the organization.
Exit Interviews
An interview in which individuals are asked to identify reasons for leaving the organization
BUSI8204 HRM – Session 05
Hiring (including recruitment, selection, and socialization) is critical to organizational effectiveness
Hiring well is expensive and time-consuming - doing it well involves awareness of many issues & factors, and overcoming numerous challenges
Although separations and downsizing can be challenging for organizations, it is possible to do it in ways that mitigate the detrimental impact on the organization and its employees
Most people get to work most of the time – on time, and work overtime
The real challenges seem to be
Minimizing workplace stress, and
BUSI8204 HRM – Session 05
Next Class
Research Discussion
Groysberg et al. (2004). The risky business of hiring stars. Harvard Business Review, 82, 92-100.
Wright, B. & Barling, J. (1998). ‘The Executioners’ Song’: Listening to downsizers reflect on their experiences. Journal of Administrative Sciences, 15, 339-355.
Potosky, D. & Bobko, P. (2004). Selection testing via the Internet: Practical considerations and exploratory empirical findings. Personnel Psychology, 57, 1003-1034.
Outplacement at Rocky Mountain Oil, p. 188
Selecting for Survival at Future Horizons Foundry, p. 165
BUSI8204 HRM – Session 05
Recruiting Human Resources
Practice or activity carried out by the organization with primary purpose of identifying and attracting a pool of qualified applicants for a job
Influences selection process (How big is applicant pool? What skills do they have? How diverse are job candidates?)
Influences motivation and retention
© 2005 McGraw-Hill Ryerson Ltd.
BUSI8204 HRM – Session 05
Sources
Selection
Most important part of the cycle, but often not enough thought is given to it.
Key to organizational effectiveness
Failures can lead to labor shortages, layoffs, etc.
Sounds simple: match employees with jobs
Selection methods that predict employee effectiveness
Void between what research indicates and how organizations actually do personnel selection
BUSI8204 HRM – Session 05
Effective selection process are...
Valid
Are the tests accurate?
Cost of making a mistake:
Total cost of hiring is 25%+ of the position’s first year salary.
Soured relationship
What to do with the mistake?
Transfer? Retrain? Fire?
2/3 do serious reference checking
Should try to keep it job related; personal information only if it affected work.
When giving references, one should have evidence to support claims.
References can be a bit dishonest for various reasons:
Legal concerns; trying to lose an employee, dislike of judging others
References can also be intentionally vague
BUSI8204 HRM – Session 05
Structure Interviews
Uses pre-determined questions that assess these KSAs
Asks all candidates same questions
Usually uses a panel and score guide
More valid and reliable than ‘unstructured” or conversational interview (see Campion, Pursell, & Brown, 1988
BUSI8204 HRM – Session 05
Use job analysis to determine core competencies
Asks dilemma - based questions based on the competencies
Intention predicts future performance
“What would you do if…?”
Valid and reliable
use job analysis to determine core competencies
past behavior predicts future behavior
usually uses a panel
“Tell me about a time when…?”
valid and reliable
BUSI8204 HRM – Session 05
Perception and biases
Can be subjective!!!
Still used because:
Very practical when there is a small number of applicants
Serves other purposes (i.e., PR)
Interviewers maintain great faith and confidence in their judgments
BUSI8204 HRM – Session 05
Work Sample
Designed to have high content validity through a close relationship with the job.
Based on the premise that the best predictor of future behaviour is observed behaviour under similar situations.
These tests require the examinee to perform tasks that are similar to those that are performed on the job.
Advantages
high reliability
high content validity - work samples are a sample of the actual work performed on the job
low adverse impact
because of their relationship to the job, these tests are typically viewed more favorable by examinees than aptitude or personality tests
difficult for applicants to fake job proficiency which helps to increase the relationship between score on the test and performance on the job
Disadvantages
costly to administer; often can only be administered to one applicant at a time
although useful for jobs where tasks and duties can be completed in a short period of time, these tests have less ability to predict performance on jobs where tasks may take days or weeks to complete
BUSI8204 HRM – Session 05
the “good”, the “bad”, the “ugly” about
city
company
manager
co-workers
Why?
Employee Separations
An employee separation occurs when an employee ceases to be a member of an organization.
The rate of employee separation in an organization, the turnover rate, is a measure of a rate at which employees leave the organization.
BUSI8204 HRM – Session 05
Recruitment Costs
Selection Costs
Training Costs
Separation Costs
Severance pay
Exit interview
Outplacement Assistance
Quit, retire, early retirement (challenges??)
What affects retention?
Dismissal (after progressive discipline procedure), layoffs, downsizing, rightsizing
Job Displacement: No longer stigma attached??
BUSI8204 HRM – Session 05
Business Needs to
Reduce Labour Costs
subcontract to in-house staff
Notify employees
“be brief”
Media Relations
Security
Outplacement
ASAP
“You cannot change the present – you can change the future”
External to company with resources (computers etc)
Dealing with survivors
BUSI8204 HRM – Session 05
Daydreaming
BUSI8204 HRM – Session 05
Missing scheduled work for any reason.
Of course, being on a scheduled vacation, recognized holidays, approved leaves of absences, jury time, family responsibility leave, bereavement time and so forth does not count as absenteeism.
BUSI8204 HRM – Session 05
Estimating Absenteeism
All things considered, how many days do you think it would be “normal” or “typical” for someone doing your kind of work to be absent during one year?
When employees at one organization were asked the following…..
Currently, approximately how many days per year does the average employee in your work group miss due to absenteeism?
In a typical year, how many days do you personally miss work due to absenteeism?
BUSI8204 HRM – Session 05
Contrasting Views of the Causes of Absenteeism (Deviance, Health, Attitudes, Stress)
Deviance
Absence is the most frequent reason for arbitration hearings
Absence control is then achieved by control, discipline, and punishment
Health
Health in western countries has increased, as has absence
Hamilton study: absence increases when you know you are sick or know that you have a good reason
BUSI8204 HRM – Session 05
Stress Perspective
Perhaps the most logical short-term strategy for coping with severe work stressors is to avoid them, i.e., stay away
Unauthorized “mental health” breaks
BUSI8204 HRM – Session 05
Turnover
The process in which employees leave the organization and have to be replaced.
Impact of Turnover
Loss of “image” to attract other individuals
High costs of turnover and replacement
Increasing turnover rates having significant impact on organizational success
Costs associated with turnover, especially of high performers, continues to escalate
BUSI8204 HRM – Session 05
Retention Measurement and Assessment
Employee Surveys
Attitude survey—focuses on employees’ feelings and beliefs about their jobs and the organization.
Exit Interviews
An interview in which individuals are asked to identify reasons for leaving the organization
BUSI8204 HRM – Session 05
Hiring (including recruitment, selection, and socialization) is critical to organizational effectiveness
Hiring well is expensive and time-consuming - doing it well involves awareness of many issues & factors, and overcoming numerous challenges
Although separations and downsizing can be challenging for organizations, it is possible to do it in ways that mitigate the detrimental impact on the organization and its employees
Most people get to work most of the time – on time, and work overtime
The real challenges seem to be
Minimizing workplace stress, and
BUSI8204 HRM – Session 05
Next Class
Research Discussion
Groysberg et al. (2004). The risky business of hiring stars. Harvard Business Review, 82, 92-100.
Wright, B. & Barling, J. (1998). ‘The Executioners’ Song’: Listening to downsizers reflect on their experiences. Journal of Administrative Sciences, 15, 339-355.
Potosky, D. & Bobko, P. (2004). Selection testing via the Internet: Practical considerations and exploratory empirical findings. Personnel Psychology, 57, 1003-1034.
Outplacement at Rocky Mountain Oil, p. 188
Selecting for Survival at Future Horizons Foundry, p. 165