As people tend to grow and expand experiencing cycles of change, so does organizations. There are periods were new positions are created or others need to be filled. It is a dilemma most organizations face to decided to hire from within or seek applicants elsewhere. More often than not, organizations favor a length of a resume, degrees and prior titles. A string of job descriptions seems to be more important than who one is, what they can contribute to the organization’s future, and how well their values mesh with those of the organization.
The employee selection process interviews and evaluates candidates for a specific job and select an individual for employment based on certain criteria.
Note: Slide is timesA renewed sense of urgency has emerged relating to recent organizational trends and legal requirements pertaining to the hiring process, as a result of increasing negligent hiring and retention cases (Time:Arrow rises). Most of these court decisions have ruled in favor of the plaintiff resulting in mounting pressures for organizations to obtain more detailed and accurate information on prospective employees. So, what is negligent hiring?Note: Time - Arrow disappears -> definition appearsIt is based on the principal that the employer has an obligation to protect their employees, clients, and/or third parties from foreseeable acts of harm by another employee(s). Negligent hiring maybe found where the employee had a reputation or record that showed his/her propensity to misuse the kind of authority given by the employer, and this record would have been easily discoverable by the employer, had the employer exercised due diligence, such as, in cases of workplace bullying or sexual harassment. Negligent hiring usually occurs when an organization fails to contact an applicant’s former employers, check references, or conduct a criminal background check prior to hiring the employee.Note: Time – Definition disappears -> another appearsWhereas…Negligent Retention occurs where a party failed to remove an employee from a position of authority or responsibility after it became apparent that the employee was in fact misusing that authority or responsibility in a way that posed a danger to others.
Note: Slide is timed for each statTo put it in another perspectiveNegligent hiring cases have had verdicts of up to $40 million.The average settlement of a negligent hiring lawsuit isnearly $1 million.Employers have lost more than 79% of negligent hiring cases.
Con’t Slide is timedThe cost to employers$7,000 to replace a salaried employee,$10,000 to replace a mid-level employee, and$40,000 to replace a senior executive.
Con’t Slide is timedWhen reviewing the hiring process we discover - 53% of all job applications contain inaccurate information -34% of all application forms contain outright lies about experience, education, and ability to performessential functions on the job -9% of job applicants falsely claimed they had a college degree, listed false employers,or identified jobs that didn't exist -11% of job applicants misrepresentedwhy they left a former employer.
Note: Excel file has been attached to slide – Interview Evaluation FormClick for ApplicationThe application process is one aspect of evaluating potential candidates that contain inaccurate information, as previously demonstrated.Click for InterviewsAnother common method of evaluating potential candidates is the interview process. Interviews can be either structured or unstructured. Structured interviews ensure candidates have equal opportunities to provide information and are assessed accurately and consistently. The unstructured interviews are more attractive to interviewers due to its loose framework, discretionary content and conversational flow. It is more subjective in nature which reduces its accuracy and invites legal challenges.Research demonstrates this low level of reliability within the consistency of unstructured interview ratings among interviewers (United States Office of Personal Management, 2008). As well as, low to moderate levels of validity associated with the assessment method measuring what it is intended to measure (United States Office of Personal Management, 2008). The research into structured interviews demonstrates a high degree of reliability, validity, and legal defensibility (United States Office of Personal Management, 2008).Click for References“Reference check fail to provide employers with meaningful information (Stabile, 2002).” That is, because different referees know the candidate in different ways (socially, personally, as a manager, or as a subordinate) their reference may vary on the candidate and may not state the same information (Cook and Cripps, 2005). According to Cook and Cripps (2005),references are not particularly valid because the reference may not be written wholeheartedly, the referee is unable to provide particular information, hidden agendas, idiosyncrasies (i.e.traits/habits),and leniency (i.e. kindness). Prior employers tend to be hesitant about revealing negative information concerning their departing employee for fear of lawsuit for defamation. Many employers either refuse to give any references or provided neutral information, such as dates of employment and position title (Stabile, 2002). However, theinformation can verify the accuracy of the application/resume, interview and other assessment techniques. While predicting a candidate’s success by comparing their experience to the competencies required by the position. It is important to base the information on the consistency of the behavior and usually conducted near the end of the selection process. The reliability and validity of this process enhances through structured base questions on the job analysis, utilizing standardized data collection, and rating procedures will enhance.Click for Performance Appraisals.Self-appraisal forms are commonly practice in performance managements. The forms should provide managers with valuable data on the quality of the individual’s performance. It previews what to expect when the manager’s discussed the appraisal. However, these appraisals create a false impression. A lazy manager can cut and paste the information into official appraisal form. Especially, when asked to write a self-appraisal using a company form and assuming the structure of the process is separate form from the supervisor’s appraisal (i.e. Performance appraisals). Often, self appraisals by employees tend to demonstrate an over or under estimation of their own abilities to perform the job duties. There is also an assumption about the process as being negotiable in nature which is inaccurate. When in reality performance appraisal is a record of a supervisor's opinion of the quality of an employee's work. If the organizational policy dictates that employees are asked to write self-appraisals then the company policy must be followed. But a manager can prevent much the above mentioned by explaining exactly what the purpose of the self-appraisal and how it will be used.Click for Background ChecksCredit ReportsCriminal History
Characteristics of a Bad Hire - Poor work quality (67%) - Not a team player (60%) - Negative attitude (59%) - Customer complaints (44%) - Does not meet deadlines (44%) Note: ClickSkill Issues: Poor work quality, Customer complaints, and Does not meet deadlinesNote: ClickCharacter Issues: Poor work quality, Not a team player, Negative attitude; Attendance problems; Customer complaints, and Do not meet deadlines
The organizational culture exhibits various levels of behavior. For example, the degrees of formality with which employees conduct themselves. Beneath these behaviors are values that determine behavior which cannot be directly observed. However, these behaviors occur at a much deeper level according to assumptions and beliefs which determine values. Although the organization or individual’s values may remain within awareness and can be stated, assumptions and beliefs often exist beneath the surface and out of conscious awareness.Employees need to be comfortable with the behaviors encouraged by the organization so that individual motivation and group productivity remain high. Supervisory staff usually set the tone by exerting core values that form the overall dominant culture. So, if management does not take the time to understand the culture that motivates an organization, problems are inevitable. When new hires are indoctrinated within the organization they will form an objective perception of the environment that will solidify the organization’s personality or culture. The employee’s performance depends on what is and what is not proper among his or her peers, which in turn affects that individual’s behavior and motivation to participate and contribute within the organizational framework.
For example…The Department of Correctionshas a tendency towards an autocratic system which utilizes an exploitative authoritative form of leadership style. This style of leadership tends to occasional reward employees while motivating them to avoid receiving punishment. All communication within this system occurs within the Chain of Command which encourages little to no interaction between departments. The organizational structure has a tendency towards more bureaucratic systems that values power leaders. These individuals’ would be described as being very charismatic or having the gift of gab.What personality type does the organization appear to value?Extroverts often possess charisma and are skilled at networking. They often thrive in situations where they are the focus of attention, such as performance or public speaking. However; extroverts may struggle to concede the spotlight to others and their listening skills and intuition may suffer. Right click on picture then chick on open hyperlink to the below Web-site while in slide show: http://www.ted.com/talks/susan_cain_the_power_of_introverts.html
“Psychometric assessments help people understand and predict behavior. They are scientifically designed to provide a standardized measure of candidates’ abilities, competencies, and personality traits. Employees vary widely in their productivity, and psychometric assessments can predict these differences. By identifying the candidates that have the characteristics necessary to be successful, organizations can increase performance, while decreasing training costs and employee turnover. While there are many different assessments, they can be classified into two broad types.”
Ability – Measures of “can do”“Ability assessments tell you what an individual can do. They measure a person’s level of knowledge and their capability to acquire further knowledge and skills. These tools tell you a candidate’s capabilities and learning potential. Examples of assessments that fall in this area include measures of intelligence, verbal ability, and mechanical aptitude. Ability assessments are among the best predictors of job performance.”Click - Personality Personality – Measures of “will do”“Personality assessments identify candidates’ typical behavior and show what candidates will likely do on a daily basis. Since they are designed to measure a person’s tendency to behave in certain ways, personality measures can tell you if an individual is easy to manage, works hard, offers innovation solutions, and works well with others.”Sources: http://www.psychometrics.com/en-us/articles/pre-employment-assessments-benefits-begin.htm
Cost Savings“Employment assessments can be a cost effective way to pare down the applicant pool. They make the decision process more efficient because less time is spent with individuals whose characteristics, skills, and abilities do not match what is needed. Choosing the wrong candidates is also very costly in terms of training, errors made by a poor performer, and turnover. Investing in pre-employment assessments quickly pays for itself by reducing the number of poor hiring decisions. For simple jobs, the return on investment for identifying good employees is generally 10 – 20% of their salary each year. For complex positions like management, the return on investment increases to 80-120% of their salary each year.”Depth of Information“Psychometric assessments provide information about an individual that is not easily obtained using other methods, such as interviews. They also provide a quick way to assess characteristics that cannot be developed through training but are acquired over long periods of time.”Consistency“Using standardized assessments in employment decision-making ensures that candidates are treated objectively by gathering the same information for each one. The standardization prevents subjective biases from influencing hiring decisions.”
Reliability Data:“Reliability is simply a measure of how consistent the results are. When a person takes an assessment that is reliable, the results are consistently the same or very close in outcome. An unreliable instrument would yield results that are widely scattered. If the instrument is reliable, we can be confident that their actual score is close to their "true score." Reliability is measured on a scale of 0-1 where 0 represents completely unreliable and 1 represents completely reliable. For purposes of this analysis, a reliability score in the upper .70's is considered to be good. As you will see in the graphs below, reliability results ranged from 0.84 to 0.88 - indicating a reliable assessment.”Validity Data:“Validity is a measure of whether an instrument is appropriate for the use to which it is put. The purpose of the Discovery Report assessment is to classify people in terms of "DISC" behavioral patterns. The terminology for this type of validation study is called "construct validity." Construct validity can be measured by input from experts in the field of "DISC" behavioral styles. Another measure of construct validity is the degree to which the assessment results agree with outcomes generated by other widely accepted instruments. Both measures are met because 1) The Discovery Report assessment instrument was formulated by experts with many years of experience with the DISC model of human behavior and 2) The Discovery Report assessment instrument was shown to have relatively high correlation with a widely accepted instrument. A high correlation indicates high construct validity. Please refer to the graph below to view the validity results.”Source:Snider-Lotz, T.G. (n.d.). Discovery Report Assessment Validation Study Results: DISC Model of Human Behavior. Retrieve from www.discoveryreport.com/disc_personality_model_validation.htm
Yet, there is resistance to utilizing assessments during the selection process relating to: The BudgetResponse:“Ranging in costs from as little as $25 for screening tools to several hundred for job fit assessments, the cost of the pre-employment tests will be a fraction of the cost spent on trying to save a bad hire as previously demonstrated.”I don’t agree with the report…Response:“What the person is referring to is face validity. This means the test "looks like" it will work, as opposed to "has been shown to work". That's why it is very important to use both the pre-employment test and interview to discover the natural fit, learned fit, and potential for growth. The selection tests measure innate personality traits, or your core personality. With experience and training, you may have learned new skills that cover up potential shortcomings.It is important when you don't agree with a result, ask a consultant for an interpretation.”The assessment takes too long…Response:“There are reports which can be accessed in real time. In other words, as soon as a candidate hits the submit button, a manager can log into the system and retrieve the report.”This will upset candidates…Response:"If a candidate balks at completing our hiring process and this is the time when he is supposed to be on his best behavior, what will happen the first time we ask him to do something he doesn't think is part of his job?" It's important to look at the assessment as equal to the interview and background checks. That's how the EEOC looks at pre-employment testing. Resumes, application, interviews and even general observations are all on equal footing. If a candidate refused to submit his resume or give permission to check references, you certainly wouldn't forego these steps. The pre-employment test is just another part of the employee selection process.”It will limit the number of potential candidates…Response: “The assessment will expand, not shrink, the potential candidates… Just as managers make hiring mistakes based on the interview alone, they also miss high-potential candidates because they might interview poorly but have all the skills and attitude you need, if not more. It can help employers find that diamond in the rough instead of turn away a gifted employee when he/she presents.”Candidates can fake the testsResponse:“This is true. However, just like during the interviews people are skilled at playing a role. The advantage of pre-employment tests is the use of a lie scale or fake-ability scale within the assessment. Questions are embedded in the assessments to assess how reliable the information is and if the candidate attempted to manipulate his responses.”The legality of assessments…Response:“Every hiring decision carries a risk. But you need to know the facts. The EEOC in 2007 heard 77,000 discrimination complaints. Of those 77,000 only 304 involved assessments. And of those 304 the decisions that ruled in favor of the employee were related to the improper use of the assessment, not the validity of the assessment itself. As long as the test is valid, reliable, non-discriminatory AND job-related, the use of pre-employment tests is a best practice that meets EEOC guidelines.”There is not enough time…Response:“The irrefutable data however confirms the time it takes to test a candidate is a drop in the bucket compared to the time you will spend training, counseling and eventually terminating the wrong hire. With online hiring assessments, most of the time invested in the process is candidate time. All a manager needs to do is send out the instructions to the candidate and process the report” What are all these based out of…FEARSource:Wolfe, I. (2009). 10 Reasons Hiring Managers Fear Pre-Employment Tests. Ezinearticles. Retrieved from ezinearticles.com/?10-Reasons-Hiring-Managers-Fear-Pre-Employment-Tests&id=1997725
Fear builds-up monument….The only way…“To escape fear, you have to go through it, not around.”― Richie Norton, Author of Resumes Are Dead and What to Do About It
To Hire or
Not to Hire:
The Employee Selection Process
Employee Selection is…
a process of interviewing and
evaluating candidates for a specific
job and selecting and individual for
employment based on certain
So, what is negligent hiring?
Negligent Retention occurs
where a party failed to remove an
It is based on the principal position of
employee from a
employer has an obligation to protect their
authority or responsibility
employees, clients, and/or third parties
after it became of harm by another
from foreseeable actsapparent that the
employee. was in fact misusing that
authority or responsibility in a way
that posed a danger to others.
Putting it into perspective…
Negligent hiring cases have had verdicts of up to $40 million.
Source: Gurtin vs. Nurse Connection, et. al., 2002
The average settlement of a negligent hiring lawsuit is…
nearly $1 million.
Source: Human Resources Management, 2008
Employers have lost more than 79% of negligent hiring cases.
Source: Fortune, 2/00
$7,000 to replace a salaried employee,
$10,000 to replace a mid-level employee,
$40,000 to replace a senior executive.
Source: Recruiting Times
53% of all job applications contain
Source: Society of Human Resources Management, 2003
9% of job applicants falsely
claimed they had a college
listed false employers,
or identified jobs that didn't
Source: Resume Inflation: Two Wrongs May
Mean No Rights, by Barbara Kat Repa,
11% of job applicants
why they left a former
Source: Resume Inflation: Two
Wrongs May Mean No Rights, by
Barbara Kat Repa, Nolo.com, 2001
34% of all application forms contain
outright lies about experience,
education, and ability to perform
essential functions on the job.
Source: Wall Street Journal, 2003
Limitation within the
C h a r a c te r i s t i c s o f a
Poor work quality (67%)
Not a team player (60%)
Negative attitude (59%)
Attendance problems (54%)
Customer complaints (44%)
Does not meet deadlines (44%)
How can the
culture influence the
having the gift
Measures of “can do”
Measures of “will do”
Benefits of using assessments…
Depth of Information
Taking another look…
The DISC explores behavior across four
dimensions: Dominance, Influence,
Steadiness, and Conscientiousness. It
reveals how an individual will react under
different circumstances and situations,
such as during communication, in conflict
and under stress.
This will upset
The assessment takes
“To escape fear, you have to go
through it, not around.”
― Richie Norton
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