Psychology in the recruitment market


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Chris Gilbey's ARTS301 Class: Week #3 - presentation by futurist, Dr Peter Saul.

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Psychology in the recruitment market

  1. 1. Psychology in the recruitment market: Approaches businesses take when hiring Dr Peter Saul Dr Peter Saul
  2. 2. Attracting and Holding StaffSource: AFR, 29 July 2008, p. 67 Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  3. 3. What is management trying to do when hiring?  Acquire the knowledge and skills it needs to get work done now. Choices: relocate/promote, employ, contract, outsource, redesign work  Strengthen the potential to grow the knowledge and skills the organisation will need in the future  Build a cooperative, harmonious organisation and workplace that is aligned with strategic corporate mission and values  Maintain the organisation’s stated remuneration policy  Adhere to the requirements of enterprise agreements and employment laws Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  4. 4. What are candidates trying to do? Get an interesting job with good pay, opportunities to develop their talents, and prospects for future advancement Join an organisation they would be proud to work for Enhance their self esteem and social status Join an organisation that fits with their lifestyle and stage of life Enhance their feelings of job security (including the reliability of future income) Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  5. 5. Some recruitment tools used by employers  Advertisements – in house and/or externally (and use of employee networks)  Letter of application and CV  Interviews of job candidate (Interviews may be by HR, manager/supervisor, work colleagues)  Reference checking (Discussions with previous managers and HR staff)  Online searches (e.g. Facebook) (Now used by over 25% of employers)  Recruitment specialists (e.g. Chandler & Macleod)  Psychological testing (intelligence, reasoning, interests, personality, abilities)  Work simulations  Probationary periods; induction processes; training and support Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  6. 6. Some psych tools used by candidates Career guidance services (that may use a variety of tests of intelligence, interests, abilities, personality, etc) Self-assessment instruments, books, etc (e.g. see Professor Martin Seligman’s website on “authentic happiness”; and Dr Stephen Covey’s book “The 7 Habits of Highly Effective People”) Psych-based training and development or coaching services Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  7. 7. What best predicts future performance? Work Sample tests (.54 correlation with overall job performance) General Mental Ability tests (.51) Structured employment interviews (.51) Peer Ratings (.49) Job Knowledge tests (.48)Source: “Recruiting and Retaining Top Talent in a Tight Labor Market “Wayne F. Cascio, Ph.D., Graduate School of Business, University ofColorado – Denver. (Viewed on MGSM website in 2001). Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  8. 8. Psych testing has many critics“The Myers-Briggs Type Indicator has achieved cult status… Itappeals to many managers, educationalists and counsellors…despite the fact that as many as three-quarters of people achievea different personality type when tested again. And it is easilyfaked.…I conclude that personality tests arediscriminatory, unreliable, invalid and cannot predict workperformance.”Source: “Personality tests have too many deep-seated problems.”Professor Robert Spillane, Macquarie Graduate School of Management(Australian Financial Review, 21 February 2012, p. 51) Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  9. 9. 6 hour testing marathon as part of merger Source: Australian Financial Review, 8 March 2012, p. 68 Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG
  10. 10. In summary Psychology and psychological tests and methodology can play a valuable role in improving the quality of recruitment decisions in the hands of HR professionals who are trained to use them wisely. Psychology can improve the design of jobs and person specifications in the first place so that we have better targets to recruit to. It can also assist in building effective teams and improving leadership training and coaching so that recruitment decisions that are good enough deliver satisfactory work performance. When feedback on psychological assessments is given to job candidates it can help people make better career decisions. Peter Saul Peter Saul Dr -Peter Saul Dr AIPEG