This document discusses recruitment and selection of employees. It covers forecasting labor supply and demand, sources of recruiting both internally and externally, challenges in hiring and meeting legal requirements. Recruitment methods covered include job postings, referrals, agencies, colleges. Selection involves screening applicants and making hiring decisions. The goal is finding the best fit for the job while following legal guidelines.

1. 5-1
CHAPTER FIVECHAPTER FIVE
Recruiting &Recruiting &
Selecting EmployeesSelecting Employees

2. 5-2
Chapter ObjectivesChapter Objectives
 Understand approaches toUnderstand approaches to
matching labor supply andmatching labor supply and
demanddemand
 Weigh the advantages andWeigh the advantages and
disadvantages of internal anddisadvantages of internal and
external recruitingexternal recruiting
 Distinguish among the majorDistinguish among the major
selection methods and use theselection methods and use the
most legally defensible of themmost legally defensible of them
to provide the best ‘fit’ forto provide the best ‘fit’ for
your firmyour firm
 Understand the legalUnderstand the legal
constraints on the hiringconstraints on the hiring
processprocess
 Review Key Terms
Employee SupplyEmployee Supply
Employee DemandEmployee Demand
Human Resource PlanningHuman Resource Planning
RecruitmentRecruitment
SelectionSelection
SocializationSocialization

3. 5-3
Key TermsKey Terms
 Employee SupplyEmployee Supply
 The availability of workers with the required skills toThe availability of workers with the required skills to
meet the firm’s employee demand.meet the firm’s employee demand.
 Labor DemandLabor Demand
 How many workers the organization will need in theHow many workers the organization will need in the
future.future.
 Human Resource PlanningHuman Resource Planning
 The process an organization uses to ensure that it hasThe process an organization uses to ensure that it has
the right amount and the right kind of people tothe right amount and the right kind of people to
deliver a particular level of output or services in thedeliver a particular level of output or services in the
future.future.

4. 5-4
Human Resource Supply and DemandHuman Resource Supply and Demand

5. 5-5
Forecasting MethodsForecasting Methods
 Forecasting Demand
 Quantitative Techniques
 Judgmental Techniques
 Methods of Forecasting Supply
 Quantitative Techniques
 Judgmental Techniques

6. 5-6
The Hiring ProcessThe Hiring Process
 RecruitmentRecruitment
Process of generating a pool of qualifiedProcess of generating a pool of qualified
candidates for particular jobcandidates for particular job
 SelectionSelection
Process of making a ‘hire’ or ‘no hire’ decisionProcess of making a ‘hire’ or ‘no hire’ decision
regarding each applicant for a jobregarding each applicant for a job
 SocializationSocialization
Orienting new applicants to the organizationOrienting new applicants to the organization
and the departments to which they will beand the departments to which they will be
workingworking

7. 5-7
Challenges in the Hiring ProcessChallenges in the Hiring Process
 Determining the characteristics most important toDetermining the characteristics most important to
performanceperformance
 Measuring the characteristics that determineMeasuring the characteristics that determine
performanceperformance
 The motivation factor:The motivation factor:
 performance = ability x motivationperformance = ability x motivation
 Who should make the decision?Who should make the decision?

8. 5-8
Meeting the Challenges ofMeeting the Challenges of
Effective Staffing -Effective Staffing - RecruitmentRecruitment
 Sources of recruitingSources of recruiting
 Current employeesCurrent employees
 Referrals from current employeesReferrals from current employees
 Former employeesFormer employees
 Print and radio advertisementsPrint and radio advertisements
 Internet advertising and career sitesInternet advertising and career sites
 Employment agenciesEmployment agencies
 Temporary workersTemporary workers
 College recruitingCollege recruiting
 CustomersCustomers
 MilitaryMilitary

9. 5-9
Meeting the Challenges ofMeeting the Challenges of
Effective Staffing-Effective Staffing- RecruitmentRecruitment
 External vs. internal candidatesExternal vs. internal candidates
 Recruiting protected classesRecruiting protected classes
 Planning the recruitment effortPlanning the recruitment effort
 Planning your job searchPlanning your job search

10. 5-10
Recruitment - Hiring from WithinRecruitment - Hiring from Within
 Advantages
 Foreknowledge of
candidates’ strengths and
weaknesses
 More accurate view of
candidate’s skills
 Candidates have a stronger
commitment to the
company
 Increases employee morale
 Less training and
orientation required
 Disadvantages
 Failed applicants become
discontented
 Time wasted interviewing
inside candidates who will
not be considered
 Inbreeding of the status
quo

11. 5-11
Recruitment - Finding Internal CandidatesRecruitment - Finding Internal Candidates
 Job posting
 Publicizing an open job to employees (often by literally
posting it on bulletin boards) and listing its attributes.
 Rehiring former employees
 Advantages:
 They are known quantities.
 They know the firm and its culture.
 Disadvantages:
 They may have less-than positive attitudes.
 Rehiring may sent the wrong message to current employees about how
to get ahead.

12. 5-12
Recruitment - Finding Internal CandidatesRecruitment - Finding Internal Candidates
 Succession planning
The process of ensuring a suitable supply of
successors for current and future senior or key jobs.
 Succession planning steps:
Identifying and analyzing key jobs.
Creating and assessing candidates.
Selecting those who will fill the key positions.

13. 5-13
Recruitment - Finding External CandidatesRecruitment - Finding External Candidates
 Advertising
The Media: selection of the best medium depends on
the positions for which the firm is recruiting.
 Newspapers (local and specific labor markets)
 Trade and professional journals
 Internet job sites
 Marketing programs
 Constructing an effective ad
Wording related to job interest factors should evoke
the applicant’s attention, interest, desire, and action
(AIDA) and create a positive impression of the firm.

14. 5-14
Recruitment - Finding External CandidatesRecruitment - Finding External Candidates
 Employment agencies:
Public agencies operated by federal, state, or local
governments
Agencies associated with nonprofit organizations
Privately owned agencies

15. 5-15
Recruitment - Private Employment AgenciesRecruitment - Private Employment Agencies
 Reasons to Use:
 When a firm does not have an HR department and is not geared
to doing recruiting and screening.
 The firm has found it difficult in the past to generate a pool of
qualified applicants.
 The firm must fill a particular opening quickly.
 There is a perceived need to attract a greater number of
minority or female applicants.
 The firm wants to reach currently employed individuals, who
might feel more comfortable dealing with agencies than with
competing companies.
 The firm wants to cut down on the time it is devoting to
recruiting.

16. 5-16
Recruitment - Private Employment AgenciesRecruitment - Private Employment Agencies
 Avoiding problems with employment agencies:
 Give the agency an accurate and complete job description.
 Make sure tests, application blanks, and interviews are part of
the agency’s selection process.
 Periodically review data on candidates accepted or rejected by
your firm, and by the agency. Check on the effectiveness and
fairness of the agency’s screening process.
 Screen the agency. Check with other managers or HR people to
find out which agencies have been the most effective at filling
the sorts of positions needed to be filled.
 Review the Internet and a few back issues of the Sunday
classified ads to discover the agencies that handle the positions
to be filled.

17. 5-17
Recruitment - Temp Agencies & Alternative StaffingRecruitment - Temp Agencies & Alternative Staffing
 Benefits of Temps
 Paid only when working
 More productive
 No recruitment, screening,
and payroll administration
costs
 Costs of Temps
 Fees paid to temp agencies
 Lack of commitment to
firm

18. 5-18
Recruitment - Temp Agencies & Alternative StaffingRecruitment - Temp Agencies & Alternative Staffing
 Concerns of Temp Employees
 Treatment by employers in a dehumanizing, impersonal, and ultimately
discouraging way.
 Insecurity about their employment and pessimistic about the future.
 Worry about their lack of insurance and pension benefits.
 Being misled about their job assignments and in particular about whether
temporary assignments were likely to become full-time positions.
 Being “underemployed” (particularly those trying to return to the full-time
labor market).
 In general they were angry toward the corporate world and its values;
participants repeatedly expressed feelings of alienation and disenchantment.

19. 5-19
Recruitment -Recruitment - Temp Agencies & Alternative StaffingTemp Agencies & Alternative Staffing
 Guidelines for Using Temporary Employees
 Do not train your contingent workers.
 Do not negotiate the pay rate of your contingent workers.
 Do not coach or counsel a contingent worker on his/her job performance.
 Do not negotiate a contingent worker’s vacations or personal time off.
 Do not routinely include contingent workers in your company’s employee
functions.
 Do not allow contingent workers to utilize facilities intended for
employees.
 Do not let managers issue company business cards, nameplates, or
employee badges to contingent workers without HR and legal approval.
 Do not let managers discuss harassment or discrimination issues with
contingent workers.
 Do not discuss job opportunities and the contingent worker’s suitability for
them directly.
 Do not terminate a contingent worker directly.

20. 5-20
Recruitment - College recruitingRecruitment - College recruiting
 College recruiting
 Recruiting goals
 To determine if the candidate is worthy of further consideration
 To attract good candidates
 On-site visits
 Invitation letters
 Assigned hosts
 Information package
 Planned interviews
 Timely employment offer
 Follow-up
 Internships

21. 5-21
Recruitment - Finding External CandidatesRecruitment - Finding External Candidates
 Employee referrals
Applicants who are referred to the organization by
current employees
 Referring employees become stakeholders.
 Referral is a cost-effective recruitment program.
 Referral can speed up diversifying the workforce
 Walk-ins
Direct applicants who seek employment with or
without encouragement from other sources.
Courteous treatment of any applicant is a good
business practice.

22. 5-22
Recruitment - Finding External CandidatesRecruitment - Finding External Candidates
 Recruiting via the Internet
More firms and applicants are utilizing the Internet in
the job search process.
 Advantages of Internet recruiting
Cost-effective way to publicize job openings
More applicants attracted over a longer period
Immediate applicant responses
Online prescreening of applicants
Links to other job search sites
Automation of applicant tracking and evaluation

23. 5-23
Recruitment - Finding External CandidatesRecruitment - Finding External Candidates

24. 5-24
Recruitment - Finding External CandidatesRecruitment - Finding External Candidates
Recruiting a Diverse WorkforceRecruiting a Diverse Workforce
 Single parents
 Providing work schedule flexibility.
 Older workers
 Revising polices that make it difficult or unattractive for older
workers to remain employed.
 Recruiting minorities and women
 Understanding recruitment barriers.
 Formulating recruitment plans.
 Welfare-to-work
 Developing pre-training programs to overcome difficulties in
hiring and assimilating persons previously on welfare.

25. 5-25
Recruitment - Finding External CandidatesRecruitment - Finding External Candidates
Recruiting a Diverse WorkforceRecruiting a Diverse Workforce
 Minority student associations
 College organizations of students with disabilities
 Targeted radio announcements
 Professional organizations
 Minority organizations

26. 5-26
Meeting the Challenges ofMeeting the Challenges of
Effective Staffing-Effective Staffing- SelectionSelection
 Reliability and validityReliability and validity
 Selection tools as predictors of jobSelection tools as predictors of job
performanceperformance
 Combining predictorsCombining predictors
 Selection and the person/organization fitSelection and the person/organization fit
 Reactions to selection devicesReactions to selection devices

27. 5-27
Meeting the Challenges ofMeeting the Challenges of
Effective Staffing-Effective Staffing- SelectionSelection
 The Problem:
 Selecting the best Employees from Applicant Pool
 The Solution:
 Implementing Targeted Selection
 Firms must:
 Identify the critical job elements required for the position
 Organize selection element into a comprehensive system
 Use past behavior to predict future behavior
 Apply effective interviewing skills and techniques
 Involve several interviewers in organized data-exchange discussions
 Augment the interview with observations from behavior simulations

28. 5-28
Meeting the Challenges ofMeeting the Challenges of
Effective Staffing-Effective Staffing- SelectionSelection
 ReliabilityReliability
 Consistency of measurement, usually across time but alsoConsistency of measurement, usually across time but also
across judges.across judges.
 ValidityValidity
 The extent to which the technique measures the intendedThe extent to which the technique measures the intended
knowledge, skill, or ability. In the selection context, it is theknowledge, skill, or ability. In the selection context, it is the
extent to which scores on a test or interview correspond toextent to which scores on a test or interview correspond to
actual job performance.actual job performance.
 Concurrent: correlation between selection and performance when
measured at the same time
 Predictive: extent to which selection scores correlate with performance
scores when performance is measured later in time

29. 5-29
Selection -Selection - Equal Employment Opportunity (EEO)Equal Employment Opportunity (EEO)
and the Aspects of Testingand the Aspects of Testing
 A organization must be able to prove:
 That its tests are related to success or failure on the job
(validity)
 That its tests don’t unfairly discriminate against minority or
non-minority subgroups (disparate impact).
 EEO guidelines and laws apply to all selection devices,
including interviews, applications, and references.
 Testing alternatives if a selection device has disparate
impact:
 Institute a different, valid selection procedure that does not
have an adverse impact.
 Show that the test is valid—in other words, that it is a valid
predictor of performance on the job.
 Monitor the selection test to see if it has disparate impact.

30. 5-30
Selection -Selection - Test Takers’ Individual Rights and TestTest Takers’ Individual Rights and Test
SecuritySecurity
 Under the American Psychological Association’s
standard for educational and psychological tests,
test takers have the right:
To privacy and information.
To the confidentiality of test results.
To informed consent regarding use of these results.
To expect that only people qualified to interpret the
scores will have access to them.
To expect the test is fair to all.

31. 5-31
SelectionSelection
 Major types of tests used by employers
Basic skills tests (45%)
Drug tests (47%)
Psychological tests (33%)
 Use of testing
Less overall testing now but more testing is used as
specific job skills and work demands increase.
 Screen out bad or dishonest employees
 Reduce turnover by personality profiling
 Source of tests
Test publishers

32. 5-32
Selection ToolsSelection Tools
 Selection tools as predictors of job performanceSelection tools as predictors of job performance
 Letters of recommendationLetters of recommendation
 Application formsApplication forms
 Ability testsAbility tests
 Personality testsPersonality tests
 Psychology testsPsychology tests
 Honesty testsHonesty tests

33. 5-33
Selection ToolsSelection Tools
 Selection tools as predictors of job performanceSelection tools as predictors of job performance
 Interviews – Structured & UnstructuredInterviews – Structured & Unstructured
 Assessment centersAssessment centers
 Drug testsDrug tests
 Reference checksReference checks
 Background checksBackground checks
 Handwriting analysisHandwriting analysis

34. 5-34
Selection ToolsSelection Tools
 Personality TestsPersonality Tests
 Extraversion
 The tendency to be sociable, assertive, active, and to experience
positive effects, such as energy and zeal.
 Emotional stability/neuroticism
 The tendency to exhibit poor emotional adjustment and experience
negative effects, such as anxiety, insecurity, and hostility.
 Openness to experience
 The disposition to be imaginative, nonconforming, unconventional, and
autonomous.
 Agreeableness
 The tendency to be trusting, compliant, caring, and gentle.
 Conscientiousness
 Is comprised of two related facets: achievement and dependability.

35. 5-35
Selection - Structured Job InterviewSelection - Structured Job Interview
 Situational Interview QuestionsSituational Interview Questions
 Supervisors and workers rewrite critical incidents ofSupervisors and workers rewrite critical incidents of
behavior as situational interview questions thenbehavior as situational interview questions then
generate and score possible answers as benchmarkgenerate and score possible answers as benchmark
 Job Knowledge QuestionsJob Knowledge Questions
 Assess whether or not candidate has the basicAssess whether or not candidate has the basic
knowledge needed to perform the jobknowledge needed to perform the job
 Worker Requirements QuestionsWorker Requirements Questions
 Assess whether or not worker is willing to performAssess whether or not worker is willing to perform
the job under prevailing job conditionsthe job under prevailing job conditions

36. 5-36
Selection - Unstructured Job InterviewSelection - Unstructured Job Interview
 Unstructured InterviewsUnstructured Interviews
Be preparedBe prepared
Put applicants at ease in the first few minutesPut applicants at ease in the first few minutes
Don’t be ruled by snap judgments or stereotypesDon’t be ruled by snap judgments or stereotypes
Ask results-oriented questionsAsk results-oriented questions
Don’t underestimate the power of silenceDon’t underestimate the power of silence
Close the interview with careClose the interview with care

37. 5-37
Selection - Legal Issues in StaffingSelection - Legal Issues in Staffing
 Discrimination LawsDiscrimination Laws
 Affirmative ActionAffirmative Action
 Negligent HiringNegligent Hiring
 Develop clear policies onDevelop clear policies on
hiring as well as onhiring as well as on
disciplining anddisciplining and
dismissing employeesdismissing employees
 Check state lawsCheck state laws
regarding hiringregarding hiring
applicants with criminalapplicants with criminal
recordsrecords
 Learn as much as possibleLearn as much as possible
about applicants’ pastabout applicants’ past
work-related behaviorwork-related behavior

38. 5-38
Selection -Selection - Background Investigations and ReferenceBackground Investigations and Reference
ChecksChecks
 Extent of investigations and checks
Reference checks (87%)
Background employment checks (69%)
Criminal records (61%)
Driving records (56%)
Credit checks (35%)
 Reasons for investigations and checks
To verify factual information provided by applicants.
To uncover damaging information

39. 5-39
Selection - The PolygraphSelection - The Polygraph
 The polygraph (or lie detector)
A device that measures physiological changes,
The assumption is that such changes reflect changes
in emotional state that accompany lying.
 Employee Polygraph Protection Act of 1988.
Prohibits employers (in most all cases) from
conducting polygraph examinations of all job
applicants and most employees.
Also prohibited are other mechanical or electrical
devices including psychological stress evaluators and
voice stress analyzers

40. 5-40
Selection - The PolygraphSelection - The Polygraph
 Employers with contracts involving:
National defense or security
Nuclear-power (Department of Energy)
Access to highly classified information
Counterintelligence (the FBI or Department of
Justice)
 Other exceptions
Hiring of private security personnel
Hiring persons with access to drugs
Conducting ongoing investigations involving
economic loss or injury to an employer’s business

41. 5-41
Selection – Honesty TestsSelection – Honesty Tests
 Paper-and-pencil honesty tests
Psychological tests designed to predict job applicants’
proneness to dishonesty and other forms of counter
productivity.
Measure attitudes regarding things like tolerance of
others who steal, acceptance of rationalizations for
theft, and admission of theft-related activities

42. 5-42
Selection - Antitheft Screening ProcedureSelection - Antitheft Screening Procedure
 Ask blunt questions.
 Listen, rather than talk.
 Do a credit check.
 Check all employment and personal references.
 Use paper-and-pencil honesty tests and
psychological tests.
 Test for drugs.

43. 5-43
SelectionSelection
 Reactions to Selection DevicesReactions to Selection Devices
 Applicant reactions to selection devicesApplicant reactions to selection devices
 Manager reaction to selection systemsManager reaction to selection systems

44. 5-44
Selection - Avoiding Negligent Hiring ClaimsSelection - Avoiding Negligent Hiring Claims
 Carefully scrutinize information supplied by the applicant on his
or her employment application.
 Get the applicant’s written authorization for reference checks, and
carefully check references.
 Save all records and information you obtain about the applicant.
 Reject applicants who make false statements of material facts or
who have conviction records for offenses directly related and
important to the job in question.
 Balance the applicant’s privacy rights with others’ “need to
know,” especially when you discover damaging information.
 Take immediate disciplinary action if problems arise.

45. 5-45
Selection - Avoiding Negligent Hiring ClaimsSelection - Avoiding Negligent Hiring Claims
 Include on the application form a statement for
applicants to sign explicitly authorizing a
background check.
 Use telephone references if possible.
 Be persistent in obtaining information.
 Ask open-ended questions to elicit more
information from references.
 Use references provided by the candidate as a
source for other references.

46. 5-46
SelectionSelection
 Concerns about checking applicant histories
Various equal employment laws discourage or
prohibit the use of such information in employee
screening.
Courts view making employment decisions based on
solely on someone’s arrest record as unfairly
discriminatory.
The EEOC says a poor credit history should not by
itself preclude someone from getting a job.

47. 5-47
Selection – Additional ConsiderationsSelection – Additional Considerations
1. Check all applicable state laws.
2. Review the impact of federal equal employment laws.
3. Remember the Federal Fair Credit Reporting Act.
4. Do not obtain information that you’re not going to use.
5. Remember that using arrest information will be highly suspect.
6. Avoid blanket policies (such as “we hire no one with a record of
workers’ compensation claims”).
7. Use information that is specific and job related.
8. Keep information confidential and up to date.
9. Never authorize an unreasonable investigation.

48. 5-48
Selection - Additional ConsiderationsSelection - Additional Considerations
10. Make sure you always get at least two forms of
identification from the applicant.
11. Always require applicants to fill out a job application.
12. Compare the application to the résumé
13. Particularly for executive candidates, include
background checks of such things as involvement in
lawsuits, and of articles about the candidate in local or
national newspapers.
14. Separate the tasks of (1) hiring and (2) doing the
background check.

49. 5-49
Selection - Additional ConsiderationsSelection - Additional Considerations
 Marital Status
 Inappropriate:
 Are you married?
 Is this your maiden or married name?
 With whom do you live?
 Appropriate:
 After hiring, marital status on tax and insurance forms
 Parental Status
 Inappropriate:
 How many kids do you have?
 Do you plan to have children?
Are you pregnant?
 Appropriate:
 After hiring, asking for dependent information on tax and insurance
forms

50. 5-50
Selection - Additional ConsiderationsSelection - Additional Considerations
 Age
 Inappropriate:
 How old are you?
 What year were you born?
 When did you graduate from high school?
 Appropriate:
 Before hiring, asking if you are over the legal minimum age for the hours or
working conditions, in compliance with state or Federal labor laws.
 After hiring, verifying legal minimum age with a birth certificate or other ID,
and asking age on insurance forms
 National Origin
 Inappropriate:
 Where were you born?
 Where are your parents from?
 What's your heritage?
 Appropriate:
 Verifying legal U.S. residence or work visa status

51. 5-51
Selection - Additional ConsiderationsSelection - Additional Considerations
 Race or Skin Color
 Inappropriate:
 What race are you?
 Are you a member of a minority group?
 Appropriate:
 Generally indicate equal opportunity employment.
 Asking race only as required for affirmative-action programs
 Religion or Creed
 Inappropriate:
 What religion are you?
 Which religious holidays will you be taking off from work?
 Do you attend church regularly?
 Appropriate:
 Contact religious or other organizations related to your beliefs, that you
list as employers or references

52. 5-52
Selection - Additional ConsiderationsSelection - Additional Considerations
 Criminal Record
 Inappropriate
 Have you ever been arrested?
 Have you ever spent a night in jail?
 Appropriate:
 Questions about convictions by civil or military courts, if accompanied by a
disclaimer that answers will not necessarily cause loss of job opportunity.
 Specific convictions, if related to fitness to perform the job. Generally,
employers can ask only about convictions and not arrests, except for law-
enforcement and security-clearance agencies.
 Disability
 Inappropriate:
 Do you have any disabilities?
 What's your medical history?
 How does your condition affect your abilities?
 Appropriate
 Ask if you can perform specific duties of the job.
 After hiring, ask about medical history on insurance forms