3 Discussion board questions- 3 paragraphs each

profileBrandon91002
Staffing_Organizations_9thEdition.pdf

S TA F F I N G O R G A N I Z AT I O N S Ninth Edition

Herbert G. Heneman III University of Wisconsin– Madison

Timothy A. Judge The Ohio State University

John D. Kammeyer- Mueller University of Minnesota

Pangloss Industries Columbus, OH

1259756556_ch00_pi_xx.indd 1 12/8/17 4:49 PM

STAFFING ORGANIZATIONS, NINTH EDITION

Published by Pangloss Industries, Inc., 4130 Mountview Road, Columbus, OH 43220, in collaboration with McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2019 by Pangloss Industries, Inc. All rights reserved. Printed in the United States of America. Previous editions © 2015, 2012, and 2009. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of the publisher, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

This book is printed on acid-free paper.

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought. (FROM A DECLARATION OF PRINCIPLES JOINTLY ADOPTED BY A COMMITTEE OF THE AMERICAN BAR ASSOCIATION AND A COMMITTEE OF PUBLISHERS.)

1 2 3 4 5 6 7 8 9 LCR 21 20 19 18

ISBN 978-1-259-75655-9 (bound edition) MHID 1-259-75655-6 (bound edition) ISBN 978-1-260-14133-7 (loose-leaf edition) MHID 1-260-14133-0 (loose-leaf edition)

Portfolio Manager: Laura Spell Marketing Manager: Debbie Clare Content Project Managers: Ryan Warczynski, Karen Jozefowicz Senior Buyer: Laura Fuller Designer: Jessica Cuevas Content Licensing Specialist: Melisa Seegmiller Cover image: © McGraw-Hill Education

Address orders and customer service questions to: McGraw-Hill Higher Education 1333 Burr Ridge Parkway Burr Ridge, IL 60527 1-800-338-3987

Note to the Instructor: Pangloss and McGraw-Hill Education have combined their respective skills to bring Staffing Organizations to your classroom. This text is marketed and distributed by McGraw-Hill Education. For assistance in obtaining information or supplementary material, please contact your McGraw-Hill Education sales representative or the cus- tomer services division of McGraw-Hill Education at 800-338-3987.

Dedication

To Susan, Jill, and Mia

Compositor: Westchester Publishing Services

Address editorial correspondence to: Timothy A. Judge Pangloss Industries 4130 Mountview Road Columbus, OH 43220 [email protected]

Library of Congress Cataloging-in-Publication Data Names: Heneman, Herbert G., III, 1944– author. | Judge, Tim, author. | Kammeyer-Mueller, John, author. Title: Staffing organizations / Herbert G. Heneman III, University of Wisconsin-Madison, Timothy A. Judge, Ohio State University, John D. Kammeyer-Mueller, University of Minnesota. Description: Ninth edition. | Columbus, OH : Pangloss Industries, [2019] Identifiers: LCCN 2017054981 | ISBN 9781259756559 (hardcover : alk. paper) Subjects: LCSH: Employees—Recruiting. | Employee selection. Classification: LCC HF5549.5.R44 H46 2019 | DDC 658.3/11—dc23 LC record available at https://lccn.loc.gov/2017054981

www.mhhe.com

9781259756559_ch00_pi-xx_SE.indd 2 12/27/17 9:45 PM

iii

A U T H O R P R O F I L E S

Herbert G. Heneman III is the Dickson- Bascom Professor Emeritus in the Management and Human Resources Department, School of Business, University of Wisconsin– Madison. He also serves as a se nior researcher at the Wisconsin Center for Educational Research. Herb has been a visiting faculty member at the University of Washington and the University of Florida, and he was the University Distinguished Visiting Professor at The Ohio State University. His research is in the areas of staffing, per for mance management, compensation, and work motiva- tion. He is currently investigating the design and effectiveness of teacher per for- mance management and compensation systems. Herb was on the board of directors of the Society for Human Resource Management Foundation and served as its director of research. He is the se nior author of three other textbooks on human resource management. Herb is a Fellow of the Society for Industrial and Orga- nizational Psy chol ogy, the American Psychological Association, and the Acad emy of Management. He is also the recipient of career achievement awards from the Human Resources Division of the Acad emy of Management and from the Society for Human Resource Management.

Timothy A. Judge is the Joseph A. Alutto Chair in Leadership Effectiveness and executive director of the Fisher Leadership Initiative in the Department of Management and Human Resources, Fisher College of Business, The Ohio State University. Tim is also the director of research for Stay Metrics, a start-up com- pany in Notre Dame’s Innovation Park. Prior to receiving his PhD at the University of Illinois, Tim was a man ag er for Kohl’s department stores. Tim has served on the faculties of Cornell University, University of Iowa, University of Florida, and University of Notre Dame. Tim’s teaching and research interests are in the areas of personality, leadership and influence be hav iors, staffing, and job attitudes. Tim is a former program chair for the Society for Industrial and Orga nizational Psy chol ogy and a past chair of the Human Resources Division of the Acad emy of Manage- ment. He has also served on the Acad emy of Management Board of Governors. Tim is a Fellow of the American Psychological Association, the Society for Indus- trial and Orga nizational Psy chol ogy, the American Psychological Society, and the Acad emy of Management.

1259756556_ch00_pi_xx.indd 3 12/8/17 4:49 PM

iv Author Profiles

John D. Kammeyer- Mueller is the Curtis L. Carlson Professor of Industrial Rela- tions in the Department of Work and Organ izations, Carlson School of Man- agement, University of Minnesota. John’s primary research interests include the areas of orga nizational socialization and employee adjustment, personality and the stress pro cess, employee retention, and career development. He has taught courses related to orga nizational staffing at the undergraduate, master’s, and doc- toral levels. His research work has appeared in Acad emy of Management Journal; the Journal of Applied Psy chol ogy; Personnel Psy chol ogy; the Journal of Manage- ment; and the Journal of Orga nizational Be hav ior, among other outlets. He serves on the editorial boards of the Journal of Applied Psy chol ogy; Personnel Psy chol ogy; and Orga nizational Research Methods. In addition to his scholarly work, John has performed consulting work in the areas of employee satisfaction, retention, and workplace safety and health for 3M Corporation, Allegiance Healthcare, Allina Healthcare, and the State of Minnesota. He has also worked with the Florida Nurses Association and the Florida Bar on research proj ects of interest to their professional membership.

1259756556_ch00_pi_xx.indd 4 12/8/17 4:49 PM

v

P R E FAC E

There has been a continual effort to incorporate strategic orga nizational con-cerns into every edition of the textbook. The ninth edition of Staffing Organ-izations develops these concepts significantly. Based on ideas from leading human resources thinkers, new discussions describe how to incorporate orga- nizational strategy into every part of the staffing pro cess. This material not only underlines the importance of strategic thinking for students, but provides specific guidance for specific actions that staffing decision makers can take to improve tal- ent management.

This edition has been the beneficiary of major restructuring and updating to ensure continuing alignment of the material with current in- the- field business prac- tices. The changes range from small inclusions of new standards to major chapter revisions. The new structure will make it easier for students to see how each part of the staffing pro cess proceeds from beginning to end, and it will also help them see how the topics fit together to create a cohesive staffing management system.

The human resources landscape continues to be transformed by technology, and this edition of the textbook reflects this influence. The use of human resources infor- mation systems for tasks like recruitment, se lection, and forecasting is now thor- oughly integrated into all sections. The role of social media, the Internet, and other information management tools is emphasized in several chapters, and new examples from companies keep the application of concepts fresh and current.

The changes for this edition reflect the integration of technology into core staff- ing functions. Many of the previous headings related to web- based topics have thus been eliminated to reflect that these are no longer novel add- ons to staffing manage- ment but an integral part of the pro cess.

Listed below are updates to each chapter.

Chapter One: Staffing Models and Strategy

• Updated workforce growth statistics throughout the chapter • Updated list of companies that are intensively hiring • Updated material on Gore’s position as one of Fortune magazine’s 100 Best

Companies to Work For • New material on person- job match and person- organization fit

1259756556_ch00_pi_xx.indd 5 12/8/17 4:49 PM

vi Preface

• New material based on a recent report on the current talent shortage in the IT, skilled trades, and sales industries

• Added material on the distinction between the labor force size and the labor force participation rate

• Updated definition of staffing ethics from the Society for Human Resource Management

Chapter Two: Legal Compliance

• New material on classifying individuals as either employees or in de pen- dent contractors based on criteria from the Internal Revenue Ser vice and the Department of Labor

• Guidance from the Equal Employment Opportunity Commission (EEOC) on defining discrimination based on the meaning of race/color, national origin, sex, religion, disability, age, pregnancy, and ge ne tic information

• Updated information on the protected characteristics of sexual orientation and gender identity

Chapter Three: Planning

• Increased emphasis on orga nizational culture in the planning pro cess • New material on executive buy-in during human resources planning • Updated discussion of workforce skills demand and employment patterns • Revised exhibit showing labor force statistics trends • New material on trends in labor force participation and work hours • Streamlined discussion of forecasting techniques • Comprehensive review of research on flexible workforce quality • New material reviewing research on when to use outsourcing • Updated information regarding affirmative action for veterans and qualified

individuals with disabilities

Chapter Four: Job Analy sis and Rewards

• Greater emphasis on implementing competency- based job analy sis • New figure showing the pro cess of job requirements job analy sis • New figure showing the pro cess of competency- based job analy sis • New figure outlining the distinctions among knowledge, skills, abilities, and

other characteristics and their workplace relevance • Streamlined discussion of O*NET models • Revised end- of- chapter cases • Revised information on the types of evidence of essential job functions

1259756556_ch00_pi_xx.indd 6 12/8/17 4:49 PM

Preface vii

Chapter Five: External Recruitment

• New material on integrating in- house recruitment with external vendors • Integration of online recruitment techniques across topic areas • Comprehensive review of research on applicant reactions to the external recruit-

ment pro cess • Increased discussion of social media effects on recruitment • Revised and updated pre sen ta tion of recruitment messages • Increased treatment of targeted recruitment techniques • New discussion of the transition from recruitment to se lection • Updated discussion regarding policies about written job applicants • Revised material on best- practice recruitment ideas from the EEOC • Updated information on recruitment using social media and job advertisements

Chapter Six: Internal Recruitment

• New material describing best practices in the strategic policy development pro cess

• Revised and updated pre sen ta tion of recruitment messages • Revised and updated discussion of replacement and succession plans • New discussion of the transition from recruitment to se lection • New material on best- practice promotion ideas from the EEOC • New discussion of barriers to upward mobility and improving upward mobility

Chapter Seven: Mea sure ment

• Updated example of the nominal level of mea sure ment • New material on biases in subjective mea sure ment and rater training • Revised percentiles example • New discussion of the role of biases and contextual factors in interrater reliability • New material on how construct- , content- , and criterion- related validation evi-

dence should be amassed and interpreted together • New material on the situational appropriateness of predictive versus concur-

rent validation designs • Revised definition and discussion of content validity • Updated illustrative study of the Mary land Department of Transportation • New material reviewing the meta- analytic work on prior validity generaliza-

tion and the gaps in our current understanding • New example using insights from Glassdoor to highlight practical consider-

ations in staffing • New discussion of mobile and Internet- based test administration

1259756556_ch00_pi_xx.indd 7 12/8/17 4:49 PM

viii Preface

Chapter Eight: External Se lection I

• New material on applicant reactions toward per for mance tests and the valid- ity of such tests

• Updated discussion of video résumés • New material on the adverse impact of résumés, letters of recommendation,

credit checks, and biodata • New discussion of the “double jeopardy” effect • New discussion of the usefulness of a college education and quality of school

as educational requirements, including examples • New material on how studying abroad leads to an expanded cultural intelli-

gence, an area of extracurricular activities that may be impor tant for staffing • New material on how experience is multidimensional, with many characteris-

tics and levels of analy sis • New discussion of “Ban the Box” legislation • New material on initial impressions as bias in initial interviews • Updated material on applicant reactions and attraction from meta- analytic

research • Updated list of states that currently limit the use of credit information in

staffing • New material on social media screening and safeguards • New discussion of bona fide occupational qualification claims and their

justification

Chapter Nine: External Se lection II

• Updated Big Five stability and heritability estimates with the most recent meta- analytic research

• Updated website links and test information throughout the chapter • New material and discussion on the “too much of a good thing” effect with

conscientiousness • New material and discussion on the “trivial validities” of personality, includ-

ing updated meta- analytic research and additional personality frameworks • New material and meta- analytic evidence on personality test faking • New material and discussion on when socially desirable be hav ior is not desir-

able for job per for mance • Updated Exhibits 9.2 and 9.13 based on new evidence • Updated evaluation of cognitive ability tests with newest meta- analytic research

on organizational citizenship behavior and counterproductive work behavior • Revised adverse impact evidence for cognitive ability tests • New material on how “star applicants” can become offended by having to take

cognitive ability tests

1259756556_ch00_pi_xx.indd 8 12/8/17 4:49 PM

Preface ix

• New material and discussion on physical abilities tests that draw from the most recent meta- analytic estimates

• New material and discussion on performance- based emotional intelligence mea sure ment and emotional intelligence validity

• Updated meta- analytic validity estimates of work sample tests • New material and discussion on the “situational” perspective on situational

judgment tests • New material on integrity test validity and faking • New material on vocational congruence and attained vocational aspirations • Updated meta- analytic research and other material for interviews, including

structured interview characteristics, behavioral and situational interview com- parisons, validity, and interviewer characteristics

• New material on the National Football League (NFL) and how OCBs matters less to outsiders (e.g., external con sul tants) than to insiders in team se lection

• Updated statistics and figures on drug testing • Revised material on the Uniform Guidelines on Employee Se lection Procedures • New discussion of marijuana and other drug testing

Chapter Ten: Internal Se lection

• Updated peer assessment section with meta- analytic results • New material on the impact of self- assessments on biased promotion judgments • New material on the impact of biases such as po liti cal skill on promotability

ratings • New meta- analytic material on the characteristics of assessment centers • New material and discussion on solutions for the assessment center construct

validity dilemma • Revised the validity ranges to match traditional standards

Chapter Eleven: Decision Making

• New section on predictive analytics • New section describing the interface between orga nizational leaders and HR

representatives based on best practices in the field • New material covering techniques for assessing economic impact • New exhibit reviewing techniques for assessing links between economic impact

analy sis and other functional areas of the business • New exhibit covering the role of decision makers in se lection • New section covering differential weighting techniques for predictors • Updated and revised discussion of choosing among weighting schemes • Streamlined discussion of test score banding

1259756556_ch00_pi_xx.indd 9 12/8/17 4:49 PM

x Preface

Chapter Twelve: Final Match

• New section on long- term adjustment and the pro cess of new hire onboarding over time

• Updated and revised discussion of specific onboarding practices • Increased discussion of expatriate adjustment in staffing • Updated and revised discussion of the strategic approach to job offers, with

increased linkages to decision making and system management • Streamlined discussion of pay policies • Streamlined discussion of employment contracts • Revised material on negligent hiring and minimizing its occurrence

Chapter Thirteen: Staffing System Management

• New section describing the design and administration of staffing systems • Emphasis on strategic fit between staffing systems and orga nizational goals

and pro cesses • Incorporation of strategic management research regarding HR systems • New exhibit contrasting hierarchical and participative staffing systems • Review of techniques for defining the mission of staffing • Updated and revised material on orga nizational arrangements • New EEO-1 report • New discussion of incorporating implicit (hidden) bias material into EEO

training • New and revised material on internal and external dispute resolution procedures

Chapter Fourteen: Retention Management

• Enhanced review of techniques for analyzing turnover • Comprehensive update and reor ga ni za tion of material related to retention

initiatives • New section on predictive analytics in retention management • New exhibit contrasting hire, quit, and layoff differences across industries • New exhibit demonstrating how to use turnover breakout results • Updated exhibit describing guidelines for increasing satisfaction and retention

of employees • Updated and revised discussion of causes of turnover • Updated and revised discussion of the costs and benefits of turnover

In preparing previous editions, we have benefited greatly from the critiques and suggestions of numerous people whose assistance was invaluable. They helped us

1259756556_ch00_pi_xx.indd 10 12/8/17 4:49 PM

Preface xi

identify new topics, as well as clarify, rearrange, and delete material. We extend our many thanks to the following individuals:

• Amy Banta, Franklin University • Fred Dorn, University of Mississippi • Hank Findley, Troy University • Diane Hagan, Ohio Business College • Mark Lengnick- Hall, University of Texas– San Antonio

We wish to extend a special note of thanks to the McGraw- Hill Education pub- lishing team—in par tic u lar, Michael Ablassmeir, Laura Spell, Melissa Leick, and Jane Beck— for their hard work and continued support of the number- one staffing textbook in the market. Thanks also to the staff at Westchester Publishing Ser- vices for their dedicated work in this collaborative undertaking. We wish to thank Dr. David R. Glerum for his hard work on manuscript revisions, editing, and prepa- ration. Fi nally, we wish to thank you— the students and faculty who use the book. If there is anything we can do to improve your experience with Staffing Organ izations, please contact us. We will be happy to hear from you.

1259756556_ch00_pi_xx.indd 11 12/8/17 4:49 PM

1259756556_ch00_pi_xx.indd 12 12/8/17 4:49 PM

xiii

C O N T E N T S

PA R T O N E

The Nature of Staffing 3

C H A P T E R O N E Staffing Models and Strategy 5 Learning Objectives and Introduction 6

Learning Objectives 6 Introduction 6

The Nature of Staffing 7 The Big Picture 7 Definition of Staffing 10 Implications of Definition 10 Staffing System Examples 13

Staffing Models 15 Staffing Quantity: Levels 15 Staffing Quality: Person/Job Match 16 Staffing Quality: Person/Or ga ni za tion

Match 18 Staffing System Components 20 Staffing Organ izations 23

Staffing Strategy 27 Staffing Levels 27 Staffing Quality 32

Staffing Ethics 33 Plan for the Book 36 Summary 37 Discussion Questions 38 Ethical Issues 38

Applications 38 Staffing for Your Own Job 38 Staffing Strategy for a New Plant 40

Endnotes 41

PA R T T W O

Support Activities 45

C H A P T E R T W O Legal Compliance 47 Learning Objectives and Introduction 49

Learning Objectives 49 Introduction 49

The Employment Relationship 50 Employer– Employee 50 In de pen dent Contractors 53 Temporary Employees 54 Unpaid Interns and Trainees 55

Laws and Regulations 55 Need for Laws and Regulations 55 Sources of Laws and Regulations 56

EEO/AA Laws: General Provisions and Enforcement 58

General Provisions 58 Enforcement: EEOC 61 Enforcement: OFCCP 67

1259756556_ch00_pi_xx.indd 13 12/8/17 4:49 PM

xiv Contents

EEO/AA Laws: Specific Staffing Provisions 69

Civil Rights Acts (1964, 1978, 1991) 69 Age Discrimination in Employment Act

(1967) 72 Americans With Disabilities Act (1990,

2008) 73 Ge ne tic Information Nondiscrimination Act

(2008) 77 Rehabilitation Act (1973) 78 Executive Order 11246 (1965, 1967,

2014) 78 Other Staffing Laws 79

Federal Laws 79 State and Local Laws 82 Civil Ser vice Laws and Regulations 83

Legal Issues in Remainder of Book 85 Summary 85 Discussion Questions 86 Ethical Issues 86 Applications 87

Age Discrimination in a Promotion? 87 Disparate Impact: What Do the Statistics

Mean? 88 Endnotes 89

C H A P T E R T H R E E Planning 91 Learning Objectives and Introduction 93

Learning Objectives 93 Introduction 93

Internal and External Influences 94 Orga nizational Strategy 94 Orga nizational Culture 95 Labor Markets 97 Technology 102

Human Resource Planning 103 Pro cess and Example 103 Initial Decisions 105 Forecasting HR Requirements 108 Forecasting HR Availabilities 111 Reconciliation and Gaps 119

Staffing Planning 121 Staffing Planning Pro cess 121 Core Workforce 124 Flexible Workforce 125 Outsourcing 128

Diversity Planning 130 Demography of the American Workforce 130 Business Case for Diversity 131 Planning for Diversity 132

Legal Issues 134 Affirmative Action Plans 134 Legality of AAPs and Diversity

Programs 139 AAPs for Veterans and Individuals With

Disabilities 142 EEO and Temporary Workers 142

Summary 143 Discussion Questions 144 Ethical Issues 144 Applications 145

Markov Analy sis and Forecasting 145 Deciding Whether to Use Flexible

Staffing 145 Endnotes 147

C H A P T E R F O U R Job Analy sis and Rewards 153 Learning Objectives and Introduction 155

Learning Objectives 155 Introduction 155

The Need for Job Analy sis 156 Types of Job Analy sis 156 The Changing Nature of Jobs 157

Job Requirements Job Analy sis 159 Overview 159 Job Requirements Matrix 160 Job Descriptions and Job

Specifications 168 Collecting Job Requirements

Information 169 Competency- Based Job Analy sis 177

Overview 179

1259756556_ch00_pi_xx.indd 14 12/8/17 4:49 PM

Contents xv

Nature of Competencies 179 Collecting Competency Information 182

Job Rewards 185 Types of Rewards 185 Employee Value Proposition 185 Collecting Job Rewards Information 186

Legal Issues 193 Job Relatedness and Court Cases 193 Essential Job Functions 194

Summary 195 Discussion Questions 196 Ethical Issues 197 Applications 197

Conducting a Job Requirements or Job Rewards Job Analy sis 197

Maintaining Job Descriptions 198 Endnotes 199

PA R T T H R E E

Staffing Activities: Recruitment 203

C H A P T E R F I V E External Recruitment 205 Learning Objectives and Introduction 207

Learning Objectives 207 Introduction 207

Strategic Recruitment Planning 208 Defining Strategic External Recruitment

Goals 209 Open Versus Targeted Recruitment 211 Organ ization and Administration 213

Applicant Reactions 219 Reactions to Job and Orga nizational

Characteristics 220 Reactions to Recruiters 220 Reactions to the Recruitment Pro cess 221 Reactions to Diversity Issues 222

Communication 223 Communication Message 223 Communication Media 229

Strategy Implementation 236 Individual Recruitment Sources 236 Social Recruitment Sources 239 Orga nizational Recruitment Sources 242 Recruitment Metrics 248

Transition to Se lection 251 Legal Issues 252

Definition of a Job Applicant 252 Affirmative Action Programs 254 Electronic Recruitment 254 Job Advertisements 257 Fraud and Misrepre sen ta tion 257

Summary 258 Discussion Questions 259 Ethical Issues 259 Applications 260

Improving a College Recruitment Program 260

Internet Recruitment 262 Endnotes 263

C H A P T E R S I X Internal Recruitment 269 Learning Objectives and Introduction 270

Learning Objectives 270 Introduction 270

Strategic Recruitment Planning 271 Defining Strategic Internal Recruitment

Goals 271 Mobility Paths and Policies 271 Closed, Open, and Hybrid Recruitment 276 Organ ization and Administration 279 Timing 280

Applicant Reactions 283 Communication 284

Communication Message 284 Communication Media 285

Strategy Implementation 286 Recruitment Sources 286 Recruitment Metrics 292

Transition to Se lection 295 Legal Issues 295

1259756556_ch00_pi_xx.indd 15 12/8/17 4:49 PM

xvi Contents

Affirmative Action Programs 296 Bona Fide Se niority Systems 296 The Glass Ceiling 298

Summary 301 Discussion Questions 302 Ethical Issues 302 Applications 302

Recruitment in a Changing Internal Labor Market 302

Succession Planning for a CEO 304 Endnotes 304

PA R T F O U R

Staffing Activities: Se lection 309

C H A P T E R S E V E N Mea sure ment 311 Learning Objectives and Introduction 313

Learning Objectives 313 Introduction 313

Importance and Use of Mea sures 314 Key Concepts 315

Mea sure ment 315 Scores 319 Correlation Between Scores 322

Quality of Mea sures 327 Reliability of Mea sures 328 Validity of Mea sures 336 Validation of Mea sures in Staffing 339 Validity Generalization 348 Staffing Metrics and Benchmarks 351

Collection of Assessment Data 351 Testing Procedures 352 Acquisition of Tests and Test Manuals 354 Professional Standards 354

Legal Issues 355 Determining Adverse Impact 355 Standardization 358 Best Practices 358

Summary 359

Discussion Questions 361 Ethical Issues 361 Applications 361

Evaluation of Two New Assessment Methods for Selecting Telephone Customer Ser vice Representatives 361

Conducting Empirical Validation and Adverse Impact Analy sis 364

Endnotes 367

C H A P T E R E I G H T External Se lection I 371 Learning Objectives and Introduction 372

Learning Objectives 372 Introduction 372

Preliminary Issues 372 The Logic of Prediction 373 The Nature of Predictors 374 Development of the Se lection Plan 376 Se lection Sequence 376

Initial Assessment Methods 379 Résumés and Cover Letters 379 Application Blanks 383 Biographical Information 391 Reference and Background Checks 396 Initial Interview 402 Choice of Initial Assessment Methods 404

Legal Issues 409 Disclaimers 410 Reference Checks 410 Social Media Screening 411 Background Checks: Credit and

Criminal 412 Preemployment Inquiries 415 Bona Fide Occupational

Qualifications 417 Summary 420 Discussion Questions 420 Ethical Issues 421 Applications 421

Reference Reports and Initial Assessment in a Start- Up Com pany 421

1259756556_ch00_pi_xx.indd 16 12/8/17 4:49 PM

Contents xvii

Developing a Lawful Application Blank 422

Endnotes 424

C H A P T E R N I N E External Se lection II 431 Learning Objectives and Introduction 432

Learning Objectives 432 Introduction 432

Substantive Assessment Methods 433 Personality Tests 433 Ability Tests 442 Emotional Intelligence Tests 450 Per for mance Tests and Work

Samples 453 Situational Judgment Tests 456 Integrity Tests 459 Interest, Values, and Preference

Inventories 464 Structured Interview 466 Se lection for Team Environments 475 Choice of Substantive Assessment

Methods 477 Discretionary Assessment Methods 481 Contingent Assessment Methods 481

Drug Testing 482 Medical Exams 488

Legal Issues 488 Uniform Guidelines on Employee Se lection

Procedures 488 Se lection Under the Americans With

Disabilities Act 489 Marijuana and Other Drug Testing 493

Summary 494 Discussion Questions 495 Ethical Issues 496 Applications 496

Assessment Methods for the Job of Human Resources Director 496

Choosing Among Finalists for the Job of Human Resources Director 498

Endnotes 499

C H A P T E R T E N Internal Se lection 513 Learning Objectives and Introduction 515

Learning Objectives 515 Introduction 515

Preliminary Issues 516 The Logic of Prediction 516 Types of Predictors 517 Se lection Plan 517

Initial Assessment Methods 518 Talent Management/Succession

Systems 518 Peer Assessments 519 Self- Assessments 521 Managerial Sponsorship 521 Informal Discussions and

Recommendations 523 Choice of Initial Assessment Methods 525

Substantive Assessment Methods 525 Se niority and Experience 526 Job Knowledge Tests 527 Per for mance Appraisal 528 Promotability Ratings 530 Assessment Centers 531 Interview Simulations 538 Promotion Panels and Review Boards 539 Choice of Substantive Assessment

Methods 539 Discretionary Assessment Methods 541 Legal Issues 541

Uniform Guidelines on Employee Se lection Procedures 541

The Glass Ceiling 542 Summary 543 Discussion Questions 544 Ethical Issues 544 Applications 544

Changing a Promotion System 544 Promotion From Within at Citrus Glen 545 Questions 546

Endnotes 547

1259756556_ch00_pi_xx.indd 17 12/8/17 4:49 PM

xviii Contents

PA R T F I V E

Staffing Activities: Employment 553

C H A P T E R E L E V E N Decision Making 555 Learning Objectives and Introduction 557

Learning Objectives 557 Introduction 557

Choice of Assessment Method 558 Validity Coefficient 558 Correlation With Other Predictors 560 Adverse Impact 560 Hiring Success Gain 560 Economic Gain 563

Determining Assessment Scores 566 Single Predictor 566 Multiple Predictors 566

Hiring Standards and Cut Scores 571 Description of the Pro cess 572 Consequences of Cut Scores 573 Methods to Determine Cut Scores 574

Methods of Final Choice 579 Random Se lection 579 Ranking 579 Grouping 580 Ongoing Hiring 580

Decision Makers 581 Orga nizational Leaders 581 Human Resource Professionals 582 Man ag ers 583 Coworkers 583

Legal Issues 584 Uniform Guidelines on Employee Se lection

Procedures 584 Diversity and Hiring Decisions 585

Summary 586 Discussion Questions 587 Ethical Issues 587 Applications 587

Utility Concerns in Choosing an Assessment Method 587

Choosing Entrants Into a Management Training Program 589

Endnotes 591

C H A P T E R T W E LV E Final Match 595 Learning Objectives and Introduction 597

Learning Objectives 597 Introduction 597

Employment Contracts 598 Requirements for an Enforceable

Contract 598 Parties to the Contract 599 Form of the Contract 600 Disclaimers 602 Contingencies 603

Job Offers 603 Strategic Approach to Job Offers 604 Job Offer Content 606

Job Offer Pro cess 615 Formulation of the Job Offer 615 Pre sen ta tion of the Job Offer 622 Timing of the Offer 623 Job Offer Ac cep tance and Rejection 623 Reneging 624

New Employee Orientation and Socialization 626

Orientation 627 Socialization 627 Long- Term Adjustment 631 Examples of Programs 632

Legal Issues 633 Employment Eligibility Verification 633 Negligent Hiring 634 Employment- at- Will 635

Summary 635 Discussion Questions 636 Ethical Issues 637 Applications 637

Making a Job Offer 637

1259756556_ch00_pi_xx.indd 18 12/8/17 4:49 PM

Contents xix

Evaluating a Hiring and Variable- Pay Plan 639

Endnotes 641

PA R T S I X

Staffing System and Retention Management 647

C H A P T E R T H I R T E E N Staffing System Management 649 Learning Objectives and Introduction 650

Learning Objectives 650 Introduction 650

Design and Administration of Staffing Systems 651

Defining the Mission of Staffing 651 Orga nizational Arrangements 652 Policies and Procedures 655 Human Resource Information

Systems 657 Outsourcing 660

Evaluation of Staffing Systems 663 Staffing Pro cess 663 Staffing Pro cess Results 666 Calculating Staffing Metrics 672

Legal Issues 673 Rec ord Keeping and Privacy 673 EEO Report 675 Legal Audits 675 Training for Man ag ers and

Employees 677 Dispute Resolution 678

Summary 680 Discussion Questions 681 Ethical Issues 681 Applications 681

Learning About Jobs in Staffing 681 Evaluating Staffing Pro cess Results 682

Endnotes 683

C H A P T E R F O U R T E E N Retention Management 687 Learning Objectives and Introduction 689

Learning Objectives 689 Introduction 689

Turnover and Its Causes 690 Nature of the Prob lem 690 Types of Turnover 690 Causes of Turnover 692

Analy sis of Turnover 695 Mea sure ment 695 Reasons for Leaving: Self- Report 697 Reasons for Leaving: Predictive

Analytics 699 Costs and Benefits 700

Retention Initiatives: Voluntary Turnover 707

Desirability of Leaving 708 Ease of Leaving 713 Alternatives 714 Current Practices and Deciding to Act 715

Retention Initiatives: Discharge 720 Per for mance Management 720 Progressive Discipline 725

Retention Initiatives: Downsizing 726 Weighing Advantages and

Disadvantages 726 Staffing Levels and Quality 727 Alternatives to Downsizing 728 Employees Who Remain 728

Legal Issues 730 Separation Laws and Regulations 730 Per for mance Appraisal 730

Summary 731 Discussion Questions 733 Ethical Issues 733 Applications 734

Managerial Turnover: A Prob lem? 734 Retention: Deciding to Act 735

Endnotes 737

Name Index 743 Subject Index 753

1259756556_ch00_pi_xx.indd 19 12/8/17 4:49 PM

1259756556_ch00_pi_xx.indd 20 12/8/17 4:49 PM

S TA F F I N G O R G A N I Z AT I O N S Ninth Edition

099-67811_ch01_4P.indd 1 10/3/17 8:56 AM

The Staffing Organizations Model

Organization

Mission Goals and Objectives

Organization Strategy

seitivitcA gniffatS eroCseitivitcA troppuS

HR and Sta�ng Strategy

Sta�ng Policies and Programs

Sta�ng System and Retention Management

Legal compliance Planning Job analysis and rewards

Recruitment: external, internal Selection: measurement, external, internal Employment: decision making, final match

099-67811_ch01_4P.indd 2 10/3/17 8:56 AM

PA R T O N E

The Nature of Staffing

C H A P T E R O N E Staffing Models and Strategy

099-67811_ch01_4P.indd 3 10/3/17 8:56 AM

099-67811_ch01_4P.indd 4 10/3/17 8:56 AM

C H A P T E R O N E

Staffing Models and Strategy

Learning Objectives and Introduction Learning Objectives Introduction

The Nature of Staffing The Big Picture Definition of Staffing Implications of Definition Staffing System Examples

Staffing Models Staffing Quantity: Levels Staffing Quality: Person/Job Match Staffing Quality: Person/Or ga ni za tion Match Staffing System Components Staffing Organ izations

Staffing Strategy Staffing Levels Staffing Quality

Staffing Ethics

Plan for the Book

Summary

Discussion Questions

Ethical Issues

Applications Staffing for Your Own Job Staffing Strategy for a New Plant

Endnotes

099-67811_ch01_4P.indd 5 10/3/17 8:56 AM

6 PART ONE The Nature of Staffing

LEARNING OBJECTIVES AND INTRODUCTION

Learning Objectives

• Define staffing and consider how, in the big picture, staffing decisions matter • Review the five staffing models presented, and consider the advantages and

disadvantages of each • Consider the staffing system components and how they fit into the plan for

the book • Understand the staffing organ izations model and how its vari ous components

fit into the plan for the book • Appreciate the importance of staffing strategy, and review the 13 decisions

that staffing strategy requires • Realize the importance of ethics in staffing, and learn how ethical staffing

practice is established

Introduction

Staffing is a critical orga nizational function concerned with the acquisition, deploy­ ment, and retention of the organ ization’s workforce. As we note in this chapter and throughout the book, staffing is arguably the most critical function under lying orga­ nizational effectiveness, because “the people make the place,” labor costs are often the highest orga nizational cost, and poor hiring decisions are not easily undone.

This chapter begins with a look at the nature of staffing. This includes a view of the “big picture” of staffing, followed by a formal definition of staffing and the implications of that definition. Examples of staffing systems are given.

Five models are then presented to elaborate on and illustrate vari ous facets of staffing. The first model shows how projected workforce head­ count requirements and availabilities are compared to determine the appropriate staffing level for the organ ization. The next two models illustrate staffing quality, which refers to match­ ing a person’s qualifications with the requirements of the job or organ ization. The person/job match model is the foundation of all staffing activities; the person/ or ga ni za tion match model shows how person/job matching could extend to how well the person will also fit with the organ ization. The core staffing components model identifies recruitment, se lection, and employment as the three key staff­ ing activities, and it shows that both the organ ization and the job applicant inter­ act in these activities. The final model, staffing organ izations, provides the entire framework for staffing and the structure of this book. It shows that organ izations, human resources (HR), and staffing strategy interact to guide the conduct of staff­ ing support activities ( legal compliance, planning, and job analy sis) and core staff­ ing activities (recruitment, se lection, and employment); employee retention and staffing system management are shown to cut across both types of activities.

099-67811_ch01_4P.indd 6 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 7

Staffing strategy is then explored in detail by identifying and describing a set of 13 strategic staffing decisions that confront any organ ization. Several of the deci­ sions pertain to staffing levels and the remainder to staffing quality.

The ethics of staffing— the moral princi ples and guidelines for acceptable practice—is discussed next. Several pointers that help guide ethical staffing con­ duct are indicated, as are some of the common pressures to ignore these pointers and compromise one’s ethical standards. Suggestions for how to handle these pres­ sures are also made.

Fi nally, the plan for the remainder of the book is presented. The overall structure of the book is shown, along with key features of each chapter.

THE NATURE OF STAFFING

The Big Picture

Organ izations are combinations of physical, financial, and human capital. Human capital refers to the knowledge, skill, and ability of people and their motivation to use these successfully on the job. The term “workforce quality” refers to an organ­ ization’s human capital. The organ ization’s workforce is thus a stock of human capital that it acquires, deploys, and retains in pursuit of orga nizational outcomes such as profitability, market share, customer satisfaction, and environmental sus­ tainability. Staffing is the orga nizational function used to build this workforce through such systems as staffing strategy, HR planning, recruitment, se lection, employment, and retention.

At the national level, the collective workforces of US organ izations total over 121 million (down from a peak of nearly 140 million in 2005), with employees spread across nearly 7.5 million work sites. The work sites vary considerably in size, with 24% of employees in work sites with fewer than 20 employees, 54% in work sites with 20–500 employees, and 21% in work sites with more than 500 employees.1 Each of these work sites used some form of a staffing pro cess to acquire its employees. Job creation has continued to expand since job growth recovery from the Great Recession was achieved in April 2014; since then, nearly 4.6 million jobs have been added as of December 2015. Among the industries contributing to this job growth, service­ providing industries such as hospitality, leisure, health care, and professional ser vices have been leading the way. Given the steadily increasing job growth over the last five years, as well as the boon in professional ser vices such as se lection and assessment, staffing is big business for both organ izations and job seekers.2

For most organ izations, a workforce is an expensive proposition and cost of doing business. It is estimated that an average organ ization’s employee cost (wages or salaries and benefits) is over 22% of its total revenue (and generally a higher percentage of total costs).3 The percentage is much greater for organ izations in

099-67811_ch01_4P.indd 7 10/3/17 8:56 AM

8 PART ONE The Nature of Staffing

labor­ intensive industries— the service­ providing as opposed to goods­ producing industries— such as retail trade, information, financial ser vices, professional and business ser vices, education, health care, and leisure and hospitality. Since service­ providing industries now dominate our economy, matters of employee cost and whether the organ ization is acquiring a high­ quality workforce are of considerable concern.

A shift is gradually occurring from viewing employees as just a cost of doing business to valuing employees as human capital that creates a competitive advantage for the organ ization. Organ izations that deliver superior customer ser vice, much of which is driven by highly knowledgeable employees with fine­ tuned customer ser vice skills, have a definite and hopefully long­ term advantage over their competi­ tors. The competitive advantage derived from such human capital has impor tant financial implications.

In addition to direct bottom­ line implications, an organ ization’s focus on cre­ ating an effective se lection system also has indirect implications for a competi­ tive advantage by enhancing employees’ well­ being and retention. One recent study showed that employees who perceive that their com pany uses effective se lection practices such as formal se lection tests and structured job interviews (practices that we will discuss in this book) are more committed to their organ­ izations. In turn, those higher levels of commitment lead to more helping or citi­ zenship be hav iors on the part of employees, as well as stronger intentions to remain employed, both of which ultimately contribute to an organ ization’s bottom line.4

This renewed focus on establishing a competitive advantage in staffing has also been revolutionized by advancements in technology that have changed the way employees are assessed during the staffing pro cess. These include changes in the delivery of assessments (e.g., computerized adaptive testing [CAT] and mobile assessment); novel ways of assessing applicant knowledge, skill, and ability (e.g., simulation­ based training and serious games); and the advanced scoring and report­ ing of assessments (e.g., electronic scoring and reporting). Although these changes are often financially sound and efficient benefits for organ izations, this new para­ digm in staffing is not without its limitations, including the potential threat of reduced effectiveness due to decreased face­ to­ face contact in assessment and a potential for the cognitively demanding nature of electronic assessments to adversely affect members of the applicant pool.5 Interestingly, this recent “tech­ nology effect” suggests that certain technological advancements may be viewed with rose­ colored glasses, even without proper evaluation of their effectiveness.6

Thus, organ izations are increasingly recognizing the value creation that can occur through staffing. Quotes from several orga nizational leaders attest to this, as shown in Exhibit 1.1. Of course, it should also be noted that effective staffing involves a series of trade­ offs in practice, such as between customization and con­ sistency or wide reach and coherence.7

099-67811_ch01_4P.indd 8 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 9

“Staffing is absolutely critical to the success of every company. To be competitive in today’s economy, companies need the best people to create ideas and execute them for the organization. Without a competent and talented workforce, organizations will stagnate and eventually perish. The right employees are the most important resources of companies today.”a

Gail Hyland- Savage, chief operating officer Michaelson, Connor & Boul—real estate and marketing

“At most companies, people spend 2% of their time recruiting and 75% managing their recruiting mistakes.”b

Richard Fairbank, CEO Capital One

“I think about this in hiring, because our business all comes down to people. . . . In fact, when I’m interviewing a senior job candidate, my biggest worry is how good they are at hiring. I spend at least half the interview on that.”c

Jeff Bezos, CEO Amazon.com—Internet merchandising

“We missed a really nice nursing rebound . . . because we just didn’t do a good job hiring in front of it. Nothing has cost the business as much as failing to intersect the right people at the right time.”d

David Alexander, president Soliant Health—health care

“Organization doesn’t really accomplish anything. Plans don’t accomplish anything, either. Theories of management don’t much matter. Endeavors succeed or fail because of the people involved. Only by attracting the best people will you accomplish great deeds.”e

Gen. Colin Powell (Ret.) Former US secretary of state

EXHIBIT 1.1 The Importance of Staffing to Organizational Leaders

aG. Hyland- Savage, “General Management Perspective on Staffing; The Staffing Commandments,” in N. C. Burkholder, P. J. Edwards, Jr., and L. Sartain (eds.), On Staffing (Hoboken, NJ: Wiley, 2004), p. 280. bJ. Trammell, “CEOs Must Own Recruiting: 10 Rules for Building a Top-Notch Function,” Forbes, Apr. 17, 2013 (www.forbes.com/sites/joeltrammell/2013/04/17/ceos-must-own-recruiting-10-rules-for -building-a-top-notch-function). cG. Anders, “Taming the Out- of-Control In- Box,” Wall Street Journal, Feb. 4, 2000, p. 81. dJ. McCoy, “Executives’ Worst Mistakes in Staffing,” Staffing Industry Review, Sept. 2010, pp. 1–2. eC. Powell, “A Leadership Primer: Lesson 8,” Department of the Army (www.think-energy.net/Colin -Powell-on-Leadership.pdf ).

099-67811_ch01_4P.indd 9 10/3/17 8:56 AM

10 PART ONE The Nature of Staffing

Definition of Staffing

The following definition of staffing is offered and will be used throughout this book:

Staffing is the pro cess of acquiring, deploying, and retaining a workforce of sufficient quantity and quality to create positive impacts on the organ ization’s effectiveness.

This straightforward definition contains several implications that are identified and explained next.

Implications of Definition

Acquire, Deploy, Retain An organ ization’s staffing system must guide the acquisition, deployment, and retention of its workforce. Acquisition activities involve external staffing systems that govern the initial intake of applicants into the organ ization. These involve planning for the numbers and types of people needed, establishing job require­ ments in the form of the qualifications or knowledge, skills, abilities, and other characteristics (KSAOs) needed to perform the job effectively, establishing the types of rewards the job will provide, conducting external recruitment campaigns, using se lection tools to evaluate the KSAOs that applicants possess, deciding which applicants are the most qualified and will receive job offers, and putting together job offers that applicants will hopefully accept.

Deployment refers to the placement of new hires in the actual jobs they will hold, something that may not be entirely clear at the time of hire, such as the specific work unit or geographic location. Deployment also encompasses guiding the movement of current employees throughout the organ ization through internal staffing systems that handle promotions, transfers, and new proj ect assignments. Internal staffing systems mimic external staffing systems in many re spects, such as planning for promotion and transfer vacancies, establishing job requirements and job rewards, recruiting employees for promotion or transfer opportunities, evaluating employees’ qualifications, and making job offers to employees for new positions.

Retention systems seek to manage the inevitable flow of employees out of the organ ization. Sometimes these outflows are involuntary on the part of the employee, such as through layoffs or the sale of a business unit to another organ­ ization. Other outflows are voluntary in that they are initiated by the employee, such as leaving the organ ization to take another job (a potentially avoidable turn­ over by the organ ization) or leaving to follow one’s spouse or partner to a new geo­ graphic location (a potentially unavoidable turnover). Of course, no organ ization can or should seek to completely eliminate employee outflows, but it should try to minimize the types of turnover in which valued employees leave for greener

099-67811_ch01_4P.indd 10 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 11

pastures elsewhere— namely, voluntary­ avoidable turnover. Such turnover can be very costly to the organ ization, as can turnover due to employee discharges and downsizing. Through vari ous retention strategies and tactics, the organ ization can combat these types of turnover, seeking to retain those employees it thinks it can­ not afford to lose.

Staffing as a Pro cess or System Staffing is not an event, as in, “We hired two people today.” Rather, staffing is a pro­ cess that establishes and governs the flow of people into the organ ization, within the organ ization, and out of the organ ization. Organ izations use multiple inter­ connected systems to manage the people flows. These include planning, recruit­ ment, se lection, decision making, job offer, and retention systems. Occurrences or actions in one system inevitably affect other systems. If planning activities show a forecasted increase in vacancies relative to historical standards, for example, the recruitment system will need to gear up for generating more applicants than previ­ ously, the se lection system will have to handle the increased volume of applicants needing to be evaluated in terms of their KSAOs, decisions about job offers may have to be sped up, and the job offer packages may have to be sweetened to entice the necessary numbers of new hires. Further, steps will have to be taken to retain the new hires and thus avoid having to repeat the above experiences in the next staffing cycle.

Quantity and Quality Staffing the organ ization requires attention to both the numbers (quantity) and the types (quality) of people brought into, moved within, and retained by the organ­ ization. The quantity ele ment refers to having enough people to conduct business, and the quality ele ment refers to having people with the requisite KSAOs so that jobs are performed effectively. It is impor tant to recognize that it is the combina­ tion of sufficient quantity and quality of labor that creates a maximally effective staffing system.

Orga nizational Effectiveness Staffing systems exist and should be used to contribute to the attainment of orga­ nizational goals such as survival, profitability, and growth. A macro view of staff­ ing like this is often lost or ignored because most of the day­ to­ day operations of staffing systems involve micro activities that are procedural, transactional, and routine in nature. While these micro activities are essential for staffing systems, they must be viewed within the broader macro context of the positive impacts staffing can have on orga nizational effectiveness. There are many indications of this critical role of staffing.

Leadership talent is at a premium, with very large stakes associated with new leader acquisition. Sometimes leadership talent is bought and brought from the

099-67811_ch01_4P.indd 11 10/3/17 8:56 AM

12 PART ONE The Nature of Staffing

outside to hopefully execute a reversal of fortune for the organ ization or a busi­ ness unit within it. For example, in 2012, Yahoo brought in Marissa Mayer, a for­ mer executive at Google, to turn around the aging tech giant. Organ izations also acquire leaders to start new business units or ventures that will feed orga nizational growth. The flip side of leadership acquisition is leadership retention. A loom­ ing fear for organ izations is the unexpected loss of a key leader, particularly to a competitor. The exiting leader carries a wealth of knowledge and skill out of the organ ization and leaves a hole that may be hard to fill, especially with someone of equal or higher leadership stature. The leader may also take other key employees along, thus increasing the exit impact.

Organ izations recognize that talent hunts and loading up on talent are ways to expand orga nizational value and provide protection from competitors. Such a strategy is particularly effective if the talent is unique and rare in the marketplace, valuable in the anticipated contributions to be made (such as product creations or design innovations), and difficult for competitors to imitate (such as through training current employees). Talent of this sort can serve as a source of competitive advantage for the organ ization, hopefully for an extended time period.8

Talent acquisition is essential for growth even when it does not have such com­ petitive advantage characteristics. As hiring has steadily picked up since the end of the Great Recession, many companies are scrambling to staff positions in order to keep up with demand. For example, Amazon, JP Morgan Chase, and PWC are each attempting to fill over a whopping 2,000 positions that all pay at least $50,000 a year.9 Shortages in the quantity or quality of labor can mean lost business opportu­ nities, scaled­ back expansion plans, an inability to provide critical consumer goods and ser vices, and even threats to the organ ization’s survival.

Fi nally, for individual man ag ers, having sufficient numbers and types of employ­ ees on board is necessary for the smooth, efficient operation of their work units. Employee shortages often require disruptive adjustments, such as job reassign­ ments or overtime for current employees. Underqualified employees pres ent spe­ cial challenges to the man ag er, as they need to be trained and closely supervised. Failure of the underqualified to achieve acceptable per for mance may require ter­ mination, a difficult decision to make and implement.

In short, organ izations experience and respond to staffing forces and recog­ nize how critical these forces can be to orga nizational effectiveness. The forces manifest themselves in numerous ways: acquisition of new leaders to change the organ ization’s direction and effectiveness, prevention of key leader losses, use of talent as a source of growth and competitive advantage, shortages of labor— both quantity and quality— that threaten growth and even survival, and the ability of individual man ag ers to effectively run their work units.

099-67811_ch01_4P.indd 12 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 13

Staffing System Examples

Staffing Jobs Without Titles W. L. Gore & Associates is a Delaware­ based organ ization that specializes in mak­ ing products derived from fluoropolymers. Gore produces fibers (including dental floss and sewing threads), tubes (used, for example, in heart stents and oil explora­ tion), tapes (including those used in space exploration), and membranes (used in Gore­ Tex waterproof clothing).

In its more than a half­ century history, Gore has never lost money. Gore employs over 9,000 workers and appears on nearly every “best place to work” list, including Fortune magazine’s “100 Best Companies to Work for” list every year since 1998. In addition, it boasts a miniscule 3% full­ time voluntary turnover rate. What makes Gore so special? Gore associates say that it’s the culture, and the culture starts with the hiring.

Gore has a strong culture, as seen in its structure: a team­ based, flat lattice structure that fosters personal initiative. At Gore, no employee can ever command another employee— all commitments are voluntary, and any employee can say no to any request. Employees are called “associates” and man ag ers are called “spon­ sors.” How do people become leaders at Gore? “You get to be a leader if your team asks you to lead them.”10

Gore extends this egalitarian, entrepreneurial approach to its staffing pro cess. The focal point of Gore’s recruitment pro cess is the careers section of its website, which describes its core values and its unique culture. The website also provides position descriptions and employee perspectives on working at Gore, complete with pictures of the associates and videos. Three Gore associates— Janice, Katrin, and Mike— work on Gore’s footwear products, striving to uphold the com pany’s “keep you dry” guarantee. As Mike notes, “The reasons that I chose Gore from the start are the same reasons why I stay at Gore today, and continue to have fun every day: It’s the people. Our team is a great team, and I think that is reflected or echoed across the entire enterprise.” Hajo, Alicia, and Austin make up a team working on the clinical product Thoracic Endoprosthesis. As Hajo notes, “When you come to work each day, you don’t have a boss to give you explicit instructions on what you need to accomplish.”

Gore finds that its employee­ focused recruitment efforts do not work for every­ one, which is exactly what it intends. “Some of these candidates, or prospects in the fields we were recruiting for, told us ‘this com pany prob ably isn’t for me,’ ” says Steve Shuster, who helped develop the recruitment strategy. Shuster says that this self­ selection is another benefit of its recruitment message. Potential recruits who prefer a more traditional culture quickly see that Gore isn’t for them. Shuster says, “Rather than have them go through the interview pro cess and invest their

099-67811_ch01_4P.indd 13 10/3/17 8:56 AM

14 PART ONE The Nature of Staffing

time and our time, we wanted to weed that out.” Of course, Gore has a culture that fits many. Says Gore associate Hannah, who works on the com pany’s heart device team, “I feel like Gore is not just a job, that it’s more of a lifestyle and a huge part of my life.”11

Phar ma ceu ti cal Industry Man ag ers Though Pfizer has been recognized by other phar ma ceu ti cal companies as a leader in selecting and developing its employees, it recently realized a need to dra­ matically overhaul its approach to staffing. Despite the previous success of its se lection efforts, “Pfizer was not focused on managing the external environment,” said Pfizer executive Chris Altizer. In the past, according to Altizer, Pfizer would project what kind of talent it would need in the next 10 years and then select employees whose skills matched the talent needs. Pfizer now believes the plan no longer works because there is increased global competition, especially from smaller start­up phar ma ceu ti cal firms that can rush products to market. That puts a premium on adaptability.

To address changing market conditions, Pfizer now looks at hiring employees who can jump from one position to another. This means that Pfizer focuses less on job descriptions (i.e., hiring for skills that fit a specific job) and more on general competencies that will translate from job to job. According to Altizer, Pfizer needs “a person who can switch from working on a heart disease product to one that helps people stop smoking”—in other words, rather than relying on past experi­ ence with one product (say, heart disease medi cations), Pfizer is looking for com­ petencies that will allow the employee to quickly and proficiently move from one venture to the next.12

Management Trainees Enterprise Rent­ A­ Car is a private com pany founded in 1957 with locations in the United States, Canada, the UK, Ireland, and Germany. Enterprise boasts that its 5,500 offices in the United States are located within 15 miles of 90% of the pop­ ulation. Among its competitors, Enterprise frequently wins awards for customer satisfaction.

To staff its locations, Enterprise relies heavi ly on recruiting recent college gradu­ ates. In fact, Enterprise hires more college gradu ates— often between 8,000 and 9,000 a year— than any other com pany. New hires enter Enterprise’s management training program, where they learn all aspects of running a branch, including tak­ ing reservations, picking up customers, developing relationships with car dealer­ ships and body shops for future rentals, managing the f leet, handling customer issues, and even washing cars. Nearly all promotions at Enterprise occur from within and are strictly per for mance based, allowing management trainees to see a clear path from their current position to higher positions such as assistant man ag er, branch man ag er, and area man ag er. Typically, the first promotion occurs within 9–12 months of being hired, which speeds the climb up the corporate ladder.

099-67811_ch01_4P.indd 14 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 15

To fill so many positions with college gradu ates, Enterprise relies on several strategies, including recruiting from an internship program of approximately 1,000 students a year, attending college recruitment fairs, using its website to high­ light its performance­ driven culture as well as employee testimonials, and devoting a large percentage of its tele vi sion advertising to the NCAA basketball tournament, which occurs each March and has a high college viewership. Although gradu ates’ grades are impor tant to Enterprise, communication skills are even more essential, says Dylan Schweitzer, northeast man ag er of talent acquisition.

Although the management trainee program at Enterprise has been described as a grueling pro cess, with many trainees leaving prior to being promoted, its execu­ tives often describe it as an “MBA without the IOU” because trainees gain first­ hand experience in sales, marketing, finance, and operations.13

STAFFING MODELS

Vari ous ele ments of staffing are depicted in the staffing models presented here. Each of these is described in detail to more fully convey the nature and richness of staffing the organ ization.

Staffing Quantity: Levels

The quantity or head­ count portion of the staffing definition means organ izations must be concerned about staffing levels and their adequacy. Exhibit 1.2 shows the basic model. The organ ization as a whole, as well as each of its units, forecasts workforce quantity requirements (the needed head count) and then compares these with forecasted workforce availabilities (the likely employee head count) to determine its likely staffing level position. If head­ count requirements match avail­ abilities, the organ ization will be fully staffed. If requirements exceed availabilities, the organ ization will be understaffed, and if availabilities exceed requirements, the organ ization will be overstaffed.

Projected Sta�ng Requirements

Oversta ed Fully Sta ed Understa ed

Projected Sta�ng Availabilities

Compare

EXHIBIT 1.2 Staffing Quantity

099-67811_ch01_4P.indd 15 10/3/17 8:56 AM

16 PART ONE The Nature of Staffing

Making forecasts to determine appropriate staffing levels and then developing specific plans are the essence of planning. Being understaffed means the organ­ ization will have to gear up its staffing efforts, starting with accelerated recruitment and carry ing on through the rest of the staffing system. It may also require develop­ ing retention programs that will slow the outflow of people, thus avoiding costly “turnstile” or “revolving door” staffing. Overstaffing projections signal the need to slow down or even halt recruitment, as well as to take steps to reduce head count, perhaps through early retirement plans or layoffs.

Staffing Quality: Person/Job Match

The person/job match seeks to align characteristics of individuals with jobs in ways that will result in desired HR outcomes. Casual comments made about applicants often reflect awareness of the importance of the person/job match: “Clark just doesn’t have the interpersonal skills that it takes to be a good customer ser vice rep­ resentative.” “Mary has exactly the kind of bud geting experience this job calls for; if we hire her, there won’t be any downtime while she learns our systems.” “Gary says he was attracted to apply for this job because of its sales commission plan; he says he likes jobs where his pay depends on how well he performs.” “Diane was impressed by the amount of challenge and autonomy she will have.” “Jack turned down our offer; we gave him our best shot, but he just didn’t feel he could handle the long hours and amount of travel the job calls for.”

Comments like these raise four impor tant points about the person/job match. First, jobs are characterized by their requirements (e.g., interpersonal skills, previ­ ous bud geting experience) and embedded rewards (e.g., commission sales plan, challenge and autonomy). Second, individuals are characterized by their level of qualification (e.g., few interpersonal skills, extensive bud geting experience) and motivation (e.g., need for pay to depend on per for mance, need for challenge and autonomy). Third, in each of the previous examples, the issue was the likely degree of fit or match between the characteristics of the job and the person. Fourth, there are implied consequences for every match. For example, Clark may not perform very well in his interactions with customers; retention might quickly become an issue with Jack.

These points and concepts are shown more formally through the person/job match model in Exhibit 1.3. In this model, the job has certain requirements and rewards associated with it. The person has certain qualifications, referred to as KSAOs, and motivations. There is a need for a match between the person and the job. To the extent that the match is good, it will likely have a positive impact on HR outcomes, particularly with attraction of job applicants, job per for mance, reten­ tion, attendance, and satisfaction.

There is a need for a dual match to occur: job requirements to KSAOs, and job rewards to individual motivation. In and through staffing activities, there are

099-67811_ch01_4P.indd 16 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 17

attempts to ensure both of these. Such attempts collectively involve what will be referred to throughout this book as the matching pro cess.

Several points pertaining to staffing need to be made about the person/job match model. First, the concepts shown in the model are not new.14 They have been used for de cades as the dominant way of thinking about how individuals successfully adapt to their work environments. The view is that the positive interaction of indi­ vidual and job characteristics creates the most successful match. Thus, a person with a given package of KSAOs is not equally suited to all jobs, because jobs vary in the KSAOs required. Likewise, an individual with a given set of needs or moti­ vations will not be satisfied with all jobs, because jobs differ in the rewards they offer. Thus, in staffing, each individual must be assessed relative to the require­ ments and rewards of the job being filled.

Second, the model emphasizes a dual match of KSAOs to requirements and motivation to rewards. Both matches require attention in staffing. For example, a staffing system may be designed to focus on the KSAOs/requirements match by carefully identifying job requirements and then thoroughly assessing applicants relative to those requirements. While such a staffing system may accurately iden­ tify the probable high performers, prob lems could arise. By ignoring or down­ playing the motivation/rewards portion of the match, the organ ization may have difficulty getting people to accept job offers (an attraction outcome) or having new

Job

Requirements Rewards

Match Impact

Person

KSAOs Motivation

HR Outcomes

Attraction Performance Retention Attendance Satisfaction Other

EXHIBIT 1.3 Person/Job Match

099-67811_ch01_4P.indd 17 10/3/17 8:56 AM

18 PART ONE The Nature of Staffing

hires remain with the organ ization for any length of time (a retention outcome). It does little good to identify the likely high performers if they cannot be induced to accept job offers or to remain with the organ ization. Paradoxically, a recent research study has demonstrated that although matching the KSAOs to require­ ments is impor tant for organ izations, job advertisements that emphasize the fit between employee needs and employer fulfillment of those needs (e.g., motivation to rewards) actually led to more applications and a higher­ quality applicant pool.15

Third, job requirements should be expressed in terms of both the tasks involved and the KSAOs needed to perform those tasks. Most of the time, it is difficult to establish meaningful KSAOs for a job without having first identified the job’s tasks. KSAOs usually must be derived or inferred from knowledge of the tasks. An exception to this involves very basic or generic KSAOs that are reasonably deemed necessary for most jobs, such as literacy and oral communication skills.

Fourth, job requirements often extend beyond task and KSAO requirements. For example, the job may require punctuality, good attendance, safety toward fel­ low employees and customers, and travel. Matching an individual to these require­ ments must also be considered when staffing the organ ization. Travel requirements of the job, for example, may involve assessing applicants’ availability for, and will­ ingness to accept, travel assignments. Integrating this with the second point above, travel issues, which frequently arise in the consulting industry, play a role in both the attraction pro cess (getting people to accept) and the retention pro cess (getting people to stay). “Road warriors,” as they are sometimes termed, may first think that frequent travel will be exciting, only to discover later that they find it taxing.

Fi nally, the matching pro cess can yield only so much by way of impacts on the HR outcomes. The reason for this is that these outcomes are influenced by factors outside the realm of the person/job match. Retention, for example, depends not only on how close the match is between job rewards and individual motivation but also on the availability of suitable job opportunities in other organ izations and labor markets. As hiring begins to improve and unemployment continues to drop, organ izations are likely to face increased retention pressures as other opportunities pres ent themselves to employees due to more favorable economic conditions.

Staffing Quality: Person/Or ga ni za tion Match

Often the organ ization seeks to determine how well the person matches not only the job but also the organ ization. Likewise, applicants often assess how well they think they will fit into the organ ization, in addition to how well they match the spe­ cific job’s requirements and rewards. For both the organ ization and the applicant, then, there may be a concern with a person/or ga ni za tion match.16

Exhibit 1.4 shows this expanded view of the match. The focal point of staffing is the person/job match, and the job is the bull’s eye of the matching target. Four other matching concerns involving the broader organ ization also arise in staffing: orga nizational values, new job duties, multiple jobs, and future jobs.

099-67811_ch01_4P.indd 18 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 19

Orga nizational values are norms of desirable attitudes and be hav iors for the organ ization’s employees. Examples include honesty and integrity, achievement and hard work, and concern for fellow employees and customers. Though such values may never appear in writing, such as in a job description, the likely match of the applicant to them is judged during staffing. The effects of a mismatch between an employee and the organ ization on values can be quite strong, given that the mismatch tends to deplete an individual’s regulatory resources, leading to low per­ for mance and a decreased ability to adapt.17

New job duties are tasks that may be added to the target job over time. Organ­ izations desire new hires who will be able to successfully perform these new duties as they are added. In recognition of this, job descriptions often contain the catchall phrase “and other duties as assigned.” These other duties are usually vague at the

Organizational Values

New Job Duties

Job

Requirements Rewards

Multiple Jobs

Match Impact

HR Outcomes

Attraction Performance Retention Attendance Satisfaction Other

Person

KSAOs Motivation

Future Jobs

EXHIBIT 1.4 Person/Organization Match

099-67811_ch01_4P.indd 19 10/3/17 8:56 AM

20 PART ONE The Nature of Staffing

time of hire, and they may never materialize. Nonetheless, the organ ization would like to hire people it thinks could perform these new duties. Having such people will provide the organ ization the flexibility to complete new tasks without having to hire additional employees. As we will discuss later in this book, certain types of individuals are better than others at adapting to changing circumstances, and organ izations with evolving job duties are well advised to select them.

Flexibility concerns also enter the staffing picture in terms of hiring people who can perform multiple jobs. Small businesses, for example, often desire new hires who can wear multiple hats, functioning as jacks­ of­ all­ trades. Organ izations experiencing rapid growth may require new employees who can handle several job assignments, splitting their time among them on an as­ needed basis. Such expecta­ tions obviously require assessments of person/or ga ni za tion fit.

Future jobs represent forward thinking by the organ ization and the person as to which job assignments the person might assume beyond the initial job. Here the applicant and the organ ization are thinking of long­ term matches over the course of transfers and promotions as the employee becomes increasingly seasoned for the long run. As technology and globalization cause jobs to change at a rapid pace, more organ izations are engaging in “opportunistic hiring,” where an individual is hired into a newly created job or a job that is an amalgamation of previously dis­ tributed tasks. In such cases, person/or ga ni za tion match is more impor tant than person/job match.18

In each of the four concerns, the matching pro cess is expanded to consider requirements and rewards beyond those of the target job as it currently exists. Though the dividing line between person/job and person/or ga ni za tion matching is fuzzy, both types of matches are frequently of concern in staffing. Ideally, the organ ization’s staffing systems focus first and foremost on the person/job match. This will allow the nature of the employment relationship to be specified and agreed to in concrete terms. Once these terms have been established, person/ or ga ni za tion match possibilities can be explored during the staffing pro cess. In this book, for simplicity’s sake, we will use the term “person/job match” broadly to encompass both types of matches, though most of the time we will be referring to the match with the actual job itself.

Staffing System Components

As noted, staffing encompasses managing the flows of people into and within the organ ization, as well as retaining them. The core staffing pro cess has several com­ ponents that represent steps and activities that occur over the course of these flows. Exhibit 1.5 shows these components and the general sequence in which they occur.

As shown in the exhibit, staffing begins with a joint interaction between the applicant and the organ ization. The applicant seeks the organ ization and job oppor­ tunities within it, and the organ ization seeks applicants for job vacancies it has or anticipates having. Both the applicant and the organ ization are thus “players” in

099-67811_ch01_4P.indd 20 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 21

the staffing pro cess from the very beginning, and they remain joint participants throughout the pro cess.

At times, the organ ization may be the dominant player, such as in aggressive and targeted recruiting for certain types of applicants. At other times, the applicant may be the aggressor, such as when he or she desperately seeks employment with a par tic u lar organ ization and will go to almost any length to land a job with it. Most of the time, the staffing pro cess involves a more balanced and natu ral interplay between the applicant and the organ ization.

The initial stage in staffing is recruitment, which involves identification and attraction activities by both the organ ization and the applicant. The organ ization seeks to identify and attract individuals so that they become job applicants. Activi­ ties such as advertising, job fairs, use of recruiters, preparation and distribution of informational brochures, and “putting out the word” about vacancies among its own employees are undertaken by the organ ization. The applicant identifies organ­ izations with job opportunities by reading advertisements, contacting an employ­ ment agency, mass mailing résumés to employers, and so forth. These activities are accompanied by attempts to make one’s qualifications (KSAOs and motivation) attractive to organ izations, such as by applying in person for a job or preparing a carefully constructed résumé that highlights significant skills and experiences.

Organization ( job)

Employment ( decision making and final match)

Selection ( assessment and evaluation)

Recruitment ( identification and attraction)

Applicant ( person)

EXHIBIT 1.5 Staffing System Components

099-67811_ch01_4P.indd 21 10/3/17 8:56 AM

22 PART ONE The Nature of Staffing

Gradually, recruitment activities phase into the se lection stage and its accom­ panying activities. Now, the emphasis is on assessment and evaluation. For the organ ization, this means the use of vari ous se lection techniques (interviews, appli­ cation blanks, and so on) to assess applicant KSAOs and motivation. Data from these assessments are then evaluated against job requirements to determine the likely degree of person/job match. At the same time, the applicant is assessing and evaluating the job and organ ization on the basis of the information gathered from orga nizational representatives (e.g., recruiter, man ag er with the vacancy, and other employees), written information (e.g., brochures, employee handbook), informal sources (e.g., friends and relatives who are current employees), and visual inspec­ tion (e.g., a video pre sen ta tion, a work site tour). This information, along with a 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 last core component of staffing is employment, which involves decision making and final match activities by the organ ization and the applicant. The organ­ ization must decide which applicants to allow to continue in the pro cess and which to reject. This may involve multiple decisions over successive se lection steps or hurdles. Some applicants ultimately become finalists for the job. At that point, the organ ization must decide to whom it will make the job offer, what the content of the offer will be, and how it will be drawn up and presented to the applicant. Upon the applicant’s ac cep tance of the offer, the final match is complete, and the employment relationship is formally established.

For the applicant, the employment stage involves self­ selection, a term that refers to deciding whether to continue in the staffing pro cess or drop out. This decision may occur anywhere along the se lection pro cess, up to and including the moment of the job offer. If the applicant continues as part of the pro cess through the final match, the applicant has deci ded to be a finalist. His or her attention now turns to a pos si ble job offer, pos si ble input and negotiation on its content, and mak­ ing a final decision about the offer. The applicant’s final decision is based on his or her overall judgment about the likely suitability of the person/job match.

Note that the above staffing components apply to both external and internal staffing. Though this may seem obvious in the case of external staffing, a brief elaboration may be necessary for internal staffing, where the applicant is a current employee and the organ ization is the current employer. As we discussed above, Enterprise Rent­ A­ Car staffs the overwhelming majority of its managerial posi­ tions internally. Job opportunities (vacancies) exist within the organ ization and are filled through the activities of the internal labor market. Those activities involve recruitment, se lection, and employment, with the employer and the employee as joint participants. As another example, at the investment banking firm Goldman Sachs, candidates for promotion to partner are identified through a multistep pro­ cess.19 They are “recruited” by division heads identifying prospective candidates for promotion (as in many internal staffing decisions, it is assumed that all employees

099-67811_ch01_4P.indd 22 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 23

are interested in promotion). Candidates are then vetted on the basis of input from se nior man ag ers in the firm and are evaluated from a dossier that contains the candidate’s photo graph, credentials, and accomplishments. After this six­ month pro cess, candidates are recommended for partner to the CEO, who then makes the final decision and offers partnership to those lucky enough to be selected (partners average $7 million a year, plus perks). When candidates accept the offer of partner­ ship, the final match has occurred, and a new employment relationship has been established.

Staffing Organ izations

The overall staffing organ izations model, which forms the framework for this book, is shown in Exhibit 1.6. It depicts that the organ ization’s mission, along with its goals and objectives, drives both organ ization strategy and HR and staffing strategy, which interact with each other when they are being formulated. Staff­ ing policies and programs result from such interaction and serve as an overlay to both support activities and core staffing activities. Employee retention and staffing

Organization

Mission Goals and Objectives

Organization Strategy

seitivitcA gniffatS eroCseitivitcA troppuS

HR and Sta�ng Strategy

Sta�ng Policies and Programs

Sta�ng System and Retention Management

Legal compliance Planning Job analysis and rewards

Recruitment: external, internal Selection: measurement, external, internal Employment: decision making, final match

EXHIBIT 1.6 Staffing Organizations Model

099-67811_ch01_4P.indd 23 10/3/17 8:56 AM

24 PART ONE The Nature of Staffing

system management concerns cut across these support and core staffing activities. Fi nally, though not shown in the model, it should be remembered that staffing levels and staffing quality are the key focal points of staffing strategy, policy, and programs. A more thorough examination of the model follows next.

Organ ization, HR, and Staffing Strategy An organ ization formulates strategy to express an overall purpose or mission and to establish broad goals and objectives that will help fulfill its mission. For exam­ ple, a newly formed software development com pany may have a mission to “help individuals and families manage all of their personal finances and rec ords through electronic means.” With this mission statement, the organ ization might develop goals and objectives pertaining to product development, sales growth, and com­ petitive differentiation through superior product quality and customer ser vice.

Under lying these objectives are certain assumptions about the size and types of workforces that will need to be acquired, trained, managed, rewarded, and retained. HR strategy represents the key decisions about how these workforce assumptions will be handled. Such HR strategy may not only flow from the organ­ ization strategy but also may actually contribute directly to the formulation of the organ ization’s strategy.

Consider again the example of the software development com pany and its objec­ tive pertaining to new product development. Being able to develop new products assumes that sufficiently qualified product­ development team members are avail­ able internally and externally, and that assurances from the HR department about availability may have been critical in helping the organ ization decide on its prod­ uct development goals. From this general assumption, HR strategy may suggest (1) obtaining new, experienced employees from other software companies rather than going after newly minted college and gradu ate school gradu ates; (2) building a new fa cil i ty for software development employees in a geographic area that is an attractive place to work, raise families, and pursue leisure activities; (3) develop­ ing relocation assistance packages and family­ friendly benefits; (4) offering wages and salaries above the market average, plus using hiring bonuses to help lure new employees away from their current employers; (5) creating a special training bud­ get for each employee to use at his or her own discretion for skills enhancement; and (6) putting in place a fast­ track promotion system that allows employees to rise upward in either their professional specialty or the managerial ranks. In all these ways, HR strategy seeks to align acquisition and management of the workforce with organ ization strategy.

Staffing strategy is an outgrowth of the interplay between organ ization strategy and HR strategy, described above. It deals directly with key decisions regarding the acquisition, deployment, and retention of the organ ization’s workforces. Such decisions guide the development of recruitment, se lection, and employment pro­ grams. In the software development com pany example, the strategic decision to

099-67811_ch01_4P.indd 24 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 25

acquire new employees from the ranks of other organ izations may lead the organ­ ization to develop very active, personalized, and secret recruiting activities for lur­ ing these experienced people away. It may also lead to the development of special se lection techniques for assessing job experience and accomplishments. In such ways, strategic staffing decisions shape the staffing pro cess.

Support Activities Support activities serve as the foundation and necessary ingredients for the conduct of core staffing activities. Legal compliance represents knowledge of the myriad laws and regulations, especially equal employment opportunity and affirmative action (EEO/AA), and incorporation of their requirements into all phases of the core staffing activities. Planning serves as a tool for first becoming aware of key external influences on staffing, particularly economic conditions, labor markets, and labor unions. Such awareness shapes the formulation of staffing levels— both requirements and availabilities— the results of which drive planning for the core staffing activities. Job analy sis represents the key mechanism by which the organ­ ization identifies and establishes the KSAO requirements for jobs, as well as the rewards that the jobs will provide, both first steps toward filling projected vacan­ cies through core staffing activities.

Returning to our example of the software development com pany, if it meets vari­ ous size thresholds for coverage (usually 15 or more employees), it must ensure that the staffing systems to be developed comply with all applicable federal, state, and local laws and regulations. Planning activities will revolve around first deter­ mining the major types of jobs that will be necessary for the product development venture, such as computer programmers, Internet specialists, and proj ect man ag­ ers. For each job, a forecast must be made about the number of employees needed and the likely availability of individuals both externally and internally for the job. Results of such forecasts serve as the key input for developing detailed staffing plans for the core staffing activities. Fi nally, job analy sis will be needed to specify for each job exactly which KSAOs and rewards will be necessary for these sought­ after new employees. Once all these support activities are in place, the core staffing activities can begin.

Core Staffing Activities Core staffing activities focus on recruitment, se lection, and employment of the workforce. Since staffing levels have already been established as part of staffing planning, the emphasis shifts to staffing quality to ensure that successful person/ job and person/or ga ni za tion matches will be made. Accomplishment of this end result will require multiple plans, decisions, and activities, including recruitment methods, communication with potential applicants with a special recruitment mes­ sage, recruitment media, types of se lection tools, deciding which applicants will receive job offers, and job offer packages. Staffing experts and the hiring man ag er

099-67811_ch01_4P.indd 25 10/3/17 8:56 AM

26 PART ONE The Nature of Staffing

will be involved in these core staffing activities. Moreover, it is likely that the activities will have to be developed and tailor­ made for each type of job.

Consider the job of computer programmer in our software development com­ pany example. It will be necessary to develop specific plans for issues such as the following: Will we recruit only online, or will we use other methods such as news­ paper ads or job fairs (recruitment methods)? What exactly will we tell applicants about the job and our organ ization (recruitment message), and how will we deliver the message, such as on our website or in a brochure (recruitment media)? What specific se lection tools— such as interviews, assessments of experience, work sam­ ples, and background checks— will we use to assess and evaluate the applicants’ KSAOs (se lection techniques)? How will we combine and evaluate all the infor­ mation we gather on applicants with these se lection tools and then decide which applicants will receive job offers (decision making)? What exactly will we put in the job offer, and what will we be willing to negotiate (employment)?

Staffing and Retention System Management The vari ous support and core staffing activities are quite complex, and they must be guided, coordinated, controlled, and evaluated. Such is the role of staffing sys­ tem management. In our software development com pany example, what will be the role of the HR department, and what types of people will be needed to develop and manage the new staffing systems (administration of staffing systems)? How will we evaluate the results of these systems— will we collect and look at cost­ per­ hire and time­ to­ hire data (evaluation of staffing systems)? Data such as these are key effective indicators that both general and staffing man ag ers are attuned to.

Fi nally, voluntary employee departure from the organ ization is usually costly and disruptive, and it can involve the loss of critical talent that is difficult to replace. Discharges can also be disruptive. Unless the organ ization is downsiz­ ing, replacements must be found in order to maintain desired staffing levels. The burden for such replacement staffing can be substantial, particularly if the turn­ over is unanticipated and unplanned. Other things being equal, greater employee retention means less staffing, and thus effective retention programs complement staffing programs.

In our software development com pany example, the primary focus will likely be on “staffing up” in order to keep producing existing products and develop new ones. Unless attention is also paid to employee retention, maintaining adequate staffing levels and quality may become problematic. Hence, the organ ization will need to monitor the amount and quality of employees who are leaving, along with the reasons they are leaving, in order to learn how much of the turnover is volun­ tary and avoidable; monitoring discharges will also be necessary. With these data, tailor­ made retention strategies and programs to better meet employees’ needs can be developed. If these are effective, strains on the staffing system will be lessened.

The remainder of the book is structured around and built on the staffing organ­ izations model shown in Exhibit 1.6.

099-67811_ch01_4P.indd 26 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 27

STAFFING STRATEGY

As noted, staffing strategy requires making key decisions about the acquisition, deployment, and retention of the organ ization’s workforce. Thirteen such decisions are identified and discussed below. Some decisions pertain primarily to staffing levels, and others pertain primarily to staffing quality. A summary of the decisions is shown in Exhibit 1.7. While each decision is shown as an either­or, each is more appropriately thought of as lying on a continuum anchored at the ends by these either­or extremes. When discussing the decisions, continued reference is made to the software development com pany example.

Staffing Levels

Acquire or Develop Talent A pure acquisition staffing strategy would have an organ ization concentrate on acquiring new employees who can “hit the ground running” and be at peak per­ for mance the moment they arrive. These employees would bring their talents with them to the job, with little or no need for training or development. A pure develop­ ment strategy would lead to acquisition of just about anyone who is willing and able to learn the KSAOs required by the job. Staffing strategy must position the organ ization appropriately along this “buy or make your talent” continuum. For critical and newly created positions, such as might occur in the software develop­ ment com pany example, the emphasis would likely be on acquiring talent because

Staffing Levels • Acquire or Develop Talent • Hire Yourself or Outsource • External or Internal Hiring • Core or Flexible Workforce • Hire or Retain • National or Global • Attract or Relocate • Overstaff or Understaff • Short- or Long- Term Focus Staffing Quality • Person/Job or Person/Organization Match • Specific or General KSAOs • Exceptional or Acceptable Workforce Quality • Active or Passive Diversity

EXHIBIT 1.7 Strategic Staffing Decisions

099-67811_ch01_4P.indd 27 10/3/17 8:56 AM

28 PART ONE The Nature of Staffing

of the urgency of developing new products. There may not be time to train, and qualified internal candidates may not be available.

Hire Yourself or Outsource Increasingly, organ izations are outsourcing their hiring activities, meaning they use outside organ izations to recruit and select employees. Although there are varia­ tions of staffing outsourcing (we will have more to say about it in Chapter 3), in some cases, an organ ization wholly cedes decision­ making authority to the vendor. Why might an organ ization do this? First, it may believe that the vendor can do a better job of identifying candidates than the organ ization itself can do. This is particularly true for small and midsize companies that lack a professional HR func­ tion. Second, in labor shortages, an organ ization may not be able to recruit enough employees on its own, so it may supplement its recruiting or se lection efforts with those of a vendor that specializes in staffing. Fi nally, outsourcing may also have advantages for legal compliance, as many vendors maintain their own procedures for tracking compliance with equal­ opportunity laws.

External or Internal Hiring When job vacancies occur or new jobs are created, should the organ ization seek to fill them from the external or internal labor market? While some mixture of exter­ nal and internal hiring will be necessary in most situations, the relative blend could vary substantially. To the extent that the organ ization wants to cultivate a stable, committed workforce, it will prob ably need to emphasize internal hiring. This will allow employees to use the internal labor market as a springboard for launching long­ term careers within the organ ization. External hiring might then be restricted to specific entry­ level jobs, as well as newly created ones for which there are no acceptable internal applicants. External hiring might also be necessary when there is rapid orga nizational growth, such that the number of new jobs created outstrips internal supply.

Core or Flexible Workforce The organ ization’s core workforce is made up of individuals who are viewed (and view themselves) as regular full­ time or part­ time employees of the organ ization. They are central to the core goods and ser vices delivered by the organ ization.

The flexible workforce is composed of more peripheral workers who are used on an as­ needed, just­ in­ time basis. They are not viewed (nor do they view them­ selves) as regular employees, and legally, most of them are not even employees of the organ ization. Rather, they are employees of an alternative organ ization such as a staffing firm (temporary help agency) or an in de pen dent contractor. The organ­ ization must decide whether to use both core and flexible workforces, what the mixture of core versus flexible workers will be, and in what jobs and units of the organ ization these mixtures will be deployed. Within the software development

099-67811_ch01_4P.indd 28 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 29

com pany, programmers may be considered part of the core workforce, but ancillary workers (e.g., clerical) may be part of the flexible workforce, particularly since the need for them will depend on the speed and success of new product development.

Hire or Retain There are trade­ offs between hiring strategies and retention strategies for staffing. At one extreme, the organ ization can accept what ever level of turnover occurs and simply hire replacements to fill the vacancies. Alternatively, the organ ization can seek to minimize turnover so that the need for replacement staffing is held to a minimum. For example, SAS Institute, a com pany that frequently finds itself on Fortune magazine’s “100 Best Companies to Work for” list, has an annual turn­ over rate of less than 3%, meaning that fewer than 3 out of 100 of its employees leave voluntarily within a 12­ month period. The com pany’s ability to retain its employees at such a high level is likely due in part to the generous perks it offers, including subsidized Montessori child care, unlimited sick time, a free health care center, and four cafeterias ser viced by a local organic farm.20 An organ ization could conduct an analy sis to determine the costs and benefits of these types of strategies and then strive for an optimal mix to control its inflow needs (replace­ ment staffing) by controlling its outflow (retention staffing).

National or Global As we noted earlier, one form of outsourcing is when organ izations outsource staffing activities. Of course, many organ izations outsource more than staffing activities— technical support, database management, customer ser vice, and man­ ufacturing are common examples. A growing number of computer­ chip makers, such as IBM, Intel, and Motorola, contract with outside vendors to manufacture their chips; often these companies are overseas. Offshoring is related to, but dis­ tinct from, outsourcing. Whereas outsourcing is moving a business pro cess (ser­ vice or manufacturing) to another vendor ( whether that vendor is inside or outside the organ ization’s home country), offshoring is the organ ization setting up its own operations in another country (the organ ization is not contracting with an outside vendor; rather, it is establishing its own operations in another country). In the computer­ chip example, outsourcing would be if the organ ization, say, IBM, contracted with an outside vendor to manufacture the chips. Offshoring would be if IBM set up its own plant in another country to manufacture the chips.

Increasingly, US organ izations are engaged in both overseas outsourcing and offshoring, a trend spurred by three forces. First, most nations have lowered trading and immigration barriers, which has facilitated offshoring and overseas outsourcing. Second, particularly in the United States and western Eu rope, organ­ izations find that by outsourcing or offshoring, they can manufacture goods or provide ser vices more cheaply than they can in their own country. Third, some organ izations cannot find sufficient talent in their home countries, so they have

099-67811_ch01_4P.indd 29 10/3/17 8:56 AM

30 PART ONE The Nature of Staffing

to look elsewhere. A recent report by ManpowerGroup suggests that the world is currently experiencing the highest talent shortage since 2007, particularly in the IT, skilled trades, and sales industries. Although the cost of talent is often cited as a reason for this shortage (e.g., applicants often look for more pay than what is offered), the most frequently cited reasons why employers can’t fill the positions are a lack of applicants, a lack of technical competencies, and a lack of experience. Notably, nearly one­ fifth of those surveyed by ManpowerGroup have resorted to outsourcing.21

Attract or Relocate Typical staffing strategy is based on the premise that the organ ization can induce sufficient numbers of qualified people to come to it for employment. Another version of this premise is that it is better (and cheaper) to bring the labor to the organ ization than to bring the organ ization to the labor. Some organ izations, both established and new ones, challenge this premise and choose locations with ample supplies of labor. The shift of lumber mills and automobile manufacturing plants to the southern United States reflects such a strategy. Likewise, the growth of high technology pockets such as Silicon Valley reflects the establishment or movement of organ izations to geographic areas where there is ready access to highly skilled labor and where employees would like to live, usually locations with research universities nearby to provide the needed gradu ates for jobs. The software development com pany, for example, might find locating in such an area very desirable.

Overstaff or Understaff While most organ izations seek to be reasonably fully staffed, some opt for being over­ or understaffed. Overstaffing may occur when there are dips in demand for the organ ization’s products or ser vices that the organ ization chooses to ride out. Organ izations may also overstaff in order to stockpile talent, recognizing that the staffing spigot cannot be easily turned on or off. Alternatively, understaffing may occur when the organ ization is confronted with chronic labor shortages, such as is the case for nurses in health care facilities. Also, prediction of an economic downturn may lead the organ ization to understaff in order to avoid future layoffs. Fi nally, the organ ization may decide to understaff and adjust staffing level demand spikes by increasing employee overtime or using flexible staffing arrangements such as temporary employees. Many have blamed the slow job recovery following the Great Recession on the reluctance of companies to put themselves in an over­ staffing situation, instead asking current employees to work longer hours in order to handle increased demand in the com pany’s products or ser vices. The software development com pany might choose to overstaff in order to retain key employees and to be poised to meet the hopeful surges in demand as its new products are released.

099-67811_ch01_4P.indd 30 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 31

Short- or Long- Term Focus Although any organ ization would want to have its staffing needs fully anticipated for both the short term and the long term, optimizing both goals is difficult, so trade­ offs are often required. In this case, it often means addressing short­ term labor shortages by identifying and developing talent for the long term. When forced to choose, organ izations focus on their short­ term needs. This is understandable because labor shortages can be debilitating. Even when the overall economy is sluggish, the pool of qualified applicants may be thin. One recruiting expert noted, “The weak labor market has really increased the noise level as more unqualified candidates apply for a decreasing number of job openings.”22 So, even in periods of economic duress, a labor shortage can happen in any industry. When business lead­ ers in the trucking industry were asked to identify their top business concerns, 86% of executives listed the unavailability of drivers as one of their top three concerns.23

Balanced against this short­ term “crisis management” focus are long­ term con­ cerns. Organ izations with a long­ term view of their staffing needs have put in place talent management programs. In some cases, this means thinking about the strate­ gic talent, or future skill, needs for the entire organ ization. Bringing to mind John Maynard Keynes’s comment, “In the long run we are all dead,” the prob lem with a long­ term focus is that long­ term needs (demand) and availability (supply) are often unclear. Often, it seems as if calls for an upcoming labor shortage due to baby boomer retirements never end. As Peter Cappelli concluded, “ They’ve been pre­ dicting a labor shortage since the mid­1990’s and guess what, it’s not happening.” In fact, recent projections from the Bureau of Labor Statistics (BLS) predict that by 2024 the labor force will have grown by 7.9 million, an average of 0.5% per year (which is much smaller than the growth rates of previous de cades). However, BLS economist Ian Wyatt admits that whereas population and labor force growth can be forecasted fairly accurately, labor demand estimates are far less reliable. The future demand for workers “is a very tough question to answer,” Wyatt said. “Perhaps because of this, while most organ izations are aware of projected labor shortages, many fewer have any concrete plans to do anything about it.” Furthermore, even though the labor force is expected to slowly grow over the next de cade, the labor force participation rate, or the number of those from the labor force expected to become employed and work, is slated to decrease steadily by 2024.24

These long­ term forecasting difficulties notwithstanding, growth will occur in some skill areas, while others will decrease in demand. Employers that make no efforts to proj ect future supply and demand risk having their strategies derailed by lack of available labor. As a result of a lack of planning, some companies are facing unanticipated skilled labor shortages. For example, Linda Fillingham can­ not find skilled laborers to work in her family’s Bloomington, Illinois, steel plant. Fillingham expresses puzzlement as to her labor shortage, given the alleged lack of job growth in manufacturing: “It’s there if you want to do it,” she said. Perhaps long­ term planning would have avoided or ameliorated Fillingham’s dilemma.25

099-67811_ch01_4P.indd 31 10/3/17 8:56 AM

32 PART ONE The Nature of Staffing

Staffing Quality

Person/Job or Person/Or ga ni za tion Match When acquiring and deploying people, should the organ ization opt for a person/ job or person/or ga ni za tion match? This is a complex decision. In part, a person/job match will have to be assessed anytime a person is hired to perform a finite set of tasks. In our software com pany example, programmers might be hired to do pro­ gramming in a specific language such as Java, and most certainly the organ ization would want to assess whether applicants meet this specific job requirement. On the other hand, jobs may be poorly defined and fluid, making a person/job match infeasible and requiring a person/or ga ni za tion match instead. Such jobs are often found in technology and software development organ izations.

Specific or General KSAOs Should the organ ization acquire people with specific KSAOs or more general ones? The former means focusing on job­ specific competencies, often of the job knowledge and technical skill variety. The latter requires a focus on KSAOs that will be applicable across a variety of jobs, both current and future. Examples of such KSAOs include flexibility and adaptability, ability to learn, written and oral communication skills, and algebra/statistics skills. An organ ization expecting rapid changes in job content and new job creation, such as in the software com­ pany example, might position itself closer to the general competencies end of the continuum.

Exceptional or Acceptable Workforce Quality Strategically, the organ ization could seek to acquire a workforce that is preeminent KSAO­ wise (exceptional quality) or that is more “ballpark” variety KSAO­ wise (acceptable quality). Pursuit of the exceptional quality strategy would allow the organ ization to stock up on the “best and the brightest” with the hope that this exceptional talent pool would deliver truly superior per for mance. The acceptable quality strategy means pursuit of a less high­ powered workforce and prob ably a less expensive one as well. If the software development com pany is trying to cre­ ate clearly innovative and superior products, it will likely opt for the exceptional workforce quality end of the continuum.

Active or Passive Diversity The labor force is becoming increasingly diverse in terms of demographics, val­ ues, and languages. Does the organ ization want to actively pursue this diversity in the labor market so that its own workforce mirrors it, or does the organ ization want to more passively let diversity of its workforce happen? Advocates of an active diversity strategy argue that it is legally and morally appropriate and that a diverse workforce allows the organ ization to be more attuned to the diverse needs

099-67811_ch01_4P.indd 32 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 33

of the customers it serves. Those favoring a more passive strategy suggest that diversification of the workforce takes time because it requires substantial planning and assimilation activity. In the software com pany illustration, an active diversity strategy might be pursued as a way of acquiring workers who can help identify a diverse array of software products that might be received favorably by vari ous seg­ ments of the marketplace.

STAFFING ETHICS

Staffing the organ ization involves a multitude of individuals— hiring man ag ers, staffing professionals, potential coworkers, legal advisors, and job applicants. During the staffing pro cess, all of these individuals may be involved in recruit­ ment, se lection, and employment activities, as well as decision making. Are there, or should there be, bound aries on these individuals’ actions and decisions? The answer is yes, for without bound aries, potentially negative outcomes and harm­ ful effects may occur. For example, staffing is often a hurried pro cess, driven by tight deadlines and calls for expediency (e.g., the hiring man ag er who says to the staffing professional, “Just get me someone now— I’ll worry about how good they are later on”). Such calls may lead to negative consequences, including hiring someone without proper assessment and subsequently having him or her perform poorly, ignoring the many applicants who would have been successful perform­ ers, failing to advance the organ ization’s workforce diversity initiatives and pos si­ ble legal obligations, and making an exceedingly generous job offer that provides the highest salary in the work unit, causing dissatisfaction and pos si ble turnover among other work unit members. Such actions and outcomes raise issues of staff­ ing ethics.

Ethics involves determining moral princi ples and guidelines for the acceptable practice of staffing. Within the realm of the workplace, ethics emphasizes “aware­ ness of orga nizational values, guidelines and codes, and behaving within those bound aries when faced with dilemmas in business or professional work.”26 More specifically, orga nizational ethics seeks to do the following:

• Raise ethical expectations • Legitimize dialogue about ethical issues • Encourage ethical decision making • Prevent misconduct and provide a basis for enforcement

While organ izations are increasingly developing general codes of conduct, it is unknown whether these codes contain specific staffing provisions. Even the gen­ eral code will likely have some pertinence to staffing through provisions on such issues as legal compliance, confidentiality and disclosure of information, and use of orga nizational property and assets. Individuals involved in staffing should know

099-67811_ch01_4P.indd 33 10/3/17 8:56 AM

34 PART ONE The Nature of Staffing

and follow their organ ization’s code of ethics. Several points that pertain to staff­ ing specifically can guide a person’s ethical conduct. These points are shown in Exhibit 1.8 and elaborated on below.

The first point is that the person is serving as an agent of the organ ization and is duty bound to represent the organ ization first and foremost. That duty is to bring into being effective person/job and person/or ga ni za tion matches. The second point indicates that the agent must avoid placing his or her own interest, or that of a third party (such as an applicant or friend), above that of the organ ization. Point three suggests that even though the HR professional represents the organ ization, he or she should remember that the applicant is a participant in the staffing pro cess. How the HR professional treats applicants may well lead to reactions by them that are favorable to the organ ization and further its interests, let alone those of appli­ cants. Point four reminds the HR professional to know the organ ization’s staffing policies and procedures and adhere to them. The fifth point indicates a need to be knowledgeable of the myriad laws and regulations governing staffing, to follow them, and to seek needed assistance in their interpretation and application. Point six guides the HR professional toward professional codes of conduct pertaining to staffing and HR. For example, the Society for Human Resource Management (SHRM) has a formal code of ethics. The Society for Industrial and Orga nizational Psy chol ogy (SIOP) follows the ethics code of the American Psychological Asso­ ciation (APA) and has issued a set of professional princi ples to guide appropriate use of employee se lection procedures. The seventh point states that there is con­ siderable useful research­ based knowledge about the design and effectiveness of staffing systems and techniques that should guide staffing practice. Much of that research is summarized in usable formats in this book. The eighth point suggests that when confronted with ethical issues, it is appropriate to seek ethical advice from others. Handling troubling ethical issues alone is unwise.

The final point is that one must be aware of an organ ization’s climate and cul­ ture for ethical be hav ior. Organ izations differ in their ethical climate/culture, and

1. Represent the organization’s interests. 2. Beware of conflicts of interest. 3. Remember the job applicant. 4. Follow staffing policies and procedures. 5. Know and follow the law. 6. Consult professional codes of conduct. 7. Shape effective practice with research results. 8. Seek ethics advice. 9. Be aware of an organization’s ethical climate/culture.

EXHIBIT 1.8 Suggestions for Ethical Staffing Practice

099-67811_ch01_4P.indd 34 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 35

this has two implications for staffing.27 First, an organ ization may have expecta­ tions for how staffing decisions are made. How an organ ization communicates with recruits (including those who are rejected) and whether se lection decisions are made hierarchically or collaboratively are two examples of ethical staffing issues that may well vary from organ ization to organ ization. Second, an organ ization’s ethics climate may well affect which staffing decisions are made. An organ ization that has high expectations for ethics may weight se lection information differently (placing more weight on, say, background checks) than an organ ization with more typical expectations.

In both of these ways, one needs to realize that while some ethics considerations are universal, in other cases, what is considered ethical in one climate may be seen as a breach of ethics in another.

It should be recognized that many pressure points on HR professionals may cause them to compromise the ethical standards discussed above. Research suggests that the principal causes of this pressure are the felt needs to follow top management’s or a supervisor’s directive, be a team player, protect the interests of the organ ization, save others’ jobs, meet per for mance goals, deal with internal competition, and cope with having limited resources.28

The suggestions for ethical staffing practice in Exhibit 1.8 are a guide to one’s own be hav ior. Being aware of and consciously attempting to follow these consti­ tute a professional and ethical responsibility. But what about situations in which ethical lapses are suspected or observed in others?

One response to the situation is to do nothing— neither report nor attempt to change the misconduct. Research suggests a small proportion (about 20%) chooses to ignore and not report misconduct.29 Major reasons for this response include the need to report the incident to the person involved, the belief that no action would be taken, a lack of anonymity in the reporting pro cess, and the fear of retaliation from one’s boss or se nior management. Against such reasons for inaction must be weighed the harm that has, or could, come to the employer, the employee, or the job applicant. Moreover, failure to report the misconduct may well increase the chances that it will be repeated, with continuing harmful consequences. Not report­ ing misconduct may also conflict with one’s personal values and create remorse for not having done the right thing. Fi nally, a failure to report misconduct may bring penalties to oneself if that failure subsequently becomes known to one’s boss or se nior management. In short, “looking the other way” should not be viewed as a safe, wise, or ethical choice.

A dif fer ent way to handle unethical staffing practices by others is to seek advice from one’s boss, se nior management, coworkers, legal counsel, an ethics offi­ cer or ombudsperson, or an outside friend or family member. The guidelines in Exhibit 1.8 can serve as a helpful starting point to frame the discussion and make a decision about what to do.

At times, the appropriate response to others’ misconduct is to step in directly to try to prevent or rectify the misconduct. This would be especially appropriate with

099-67811_ch01_4P.indd 35 10/3/17 8:56 AM

36 PART ONE The Nature of Staffing

employees whom one supervises or with coworkers. Before taking such an action, it would be wise to consider whether one has the authority and resources to do so, along with the likely support of those other employees or coworkers.

PLAN FOR THE BOOK

The book is divided into six parts:

1. The Nature of Staffing 2. Support Activities 3. Staffing Activities: Recruitment 4. Staffing Activities: Se lection 5. Staffing Activities: Employment 6. Staffing System and Retention Management

Each chapter in these six parts begins with a brief topical outline to help the reader quickly discern its general contents. The “meat” of the chapter comes next. A chapter summary then reviews and highlights points from the chapter. A set of discussion questions, ethical issues to discuss, applications (cases and exercises), and detailed endnotes complete the chapter.

The importance of laws and regulations is such that they are considered first in Chapter 2 ( Legal Compliance). The laws and regulations, in par tic u lar, have become so pervasive that they require special treatment. Therefore, Chapter 2 reviews the basic laws affecting staffing, with an emphasis on the major federal laws and regulations pertaining to EEO/AA matters generally. Specific provisions relevant to staffing are covered in depth. Each subsequent chapter has a separate section labeled “ Legal Issues,” in which specific legal topics relevant to the chap­ ter’s content are discussed. This allows for a more focused discussion of legal issues while not diverting attention from the major thrust of the book.

The endnotes at the end of each chapter are quite extensive. They are drawn from academic, practitioner, and legal sources with the goal of providing a bal­ anced se lection from each of these sources. Emphasis is on the inclusion of recent references of high quality and easy accessibility. An overly lengthy list of refer­ ences to each specific topic is avoided; instead, a sampling of only the best avail­ able is included.

The applications at the end of each chapter are of two va ri e ties. First are cases that describe a par tic u lar situation and require analy sis and response. The response may be written or oral (such as in class discussion or a group pre sen ta tion). Second are exercises that entail small proj ects and require active practice of a par tic u lar task. Through these cases and exercises the reader becomes an active participant in the learning pro cess and is able to apply the concepts provided in each chapter.

099-67811_ch01_4P.indd 36 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 37

SUMMARY

At the national level, staffing involves a huge number of hiring transactions each year, is a major cost of doing business (especially for service­ providing industries), and can lead to substantial revenue and market value growth for the organ ization. Staffing is defined as “the pro cess of acquiring, deploying, and retaining a work­ force of sufficient quantity and quality to create positive impacts on the organ­ ization’s effectiveness.” The definition emphasizes that both staffing levels and labor quality contribute to an organ ization’s effectiveness, and that a concerted set of labor acquisition, deployment, and retention actions guides the flow of people into, within, and out of the organ ization. Descriptions of three staffing systems help highlight the definition of staffing.

Several models illustrate vari ous ele ments of staffing. The staffing level model shows how projected labor requirements and availabilities are compared to derive staffing levels that represent being overstaffed, fully staffed, or understaffed. The next two models illustrate staffing quality via the person/job match and the person/ or ga ni za tion match. The former indicates there is a need to match (1) the person’s KSAOs to job requirements and (2) the person’s motivation to the job’s rewards. In the person/or ga ni za tion match, the person’s characteristics are matched to additional factors beyond the target job, namely, orga nizational values, new job duties for the target job, multiple jobs, and future jobs. Effectively managing the matching pro cess results in positive impacts on HR outcomes such as attraction, per for mance, and retention. The core staffing components model shows that there are three basic activities in staffing: recruitment (identification and attraction of applicants), se lection (assessment and evaluation of applicants), and employment (decision making and final match). The staffing organ izations model shows that organ ization, HR, and staffing strategies are formulated and shape staffing policies and programs. In turn, these meld into a set of staffing support activities ( legal compliance, planning, and job analy sis), as well as the core activities (recruitment, se lection, and employment). Retention and staffing system management activities cut across both support and core activities.

Staffing strategy is both an outgrowth of and a contributor to HR and organi­ zation strategy. Thirteen impor tant strategic staffing decisions loom for any organ­ ization. Some pertain to staffing level choices, and others deal with staffing quality choices.

Staffing ethics involves determining moral princi ples and guidelines for prac­ tice. Numerous suggestions were made for ethical conduct in staffing, and many pressure points for sidestepping such conduct are in operation. Appropriate ways of handling such pressures will be discussed in the remainder of the book.

The staffing organ izations model serves as the structural framework for the book. The first part treats staffing models and strategy. The second part treats the support activities of legal compliance, planning, and job analy sis. The next

099-67811_ch01_4P.indd 37 10/3/17 8:56 AM

38 PART ONE The Nature of Staffing

three parts treat the core staffing activities of recruitment, se lection, and employ­ ment. The last section addresses staffing systems and employee retention man­ agement. Each chapter has a section labeled “ Legal Issues,” as well as discussion questions, ethical issues questions, applications, and endnotes.

DISCUSSION QUESTIONS

1. What are potential prob lems with having a staffing pro cess in which vacan­ cies are filled (1) on a lottery basis from among job applicants, or (2) on a first come– first hired basis among job applicants?

2. Why is it impor tant for the organ ization to view all components of staffing (recruitment, se lection, and employment) from the perspective of the job applicant?

3. Would it be desirable to hire people only according to the person/or ga ni za­ tion match, ignoring the person/job match?

4. What are examples of how staffing activities are influenced by training activi­ ties? Compensation activities?

5. Are some of the 13 strategic staffing decisions more impor tant than others? If so, which ones? Why?

ETHICAL ISSUES

1. Assume that you are either the staffing professional in the department or the hiring man ag er of a work unit. Explain why it is so impor tant to represent the organ ization’s interests (see Exhibit 1.8). What are some pos si ble conse­ quences of not doing so?

2. One of the strategic staffing choices is whether to pursue workforce diversity actively or passively. First suggest some ethical reasons for active pursuit of diversity, and then suggest some ethical reasons for a more passive approach. Assume that the type of diversity in question is increasing workforce repre­ sen ta tion of women and ethnic minorities.

APPLICATIONS

Staffing for Your Own Job

Instructions Consider a job you previously held or your current job. Use the staffing compo­ nents model to help you think through and describe the staffing pro cess that led to

099-67811_ch01_4P.indd 38 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 39

your getting hired for the job. Trace and describe the pro cess (1) from your own perspective as a job applicant and (2) from the organ ization’s perspective. Listed below are some questions to jog your memory. Write your responses to these ques­ tions and be prepared to discuss them.

Applicant Perspective

Recruitment:

1. Why did you identify and seek out the job with this organ ization? 2. How did you try to make yourself attractive to the organ ization?

Se lection:

1. How did you gather information about the job’s requirements and rewards? 2. How did you judge your own KSAOs and needs relative to the requirements

and rewards?

Employment:

1. Why did you decide to continue on in the staffing pro cess, rather than drop out of it?

2. Why did you decide to accept the job offer? What were the pluses and minuses of the job?

Organ ization Perspective Even if you are unsure of the answers to the following questions, try to answer them or guess at them.

Recruitment:

1. How did the organ ization identify you as a job applicant? 2. How did the organ ization make the job attractive to you?

Se lection:

1. What techniques (application blank, interview, etc.) did the organ ization use to gather KSAO information about you?

2. How did the organ ization evaluate this information? What did it see as your strong and weak points, KSAO­ wise?

Employment:

1. Why did the organ ization continue to pursue you as an applicant, rather than reject you from further consideration?

2. What was the job offer pro cess like? Did you receive a verbal or written offer (or both)? Who made the offer? What was the content of the offer?

099-67811_ch01_4P.indd 39 10/3/17 8:56 AM

40 PART ONE The Nature of Staffing

Reactions to the Staffing Pro cess Now that you have described the staffing pro cess, what are your reactions to it?

1. What were the strong points or positive features of the pro cess? 2. What were the weak points or negative features of the pro cess? 3. What changes would you like to see made in the pro cess, and why?

Staffing Strategy for a New Plant

House hold Consumer Enterprises, Inc. (HCE) specializes in the design and pro­ duction of house hold products such as brooms, brushes, rakes, kitchen utensils, and garden tools. It has its corporate headquarters in downtown Chicago, with manu­ facturing and ware house/distribution facilities throughout the north­ central region of the United States. The organ ization recently changed its mission from “provid­ ing house holds with safe and sturdy utensils” to “providing house holds with visu­ ally appealing utensils that are safe and sturdy.” The new emphasis on “visually appealing” will necessitate new strategies for designing and producing products that have design flair and imagination built into them. One strategy under consid­ eration is to target vari ous demographic groups with dif fer ent utensil designs. One group is 25­ to 40­ year­ old professional and managerial people, who are believed to want such utensils for both their visual and conversation­ piece appeal.

A tentative strategy is to build and staff a new plant that will have free rein in the design and production of utensils for the 25–40 age group. To start, the plant will focus on producing a set of closely related (design­ wise) plastic products: dish­ washing pans, outdoor wastebaskets, outdoor plant holders, and watering cans. These items can be produced without too large a capital and facilities investment, can be marketed as a group, and can be on stores’ shelves and on HCE’s store website in time for Christmas sales.

The fa cil i ty’s design and engineering team has deci ded that each of the four products will be produced on a separate assembly line, though the lines will share common technology and require roughly similar assembly jobs. Following the advice from the HR vice president, Jarimir Zwitski, the key jobs in the plant for staffing purposes will be plant man ag er, product designer (computer­ assisted design), assemblers, and packers/ware house workers. The initial staffing level for the plant will be 150 employees. Because of the riskiness of the venture and the low initial margins that are planned on the four products due to high start­up costs, the plant will run continuously six days per week (i.e., a 24/6 schedule), with the remaining day reserved for cleaning and maintenance. Pay levels will be at the low end of the market, except for product designers, who will be paid above mar­ ket. Employees will have limited benefits, namely, health insurance with a 30% employee copay after one year of continuous employment and an earned time­ off bank (for holidays, sickness, and vacation) of 160 hours per year. They will not receive a pension plan.

099-67811_ch01_4P.indd 40 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 41

The head of the design team, Maria Dos Santos, and Mr. Zwitski wish to come to you, the corporate man ag er of staffing, to share their preliminary thinking and ask you some questions, knowing that staffing issues abound for this new venture. They ask you to discuss the following questions with them, which they have sent to you in advance so you can prepare for the meeting:

1. What geographic location might be best for the plant in terms of attracting sufficient quantity and quality of labor, especially for the key jobs?

2. Should the plant man ag er come from inside the current managerial ranks or be sought from the outside?

3. Should staffing be based on just the person/job match or also on the person/ or ga ni za tion match?

4. Would it make sense to initially staff the plant with a flexible workforce by using temporary employees and then shift over to a core workforce if it looks like the plant will be successful?

5. In the early stages, should the plant be fully staffed, understaffed, or over­ staffed?

6. Will employee retention likely be a prob lem, and if so, how will this affect the viability of the new plant?

Your task is to write out a tentative response to each question that will be the basis for your discussion at the meeting.

ENDNOTES

1. “2014 County Business Patterns,” United States Census Bureau (www . census . gov / programs - surveys / cbp / data / tables . 2014 . html), accessed Nov. 4, 2016.

2. J. Stuart, Jr., “Employment Continued to Expand in 2015,” Monthly Labor Review, Apr. 2016, pp. 1–12.

3. Saratoga Institute, The Saratoga Review (Santa Clara, CA: author, 2009), p. 10. 4. R. R. Kehoe and P. M. Wright, “The Impact of High­ Performance Human Resource Practices on

Employees’ Attitudes and Be hav iors,” Journal of Management, 2013, 39, pp. 366–391. 5. W. F. Cascio and R. Montealegre, “How Technology Is Changing Work and Organ izations,”

Annual Review of Orga nizational Psy chol ogy and Orga nizational Be hav ior, 2016, 3, pp. 349–375; D. L. Stone, D. L. Deadrick, K. M. Lukaszewski, and R. Johnson, “The Influence of Technology on the Future of Human Resource Management,” Human Resource Management Review, 2015, 25(2), pp. 216–231; and N. T. Tippins, “Technology and Assessment in Se lection,” Annual Review of Orga nizational Psy chol ogy and Orga nizational Be hav ior, 2015, 2, pp. 551–582.

6. T. Chamorro­ Premuzic, D. Winsborough, R. A. Sherman, and R. Hogan, “New Talent Signals: Shiny New Objects or a Brave New World?” Industrial and Orga nizational Psy chol ogy, 2016, 9(3), pp. 621–640; and B. B. Clark, C. Robert, and S. A. Hampton, “The Technology Effect: How Perceptions of Technology Drive Excessive Optimism,” Journal of Business Psy chol ogy, 2016, 31(1), pp. 87–102.

7. A. M. Ryan and E. Derous, “Highlighting Tensions in Recruitment and Se lection Research and Practice,” International Journal of Se lection and Assessment, 2016, 24(1), pp. 54–62.

099-67811_ch01_4P.indd 41 10/3/17 8:56 AM

42 PART ONE The Nature of Staffing

8. J. B. Barney and P. M. Wright, “On Becoming a Strategic Partner: The Role of Human Resources in Gaining Competitive Advantage,” Human Resource Management, 1998, 37(1), pp. 31–46; C. G. Brush, P. G. Greene, and M. M. Hart, “From Initial Idea to Unique Advantage: The Entre­ preneurial Challenge of Constructing a Resource Base,” Acad emy of Management Executive, 2001, 15(1), pp. 64–80.

9. K. Dill, “The Companies Hiring the Most Right Now,” Forbes, Apr. 16, 2015 (www . forbes . com / sites / kathryndill / 2015 / 04 / 16 / the - companies - hiring - the - most - right - now - 2 / #4d3e909730ff ), accessed Nov. 7, 2016.

10. D. Roberts, “At W. L. Gore, 57 Years of Au then tic Culture,” Fortune (Leadership: 100 Best Com- panies to Work for), Mar. 5, 2015, ( fortune . com / 2015 / 03 / 05 / w - l - gore - culture / ), accessed Nov. 7, 2016; G. Hamel, “Five Ways to Evolve Management,” Dividend, Spring 2011, p. 6.

11. “Mike’s Story,” W. L. Gore & Associates (www . gore . com / en _ gb / careers / associatestories / comfort / comfort _ mike . html); “Hajo’s Story,” W. L. Gore & Associates (www . gore . com / en _ gb / careers / associatestories / lives1 / lives1 _ hajo . html ; “Our Culture,” W. L. Gore & Associates, Inc., 2010 (www . gore . com / about / culture).

12 . J. Marquez, “A Talent Strategy Overhaul at Pfizer,” Workforce Management, Feb. 12, 2007, pp. 1, 3.

13. A. Fisher, “Graduating This Spring? How to Stand Out From the Crowd,” Fortune, Mar. 1, 2013 (http:// fortune . com / 2013 / 03 / 01 / graduating - this - spring - how - to - stand - out - from - the - crowd / ), accessed Aug. 28, 2013; S. Pathak, “Frat Boys Get an MBA Without the IOU at Enterprise,” Sales Job Watch, Mar. 3, 2011 (https:// shareenpathak . contently . com / pub / sales - jobs - fins - com), accessed Aug. 28, 2013.

14. D. F. Caldwell and C. A. O’Reilly III, “Mea sur ing Person­ Job Fit With a Profile­ Comparison Pro­ cess,” Journal of Applied Psy chol ogy, 1990, 75, pp. 648–657; R. V. Dawis, “Person­ Environment Fit and Job Satisfaction,” in C. J. Cranny, P. C. Smith, and E. F. Stone (eds.), Job Satisfaction (New York: Lexington, 1992), pp. 69–88; R. V. Dawis, L. H. Lofquist, and D. J. Weiss, A Theory of Work Adjustment (A Revision) (Minneapolis: Industrial Relations Center, University of Min­ nesota, 1968).

15. J. A. Schmidt, D. S. Chapman, and D. A. Jones, “Does Emphasizing Dif fer ent Types of Person­ Environment Fit in Online Job Ads Influence Application Be hav ior and Applicant Quality? Evi­ dence From a Field Experiment,” Journal of Business Psy chol ogy, 2015, 30, pp. 267–282.

16. T. A. Judge and R. D. Bretz, Jr., “Effects of Work Values on Job Choice Decisions,” Journal of Applied Psy chol ogy, 1992, 77, pp. 1–11; C. A. O’Reilly III, J. Chatman, and D. F. Caldwell, “ People and Orga nizational Culture: A Profile Comparison Approach to Assessing Person­ Organization Fit,” Acad emy of Management Journal, 1991, 34, pp. 487–516; A. L. Kristof, “Person­ Organization Fit: An Integrative Review of Its Conceptualizations, Mea sure ment, and Implications,” Personnel Psy chol ogy, 1996, 49, pp. 1–50; A. K. Brown and J. Billsberry, Fit: Key Issues and New Directions (Malden, MA: John Wiley & Sons, 2013).

17. H. Deng, C.­ H. Wu, K. Leung, and Y. Guan, “Depletion From Self­ Regulation: A Resource­ Based Account of the Effect of Value Incongruence,” Personnel Psy chol ogy, 2016, 69, pp. 431–465.

18. L. L. Levesque, “Opportunistic Hiring and Employee Fit,” Human Resource Management, 2005, 44, pp. 301–317.

19. S. Craig, “Inside Goldman’s Secret Rite: The Race to Become Partner,” Wall Street Journal, Oct. 13, 2006, pp. A1, A11; J. La Roche, “A Tiny Group of Goldman Sachs Employees Are About to Get the Phone Call of a Lifetime,” Business Insider (Finance), Nov. 11, 2014 (www . businessinsider . com / becoming - a - partner - at - goldman - sachs - 2014 - 11), accessed Nov. 7, 2016.

20. “100 Best Companies to Work For,” Fortune, 2012 (http:// money . cnn . com / magazines / fortune / best - companies / 2012 / ), accessed Aug. 28, 2013.

099-67811_ch01_4P.indd 42 10/3/17 8:56 AM

CHAPTER ONE Staffing Models and Strategy 43

21. ManpowerGroup, 2016/2017 Talent Shortage Survey (www . manpowergroup . us / campaigns / talent - shortage / assets / pdf / 2016 - Global - Talent - Shortage - Infographic . pdf ), accessed Nov. 7, 2016.

22. B. Leonard, “Economic Climate Provides Chance to Refine Recruiting Practices,” Staffing Man- agement, July 14, 2009 (www . shrm . org).

23 . S. Wisnefski, “Truckers’ Worries: Fuel, Driver Short­ fall,” Wall Street Journal, Oct. 25, 2006, p. B3A.

24. K. R. Lewis, “Recession Aside, Are We Headed for a Labor Shortage?” The Fiscal Times, Aug. 26, 2010 (www . thefiscaltimes . com); K. Gurchiek, “Few Organ izations Planning for Talent Shortage as Boomers Retire,” SHRM News, Nov. 17, 2010 (www . shrm . org); M. Toossi, “ Labor Force Projections to 2024: The Labor Force Is Growing, but Slowly,” Monthly Labor Review, Dec. 2015 (www . bls . gov / opub / mlr / 2015 / article / labor - force - projections - to - 2024 . htm), accessed Nov. 7, 2016.

25. C. Bowers, “Skilled Labor Shortage Frustrates Employers,” CBS Eve ning News, Aug. 11, 2010 (www . cbsnews . com / stories / 2010 / 08 / 11 / eveningnews / main6764731 . shtml ? tag = mncol;lst;1).

26 . Society for Human Resource Management, Introduction to the Human Resource Discipline of Ethics and Corporate Social Responsibility and Sustainability, Feb. 17, 2016 (www . shrm . org / resourcesandtools / tools - and - samples / toolkits / pages / introfethicsandsustainability . aspx), accessed Nov. 7, 2016.

27. A. Ardichvili and D. Jondle, “Ethical Business Cultures: A Lit er a ture Review and Implications for HRD,” Human Resource Development Review, 2009, 8(2), pp. 223–244.

28. Society for Human Resource Management, The Ethics Landscape in American Business: Sustain- ing a Strong Ethical Work Environment, June 2008 (www . shrm . org / hr - today / trends - and - forecasting / research - and - surveys / Documents / 08%20Ethics _ Landscape _ in _ American _ Business%20FINAL . pdf ), accessed Nov. 7, 2016.

29. Society for Human Resource Management, The Ethics Landscape in American Business: Sus- taining a Strong Ethical Work Environment, p. 34.

099-67811_ch01_4P.indd 43 10/3/17 8:56 AM

The Staffing Organizations Model

Organization

Mission Goals and Objectives

Organization Strategy

seitivitcA gniffatS eroCseitivitcA troppuS

HR and Sta�ng Strategy

Sta�ng Policies and Programs

Sta�ng System and Retention Management

Legal compliance Planning Job analysis and rewards

Recruitment: external, internal Selection: measurement, external, internal Employment: decision making, final match

099-67811_ch02_4P.indd 44 10/27/17 9:13 AM

PA R T T W O

Support Activities

C H A P T E R T W O Legal Compliance

C H A P T E R T H R E E Planning

C H A P T E R F O U R Job Analy sis and Rewards

099-67811_ch02_4P.indd 45 10/27/17 9:13 AM

099-67811_ch02_4P.indd 46 10/27/17 9:13 AM

C H A P T E R T W O

Legal Compliance

Learning Objectives and Introduction Learning Objectives Introduction

The Employment Relationship Employer– Employee In de pen dent Contractors Temporary Employees Unpaid Interns and Trainees

Laws and Regulations Need for Laws and Regulations Sources of Laws and Regulations

EEO/AA Laws: General Provisions and Enforcement General Provisions Enforcement: EEOC Enforcement: OFCCP

EEO/AA Laws: Specific Staffing Provisions Civil Rights Acts (1964, 1978, 1991) Age Discrimination in Employment Act (1967) Americans With Disabilities Act (1990, 2008) Ge ne tic Information Nondiscrimination Act (2008) Rehabilitation Act (1973) Executive Order 11246 (1965, 1967, 2014)

Other Staffing Laws Federal Laws State and Local Laws Civil Ser vice Laws and Regulations

Legal Issues in Remainder of Book

Summary

099-67811_ch02_4P.indd 47 10/27/17 9:13 AM

Discussion Questions

Ethical Issues

Applications Age Discrimination in a Promotion? Disparate Impact: What Do the Statistics Mean?

Endnotes

099-67811_ch02_4P.indd 48 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 49

LEARNING OBJECTIVES AND INTRODUCTION

Learning Objectives

• Contrast legal differences among employees, in de pen dent contractors, tempo- rary employees, and unpaid trainees and interns

• Appreciate why staffing laws are necessary, and their sources • Review six major federal equal employment opportunity and affirmative

action laws • Distinguish between disparate treatment and disparate impact approaches to

enforcement • Examine specific staffing provisions of the six major laws • Look at other impor tant staffing laws and regulations • Gain an overview of legal issues covered in Chapters 3–14

Introduction

When the organ ization selects people to do work for it, a legal employment rela- tionship is established. The selected people may be employees, in de pen dent con- tractors, or temporary employees. Laws are needed to define how the employer may utilize each type of worker, as well as the rights of each type. In addition, laws have been developed to create fairness and nondiscrimination in staffing. The laws and accompanying regulations prohibit discrimination on the basis of many protected characteristics, such as race, sex, and disability. Actions based on these characteristics must be removed from staffing practices and decisions. Instead, employers must focus on job- related knowledge, skill, ability, and other charac- teristics (KSAOs) as the bases for those practices and decisions. Employers that ignore or sidestep these laws and regulations could potentially face stiff penalties.

This chapter begins by discussing the formation of the employment relation- ship from a legal perspective. It first defines what an employer is, along with the rights and obligations of being an employer. The employer may acquire people to work for it in the form of employees, in de pen dent contractors, and temporary employees. Unpaid trainees and interns represent a special case. Legal meanings and implications for each of these terms are provided.

The employment relationship has become increasingly regulated, and reasons for the myriad laws and regulations affecting the employment relationship are sug- gested. Next, the major sources of the laws and regulations controlling the employ- ment relationship are indicated.

Equal employment opportunity and affirmative action (EEO/AA) laws and regulations have become paramount in the eyes of many who are concerned with staffing organ izations. The general provisions of six major EEO/AA laws are sum- marized, along with indications of how these laws are administered and enforced.

099-67811_ch02_4P.indd 49 10/27/17 9:13 AM

50 PART TWO Support Activities

While voluntary compliance is preferred by the enforcement agencies, if it fails, litigation may follow. Litigation is based on the key concepts of disparate treat- ment and disparate impact.

For these same six laws, their specific (and numerous) provisions regarding staffing are then presented in detail. Within this pre sen ta tion the true scope, com- plexity, and impact of the laws regarding staffing become known.

Attention then turns to other staffing laws and regulations. These include myriad federal laws, state and local laws, and civil ser vice laws and regulations. These laws, like federal EEO/AA laws, have major impacts on staffing activities.

Fi nally, the chapter concludes with a discussion of the “ Legal Issues” section that appears at the end of each of the remaining chapters. In these sections, specific topics and applications of the law are presented. Their intent is to provide guidance and examples (not legal advice, per se) regarding staffing practices that are permis- sible, impermissible, and required.

THE EMPLOYMENT RELATIONSHIP

From a legal perspective, the term “staffing” refers to formation of the employment relationship. That relationship involves several types of arrangements between the organ ization and those who provide work for it. These arrangements have special and reasonably separate legal meanings. This section explores those arrangements: employer– employee, in de pen dent contractor, temporary employee, and unpaid interns and trainees.1

Employer– Employee

By far the most prevalent form of the employment relationship is that of employer– employee. This arrangement is the result of the organ ization’s usual staffing activities— a culmination of the person/job matching pro cess. As shown in Exhibit 2.1, the employer and the employee negotiate and agree on the terms and conditions that will define and govern their relationship. The formal agreement represents an employment contract, the terms and conditions of which represent the promises and expectations of the parties (job requirements and rewards, and KSAOs and motiva- tion). Over time, the initial contract may be modified due to changes in requirements or rewards of the current job, or employee transfer or promotion. Either party may terminate the contract, thus ending the employment relationship.

Employment contracts come in a variety of forms. They may be written or oral (both types are legally enforceable), and their specificity varies from extensive to bare bones. In some cases involving written contracts, terms and conditions are described in great detail. Examples of such contracts are collective bargaining agreements and contracts for professional athletes, entertainers, and upper- level executives. At the other extreme, the contract may be little more than some simple

099-67811_ch02_4P.indd 50 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 51

oral promises about the job, such as certain wages and hours, agreed to with a handshake.

When and how the employment relationship ends is very impor tant. For the employer, staffing flexibility makes it pos si ble to quickly terminate employees with- out constraint. For the employee, the degree of continued employment and job security that will be expected is an impor tant aspect of the employment relation- ship. Under the common- law princi ple of employment- at- will and in the absence of any contract language to the contrary, the employment relationship is strictly an at- will one, meaning that either the employer or the employee may terminate the employment relationship at any time, for any reason, without prior notifica- tion. Restrictions on the employment- at- will right are usually established as part of the employment contract (such as termination for “just cause” only). Other restrictions come from federal, state, and local laws (such as nondiscrimination in termination).2

From a legal perspective, an employer is an entity that employs others to work on its behalf. Those employed are classified as either employees or in de pen dent contractors. For those classified as employees, the employer has a right to con- trol what will be done and how it will be done. The right to control in de pen dent contractors, especially how their work is done, is much weaker. More about this distinction follows.

EXHIBIT 2.1 Matching Process, Employment Contract, and Employment Relationship

Employer ( job)

Requirements Rewards

O�er and agree

Terms and conditions (employment contract)

Establish

Modify

Terminate

O�er and agree Employee (person)

KSAOs Motivation

Employment relationship

099-67811_ch02_4P.indd 51 10/27/17 9:13 AM

52 PART TWO Support Activities

With employees the employer must (1) withhold payroll taxes (income, Social Security); (2) pay required taxes (unemployment and workers’ compensation, Social Security, and Medicare); (3) adhere to minimum wage and overtime pay requirements; (4) conform to equal employment opportunity laws and regulations; and (5) assume liability for harmful acts of its employees while working.

With in de pen dent contractors the employer does not have the above requirements. This creates an incentive to classify persons as in de pen dent contractors rather than employees. But there are legal constraints on how persons are classified, and mis- classification of persons as in de pen dent contractors can lead to costly penalties. For example, Federal Express reached a $228 million settlement for misclassifying 2,300 of its truck drivers as in de pen dent contractors. While the drivers owned their trucks (suggesting they were in de pen dent contractors), they were required to follow many policies and rules in an operating agreement with FedEx that detailed such things as delivery times and schedules, paperwork, customer ser vice and safe driv- ing standards, and personal appearance standards (suggesting they were employ- ees). The court concluded that FedEx had sufficient right to control the drivers that they were indeed employees. This is not an isolated case. In a four- year period, the US Department of Labor (DOL) assessed $1.1 billion in penalties to employers for misclassifying employees as in de pen dent contractors.3

So, what is the dividing line between employees and in de pen dent contractors? There is no single, bright- line test. Instead, there are two similar legal approaches, both using multiple criteria to guide the employer’s classification judgment.4

The first approach, used by the Internal Revenue Ser vice, emphasizes the degree of employer control and worker in de pen dence. Eleven criteria, falling into three cat- egories (behavioral, financial, and type of relationship), are used to determine the proper classification. As an example, a person is more likely to be an in de pen dent contractor in the following situations:

• Working in a distinct occupation or business • Working without supervision or oversight from the employer • Paying one’s own business and travel expenses • Setting one’s own work hours • Possessing a high degree of skill • Using one’s own tools, materials, and office • Working on a proj ect with a definite completion date • Working on relatively short proj ects • Being paid by the proj ect or commission rather than by the time spent

The other approach, used by the DOL, is based on the economic realities test. It determines whether a person is eco nom ically dependent on the business (i.e., an employee) or is in business for himself or herself (i.e., an in de pen dent contractor).

099-67811_ch02_4P.indd 52 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 53

Under these six criteria, a person is more likely to be an in de pen dent contractor when:

• The work performed is not integral to the employer’s business • The person has and uses managerial skills that affect the opportunity for

profit or loss • The person makes investments that support a business • The person has special skills and initiative to operate an in de pen dent business • There is not a permanent relationship with the employer • The person controls meaningful aspects of the work performed

The DOL indicated all of these criteria should be considered together as a whole when making classification judgments. It also concluded that under these six crite- ria most persons are employees rather than in de pen dent contractors.

In de pen dent Contractors

As part of its staffing plan, the employer may hire in de pen dent contractors.5 An in de pen dent contractor is not legally considered an employee, however. Therefore, the rights and responsibilities the employer has toward the in de pen dent contractor are dif fer ent from those for its employees. Classifying and using a person as an in de pen dent contractor frees the employer of the tax withholding, tax payment, and benefits obligations it has for employees. It may also reduce employer expo- sure under laws and regulations governing the employment relationship, such as nondiscrimination (e.g., Civil Rights Act) and wage and hour laws.

There is an increasing desire for the staffing and labor cost advantages of using in de pen dent contractors, coupled with more people wishing to be solo workers unattached to a single employer. Terms such as “on- demand workers,” “project- based freelancers,” “gig workers,” and “solotrepreneurs” capture this new in de pen- dent contractor wave.

Yet, given the classification issues discussed above, the organ ization must be diligent in classifying people correctly as employees or in de pen dent contractors. As shown above, misclassification of people as in de pen dent contractors can be costly. On top of that, to undo the misclassifications the organ ization will have to develop new staffing plans, policies, and practices for replacing these in de pen dent contractors with employees.

How should the organ ization approach its use of in de pen dent contractors in ways that will protect their classification as such? Several suggestions can be made.

First, review all current or planned classifications against the criteria discussed above. Ensure the classifications are within legal bounds. Second, develop very spe- cific contractor agreements that address these criteria. Indicate, for example, that the contractor will be working on a specific proj ect for a flat fee, and that the contractor

099-67811_ch02_4P.indd 53 10/27/17 9:13 AM

54 PART TWO Support Activities

will furnish his or her own tools and equipment. Third, do not overly supervise or other wise try to manage the in de pen dent contractor. Fi nally, treat the contractor as such, rather than as an employee. Do not provide job descriptions or training, com- puters or other digital devices, work materials, phones, or any employee benefits.6

Temporary Employees

Temporary employees do not have special legal stature. They are considered employees of the temporary help agency (staffing firm) that obtained them through its own staffing pro cess. Temporary employees are given job assignments with other employers (clients) by the staffing firm. During these assignments, the temporary employee remains on the payroll of the staffing firm, and the client employer simply reimburses the staffing firm for its wage and other costs. The client employer has a severely limited right to control temporary employees that it utilizes because they are not its employees but employees of the staffing firm.

Use of temporary employees often raises issues of joint employment, in which the client employer and the staffing firm share the traditional role of employer.7 Because both function as employers to an extent, their obligations and liabilities under vari ous laws need to be sorted out. The Equal Employment Opportunity Commission (EEOC) provides guidance on coverage and responsibility require- ments for staffing firms and their client organ izations.8 When both the firm and the client exercise control over the temporary employee and both have the requisite number of employees, they are considered employers and jointly liable under the Civil Rights Act and the Age Discrimination in Employment Act (ADEA). The firm must make referrals and job assignments in a nondiscriminating manner, and the client may not set discriminatory job referral and job assignment criteria. The client must treat the temporary employees in a nondiscriminatory manner; if the firm knows this is not happening, it must take any corrective actions within its control. There are substantial penalties for noncompliance. There is also special guidance for issues related to the Americans With Disabilities Act (ADA).

The demarcation between an employee and a temporary employee becomes increasingly blurred when an employer uses a set of temporary employees from a staffing firm on a long- term basis, resulting in so- called permatemps. Nationally, 29% of such employees work for the same client employer for a year or more, so they appear more like employees of the client than of the staffing firm. Which are they? Court cases suggest that these individuals are in fact employees of the client employer rather than of the staffing firm, particularly because of the strong degree of control the client employer typically exercises over those people. Hence, to help ensure that permatemps will not be legally considered the client’s employees, the client must give up, or never exercise, direct control over these people and treat them as truly separate from regular employees. This may require, for example, not training or supervising them, not listing them in the phone directory, and not allow- ing them to use the organ ization’s stationery. In practice, this is difficult to do.9

099-67811_ch02_4P.indd 54 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 55

Unpaid Interns and Trainees

The organ ization cannot simply say that a person is not an employee but rather an unpaid intern or trainee. In fact, a person must meet six requirements in order to be classified as an unpaid intern or trainee; other wise the person is an employee. The requirements are that (1) the training must be similar to that given in school, (2) the training experience is to benefit the intern, (3) the trainee does not displace another person and works under close supervision of the employer’s staff, (4) the employer does not gain an immediate advantage from the trainee’s activities, and on occasion operations may be hampered, (5) the trainee is not entitled to a job at the end of training, and (6) the employer and the trainee must understand that the trainee is not entitled to any pay for time spent.10

LAWS AND REGULATIONS

Establishing and maintaining the employment relationship involve exercising dis- cretion by both the employer and the employee. Employment laws affecting that relationship spring from a need to define the scope of permissible discretion and place limits on it. The need for laws and regulations and the sources of them are explored below.

Need for Laws and Regulations

Balance of Power Employment relationships involve negotiating issues of power. The employer has something desirable to offer the employee (e.g., a job with certain requirements and rewards), and the employee has something to offer the employer (e.g., KSAOs and motivation). The employer usually has the upper hand in employment relationships since it controls the creation of jobs, the definition of jobs in terms of requirements and rewards, access to jobs via staffing systems, the movement of employees among jobs, and the retention or termination of employees. While employees participate in these pro cesses and decisions, it is seldom as an equal or a partner of the employer. Employment laws and regulations exist, in part, to reduce or limit such employer power in the employment relationship.

Protection of Employees Laws and regulations seek to provide specific protections to employees that they are unlikely to get for themselves in an employment contract. These protections pertain to employment standards, individual workplace rights, and consistency of treatment. Employment standards represent the minimum acceptable terms and conditions of employment. Examples include minimum wage, nondiscrimination, and overtime pay, as well as safety and health standards. Individual rights examples

099-67811_ch02_4P.indd 55 10/27/17 9:13 AM

56 PART TWO Support Activities

include organ izing and collective bargaining, privacy protections, and constraints on unilateral termination. Fi nally, laws and regulations, in effect, guarantee con- sistency of treatment among employees. Hiring and promotion decisions, for example, cannot be made on the basis of protected employee characteristics (e.g., race, sex).

Protection of Employers Employers also gain protections from laws and regulations. First, they provide guidance to employers as to what are permissible practices and what are imper- missible practices. The Civil Rights Act, for example, not only forbids certain types of discrimination on the basis of race, color, religion, sex, and national ori- gin but also specifically mentions employment practices that are permitted. One of those practices is the use of professionally developed ability tests, a practice that has major implications for external and internal se lection. Second, ques- tions about the meaning of the law are clarified through many ave nues— court decisions, policy statements from government agencies, informal guidance from enforcement officials, and networking with other employers. The result is increas- ing convergence on what is required for compliance with the laws. This allows the employer to implement needed changes, which then become standard operating procedure in staffing systems. In this manner, for example, affirmative action pro- grams (AAPs) have been developed and incorporated into the staffing mainstream for many employers.

Sources of Laws and Regulations

Numerous sources of laws and regulations govern the employment relationship. Exhibit 2.2 provides examples of these as they pertain to staffing. Each of these is commented on next.

Common Law Common law, which has its origins in England, is court- made law, as opposed to law from other sources, such as the state. It consists of the case- by- case decisions of the court, which determine over time permissible and impermissible practices, as well as their remedies. There is a heavy reliance on common law in the pre ce- dents established in previous court decisions. Each state develops and administers its own common law. Employment- at- will and workplace tort cases, for example, are treated at the state level. As noted, employment- at- will involves the rights of the employer and the employee to terminate the employment relationship at will. A tort is a civil wrong that occurs when the employer violates a duty owed to its employees or customers that leads to harm or damages suffered by them. Staffing tort examples include negligent hiring of unsafe or dangerous employees, fraud and misrepre sen ta tion regarding employment terms and conditions, defamation of former employees, and invasion of privacy.

099-67811_ch02_4P.indd 56 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 57

Constitutional Law Constitutional law is derived from the US Constitution and its amendments. It supersedes any other source of law or regulation. Its major application is in the area of public employee rights, particularly their due pro cess rights.

Statutory Law Statutory law is derived from written statutes passed by legislative bodies. These bodies are federal (Congress), state (legislatures and assemblies), and local (munici- pal boards and councils). Legislative bodies may create, amend, and eliminate laws and regulations. They may also create agencies to administer and enforce the law.

Agencies Agencies exist at the federal, state, and local levels. Their basic charge is to inter- pret, administer, and enforce the law. At the federal level, the two major agencies of

EXHIBIT 2.2 Sources of Laws and Regulations

Source Examples

Common law Employment-at-will Workplace torts

Constitutional law Fifth Amendment Fourteenth Amendment

Statutory law Civil Rights Act Genetic Information Nondiscrimination Act Age Discrimination in Employment Act Americans With Disabilities Act Rehabilitation Act Immigration Reform and Control Act Fair Credit Reporting Act Employee Polygraph Protection Act Uniformed Services Employment and Reemployment Rights Act State and local laws Civil service laws

Executive order Agencies

11246 (nondiscrimination under federal contracts) Equal Employment Opportunity Commission (EEOC) Department of Labor (DOL) Office of Federal Contract Compliance Programs (OFCCP) Department of Homeland Security State fair employment practice (FEP) agencies

099-67811_ch02_4P.indd 57 10/27/17 9:13 AM

58 PART TWO Support Activities

concern to staffing are the DOL and the EEOC. Housed within the DOL are several separate units for administration of employment law, most notably the Office of Federal Contract Compliance Programs (OFCCP). The Department of Homeland Security handles issues regarding foreign workers and immigration in its agency, the US Citizenship and Immigration Ser vices.

Agencies rely heavi ly on written documents in performing their functions. These documents are variously referred to as rules, regulations, guidelines, and policy statements. Rules, regulations, and guidelines are published in the Federal Register, as well as incorporated into the Code of Federal Regulations (CFR), and they have the weight of law. Policy statements are somewhat more benign in that they do not have the force of law. They do, however, represent the agency’s official position on a point or question.

EEO/AA LAWS: GENERAL PROVISIONS AND ENFORCEMENT

In this section, the major federal EEO/AA laws are summarized in terms of their general provisions. Mechanisms for enforcement of the laws are also discussed. More details may be found online.

General Provisions

The major federal EEO/AA laws are the following:

1. Title VII of the Civil Rights Acts (1964, 1978, 1991) 2. Age Discrimination in Employment Act (1967) 3. Americans With Disabilities Act (1990, 2008) 4. Ge ne tic Information Nondiscrimination Act (2008) 5. Rehabilitation Act (1973) 6. Executive Order 11246 (1965, 1967, 2014)

Exhibit 2.3 contains a summary of the basic provisions of these laws pertaining to coverage, prohibited discrimination, and enforcement agency. These laws are appropriately labeled “major” for several reasons. First, the laws are very broad in their coverage of employers. Second, they specifically prohibit discrimination on the basis of several individual characteristics (race, color, religion, sex, national origin, age, pregnancy, ge ne tic information, disability, and handicap). Guidance on the meanings of these characteristics, given by the EEOC, is shown in Exhibit 2.4. Note the generally expansive definitions of the characteristics. Third, separate agencies have been created for administration and enforcement of these laws. Fi nally, these agencies have issued numerous rules, regulations, and guidelines to assist in interpreting, implementing, and enforcing the law. The specifics of these regulations will be discussed in subsequent chapters.

099-67811_ch02_4P.indd 58 10/27/17 9:13 AM

E X

H IB

IT 2

.3

M a

jo r

F e

d e

ra l E

E O

/A A

L a

w s:

G e

n e

ra l P

ro vi

si o

n s

La w

o r

E xe

cu ti

ve

O rd

e r

C o

ve ra

g e

P ro

h ib

it e

d

D is

cr im

in a

ti o

n E

n fo

rc e

m e

n t

A g

e n

cy Im

p o

rt a

n t

R u

le s,

R e

g u

la ti

o n

s,

a n

d G

u id

e lin

e s

C iv

il R

ig h

ts A

ct

(1 9

6 4

, 1 9

78 , 1

9 9

1) P

ri va

te e

m p

lo ye

rs w

ith

15  o

r m

o re

e m

p lo

ye e

s F

e d

e ra

l, st

a te

, a n

d lo

ca l

g o

ve rn

m e

n ts

E d

u ca

tio n

a l i

n st

itu tio

n s

E m

p lo

ym e

n t

a g

e n

ci e

s La

b o

r u

n io

n s

R a

ce , c

o lo

r, re

lig io

n ,

n a

tio n

a l o

ri g

in , s

e x

(in cl

u d

e s

se xu

a l

o ri

e n

ta tio

n a

n d

g

e n

d e

r id

e n

tit y)

, p

re g

n a

n cy

E E

O C

U n

ifo rm

G u

id e

lin e

s o

n E

m p

lo ye

e

S e

le ct

io n

P ro

ce d

u re

s S

e x

D is

cr im

in a

tio n

G u

id e

lin e

s R

e lig

io u

s D

is cr

im in

a tio

n

G u

id e

lin e

s N

a tio

n a

l O ri

g in

D is

cr im

in a

tio n

G

u id

e lin

e s

A g

e D

is cr

im in

a tio

n

in E

m p

lo ym

e n

t A

ct (1

9 6

7)

P ri

va te

e m

p lo

ye rs

w ith

2

0  o

r m

o re

e m

p lo

ye e

s F

e d

e ra

l, st

a te

, a n

d lo

ca l

g o

ve rn

m e

n ts

E m

p lo

ym e

n t

a g

e n

ci e

s La

b o

r u

n io

n s

A g

e (4

0 a

n d

o ve

r) E

E O

C In

te rp

re ta

tio n

s o

f th

e A

g e

D

is cr

im in

a tio

n in

E m

p lo

ym e

n t

A ct

A m

e ri

ca n

s W

ith

D is

a b

ili tie

s A

ct

(1 9

9 0

, 2 0

0 8

)

P ri

va te

e m

p lo

ye rs

w ith

15

 o r

m o

re e

m p

lo ye

e s

F e

d e

ra l,

st a

te , a

n d

lo ca

l g

o ve

rn m

e n

ts

Q u

a lif

ie d

in d

iv id

u a

l w

ith a

d is

a b

ili ty

E E

O C

A D

A –

E m

p lo

ym e

n t

R e

g u

la tio

n s

P re

-E m

p lo

ym e

n t

D is

a b

ili ty

- R

e la

te d

Q u

e st

io n

s a

n d

M

e d

ic a

l E xa

m in

a tio

n s

G e

n e

tic In

fo rm

a tio

n

N o

n d

is cr

im in

a tio

n

A ct

(2 0

0 8

)

P ri

va te

e m

p lo

ye rs

w ith

15

 o r

m o

re e

m p

lo ye

e s

F e

d e

ra l,

st a

te , a

n d

lo ca

l g

o ve

rn m

e n

ts E

d u

ca tio

n a

l i n

st itu

tio n

s E

m p

lo ym

e n

t a

g e

n ci

e s

La b

o r

u n

io n

s

G e

n e

tic in

fo rm

a tio

n E

E O

C F

in a

l R e

g u

la tio

n s

(c o

n ti

n u

e d

)

099-67811_ch02_4P.indd 59 10/27/17 9:13 AM

E X

H IB

IT 2

.3

C o

n ti

n u

e d

La w

o r

E xe

cu ti

ve

O rd

e r

C o

ve ra

g e

P ro

h ib

it e

d

D is

cr im

in a

ti o

n E

n fo

rc e

m e

n t

A g

e n

cy Im

p o

rt a

n t

R u

le s,

R e

g u

la ti

o n

s,

a n

d G

u id

e lin

e s

R e

h a

b ili

ta tio

n A

ct

(1 9

73 )

F e

d e

ra l c

o n

tr a

ct o

rs w

ith

co n

tr a

ct s

in e

xc e

ss o

f $

2 ,5

0 0

In d

iv id

u a

l w ith

a

d is

a b

ili ty

D O

L (O F

C C

P )

A ff

ir m

a tiv

e A

ct io

n R

e g

u la

tio n

s:

P e

o p

le W

ith D

is a

b ili

tie s

E xe

cu tiv

e O

rd e

r 11

2 4

6 (1

9 6

5 , 1

9 6

7,

2 0

14 )

F e

d e

ra l c

o n

tr a

ct o

rs w

ith

co n

tr a

ct s

in e

xc e

ss o

f $

10 ,0

0 0

R a

ce , c

o lo

r, re

lig io

n ,

n a

tio n

a l o

ri g

in , s

e x

(in cl

u d

e s

se xu

a l

o ri

e n

ta tio

n a

n d

g

e n

d e

r id

e n

tit y)

D O

L (O F

C C

P )

S e

x D

is cr

im in

a tio

n G

u id

e lin

e s

A ff

ir m

a tiv

e A

ct io

n P

ro g

ra m

s R

e g

u la

tio n

s F

e d

e ra

l C o

n tr

a ct

C o

m p

lia n

ce

M a

n u

a l

099-67811_ch02_4P.indd 60 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 61

Exhibit 2.3 shows that for some laws, the number of employees in the organ- ization determines whether the organ ization is covered. To count employees, the EEOC has issued guidance indicating that the organ ization should include any employee with whom the organ ization had an employment relationship in each of 20 or more calendar weeks during the current or preceding year. In essence, this means that full- time and part- time employees— and possibly temporary employees if there is true coemployment— should be included in the employee count.11

Individuals who oppose unlawful practices, participate in proceedings, or request accommodations are protected from retaliation under the laws shown in Exhibit 2.3. The term “retaliation” is broadly interpreted by the courts and the EEOC to include refusal to hire, denial of promotion, termination, other actions affecting employ- ment (e.g., threats, unjustified negative evaluations), and actions that deter reason- able people from pursuing their rights (e.g., assault, unfounded civil or criminal charges). The EEOC has issued specific guidance on what constitutes evidence of retaliation, as well as special remedies for retaliatory actions by the employer.12

Three other general features of the EEO laws, as interpreted by the EEOC and the courts, should be noted. First, state (but not local) government employers are immune from lawsuits by employees who allege violation of the ADA or the ADEA. State employees must thus pursue disability and age discrimination claims under applicable state laws. Second, organ ization officials and individual man ag- ers cannot be held personally liable for discrimination under the Civil Rights Act, the ADA, or the ADEA. They might be liable, however, under state law. Third, the ADA, the Civil Rights Act, and the ADEA extend to US citizens employed over- seas by American employers. Also, a foreign com pany that is owned or controlled by an American employer and is doing business overseas generally must also com- ply with the Civil Rights Act, the ADA, and the ADEA.

An overview of the broad, sweeping nature of the specific employment practices affected by the federal EEO/AA laws is shown in Exhibit 2.5.

Enforcement: EEOC

As shown in Exhibit 2.3, the EEOC is responsible for enforcing the Civil Rights Act, the ADEA, and the ADA. Though each law requires separate enforcement mecha- nisms, some generalizations about their collective enforcement are pos si ble.13

Disparate Treatment and Disparate Impact Claims of discrimination in staffing ultimately require evidence and proof, particu- larly as these charges pertain to the staffing system itself and its specific character- istics as it has operated in practice. Toward this end, there are two ave nues or paths to follow— disparate treatment and disparate impact.14 Both paths may be followed for Title VII of the Civil Rights Act, ADA, and ADEA claims.

099-67811_ch02_4P.indd 61 10/27/17 9:13 AM

62 PART TWO Support Activities

(I) Race/Color • Of a certain race • Of personal characteristics associated with a race (e.g., facial features) • Of skin color complexion • Of marriage/association with person of particular race/color • Of connection with an organization associated with people of race/color (II) National Origin • Of a particular country or part of the world • Of ethnicity or accent • Of a certain background • Of marriage/association with person of particular national origin • Of connection with an ethnic organization or group (III) Sex • Of the person’s sex, which includes gender identity, transgender status, and sexual orientation • Of connection with an organization or group of a certain sex (IV) Religion • Of religious beliefs in a traditional, organized religion • Of sincerely held religious, ethical, or moral beliefs • Of marriage/association with a person of a particular religion • Of connection with a religious organization (V) Disability • A qualified person with a disability • Has a history of a disability • Believed to have a physical or mental impairment • Of a relationship with a person with a disability (VI) Age • Of the person’s age, if age 40 or older (VII) Pregnancy • Of her pregnancy, childbirth, or medical condition related to pregnancy or childbirth (VIII) Genetic Information • Of information about an individual’s genetic tests and genetic tests of family members, as well as family medical history • Of request or receipt of genetic services, including reproduction

EXHIBIT 2.4 EEOC Protected Classes and Their Definitions

Source: Equal Employment Opportunity Commission, 2016.

099-67811_ch02_4P.indd 62 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 63

Disparate Treatment. Claims of disparate treatment involve allegations of inten- tional discrimination in which the employer knowingly and deliberately discrim- inated against people on the basis of specific characteristics such as race or sex. Evidence for such claims may be of several sorts.

First, the evidence may be direct. It might, for example, refer to an explicit writ- ten policy of the organ ization, such as one stating that “ women are not to be hired for the following jobs.”

Under the laws enforced by the EEOC, it is illegal to discriminate against someone (applicant or employee) because of that person’s race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability, or genetic information. It is also illegal to retaliate against a person because he or she complained about discrimination, filed a charge of discrimination, or participated in an employment discrimination investigation or lawsuit.

The law forbids discrimination in every aspect of employment. The laws enforced by the EEOC prohibit an employer or other covered entity from using

neutral employment policies and practices that have a disproportionately negative effect on applicants or employees of a particular race, color, religion, sex (including pregnancy), or national origin, or on an individual with a disability or class of individuals with disabilities, if the policies or practices at issue are not job related and necessary to the operation of the business. The laws enforced by the EEOC also prohibit an employer from using neutral employment policies and practices that have a disproportionately negative impact on applicants or employees age 40 or older, if the policies or practices at issue are not based on a reasonable factor other than age.

Covered practices: • Job advertisements, recruitment, and job referrals • Application and hiring • Job assignments and promotion • Employment references • Pre-employment inquiries • Discipline and discharge • Pay and benefits • Reasonable accommodation and disability, religion • Training and apprenticeship programs • Harassment • Terms and conditions of employment, dress code • Constructive discharge/forced to resign

EXHIBIT 2.5 Prohibited Employment Policies/Practices Under Federal Law

Source: Equal Employment Opportunity Commission, 2010.

099-67811_ch02_4P.indd 63 10/27/17 9:13 AM

64 PART TWO Support Activities

Second, the situation may not involve such blatant action but may consist of what is referred to as a mixed motive. Here, both a prohibited characteristic (e.g., race) and a legitimate reason (e.g., job qualifications) are mixed together to con- tribute to a negative decision about a person, such as a failure to hire or promote. If an unlawful motive such as race plays any part in the decision, it is illegal, despite the presence of a lawful motive as well.

Fi nally, the discrimination may be such that evidence of a failure to hire or pro- mote because of a protected characteristic must be inferred from several situational factors. Here, the evidence involves four factors:

1. The person belongs to a protected class. 2. The person applied for, and was qualified for, a job the employer was trying

to fill. 3. The person was rejected despite being qualified. 4. The position remained open and the employer continued to seek applicants

as qualified as the person rejected.

Most disparate treatment cases involve and require the use of these four factors to initially prove a charge of discrimination.

Disparate Impact. Disparate impact, also known as adverse impact, focuses on the effect of employment practices, rather than on the motive or intent under lying them. Accordingly, the emphasis here is on the need for direct evidence that, as a result of a protected characteristic, people are being adversely affected by a prac- tice. Statistical evidence must be presented to support a claim of adverse impact.15 Three types of statistical evidence may be used, and these are shown in Exhibit 2.6. Refer to “ Legal Issues” in Chapters 3 and 7 for elaboration.

The first type of evidence shown in the exhibit is applicant flow statistics, which look at differences in se lection rates (proportion of applicants hired) among dif fer- ent groups for a par tic u lar job. If the differences are large enough, this suggests that the effect of the se lection system is discriminatory. In the example, the se lection rate for men is .50 (or 50%) and for women it is .11 (or 11%), suggesting the pos- sibility of discrimination.

A second type of statistical evidence involves the use of stock statistics. Here, the percentage of women or minorities actually employed in a job category is com- pared with their availability in the relevant population. Relevant is defined in terms of such things as “qualified,” “interested,” or “geographic.” The example shows a disparity in the percentage of minorities employed (10%) compared with their availability (30%), which suggests their underutilization.

The third type of evidence involves the use of concentration statistics. Here, the percentages of women or minorities in vari ous job categories are compared to see if they are concentrated in certain workforce categories. In the example shown, women are concentrated in clerical jobs (97%), men are concentrated in produc-

099-67811_ch02_4P.indd 64 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 65

tion (85%) and managerial (95%) jobs, and men and women are roughly equally concentrated in sales jobs (45% and 55%, respectively).

Initial Charge and Conciliation Enforcement proceedings begin when an employee or job applicant files a charge (the EEOC itself may also file a charge). In states where there is an EEOC- approved fair enforcement practice (FEP) law, the charge is initially deferred to the state. The charge is investigated to determine whether there is reasonable cause to assume discrimination has occurred. If reasonable cause is not found, the charge is dropped. If reasonable cause is found, the EEOC attempts conciliation of the charge. Concili- ation is a voluntary settlement pro cess that seeks agreement by the employer to stop the practice(s) in question and abide by proposed remedies. This is the EEOC’s preferred method of settlement. Whenever the EEOC decides not to pursue a claim further, it will issue a “right to sue” letter to the complaining party, allowing a pri- vate suit to be started against the employer.

EXHIBIT 2.6 Types of Disparate Impact Statistics

A. FLOW STATISTICS Definition:

Significant di�erences in selection rates between groups

Example

Job Category: Customer Service Representative

No. of Applicants

Men

50

Women

45

No. Hired

Men

25

Women

5

Selection Rate (%)

Men

50

Women

11

B. STOCK STATISTICS Definition:

Underutilization of women or minorities relative to their availability in the relevant population

Example

Job Category: Management Trainee

Current Trainees (%) Nonminority

90 Minority

10

Availability (%) Nonminority

70 Minority

30

C. CONCENTRATION STATISTICS Definition:

Concentration of women or minorities in certain job categories

Example

Job Category

% Men % Women

Clerical

3 97

Production

85 15

Sales

45 55

Managers

95 5

099-67811_ch02_4P.indd 65 10/27/17 9:13 AM

66 PART TWO Support Activities

Complementing conciliation is the use of mediation. With mediation, a neutral third party mediates the dispute between the employer and the EEOC and obtains an agreement between them that resolves the dispute. Participation in mediation is voluntary, and either party may opt out of it for any reason. Mediation proceedings are confidential. Any agreement reached between the parties is legally enforce- able. More than 70% of complaints that go to mediation are resolved, and 96% of employers that use the EEOC mediation program say they would do so again.16 In short, the EEOC prefers settlement to litigation.

Litigation and Remedies Should conciliation fail, suit is filed in federal court. The ensuing litigation pro cess under Title VII is shown in Exhibit 2.7. As can be seen, the charge of the plain- tiff (charging party) will follow either a disparate treatment or a disparate impact route.17 In either event, the plaintiff has the initial burden of proof. Such a burden requires the plaintiff to establish a prima facie case that demonstrates reasonable cause to assume discrimination has occurred. Assuming this case is successfully presented, the defendant must rebut the charge and accompanying evidence.

Disparate treatment (intentional practice)

Plainti� ResponseCharge

Defendant Rebuttal

Decision Remedies

Nondiscriminatory reason(s) for practice

Reason is a pretext for discrimination

Plainti� (charging party) alleges occurrence of discrimination

Disparate impact (e�ect of practice)

Practice is not job related; employer refuses to adopt a�rmative employment practice that causes less adverse impact

Practice is job related and consistent with business necessity

EXHIBIT 2.7 Basic Litigation Process Under Title VII: EEOC

Source: Equal Employment Opportunity Commission, May 26, 2004 (www.eeoc.gov).

099-67811_ch02_4P.indd 66 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 67

In disparate treatment cases, the defendant must provide nondiscriminatory rea- sons during rebuttal for the practice(s) in question. In disparate impact cases, the employer must demonstrate that the practices in question are job related and con- sistent with business necessity.

Following rebuttal, the plaintiff may respond to the defense provided by the defendant. In disparate treatment cases, that response hinges on a demonstration that the defendant’s reasons for a practice are a pretext, or smoke screen, for the practice. In disparate impact cases, the plaintiff’s response will focus on showing that the defendant has not shown its practices to be job related and/or that the employer refuses to adopt a practice that causes less adverse impact.

Disparate impact litigation involving age discrimination charges is somewhat dif fer ent. After the disparate impact claim (supported by disparate impact statis- tics) is made, the defendant rebuttal will involve an attempt to prove that the chal- lenged practice is supported by a reasonable factor other than age, and the plaintiff response will attempt to prove that the factor cited is unreasonable and not the true reason for the practice.

Who bears the final, or ultimate, burden of proof? In disparate treatment cases, the plaintiff must ultimately prove that the defendant’s practices are discrimina- tory. For disparate impact cases, on the other hand, the burden is on the defendant. That is, the defendant must prove that its practices are not discriminatory.

The plaintiff and the defendant have an opportunity to end their dispute through a consent decree. This is a voluntary, court- approved agreement between the two parties. The consent decree may contain an agreement to not only halt certain prac- tices but also implement certain remedies, such as vari ous forms of monetary relief and AAPs. An example of a consent decree is shown in Exhibit 2.8.

In the absence of a consent decree, the court will fashion its own remedies from those permitted under the law, of which several are available. First, the court may enjoin certain practices (i.e., to require the defendant to halt the practices). Second, the court may order the hiring or reinstatement of individuals. Third, the court may fashion vari ous forms of monetary relief, such as back pay, front pay, attorney’s fees, and compensatory and punitive damages. Compensatory and punitive dam- ages, which are capped at $300,000, may be applied only in cases involving dispa- rate treatment; front pay and back pay are excluded from the cap. Fi nally, under the Civil Rights Act and the ADA, the court may order “such affirmative action as may be appropriate,” as well as “any other equitable relief” that the court deems appropriate. Through these provisions, the court has considerable latitude in the remedies it imposes, including the imposition of AAPs.

Enforcement: OFCCP

Enforcement mechanisms used by the OFCCP are very dif fer ent from those used by the EEOC. Most covered employers are required to develop and implement written AAPs for women and minorities. Specific AAP requirements for employers under

099-67811_ch02_4P.indd 67 10/27/17 9:13 AM

68 PART TWO Support Activities

CLEVELAND—Presrite Corporation, a manufacturing company headquartered in Cleveland that makes gears and other industrial parts, will pay $700,000, offer jobs to no fewer than 40  women, and commit to other injunctive relief to settle a systemic class action lawsuit brought by the US Equal Employment Opportunity Commission (EEOC), the agency announced today.

The EEOC’s lawsuit charged widespread discrimination against women who applied to work at one or more of Presrite’s three plants in Cleveland and Ashtabula County. According to the EEOC, Presrite—a federal contractor—passed over female applicants in favor of less qualified males for entry-level positions at all three plants. The EEOC also cited evidence that women who were hired for such positions were harassed.

The EEOC charged the company with failing to keep applications and other employee data in violation of federal law. The EEOC alleged that Presrite failed to produce more than a thousand employment applications for persons the company hired and failed to maintain accurate or complete data about applicants. As a result, the EEOC said, it was unable to verify by name all of the female applicants who were unlawfully denied hire.

On April 24, Judge Patricia A. Gaughan signed a publicly filed consent decree resolving the case. Under the terms of the decree, Presrite will pay $700,000 in compensatory damages to establish a class fund for women who sought certain positions at Presrite and were denied hire. Over the course of the next three years, Presrite will also offer jobs to no fewer than 40 women identified by the EEOC during the claims process. The decree compels Presrite to give those females priority consideration and to offer them jobs before any current applicants.

The decree also requires Presrite to implement a number of measures designed to prevent future discrimination such as periodic reports to the EEOC disclosing the number of females and males who applied as compared to those who were hired; mandatory training; and compulsory retention of employment and applicant records, including creating and producing electronic data. The decree includes an injunction prohibiting Presrite from discriminating against women in the recruiting and hiring process, and compelling the company to make all good-faith, reasonably necessary efforts to find female candidates to fill vacancies in laborer and operative positions.

“We are pleased that we were able to reach an agreement with this defendant,” said EEOC General Counsel David Lopez. “Moving forward, qualified female applicants will be judged by their talents and skill and not simply passed over because of their gender and women who were wrongfully denied positions will be compensated.”

EXHIBIT 2.8 Example of a Consent Decree

Source: Adapted from EEOC press release, April 30, 2013 (www.eeoc.gov/eeoc/newsroom /release/4-30-13.cfm), accessed May 22, 2013.

099-67811_ch02_4P.indd 68 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 69

Executive Order 11246 are spelled out in Affirmative Action Programs Regulations, discussed within “ Legal Issues” in Chapter 3.

To enforce these requirements, the OFCCP conducts off- site desk audits and reviews of employers’ rec ords and AAPs, as well as on- site visits and compliance reviews of employers’ AAPs. It also investigates complaints charging noncompli- ance. Employers found to be in noncompliance are urged to change their practices through a conciliation pro cess. Should conciliation be unsuccessful, employers are subject to vari ous penalties that affect their status as a federal contractor. These include cancellation of contracts and debarment from bidding on future contracts.

EEO/AA LAWS: SPECIFIC STAFFING PROVISIONS

Each of the major laws covered in the previous section contains specific provi- sions pertaining to staffing practices by organ izations. This section summarizes those specific provisions, including agencies’ and courts’ interpretations of them. Phrases in quotation marks are from the laws themselves. Applications of these provisions to staffing policies, practices, and actions occur throughout the remain- der of the book.

Civil Rights Acts (1964, 1978, 1991)

The provisions of the Civil Rights Acts of 1964, 1978, and 1991 are combined for discussion purposes here. The 1978 amendment added pregnancy as a protected characteristic. The 1991 law is basically a series of amendments to the 1964 law, though it does contain some provisions unique to it.

Unlawful Employment Practices This section of the law contains a comprehensive statement regarding unlawful employment practices. Specifically, it is unlawful for an employer

1. “to fail or refuse to hire or to discharge any individual, or other wise discrimi- nate against any individual with re spect to his compensation, terms, condi- tions, or privileges of employment, because of such individual’s race, color, religion, sex, or national origin”; or

2. “to limit, segregate, or classify his employees or applicants for employment in any way which would deprive or tend to deprive any individual of employ- ment opportunities or other wise adversely affect his status as an employee because of such individual’s race, color, religion, sex, or national origin.”

These two statements are the foundation of civil rights law. They are very broad and inclusive, applying to virtually all staffing practices of an organ ization. There are also separate statements for employment agencies and labor unions.

099-67811_ch02_4P.indd 69 10/27/17 9:13 AM

70 PART TWO Support Activities

Establishment of Disparate Impact As discussed previously, a claim of discrimination may be pursued via a disparate impact or disparate treatment approach. The law makes several points regarding the former approach.

First, staffing practices that may seem unfair, outrageous, or of dubious value to the employer but do not cause adverse impact are not illegal (assuming, of course, that no intention to discriminate underlies them). Thus, they are a matter of legal concern only if their usage causes disparate impact.

Second, staffing practices that the plaintiff initially alleges to have caused adverse impact are unlawful unless the employer can successfully rebut the charges. To do this, the employer must show that the practices are “job related for the position in question and consistent with business necessity.” Practices that fail to meet this standard are unlawful.

Third, the plaintiff must show adverse impact for each specific staffing practice or component. For example, if an employer has a simple se lection system in which applicants first take a written test and those who pass it are interviewed, the plain- tiff must show adverse impact separately for the test and the interview, rather than for the two components combined.

Disparate Treatment Intentional discrimination with staffing practices is prohibited, and the employer may not use a claim of business necessity to justify intentional use of a discrimina- tory practice.

Mixed Motives An employer may not defend an action by claiming that while a prohibited factor, such as sex, entered into a staffing decision, other factors, such as job qualifications, did also. Such “mixed motive” defenses are not permitted. A plaintiff may pursue a mixed motive claim with either circumstantial or direct evidence of discrimination.

Bona Fide Occupational Qualification An employer may attempt to justify use of a protected characteristic, such as national origin, as being a bona fide occupational qualification (BFOQ). The law permits such claims, but only for sex, religion, and national origin— not race or color. The employer must be able to demonstrate that such discrimination is “a bona fide occu- pational qualification reasonably necessary to the normal operation of that par tic u lar business or enterprise.” Thus, a maximum security prison with mostly male inmates might hire only male prison guards on the grounds that by doing so it ensures the safety, security, and privacy of inmates. However, it must be able to show that doing so is a business necessity.

099-67811_ch02_4P.indd 70 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 71

Testing The law explic itly permits the use of tests in staffing. The employer may “give and act upon the results of any professionally developed ability test, provided that such test, its administration, or action upon the basis of results is not designed, intended, or used to discriminate because of race, color, religion, sex, or national origin.”

Interpretation of this provision has been difficult. What exactly is a “profes- sionally developed ability test”? How does an employer use a test to discriminate? Not discriminate? The need for answers to such questions gave rise to the Uniform Guidelines on Employee Se lection Procedures (UGESP).

Test Score Adjustments Test scores are not to be altered or changed to make them more fair; test scores should speak for themselves. Specifically, it is an unlawful employment practice “to adjust the scores of, use dif fer ent cutoff scores for, or other wise alter the results of employment- related tests on the basis of race, color, religion, sex, or national origin.” This provision bans so- called race norming, in which people’s scores are compared only with those of members of their own racial group and separate cutoff or passing scores are set for each group.

Se niority or Merit Systems The law explic itly permits the use of se niority and merit systems as a basis for applying dif fer ent terms and conditions to employees. However, the se niority or merit system must be “bona fide,” and it may not be the result of an intention to discriminate.

This provision is particularly relevant to internal staffing systems. It in essence allows the employer to take into account se niority (experience) and merit (e.g., KSAOs, promotion potential assessments) when making internal staffing decisions.

Employment Advertising Discrimination in employment advertising is prohibited. Specifically, the employer may not indicate “any preference, limitation, specification, or discrimination based on race, color, religion, sex, or national origin.” An exception to this is if sex, reli- gion, or national origin is a BFOQ.

Pregnancy An employer cannot refuse to hire a pregnant woman because of her pregnancy, because of a pregnancy- related condition, or because of the prejudices of cowork- ers, clients, or customers. There are also many provisions regarding pregnancy and maternity leave.

099-67811_ch02_4P.indd 71 10/27/17 9:13 AM

72 PART TWO Support Activities

Preferential Treatment and Quotas The law does not require preferential treatment or quotas. Thus, the employer is not required to have a balanced workforce, meaning one whose demographic com- position matches or mirrors the demographic makeup of the surrounding popula- tion from which the employer draws its employees.

Note that the law does not prohibit preferential treatment, AA, and quotas. It merely says they are not required. Thus, they may be used in certain instances, such as a voluntary AAP or a court- imposed remedy.

Age Discrimination in Employment Act (1967)

Prohibited Age Discrimination The law explic itly and inclusively prohibits discrimination against those aged 40 and older. It is unlawful for an employer

1. “to fail or refuse to hire or to discharge any individual or other wise discrimi- nate against any individual with re spect to his compensation, terms, condi- tions or privileges of employment, because of such individual’s age”; and

2. “to limit, segregate, or classify his employees in any way which would deprive or tend to deprive any individual of employment opportunities or other wise adversely affect his status as an employee, because of such individual’s age.”

These provisions are interpreted to mean that it is not unlawful to favor an older worker over a younger worker, even if both workers are aged 40 or older.

Bona Fide Occupational Qualification Like the Civil Rights Act, the ADEA contains a BFOQ provision. Thus, it is not unlawful for an employer to differentiate among applicants or employees on the basis of their age “where age is a bona fide occupational qualification reasonably necessary to the normal operation of the par tic u lar business.”

Reasonable Factors Other Than Age The employer may use reasonable factors other than age (RFOA) in making employ- ment decisions. Specific interpretation of this provision is given by the EEOC. In the case of disparate impact (but not disparate treatment) claims, the employer can seek to justify the adverse impact occurrence as being based on an RFOA (as opposed to business necessity). An employment practice is based on an RFOA if it is reason- ably designed and administered to achieve a legitimate business purpose in light of circumstances. Reasonableness depends on the extent to which (1) a mea sured factor (e.g., job skill) is related to the employer’s business purpose, (2) the factor has been accurately and fairly identified and applied, (3) man ag ers and supervisors were given guidance or training about how to use the factor and avoid discrimination, (4) limits were placed on supervisors’ discretion to assess employees subjectively,

099-67811_ch02_4P.indd 72 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 73

(5) adverse impact against older workers was assessed, including the degree of harm to older workers, and (6) steps were taken to reduce the harm.

Se niority Systems The law permits the use of se niority systems (merit systems are not mentioned). Thus, the employer is permitted “to observe the terms of a bona fide se niority sys- tem that is not intended to evade the purposes” of the act.

Employment Advertising Employment advertising may not contain terms that limit or deter the employment of older individuals. It is permissible, however, to use terms or phrases that express a preference for older workers, such as “over age 60,” “retirees,” or “supplement your pension.”

Americans With Disabilities Act (1990, 2008)

The ADA’s basic purpose is to prohibit discrimination against individuals with dis- abilities who are qualified for the job, and to require the employer to make reason- able accommodation for such individuals unless that would cause undue hardship for the employer.

Prohibited Discrimination The law contains a broad prohibition against disability discrimination. It specifi- cally says that an employer may not “discriminate against an individual on the basis of disability in regard to job application procedures, the hiring, advancement, or discharge of employees, employee compensation, job training, and other terms, conditions, and privileges of employment.” Also prohibited is discrimination based on an applicant’s or employee’s association with a person with a disability.

The law does not apply to all people with disabilities, only those with disabilities who are qualified for the job. To determine whether a person is covered under the ADA, it must be determined whether the person has a disability and is qualified for the job.

Definition of a Disability The EEOC provides considerable regulation and guidance on the complex issue of what is a disability. The definition is interpreted in favor of broad coverage of individuals. There are three prongs to the definition:

1. A physical or mental impairment that substantially limits one or more major life activities (an “ actual disability”)

2. A rec ord of physical or mental impairment that substantially limited a major life activity (a “rec ord of”)

099-67811_ch02_4P.indd 73 10/27/17 9:13 AM

74 PART TWO Support Activities

3. When an employer takes an action prohibited by the ADA because of an actual or perceived impairment that is not both transitory and minor (“regarded as”)

Each of these three prongs is explained next.

Actual Disability. An impairment is a physical or mental disorder, illness, or condition. A physical impairment is any physiological disorder or condition, cos- metic disfigurement, or anatomical loss affecting one or more body systems such as neurological, musculoskeletal, special sense organs, respiratory (including speech organs), cardiovascular, reproductive, digestive, genitourinary, immune, circula- tory, hemic, lymphatic, skin, and endocrine. Also included (with special guidance) are cancer, diabetes, epilepsy, and intellectual disabilities. A mental or psychologi- cal disorder includes intellectual disability, organic brain syndrome, emotional or mental illness, and specific learning disabilities.

An impairment that is episodic or in remission is a disability if it substantially limits a major life activity when active (e.g., major depression, epilepsy). The use of mitigating mea sures (with the exception of eyeglasses and contact lenses) that eliminate or reduce the symptoms or impact of a disability must be ignored when determining whether there is an impairment that substantially limits a major life activity. The long list of mitigating mea sures includes medi cations, assistive devices, and vari ous types of therapy. In terms of addiction as an impairment, current users of illegal drugs are not covered by the law; recovering drug users and both current and recovering alcoholics are covered.

Major life activities include caring for oneself, performing manual tasks, see- ing, hearing, eating, sleeping, walking, standing, sitting, reaching, lifting, bending, speaking, breathing, learning, reading, concentrating, thinking, communicating, interacting with others, and working. Also included are major bodily functions (e.g., digestive, neurological), including the operation of an individual organ within a body system.

To determine whether an impairment substantially limits a major life activity, the person must be (or have been) substantially limited in performing a major life activity compared with most people in the general population. Temporary, non- chronic impairments of short duration with little or no residual effects usually are not considered disabilities (e.g., common cold, sprained joint, broken bone, and seasonal allergies). An impairment need not prevent or severely or significantly limit a major life activity to be considered substantially limiting.

Fi nally, in assessing whether a person has a disability, two guidelines should be followed. First, there should be an individualized assessment of the impairment. Second, the determination of a disability should not require extensive analy sis.

Rec ord of a Disability. A person who does not currently have a substantially limiting impairment but had one in the past has a rec ord of disability. Additionally,

099-67811_ch02_4P.indd 74 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 75

a person who was misclassified as having a substantially limiting impairment has a rec ord of disability.

Regarded as Disabled. A person is regarded as having a disability if the employer takes a prohibited action under the ADA (e.g., failure to hire or promote) based on an impairment the employer thinks the person has, unless the impairment is tempo- rary (e.g., less than six months) and minor.

Qualified Individual A person is qualified for the job if he or she can meet the job’s general requirements (e.g., skills, education, experience, licenses, and certification) and perform the job’s essential functions (duties) with or without reasonable accommodation. Among qualified individuals, the employer can hire the most qualified person for the job.

Essential Job Functions The law provides little guidance as to what are essential job functions. It would seem that they are the major, nontrivial tasks required of an employee. The employer has great discretion in such a determination. Specifically, “consideration shall be given to the employer’s judgment as to what functions of a job are essential, and if an employer has prepared a written description before advertising or interviewing applicants for the job, this description shall be considered evidence of the essential functions of the job.” Subsequent regulations amplify what are essential job func- tions; these are explored in Chapter 4.

Reasonable Accommodation and Undue Hardship Unless it would pose an “undue hardship” on the employer, the employer must make “reasonable accommodation” for the “known physical or mental impair- ments of an other wise qualified, disabled job applicant or employee.” To qualify for reasonable accommodation, the person must be covered under the first ( actual dis- ability) or second (rec ord of disability) prong of the disability definition. The law provides actual examples of reasonable accommodation. They include changes in facilities (e.g., installing wheelchair ramps), job restructuring, telework, changes in work schedules, employee reassignment to a vacant position, purchase of adap- tive devices, provision of qualified readers and interpreters, and adjustments in testing and training material. For mental impairment and psychiatric disabilities, EEOC guidance indicates several types of reasonable accommodations: leaves of absence and other work schedule changes, physical changes in the workplace, modifications to com pany policy, adjustment of supervisory methods, medi cation monitoring, and reassignment to a vacant position. In general, only accommoda- tions that would be difficult to make or that would require significant expense are considered to create an undue hardship.

099-67811_ch02_4P.indd 75 10/27/17 9:13 AM

76 PART TWO Support Activities

A suggested four- step problem- solving approach for handling a reasonable accommodation request from an applicant or employee is as follows.18 First, con- duct a job analy sis to determine the job’s essential functions. Second, identify per- for mance barriers that would hinder the person from doing the job. Third, work with the person to identify potential accommodations. Fourth, assess each accom- modation and choose the most reasonable one that would not be an undue hardship.

Se lection of Employees The law deals directly with discrimination in the se lection of employees. Prohib- ited discrimination includes

1. “using qualification standards, employment tests or other se lection criteria that screen out or tend to screen out an individual with a disability or a class of individuals with disabilities unless the standard, test, or other se lection cri- teria, as used by the covered entity, is shown to be job related for the position in question and is consistent with business necessity”; and

2. “failing to select and administer tests concerning employment in the most effective manner to ensure that, when such a test is administered to a job applicant or employee who has a disability that impairs sensory, manual, or speaking skills, such results accurately reflect the skills, aptitude or what ever other factor of such applicant or employee that such test purports to mea sure, rather than reflecting the impaired sensory, manual, or speaking skills of such employee or applicant (except where such skills are the factors that the test purports to mea sure).”

These provisions seem to make two basic requirements of staffing systems. First, if se lection procedures cause disparate impact against people with disabili- ties, the employer must show that the procedures are job related and consistent with business necessity. The requirement is similar to that for se lection procedures under the Civil Rights Act. Second, the employer must ensure that employment tests are accurate indicators of the KSAOs they attempt to mea sure.

Medical Exams for Job Applicants and Employees Prior to making a job offer, the employer may not conduct medical exams of job applicants, inquire whether or how severely a person is disabled, or inquire whether the applicant has received treatment for a mental or emotional condition. Specific inquiries about a person’s ability to perform essential job functions, however, are permitted.

After a job offer has been made, the employer may require the applicant to take a medical exam, including a psychiatric exam. The job offer may be contingent on the applicant successfully passing the exam. Care should be taken to ensure that all applicants are required to take and pass the same exam. Medical rec ords should be confidential and maintained in a separate file.

099-67811_ch02_4P.indd 76 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 77

For employees, medical exams must be job related and consistent with business necessity. Exam results are confidential.

Direct Threat The employer may refuse to hire an individual who poses a direct threat to himself or herself or to the health and safety of others.

Affirmative Action There are no affirmative action requirements for employers.

Veterans A veteran with a service- connected disability is covered by the ADA if the person meets the ADA definition of a disability and is qualified for the job. Vets with dis- abilities may also be covered under other laws and regulations that go beyond ADA requirements, such as asking an applicant to self- identify as a disabled veteran, and undertaking affirmative action on behalf of disabled veterans.

Ge ne tic Information Nondiscrimination Act (2008)

The Ge ne tic Information Nondiscrimination Act (GINA) prohibits the use of ge ne- tic information in employment, as well as its acquisition; confidentiality of ge ne tic information is required.

Ge ne tic Information Ge ne tic information includes an individual’s ge ne tic tests, ge ne tic tests of family members, and the manifestation of a disease or disorder in family members (i.e., the family’s medical history). Age and sex are not included as ge ne tic information.

Prohibited Practices It is an unlawful employment practice for the employer to fail or refuse to hire; discharge; discriminate regarding terms and conditions of employment; and limit, segregate, or classify employees because of ge ne tic information. There are no excep- tions to this ban on usage.

It is also an unlawful employment practice to acquire (require, request, or pur- chase) ge ne tic information about the employee or the employee’s family members. There are several specific exceptions to this.

Confidentiality of Information Any ge ne tic information is to be maintained in a separate file, but it is okay to use this same file for ADA purposes. There are strict limits on the disclosure of ge ne tic information.

099-67811_ch02_4P.indd 77 10/27/17 9:13 AM

78 PART TWO Support Activities

Rehabilitation Act (1973)

Section 503 of the Rehabilitation Act applies to federal employees, contractors, and subcontractors, and most of them are also covered by the ADA. The Rehabilitation Act has many similarities to the ADA, including that the 2008 ADA amendments apply to the Rehabilitation Act. Hence, the Rehabilitation Act provisions are only briefly mentioned. The Rehabilitation Act of 1973 prohibits disability discrimina- tion for federal entities and for entities that contract with or receive funding from federal entities. Section 503 requires affirmative action in HR se lection, place- ment, and promotion pro cesses for those with disabilities and sets a 7% utilization goal in each job category.

Prohibited Discrimination It is illegal to discriminate against a qualified individual with a disability. The defi- nition of disability under the ADA applies here. Reasonable accommodation for a qualified individual with a disability must also be made.

Affirmative Action Employers are required to develop and implement written AAPs for employing and promoting qualified individuals with disabilities. The OFCCP monitors the plans and conducts employer compliance reviews.

Executive Order 11246 (1965, 1967, 2014)

Prohibited Discrimination The federal contractor is prohibited from discriminating on the basis of race, color, religion, sex, national origin, gender identity, sexual orientation, and transgender status. (A similar prohibition against age discrimination by federal contractors is contained in Executive Order 11141.)

Affirmative Action The order plainly requires affirmative action. It says specifically that “the contractor will take affirmative action to ensure that applicants are employed, and that employ- ees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such actions shall include, but not be limited to, the fol- lowing: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and se lection for training, including apprenticeship.” (Executive Order 11141 does not require affirmative action.) Regulations for these affirmative action requirements are discussed in Chapter 3.

099-67811_ch02_4P.indd 78 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 79

OTHER STAFFING LAWS

In addition to the EEO/AA laws, a variety of other laws and regulations affect staffing. At the federal level are the Immigration Reform and Control Act (IRCA), the Employee Polygraph Protection Act, and the Fair Credit Reporting Act. At the state and local levels are a wide array of laws pertaining to EEO, as well as a host of other areas. Fi nally, there are civil ser vice laws and regulations that pertain to staffing practices for federal, state, and local government employers.

Federal Laws

Immigration Reform and Control Act (1986) The purpose of the IRCA and its amendments is to prohibit the employment of unauthorized aliens and to provide civil and criminal penalties for violations of this law. The law covers all employers regardless of size.

Prohibited Practices. The law prohibits the initial or continuing employment of unauthorized aliens. Specifically,

1. “it is unlawful for a person or other entity to have, or to recruit or refer for a fee, for employment in the United States an alien knowing the alien is an unauthorized alien with re spect to such employment”; and

2. “it is unlawful for a person or other entity, after hiring an alien for employment . . . to continue to employ the alien in the United States know- ing the alien is (or has become) an unauthorized alien with re spect to such employment.” (This does not apply to the continuing employment of aliens hired before November 6, 1986.)

The law also prohibits employment discrimination on the basis of national ori- gin or citizenship status. The purpose of this provision is to discourage employers from attempting to comply with the prohibition against hiring unauthorized aliens by simply refusing to hire applicants who are foreign- looking in appearance or have foreign- sounding accents.

Employment Eligibility Verification System. The employer must verify that the individual is not an unauthorized alien and is legally eligible for employment by obtaining proof of identity and eligibility for work. The employer uses the I-9 form to gather documents from the new employee that establish proof of both identity and eligibility (authorization) for work. Documents that establish proof are shown on the back of the I-9 form. Documents should not be obtained until the person is actually hired, and they must be acquired within three business days of the date of employment. To verify eligibility information, federal contractors and

099-67811_ch02_4P.indd 79 10/27/17 9:13 AM

80 PART TWO Support Activities

subcontractors must use E- Verify, which conducts electronic verification checks against federal databases. Other employers may voluntarily participate in E- Verify. There are detailed record- keeping requirements. More information on verification is in the “ Legal Issues” section of Chapter 12.

Temporary Visas. The employer may apply for temporary visas for up to six years for foreign workers under two major visa categories ( there are other, minor categories that are not covered here). The first category is H-1B visa. An H-1B nonimmigrant must have a bachelor’s degree (or equivalent) or higher in a specific specialty. These workers are typically employed in occupations such as architect, engineer, computer programmer, accountant, doctor, or professor. The employer must pay the person the prevailing wage for employees working in a similar posi- tion for the employer and attest that the employee will not displace any other US employee. Congress sets an annual cap of 65,000 for the number of visas issued. H-1B nonimmigrants employed by universities and nonprofit (including govern- ment) organ izations are exempt from the annual cap. There is also an exception (with a 20,000 annual cap) for workers with a master’s degree or higher from a US university. H-1B visa holders may change jobs as soon as their employer files an approval petition, and they are not restricted to their current geographic area. Most spouses of H-1B employees are allowed to file separately for work authorization.

The H-2B visa category applies to nonagricultural temporary workers. It is for employers with peak load, seasonal, or intermittent needs to augment their regu- lar workforce. Examples of such employers are construction, health care, resort/ hospitality ser vices, lumber, and manufacturing. There is an annual cap of 66,000 workers.

Enforcement. The law is enforced by the US Citizenship and Immigration Ser- vices within the Department of Homeland Security. Noncompliance may result in fines of up to $10,000 for each unauthorized alien employed, as well as imprison- ment for up to six months for a pattern or practice of violations. Federal contractors may be barred from federal contracts for one year.

Employee Polygraph Protection Act (1988) The purpose of the Employee Polygraph Protection Act is to prevent most private employers from using the polygraph or lie detector on job applicants or employees. The law does not apply to other types of “honesty tests,” such as paper- and- pencil ones.

Prohibited Practices. The law prohibits most private employers (public employ- ers are exempted) from (1) requiring applicants or employees to take a polygraph test, (2) using the results of a polygraph test for employment decisions, and (3) dis- charging or disciplining individuals for refusing to take a polygraph test.

099-67811_ch02_4P.indd 80 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 81

The polygraph may be used in three explicit instances. First, employers that manufacture, distribute, or dispense controlled substances, such as drugs, may use the polygraph. Second, private security firms that provide ser vices to businesses affect- ing public safety or security, such as nuclear power plants or armored vehicles, may use the polygraph. Third, an employer that experiences economic loss due to theft, embezzlement, or sabotage may use the polygraph in an investigation of the loss.

Enforcement. The law is enforced by the DOL. Noncompliance may result in fines of up to $10,000 per individual violation. Also, individuals may sue the employer, seeking employment, reinstatement, promotion, and back pay.

Fair Credit Reporting Act (1970) The Fair Credit Reporting Act, as amended, regulates the organ ization’s acquisi- tion and use of consumer reports on job applicants. A consumer report is virtually any information on an applicant that is compiled from a database by a consumer reporting agency and provided to the organ ization. The information may include not only credit characteristics but also employment history, income, driving rec- ord, arrests and convictions, and lifestyle; medical information may not be sought or provided without prior approval of the applicant. Specific requirements for gath- ering and using the information are provided in Chapter 8.

A second type of consumer report is investigative. It is prepared from personal interviews with other individuals, rather than a search through a database. There are separate compliance steps for this type of report.

Enforcement. The law is enforced by the Consumer Financial Protection Bureau. Penalties for willful or negligent noncompliance go up to $1,000.

Uniformed Ser vices Employment and Reemployment Rights Act (1994) The purpose of the Uniformed Ser vices Employment and Reemployment Rights Act (USERRA) is to prohibit discrimination against members of the uniformed ser vices and to extend reinstatement, benefit, and job security rights to returning ser vice members.

Coverage. Both private and public employers, regardless of size, are covered. All people who perform or have performed ser vice in the uniformed ser vices have USERRA rights, but only a person who was employed, is an applicant, or is cur- rently employed can invoke these rights.

Requirements. Employers may not take negative job actions (e.g., firing, demot- ing, transferring, or refusing to hire) against members (and applicants for member- ship) of the uniformed ser vices. The employer must reinstate (within two weeks of application for reinstatement) employees who have taken up to five total years

099-67811_ch02_4P.indd 81 10/27/17 9:13 AM

82 PART TWO Support Activities

of leave from their position in order to serve. These employees are entitled to be returned to the position they would have held if they had been continuously employed (this is called an “escalator” position). If the employee is not qualified for the escalator position, the employer must make a reasonable effort to help the employee qualify. Those employees are also entitled to promotions, raises, and other seniority- based benefits they would have received. There are many exceptions to both the five- year ser vice limit and the reinstatement rights. Certain benefits must be made available to those who take leave for ser vice, and benefits must be restored to those who return. An employee may not be fired, except for cause, for up to one year after returning from ser vice.

Enforcement. The law is enforced by the Veterans Employment and Training Ser- vice (VETS) within the DOL. There are also regulations for employer compliance.

State and Local Laws

The emphasis in this book is on federal laws and regulations. It should be remem- bered, however, that an organ ization is subject to laws at the state and local levels as well. This greatly increases the array of applicable laws to which the organ- ization must attend.

EEO/AA Laws EEO/AA laws are often patterned after federal law. Their basic provisions, how- ever, vary substantially from state to state. Compliance with federal EEO/AA law does not ensure compliance with state and local EEO/AA laws, and vice versa. Thus, it is the responsibility of the organ ization to be explic itly knowledgeable of the laws and regulations that apply to it.

Of special note is that state and local EEO/AA laws and regulations often pro- vide protections beyond those contained in the federal laws and regulations. State laws, for example, may apply to employers with fewer than 15 employees, which is the cutoff for coverage under the Civil Rights Act. State laws may also prohibit cer- tain kinds of discrimination not prohibited under federal law, for example, sexual orientation, gender identity or expression, breastfeeding, and religious dress and grooming practices. For example, nearly half of all states, and many metropolitan areas where there is no state law, have prohibitions on employment discrimination on the basis of sexual orientation. The law for the District of Columbia prohib- its 13 kinds of discrimination, including sexual orientation, physical appearance, matriculation, and po liti cal affiliation. Fi nally, state law may deviate from federal law with regard to enforcement mechanisms and penalties for noncompliance.

Other State Laws Earlier, reference was made to employment- at- will and workplace torts as matters of common law, which, in turn, are governed at the state law level. Statutory state

099-67811_ch02_4P.indd 82 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 83

laws applicable to staffing, in addition to EEO/AA laws, are also plentiful. Exam- ples of areas covered in addition to EEO/AA include criminal rec ord inquiries by the employer, polygraph and “honesty testing,” drug testing, AIDS testing, and employee access to personnel rec ords, unemployed applicants, and social media privacy.

Civil Ser vice Laws and Regulations

Federal, state, and local government employers are governed by special statu- tory laws and regulations collectively referred to as civil ser vice. Civil ser vice is guided by so- called merit princi ples that serve as the guide to staffing practices. The princi ples serve to prevent cronyism (po liti cal patronage) in hiring.

Merit Princi ples and Staffing Practices The essence of merit princi ples relevant to staffing is fourfold:

1. To recruit, select, and promote employees on the basis of their KSAOs 2. To provide for fair treatment of applicants and employees without regard to

po liti cal affiliation, race, color, national origin, sex, religion, age, handicap, and other characteristics

3. To protect the privacy and constitutional rights of applicants and employees as citizens

4. To protect employees against coercion for partisan po liti cal purposes

Merit princi ples are codified in civil ser vice laws and regulations.

Comparisons With Private Sector Merit princi ples and civil ser vice laws and regulations combine to shape the nature of staffing practices in the public sector. This leads to some notable differences between the public and private sectors. Examples of public sector staffing practices are the following:

1. Open announcement of all vacancies, along with the content of the se lection pro cess that will be followed

2. Very large numbers of applicants due to applications being open to all persons 3. Legal mandate to test applicants only for KSAOs that are directly job related 4. Limits on discretion in the final hiring pro cess, such as number of finalists,

ordering of finalists, and affirmative action considerations 5. Rights of applicants to appeal the hiring decision, testing pro cess, or actual

test content and method

These examples are unlikely to be encountered in the private sector. Moreover, they are only illustrative of the many differences in staffing practices and context between the private and public sectors.

099-67811_ch02_4P.indd 83 10/27/17 9:13 AM

84 PART TWO Support Activities

Chapter Title and Number Topic

Planning (3) Affirmative action plans and diversity programs Legality

A�rmative action plans for veterans and individuals with disabilities EEO and temporary workers

of affirmative action plans and diversity programs

Job Analysis and Rewards (4) Job relatedness and court cases Essential job functions

External Recruitment (5) Definition of a job applicant A�rmative action programs Electronic recruitment Job advertisements Fraud and misrepresentation

Internal Recruitment (6) Affirmative Action Programs Regulations Bona fide seniority systems The glass ceiling

Measurement Determining adverse impact(7) Standardization

External Selection I (8) Disclaimers Reference checks Background checks Preemployment inquiries Bona fide occupational qualifications

External Selection II (9) Uniform Guidelines on Employee Selection Procedures (UGESP)

Selection under the ADA Marijuana and other drug testing

Internal Selection (10) UGESP The glass ceiling

Decision Making (11) UGESP Diversity and hiring decisions

Final Match (12) Employment eligibility verification Negligent hiring Employment-at-will

Staffing System Management (13) Record keeping and privacy

Legal audits EEO report

Training for managers and employees Dispute resolution

Retention Management (14) Separation laws and regulations Performance appraisal

EXHIBIT 2.9 Legal Issues Covered in Other Chapters

099-67811_ch02_4P.indd 84 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 85

LEGAL ISSUES IN REMAINDER OF BOOK

The laws and regulations applicable to staffing practices by organ izations are mul- tiple in number and complexity. This chapter emphasized an understanding of the need for law, the sources of law, and general provisions of the law and presented in detail the specific provisions that pertain to staffing activities. Little has been said about practical implications and applications.

In the remaining chapters of the book, the focus shifts to the practical, with guid- ance and suggestions on how to align staffing practices with legal requirements. The “ Legal Issues” sections in the remaining chapters discuss major issues from a com- pliance perspective. The issues so addressed, and the chapter in which they occur, are shown in Exhibit 2.9. Inspection of the exhibit should reinforce the importance accorded laws and regulations as an external influence on staffing activities.

It should be emphasized that there is a selective pre sen ta tion of the issues in Exhibit 2.9. Only certain issues have been chosen for inclusion, and only a sum- mary of their compliance implications is presented. It should also be emphasized that the discussion of these issues does not constitute professional legal advice.

SUMMARY

Staffing involves the formation of the employment relationship. That relationship involves the employer acquiring individuals to perform work for it as employees, in de pen dent contractors, temporary employees, and unpaid interns and trainees. The specific legal meanings and obligations associated with these vari ous arrange- ments were provided.

Myriad laws and regulations have come forth from several sources to place con- straints on the contractual relationship between employer and employee. These constraints seek to ensure a balance of power in the relationship, as well as provide protections to both the employee and the employer.

Statutory federal laws pertaining to EEO/AA prohibit discrimination on the basis of race, color, religion, sex, national origin, pregnancy, age, ge ne tic informa- tion, and disability. This prohibition applies to staffing practices intentionally used to discriminate (disparate treatment), as well as to staffing practices that have a discriminatory effect (disparate or adverse impact). The EEO/AA laws also con- tain specific provisions pertaining to staffing, which specify both prohibited and permissible practices. In both instances, the emphasis is on use of staffing practices that are job related and focus on the person/job match.

Other laws and regulations also affect staffing practices. At the federal level, there is a prohibition on the employment of unauthorized aliens and on the use of the poly- graph (lie detector), constraints on the use of credit reports on job applicants, and specification of the employment rights of those in the uniformed ser vices. State and

099-67811_ch02_4P.indd 85 10/27/17 9:13 AM

86 PART TWO Support Activities

local EEO/AA laws supplement those found at the federal level. Many other staffing practices are also addressed by state and local laws. Fi nally, civil ser vice laws and regulations govern staffing practices in the public sector. Their provisions create dif- ferences in certain staffing practices between public and private employers.

Legal issues will continue to be addressed throughout the remainder of this book. The emphasis will be on explanation and application of the laws’ provisions to staffing practices. The issues will be discussed at the end of each chapter, begin- ning with the next one.

DISCUSSION QUESTIONS

1. Do you agree that the employer usually has the upper hand when it comes to establishing the employment relationship? When might the employee have maximum power over the employer?

2. What are the limitations of disparate impact statistics as indicators of poten- tial staffing discrimination?

3. Why is each of the four situational factors necessary for establishing a claim of disparate treatment?

4. What factors would lead an organ ization to enter into a consent agreement rather than continue pursuing a suit in court?

5. What are the differences between staffing in the private sector and staffing in the public sector? Why would private employers prob ably resist adopting many of the characteristics of public staffing systems?

ETHICAL ISSUES

1. Assume that you’re the staffing man ag er in an organ ization that informally, but strongly, discourages you and other man ag ers from hiring people with disabilities. The organ ization’s rationale is that people with disabilities are unlikely to be high performers or long- term employees and are costly to train, insure, and integrate into the work unit. What is your ethical assess- ment of the organ ization’s stance? Do you have any ethical obligations to try to change the stance, and if so, how might you go about that?

2. Assume the organ ization you work for strictly adheres to the law in its rela- tionships with employees and job applicants. The organ ization calls it “staff- ing by the book.” But beyond that it seems anything goes in terms of tolerated staffing practices. What is your assessment of this approach?

099-67811_ch02_4P.indd 86 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 87

APPLICATIONS

Age Discrimination in a Promotion?

Best Protection Insurance Com pany (BPIC) handles a massive volume of claims each year in the corporate claims function, as well as in its four regional claims centers. The corporate claims function is headed by the se nior vice president of corporate claims (SVPCC); reporting to the SVPCC are two man ag ers of cor- porate claims (MCC- Life and MCC- Residential) and a highly skilled corporate claims specialist (CCS). Each regional office is headed by a regional center man- ag er (RCM); the RCM is responsible for both supervisors and claims specialists within the regional office. The RCMs report to the vice president of regional claims (VPRC). The organ ization is structured as follows:

SVPCC

VPRC

MCC-L MCC-R CCS

RCM RCM RCM RCM

BPIC deci ded to reor ga nize its claims function by eliminating the four regional offices (and the RCM position) and establishing numerous small field offices throughout the country. The other part of the reor ga ni za tion involved creating five new CCS positions. The CCS job itself was to be redesigned and upgraded in terms of knowledge and skill requirements. These new CCS positions would be staffed through internal promotions from within the claims function.

The SVPCC asked Gus Tavus, a 52- year- old RCM, to apply for one of the new CCS positions since his job was being eliminated. The other RCMs, all of whom were over 40 years of age, were also asked to apply. Neither Gus nor the other RCMs were promoted to the CCS positions. Other candidates, some of whom were also over age 40, were also bypassed. The promotions went to five claims specialists and supervisors from within the former regional offices, all of whom were under age 40. Two of these newly promoted employees had worked for, and reported to, Gus as RCM.

099-67811_ch02_4P.indd 87 10/27/17 9:13 AM

88 PART TWO Support Activities

Upon learning of his failure to be promoted, Gus sought to find out why. What he learned led him to believe that he had been discriminated against because of his age. He then retained legal counsel, attorney Bruce Davis. Bruce met informally with the SVPCC to try to determine what had happened in the promotion pro cess and why his client had not been promoted. He was told that there were numer- ous candidates who were better qualified than Gus and that Gus lacked adequate technical and communication skills for the new job of CCS. The SVPCC refused to reconsider Gus for the job and said that all decisions were etched in stone. Gus and Bruce then filed suit in federal district court, claiming a violation of the Age Discrimination in Employment Act. They also subpoenaed numerous BPIC docu- ments, including the personnel files of all applicants for the CCS positions.

After reviewing the documents and discussing things with Gus, Bruce learned more about the promotion pro cess actually used by BPIC. The SVPCC and the two MCCs conducted the entire pro cess; they received no input from the VPRC or the HR department. There was no formal, written job description for the new CCS position, nor was there a formal internal job posting as required by com pany policy. The SVPCC and the MCCs developed a list of employees they thought might be interested in the job, including Gus, and then met to consider the list of candidates. At that meeting, the personnel files and previous per for mance apprais- als of the candidates were not consulted. After deciding on the five candidates who would be offered the promotion (all five accepted), the SVPCC and MCCs scanned the personnel files and appraisals of these five (only) to check for any disconfirm- ing information. None was found. Bruce’s inspection of the files revealed no writ- ten comments suggesting age bias in past per for mance appraisals for any of the candidates, including Gus. Also, there was no indication that Gus lacked technical and communication skills. All of Gus’s previous appraisal ratings were above aver- age, and there was no evidence of decline in the favorability of the ratings. Fi nally, an interview with the VPRC (Gus’s boss) revealed that he had not been consulted at all during the promotion pro cess, that he was “shocked beyond belief ” that Gus had not been promoted, and that there was “no question” but that Gus was qualified in all re spects for the CCS job.

1. Prepare a written report that pres ents a convincing disparate treatment claim that Gus had been intentionally discriminated against on the basis of his age. Do not address the claim as one of disparate impact.

2. Pres ent a convincing rebuttal, from the viewpoint of BPIC, to this disparate treatment claim.

Disparate Impact: What Do the Statistics Mean?

Claims of discrimination can be pursued under an allegation of disparate impact. According to this approach, the effect or impact of staffing practices can be dis- criminatory and thus in violation of the Civil Rights Act. Such an impact could occur even though there may be no under lying intention to discriminate against

099-67811_ch02_4P.indd 88 10/27/17 9:13 AM

CHAPTER TWO Legal Compliance 89

members of a protected group or class (e.g., women or minorities). Pursuit of a dispa- rate impact claim requires the use of vari ous statistics to show that, in effect, women or minorities are being treated differently than men or nonminorities under the law.

Exhibit 2.6 shows three types of disparate impact statistics: flow statistics, stock statistics, and concentration statistics. Also shown is a statistical example of dis- parate impact for each type. For each of these three types of statistics, prepare a report in which you discuss the following:

1. How can an organ ization collect and report these statistics in the form shown in Exhibit 2.6?

2. What standards or guidelines would you recommend for deciding whether statistical differences between men and women, or nonminorities and minori- ties, reflect discrimination occurring throughout an organ ization’s staffing system?

3. What types of staffing activities (recruitment, se lection, and employment) might be causing the statistical differences? For example, in Exhibit 2.6 the se lection rate is 50% for men and 11% for women. How would the organ- ization collect the data necessary to compute these se lection rates, how would you decide whether the difference in se lection rates (50% vs. 11%) is big enough to indicate pos si ble discrimination, and what sorts of practices might be causing the difference in se lection rates?

ENDNOTES

1. D. D. Bennett- Alexander and L. P. Hartman, Employment Law for Business, 8th ed. (New York: McGraw- Hill Education, 2015), pp. 2–31; D. J. Walsh, Employment Law for Human Resource Practice, 5th ed. (Boston: Cengage, 2016), pp. 35–65.

2. Walsh, Employment Law for Human Resource Practice, pp. 668–697. 3. J. Eidelson, “Designated Drivers,” Business Week, Oct. 20, 2014, pp.19–20; J Deschenaux, “Cali-

fornia FedEx Agrees to Settle Drivers’ Misclassification Claims for $228M,” June 18, 2015 (www . shrm . org / resourcesandtools / legal - and - compliance / state - and - local - updates / pages / calif - fedex - settlement . aspx); J. Cohen, “Misclassification Headaches,” HR Magazine, Dec. 2015/Jan. 2016, pp. 62–63.

4. Bennett- Alexander and Hartman, Employment Law for Business, pp. 12–16; US Department of Labor, “Administrator’s Interpretation No. 2015-1,” July 2015 (www . dol . gov / whd / workers / Misclassification / AI - 2015 _ 1 . htm); www . irs . gov / business / small - business - self - employed / independent - contractor - self - employed - or - employee, accessed Feb. 21, 2017.

5. Walsh, Employment Law for Human Resource Practice, pp. 35–54. 6. Walsh, Employment Law for Human Resource Practice, p. 43; A. A. Idalski, “Contracting Trou-

ble,” HR Magazine, Apr. 2015, pp. 68–69; Society for Human Resource Management, “Employ- ing In de pen dent Contractors” (www . shrm . org / resourcesandtools / tools - and - samples / toolkits / pages / employingindependentcontractors . aspx).

7. Walsh, Employment Law for Human Resource Practice, pp. 50–52.

099-67811_ch02_4P.indd 89 10/27/17 9:13 AM

90 PART TWO Support Activities

8. Equal Employment Opportunity Commission, EEOC Policy Guidance on Temporary Workers (Washington, DC: author, 1997); Equal Employment Opportunity Commission, Enforcement Guidance: Application of the ADA to Contingent Workers Placed by Temporary Agencies and Other Staffing Firms (Washington, DC: author, 2000); N. Greenwald, “Use of Temporary Workers Also Invites Exposure to Lawsuits,” Workforce Management Online, Mar. 2010 (www . workforce . com), accessed Mar. 25, 2010.

9. R. J. Bohner, Jr., and E. R. Salasko, “Beware the Legal Risks of Hiring Temps,” Workforce, Oct. 2003, pp. 50–57; Walsh, Employment Law for Human Resource Practice, pp. 40–46; L. E. O’Donnell, “Is Our Unpaid Intern Legit?” HR Magazine, Apr. 2013, pp. 77–79.

10. US Department of Labor, “Fact Sheet #71: Internship Programs Under the Fair Labor Standards Act,” Apr. 2010 (www . dol . gov / whd / regs / compliance / whdfs71 . htm).

11. Equal Employment Opportunity Commission, EEOC Enforcement Guidance on How to Count Employees When Determining Coverage Under Title VII, the ADA, and the ADEA (Washington, DC: author, 1997).

12. Equal Employment Opportunity Commission, EEOC Guidance on Investigating, Analyzing Retaliation Claims (www.eeoc.gov).

13. M. W. Bennett, D. J. Polden, and H. J. Rubin, Employment Relationships: Law and Practice (Frederick, MD: Aspen, 2004), pp. 4-75 to 4-82.

14. Bennett- Alexander and Hartman, Employment Law for Business, pp. 63–80, 114–122; Walsh, Employment Law for Human Resource Practice, pp. 67–106.

15. R. K. Robinson, G. M. Franklin, and R. F. Wayland, Employment Regulation in the Workplace (Armonk, NY: M. E. Sharpe, 2010), pp. 84–103.

16. K. Tyler, “Mediating a Better Outcome,” HR Magazine, Nov. 2007, pp. 63–66. 17. Walsh, Employment Law for Human Resource Practice, pp. 67–106. 18. J. R. Mook, “Accommodation Paradigm Shifts,” HR Magazine, Jan. 2007, pp. 115–120.

099-67811_ch02_4P.indd 90 10/27/17 9:13 AM

C H A P T E R T H R E E

Planning

Learning Objectives and Introduction Learning Objectives Introduction

Internal and External Influences Orga nizational Strategy Orga nizational Culture Labor Markets Technology

Human Resource Planning Pro cess and Example Initial Decisions Forecasting HR Requirements Forecasting HR Availabilities Reconciliation and Gaps

Staffing Planning Staffing Planning Pro cess Core Workforce Flexible Workforce Outsourcing

Diversity Planning Demography of the American Workforce Business Case for Diversity Planning for Diversity

Legal Issues Affirmative Action Plans Legality of AAPs and Diversity Programs AAPs for Veterans and Individuals With Disabilities EEO and Temporary Workers

099-67811_ch03_4P.indd 91 10/27/17 10:28 AM

Summary

Discussion Questions

Ethical Issues

Applications Markov Analy sis and Forecasting Deciding Whether to Use Flexible Staffing

Endnotes

099-67811_ch03_4P.indd 92 10/27/17 10:28 AM

CHAPTER THREE Planning 93

LEARNING OBJECTIVES AND INTRODUCTION

Learning Objectives

• Recognize internal and external influences that will shape the planning pro cess • Understand how strategic plans integrate with staffing plans • Become familiar with statistical and judgmental techniques for forecasting

HR requirements and availabilities • Know the similarities and differences between replacement and succession

planning • Understand the advantages and disadvantages of a core workforce, a flexible

workforce, and outsourcing strategies for dif fer ent groups of employees • Learn how to incorporate diversity into the planning pro cess • Recognize the fundamental components of an affirmative action plan

Introduction

Human resource (HR) planning is the pro cess of forecasting the organ ization’s future employment needs and then developing action plans and programs for ful­ filling these needs in ways that align with the staffing strategy. HR plans form the basis of all other activities conducted during staffing. An organ ization that thoroughly considers its staffing needs and how these needs fit with the external environment will find it much easier to recruit the right number and type of candi­ dates, develop methods for selecting the right candidates, and evaluate whether its programs are successful.

HR planning involves learning about the employment environment, determin­ ing how many employees an organ ization will need in the future, and assessing the availability of employees in both the internal and external markets. The HR planning pro cess involves several specific components that we cover in this chap­ ter, including making initial planning decisions, forecasting HR requirements and availabilities, determining employee shortages and surpluses, and developing action plans.

The chapter begins with an overview of internal and external influences on the HR planning pro cess, like orga nizational strategy and culture, labor markets, and technology. Next, we provide an overview of the pro cess of HR planning, includ­ ing a review of methods for forecasting HR requirements and availability. The staffing planning pro cess includes distinguishing between the core and flexible workforces, as well as understanding the environment for outsourcing. Diversity programs have become an increasingly impor tant part of the staffing planning pro­ cess, so they are also discussed. The major legal issue for HR staffing planning is that of affirmative action plans (AAPs). A dif fer ent legal issue, that of equal

099-67811_ch03_4P.indd 93 10/27/17 10:28 AM

94 PART TWO Support Activities

employment opportunity (EEO) coverage for temporary employees and their agen­ cies, is also discussed.

INTERNAL AND EXTERNAL INFLUENCES

Planning does not occur in a vacuum. All aspects of the planning pro cess must consider both internal and external influences. The two most impor tant internal influences on the planning pro cess are the organ ization’s strategy and the organ­ ization’s culture. The two major sources of external influence on HR and staffing planning are labor markets and technology. Exhibit 3.1 provides specific examples of these influences, which are discussed next.

Orga nizational Strategy

The first, and most impor tant, influence on the planning pro cess is the organ­ ization’s overall strategy. Staffing man ag ers must be intimately familiar with all aspects of the organ ization’s future plans and goals so they can respond by hiring the right number of people with the right KSAOs (knowledge, skill, ability, and other characteristics) in a timely manner. Some of the techniques we will review

ORGANIZATIONAL STRATEGY • Current financial and human resources in the organization • Demand for products and/or services • Competitors and partners • Financial and marketing goals

ORGANIZATIONAL CULTURE • The expressed vision of executives • The degree of hierarchy and bureaucracy • Style of communication

LABOR MARKETS • Labor demand: employment patterns, KSAOs sought • Labor supply: labor force, demographic trends, KSAOs available • Labor shortages and surpluses • Employment arrangements

TECHNOLOGY • Elimination of jobs • Creation of jobs • Changes in skill requirements

EXHIBIT 3.1 Examples of Internal and External Influences on Staffing

099-67811_ch03_4P.indd 94 10/27/17 10:28 AM

CHAPTER THREE Planning 95

for staffing planning are based on a view of the organ ization’s historical staffing levels. This is a good place to start, because previous practice is an impor tant guide for setting a baseline for future needs. However, all planning must be conducted with an eye to the future as well.

The Society for Human Resource Management (SHRM) proposes that strate­ gic planning involves a thorough knowledge of the organ ization’s current situa­ tion as well as a sense of the strategic vision of the organ ization.1 Breaking down the organ ization’s strengths, weaknesses, opportunities, and threats (SWOT) is a common method for understanding strategy. The internal assessment phase of the SWOT analy sis focuses on physical and financial resources, as well as struc­ ture and culture. The external assessment phase looks to learn about economic, demographic, and technological trends that will influence the organ ization in the future.

Effective staffing planning must begin with a dialogue between HR representa­ tives and orga nizational leaders. HR man ag ers should be aware of core aspects of the organ ization’s operations, including financial and marketing considerations. Additionally, it is impor tant to see how the organ ization sees itself changing in the future so that staffing strategies to meet these needs can be developed. Participat­ ing in activities like annual planning meetings and reviewing financial statements are essential. Strategic HR experts emphasize that this dialogue must be a two­ way communication. In many cases, the current workforce and its capabilities will influence overall orga nizational plans. HR man ag ers who are aware of internal human capital resources will be much more effective in an advisory capability when discussing future plans with the other executives.2

Orga nizational Culture

Orga nizational culture is a very complex topic, in part because culture is so dif­ ficult to define. In essence, culture is the set of intangibles that influences attitudes and be hav ior in organ izations. Some of the factors that can influence an organ­ ization’s culture include the expressed vision of executives, the degree of hierar­ chy and bureaucracy, the history of interactions among departments, and the style of communication throughout the organ ization. For example, an organ ization in which structure and predictability are emphasized will call for a very dif fer ent set of staffing practices relative to an organ ization in which flexibility and innovation are core values. The relationship between the organ ization and labor unions or other employee organ izations (such as professional organ izations like the Ameri­ can Medical Association or the state bar association) is also an extremely impor­ tant part of culture. To understand culture, HR man ag ers should spend time talking with se nior executives, administer and evaluate employee survey data, and conduct focus groups.

Just because culture is intangible does not mean it is not impor tant. Michael Davis, the chief human resources officer at General Mills, encourages HR

099-67811_ch03_4P.indd 95 10/27/17 10:28 AM

96 PART TWO Support Activities

man ag ers to build “an integrated set of programs and policies that reinforce and bring value to life.” He further notes that when the com pany’s espoused values are inconsistent with the practices that employees encounter on a day­ to­ day basis, prob lems with motivation, communication, and retention will follow.3 Matching culture to planning occurs in numerous ways. Deciding the types of attitudes and values that employees should have in order to achieve a person/or ga ni za tion fit is entirely dependent on culture. An organ ization with a participative culture should ensure that planning involves representatives from many dif fer ent perspectives. Decisions related to how succession planning should be managed are also influ­ enced by the degree to which the organ ization’s members value opportunities for growth and development relative to stability and predictability. These are just a few of the ways in which culture can impact the planning pro cess.

In conjunction with the staffing planning pro cess, the organ ization’s staffing philosophy should be reviewed. The results of this review help shape the direction and character of the specific staffing systems implemented. The review should focus on internal versus external staffing and diversity philosophy.

External and internal staffing is a critical matter because it directly shapes the nature of the staffing system, as well as sends signals to applicants and employees alike about the organ ization as an employer. Exhibit 3.2 highlights the advan­ tages and disadvantages of external and internal staffing. Clearly there are trade­ offs to consider in deciding the optimal internal­ external staffing mix. The point regarding time to reach full productivity warrants special comment. Any new hire, either internal or external, will require time to learn the new job and reach a full productivity level. In some ways, external hires may be able to reach job productivity faster. This is because external hires are usually selected because they have experience in a job similar to the one they will be taking, whereas internal hires are promoted into jobs they have not previously held. On the other hand, internal new hires have an advantage in terms of person/or ga ni za tion fit because they are already familiar with the relationships among orga nizational members as well as the culture, policies, and procedures of the organ ization. Internal hires may have also received special training and development to pre­ pare them for the new job.

In terms of diversity, the organ ization must be sure to consider or develop a sense of importance attached to being a diversity­ conscious employer and the commitment it is willing to make in incorporating ele ments of diversity into all phases of the staffing system. As we describe later in the chapter, an organ ization’s overall philosophy toward diversity will be shaped by the cul­ tural value the organ ization attaches to diversity as well as the business­ related consequences of diversity­ related practices. Many choices throughout the staff­ ing pro cess will follow from the organ ization’s attitudes toward diversity, for example, deciding where to recruit and what qualifications are most impor tant for new hires.

099-67811_ch03_4P.indd 96 10/27/17 10:28 AM

CHAPTER THREE Planning 97

Labor Markets

In and through labor markets, organ izations express specific labor preferences and requirements ( labor demand), and persons express their own job preferences and requirements ( labor supply). Ultimately, person/job matches occur from the interaction of demand and supply forces. Both labor demand and supply contain quantity and quality components, as described below. Labor shortages, labor sur­ pluses, and a variety of pos si ble employment arrangements are also discussed.

Internal

External

Advantages Disadvantages

Positive employee reactions to promotion from within

Quick method to identify job applicants

Less expensive

Less time required to reach full productivity

Brings in employees with new KSAOs

Larger number of minorities and women to draw from

Large labor market to draw from

Experienced employees may require less training time

No new KSAOs into the organization

May perpetuate current underrepresentation of minorities and women

Small labor market to recruit from

Inexperienced employees may require more training time

Negative reaction by internal applicants

Time-consuming to identify applicants

Expensive to search external labor market

More time required to reach full productivity

EXHIBIT 3.2 Staffing Philosophy: Internal Versus External Staffing

099-67811_ch03_4P.indd 97 10/27/17 10:28 AM

98 PART TWO Support Activities

Labor Demand: Employment Patterns Labor demand is a derived demand, meaning it is a result of consumer demands for the organ ization’s products and ser vices. Knowing the organ ization’s strategy and projections for future KSAO needs will guide the search for labor demand infor­ mation. In par tic u lar, the labor market for the occupations the organ ization needs to staff will be greatly affected by the product market. For example, in the field of software design, the increased use of tablet computers since 2010 has increased demand for programmers who have gained skills in designing applications for related operating systems.

To learn about labor demand, national employment statistics are collected and analyzed. They provide data about employment patterns and projections for indus­ tries, occupations, and organ ization size. Most organ izations will need to examine not just aggregated statistics, like the overall unemployment rate, but also occu­ pational and regional employment data. As an example, the US Bureau of Labor Statistics (BLS) in 2013 estimated that the unemployment rate for structural iron and steel workers was 21.9%, and the rate for telemarketers was 23.1%. At the other extreme, the unemployment rate for physician assistants was 1.2%, and the rate for petroleum engineers was 0.6%.4

Employment projections through 2024 indicate that job growth is expected to be especially strong for health care prac ti tion ers and health care support occupations, consistent with long­ range trends. Computer and mathematical occupations will see continued growth. Following declines in the period from 2004 to 2014, con­ struction employment is also expected to increase. Business and financial opera­ tions occupations are also expected to grow. Employment in occupations related to agriculture and production is expected to continue to decline.5

Labor Demand: KSAOs Sought KSAO requirements or preferences of employers are not widely mea sured, except for education requirements. Data collected by the BLS suggest a continued increase in demand for individuals with college degrees or higher. The number of jobs requiring a bachelor’s degree is expected to increase 17%, the number requiring a master’s degree is expected to increase 19%, and the number requiring a doctoral degree is expected to increase 22%. In contrast, the number of jobs requiring only short­ term on­ the­ job training is expected to increase by only 9%.6 The increasing demand for education most likely reflects advances in technology that have made many jobs more complex and technically demanding.7

Employers are also interested in a broader set of skills that are not provided through specific educational degree programs. Surveys of HR professionals and employers consistently reveal that communication skills, critical thinking skills, creativity, diversity management, ethics, and a lifelong learning orientation are especially relevant for today’s employees.8

099-67811_ch03_4P.indd 98 10/27/17 10:28 AM

CHAPTER THREE Planning 99

Labor Supply: The Labor Force and Its Trends The BLS in the US Department of Labor provides periodic reports of the quantity of labor supplied, along with projections for the near future. An example of data from one of these reports is given in Exhibit 3.3. It shows that there has been sig­ nificant growth in the working age population and labor force since the 1990s, but that the labor force participation rate has been declining. The data and projections also show a consistent upward trend in the median age of the labor force.

Data reveal several labor force trends that have par tic u lar relevance for staffing organ izations. Labor force growth is slowing, going from an annual growth rate of around 2% in the early 1990s to a projected rate of 1% by the year 2018. There are increasingly fewer new entrants to the labor force. This trend, coupled with the severe mismatch between orga nizational demand for KSAOs and workforce quali­ fications, creates major adaptation prob lems for organ izations.

Demographically, the labor force has become more diverse, and this trend will continue. A trend toward nearly equal labor force participation for men and women and large proportional growth in the repre sen ta tion of Hispanics and Asians has been found beginning in the 1990s and continuing through the pres ent day, and is projected to continue through 2024. There will also be a dramatic shift toward fewer younger workers and more workers over the age of 55. These age­ related changes are partially a reflection of labor force participation. These days, individu­ als in their late teens are much less likely to be working, whereas workers over 55 are much more likely to be working.

Today, other, subtler labor force trends are also permeating the world of work. Following an increase in the average number of hours worked by employees during

EXHIBIT 3.3 Labor Force Statistics

Source: K. J. Byun and B. Nicholson, “The U.S. Economy to 2024,” Monthly Labor Review, Dec. 2015 (http://www.bls.gov/opub/mlr/2015/article/the-us-economy-to-2024.html).

1994 2004 2014 2024

(projected)

Civilian noninstitutional population (in millions)

197 223 248 269

Civilian labor force (in millions) 131 147 156 164 Labor force participation rate (%) 66.6 66 62.9 60.9 Unemployment rate (%) 6.1 5.5 6.2 5.2 Median age of the labor force 37.7 40.3 41.9 42.4

099-67811_ch03_4P.indd 99 10/27/17 10:28 AM

100 PART TWO Support Activities

the 1990s, the average number of work hours moved back to more typical historical levels during the early 2000s. Relatedly, there was a similar increase during the 1990s in the number of individuals holding multiple jobs, followed by a decline in the early 2000s, with just 5.0% of employed people holding more than one job in more recent periods. The drop has been especially steep among “prime age” workers between 25 and 64 years old. The number of immigrants in the population is growing; nearly 1 in 10 people is foreign born, the highest rate in more than 50 years. People historically out of the labor force mainstream— such as those with disabilities and the growing number of retirees— are assuming a greater presence in the labor force.9

Labor Supply: KSAOs Available Surveys conducted by the Society for Human Resource Management in 2014 and 2015 found that employers see key shortages in technical skills, written communi­ cation, and basic computer skills. The job categories that have been the hardest to fill include engineers, highly skilled medical jobs, computer specialists, scientists, man ag ers, and technicians. Applied skills in professionalism, critical thinking, and leadership are all in high demand.10 There are also shortages of employees with the high skill levels required in con temporary manufacturing environments.11 Econo­ mists and sociologists are quick to note that these skill shortages are being reported despite consistent gains in standardized test scores and educational attainment in the labor force since the 1960s.12 Thus, it appears the prob lem is that demand for advanced skills is increasing, as we noted earlier, not that the supply of skilled workers is decreasing. This idea is reinforced by another survey of 726 HR profes­ sionals that found 98% of respondents reported that the competition for talented workers has increased in recent years.13

Labor Shortages and Surpluses When labor demand exceeds labor supply for a given pay rate, the labor market is said to be “tight” and the organ ization experiences labor shortages. Shortages tend to be job or occupation specific. Low unemployment rates, surges in labor demand in certain occupations, and skill deficiencies fuel labor quantity and labor quality shortages for many organ izations. The shortages cause numerous responses:

• Increased pay and benefit packages • Hiring bonuses and stock options • Alternative work arrangements to attract and retain older workers • Use of temporary employees • Recruitment of immigrants • Lower hiring standards • Partnerships with high schools, technical schools, and colleges

099-67811_ch03_4P.indd 100 10/27/17 10:28 AM

CHAPTER THREE Planning 101

• Increased mandatory overtime work • Increased hours of operation

These types of responses are lessened or reversed when the labor market is “loose,” meaning there are labor surpluses relative to labor demand.

Employment Arrangements Though labor market forces bring organ izations and job seekers together, the spe­ cific nature of the employment arrangement can assume many forms. One arrange­ ment is whether the person will be employed full time or part time. Data show that about 82% of people work full time and 18% work part time.14

A second arrangement involves the issue of flexible scheduling and shift work. The proportion of the workforce covered by flexible shifts has steadily grown from 12.4% in 1985 to 27.5% in 2004. Many of these workers are covered by formal flextime programs. Work hours are often put into shifts, and about 15% of full­ time employed adults work eve ning, night, or rotating shifts. Some of the seeming flexibility in work hours has meant that nearly 40% of managerial and professional workers are working from home, often during eve nings and weekends.15

Two other types of arrangements, often considered in combination, are (1) vari­ ous alternative arrangements to the traditional employer– employee relationship, and (2) the use of contingent employees. Alternative arrangements include the organ ization filling its staffing needs through the use of in de pen dent contractors, on­ call workers and day laborers, temporary help agency employees, and employ­ ees provided by a contract firm that provides a specific ser vice (e.g., accounting). 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.

National data on the use of alternative employment arrangements and contin­ gent employees were gathered by the BLS in 2005. It found that 89.1% of surveyed individuals worked in a traditional employer– employee arrangement, and that the vast majority of these individuals (95.9%) considered themselves noncontingent. The most prevalent alternative was to work as an in de pen dent contractor (7.4%), followed by on­ call employees and day laborers (1.8%), temporary help agency employees (.9%), and employees provided by a contract firm (.6%). The percent­ ages of contingent employees in these alternative arrangements ranged from 3.4% (in de pen dent contractors) to 60.7% (temporary help employees).16 Unfortunately, data on the use of alternative employment arrangements have not been collected since 2005, but most indicators suggest that alternative employment arrangements have increased over time.

Exhibit 3.4 shows several other workforce trends identified in a survey of over a thousand HR professionals. The cost of health care has long been an issue identi­ fied in this survey, which is conducted every two years. The aging workforce has also been an issue of note. More recent surveys focus on global issues such as

099-67811_ch03_4P.indd 101 10/27/17 10:28 AM

102 PART TWO Support Activities

international competition for talent as well as the economic growth of emerging markets.

Technology

Changes in technology can influence the staffing planning pro cess significantly. In some cases, technology can serve as a substitute for labor by either eliminat­ ing or dramatically reducing the need for certain types of workers. The economy as a whole has shown decreased demand for positions like clerical workers, tele­ phone operators, and manufacturing operators as technology has replaced labor as an input to production. Ironically, changes in software that have made com­ puters easier for non­ specialists to use have eliminated many jobs in computer programming.

At the same time, technology can serve to create new jobs as new business opportunities emerge. In place of the jobs that are eliminated, demand for technical occupations like robotics engineers, systems and database analysts, and software engineers has increased. The expansion of e­ commerce and other Internet­ based ser vices has increased demand for those who design and manage websites. Increasing productivity as a result of technological change can also spur increased firm per for mance, which in turn will create more jobs. Often these new jobs will require a completely dif fer ent set of KSAOs than previous jobs, meaning that increased staffing resources will have to be devoted to either retrain­ ing or replacing the current workforce. Research conducted in the United States, Britain, and Germany shows that computerization has led to an increase in the demand for highly educated specialists, leading to an overall increased market demand for skills in science and mathe matics, which has led to dramatic increases in wages for individuals with these skills.17 Employers that adopt new technology for any aspect of their operations will also have to consider how to tap into labor markets that have these skills.

• Continuing high cost of health care in the United States • Increased global competition for jobs, markets, and talent • Growing complexity of legal compliance for employers • Large numbers of baby boomers leaving the workforce at around the same time • Economic growth of emerging markets • Greater need for cross-cultural understanding in business settings

EXHIBIT 3.4 Major Workforce Trends

Source: J. Schramm, Workplace Forecast, 2011 (Alexandria, VA: Society for Human Resource Management, 2011).

099-67811_ch03_4P.indd 102 10/27/17 10:28 AM

CHAPTER THREE Planning 103

HUMAN RESOURCE PLANNING

After a solid understanding of the internal and external environments has been acquired, a more detailed set of plans to address orga nizational needs in light of these environmental influences can be considered. Human resource planning (HRP) is an ongoing pro cess and set of activities undertaken to forecast an organ­ ization’s labor demand (requirements) and internal labor supply (availabilities), to compare these projections to determine employment gaps, and to develop action plans for addressing these gaps. Action plans include planning to arrive at desired staffing levels and staffing quality.

A general model depicting the pro cess of HRP is presented first, followed by an operational example of HRP. The major components of HRP are then discussed in detail. Best practices in con temporary organ izations suggest that to be effective, HRP must be an ongoing activity, supplemented with data from human resources information systems. This pre sen ta tion reviews only a single cycle of HRP, but it is better to think of HRP as a continuous pro cess that is updated and reviewed at least once a quarter, if not more frequently.18

Pro cess and Example

The basic ele ments of virtually any organ ization’s HRP are shown in Exhibit 3.5. As can be seen, the HRP pro cess involves four sequential steps:

1. Determine future HR requirements to meet strategic business requirements 2. Determine future HR availabilities 3. Reconcile requirements and availabilities— that is, determine gaps (shortages

and surpluses) between the two 4. Develop action plans to close the projected gaps

(1) Forecast Labor Requirements

(3) Determine Gaps

(4) Develop Action Plans

(2) Forecast Labor Availabilities

Compare

EXHIBIT 3.5 The Basic Elements of Human Resource Planning

099-67811_ch03_4P.indd 103 10/27/17 10:28 AM

104 PART TWO Support Activities

E X

H IB

IT 3

.6

O p

e ra

ti o

n a

l F o

rm a

t a

n d

E xa

m p

le o

f H

u m

an R

e so

u rc

e P

la n

n in

g

O rg

a n

iz a

ti o

n a

lU n

it :S

a le

s a

n d

C u

st o

m e

r S

e rv

ic e

Jo b

C a

te g

o ry

a n

d L

e ve

l C

u rr

e n

t W

o rk

fo rc

e

F o

re ca

st fo

r W

o rk

fo rc

e —

O n

e Y

e a

r

R e

q u

ir e

m e

n ts

A va

ila b

ili ti

e s

R e

co n

ci lia

ti o

n a

n d

G a

p s

A ct

io n

P la

n n

in g

A 1

(S al e s)

10 0

11 0

71 3 9

(s h o rt ag

e )

R e cr u itm

e n t

A 2

(S al e s m an

ag e r)

2 0

15 2 2

7 (s u rp lu s)

S e le ct io n

E m p lo ym

e n t

B 1

(C u st o m e r se

rv ic e

re p re se

n ta tiv e )

2 0 0

2 5 0

14 0

11 0

(s h o rt ag

e )

R e te n tio

n C o m p e n sa tio

n

B 2

(C u st o m e r se

rv ic e

m an

ag e r)

15 2 5

2 2

3 (s h o rt ag

e )

T ra in in g an

d d e ve

lo p m e n t

3 3 5

4 0 0

2 5 5

14 5

(s h o rt ag

e )

099-67811_ch03_4P.indd 104 10/27/17 10:28 AM

CHAPTER THREE Planning 105

An example of HRP, including results from forecasting requirements and avail­ abilities, is shown in Exhibit 3.6. The exhibit shows a partial HRP conducted by an organ ization for a specific unit (sales and customer ser vice). It involves only two job categories (sales [A] and customer ser vice [B]) and two hierarchical levels for each category (entry level [1] and managerial level [2]). All of the HRP steps are confined to this par tic u lar orga nizational unit and its job categories/levels, as shown.

The current workforce size (number of employees) is given for each job cat­ egory/level. Requirements and availabilities are predicted for one year, and the results are shown in the relevant columns. After the reconciliation pro cess, final gap figures are agreed on and entered into the gap column.

These gap data serve as the basic input to action planning. Because the gaps show both shortages and a surplus, and because the gaps vary in severity relative to the current workforce, a specific action plan will prob ably have to be devel­ oped and implemented for each job category/level. The resulting four staffing (and other) plans should bring staffing into an orderly balance of requirements and availabilities over the course of the planning period.

The above pro cess and example identify and illustrate the rudiments of HRP. Within them are several distinct components that require elaboration. We turn now to these components, emphasizing that each one represents a factor that must be considered in HRP and that specific choices must be made regarding the opera­ tional details for each component.

Initial Decisions

Each new cycle of HRP involves several critical decisions. These decisions will shape the nature of the resultant HRP pro cess and influence the output of the pro­ cess, namely, the gap estimates.

Strategic Planning We have already discussed the need to integrate orga nizational strategy into the HRP pro cess. In addition, the development of a strategy for HR should be the first ele ment of HRP. Several key decisions should be made before more concrete plans are considered:19

• First, a vision based on the overall orga nizational strategy should be devel­ oped. This often means deciding what values and core competencies all mem­ bers of the organ ization should possess, and considering princi ples that will support these values and competencies.

• Second, potential strategies for achieving planning pro cess goals should be discussed. It is best at this point to think of whole systems of goals (e.g., integrate all KSAO information for the workforce and future planning needs) rather than specific concrete goals (e.g., conduct recruiting at a local college

099-67811_ch03_4P.indd 105 10/27/17 10:28 AM

106 PART TWO Support Activities

campus). Too much focus on implementation details early in the strategic planning pro cess can lead to a patchwork approach that involves ele ments that do not fit together well.

• Third, contingency plans should be developed and considered. For example, what happens if certain key employees leave the organ ization? What hap­ pens if there is a change in the economy that reduces the supply of needed KSAOs in the labor market? Use of simulation software that shows potential future outcomes for a variety of actions and responses is one way to evaluate the likelihood of potential worst­ case scenarios and plan for how to respond should they arise.

• Fourth, methods for obtaining feedback relative to goals and objectives should be in place. This is a crucial stage, as it involves specifying the types of data that will be used to determine whether the planning pro cess is successful or whether changes need to be made.

HRP can be performed on a plan basis, proj ect basis, or population basis. When HRP takes place as an integral part of an organ ization’s strategic planning pro­ cess, it is referred to as plan­ based HRP. This is a wise approach because it helps integrate the entire organ ization’s strategic planning pro cess with HR implica­ tions. Orga nizational responses to changes to specific proj ects or activities, versus changes to the total business plan, are referred to as project­ based HRP. In addition, many organ izations do HRP for critical groups of employees on a regular basis. This often occurs for jobs in which there are perennial shortages of employees. Planning focused on a specific employee group is referred to as population­ based HRP. As we noted earlier, best practices suggest that these activities must be done on an ongoing basis.

Planning Time Frame Since planning involves looking into the future, the logical question for an organ­ ization to ask is, how far into the future should our planning extend? Typically, plans are divided into long term (three years and more), intermediate (one to three years), or short term (one year or less). The higher­ level orga nizational plans tend to focus on the long term, whereas specific proj ect planning is conducted more frequently.

For plan­ based HRP, the time frame will be the same as that of the business plan. In most organ izations, this is between three and five years for so­ called stra­ tegic planning and something less than three years for operational planning. Plan­ ning horizons for project­ based HRP vary depending on the nature of the proj ects involved. Solving a temporary shortage of, say, salespeople for the introduction of a new product might involve planning for only a few months, whereas planning for the start­up of a new fa cil i ty could involve a lead time of two or more years. Population­ based HRP will have varying time frames, depending on the time nec­ essary for labor supply (internal as well as external) to become available. As an

099-67811_ch03_4P.indd 106 10/27/17 10:28 AM

CHAPTER THREE Planning 107

example, for top­ level executives in an organ ization, the planning time frame will be lengthy.

Job Categories and Levels The unit of HRP and analy sis 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. Management must choose which job categories and hierarchical levels to use for HRP. In Exhibit 3.6, for example, the choice involves two jobs (sales and customer ser vice) and two levels (entry and managerial) for a par tic u lar orga nizational unit.

Job categories are created and used on the basis of the unit of analy sis for which projected shortages and surpluses are being investigated. Hierarchical levels should be chosen so that they are consistent with or identical to the formal orga nizational hierarchy. The reason for this is that these formal levels define employee promo­ tions (up levels), transfers (across levels), and demotions (down levels). Having gap information by level facilitates planning of internal movement programs within the internal labor market. For example, it is difficult to have a systematic promotion­ from­ within program without knowing probable numbers of vacancies and gaps at vari ous orga nizational levels.

Head Count (Current Workforce) The basic unit of analy sis for workforce planning is not the number of employ­ ees needed. Rather, to account for the amount of scheduled time worked by each employee, staffing needs are stated in terms of full­ time equivalents (FTEs). To determine FTEs, simply define what constitutes full­ time work in terms of hours per week (or other time unit) and count each employee in terms of scheduled hours worked relative to a full workweek. If full time is defined as 40 hours per week, a person who normally works 20 hours per week is counted as a .50 FTE, a person normally working 30 hours per week is a .75 FTE, and so on.

Roles and Responsibilities Both line man ag ers and HR specialists are involved in HRP, so the roles and responsibilities of each must be determined. As noted previously, in an ideal situa­ tion there would be a constant flow of information among those involved in HRP, with line man ag ers indicating how needs are expected to change, and HR staff describing the KSAO resources within and outside the organ ization that can be used to meet these needs in the future. To ensure that HRP is effective, experts also emphasize the importance of having a higher­ level executive to champion this workforce planning pro cess. This can ensure plans are integrated with the com­ pany’s strategic plans, and it facilitates line man ag er engagement in the pro cess.

The pro cess begins with line staff evaluating their current capabilities and future needs based on strategic plans for the organ ization. The HR staff then takes the

099-67811_ch03_4P.indd 107 10/27/17 10:28 AM

108 PART TWO Support Activities

lead in proposing which types of HRP will be undertaken and when, and in mak­ ing suggestions with regard to comprehensiveness, planning time frame, and job categories and levels. Final decisions on these matters are usually the prerogative of line management. Once an approach has been deci ded on, task forces of both line man ag ers and HR staff are assembled to design an appropriate forecasting and action planning pro cess and to do any other preliminary work.

Once these pro cesses are in place, the HR staff typically assumes responsibility for collecting, manipulating, and presenting the necessary data to line manage­ ment and for laying out alternative action plans (including staffing plans). Action planning usually becomes a joint venture between line man ag ers and HR staff, particularly as they gain experience with, and trust for, one another.

Forecasting HR Requirements

Forecasting HR requirements is a direct derivative of business and orga nizational planning. As such, it becomes a reflection of projections about a variety of factors, such as sales, production, technological change, productivity improvement, and the regulatory environment. Many specific techniques may be used to forecast HR requirements; these are either statistical or judgmental in nature, and they are usually tailor­ made by the organ ization. In forecasting future needs, it is essential to consider not just the status of the workforce but also the expected changes in needs due to strategic considerations. Forward­ thinking HR experts note that data can inform HRP when it comes to prior needs and trends, but effective planning also entails considering how changes in the internal and external environments will alter forecasts.20

Statistical Techniques A wide array of statistical techniques are available for use in HR forecasting. Prominent among these are regression analy sis, ratio analy sis, trend analy sis, time series analy sis, and stochastic analy sis. Examples of three of these techniques are given in Exhibit 3.7.

The use of integrated workforce planning software, which can be combined with data from other orga nizational databases, has made it easier to use these statisti­ cal techniques. As we noted earlier, HR prac ti tion ers are increasingly expected to support their proposals and plans with hard data. The three techniques shown in Exhibit 3.7 have dif fer ent strengths and weaknesses, as we will see. We pres ent these approaches in order from those requiring the least amount of data collection to those requiring the most.

Trend analy sis is the simplest approach, because it uses data only on previous staffing levels over time to predict future needs. Trend analy sis is useful when organ izations have data mostly on historical staffing levels with less detailed infor­ mation on specific predictors. The decomposition of data into specific time periods

099-67811_ch03_4P.indd 108 10/27/17 10:28 AM

CHAPTER THREE Planning 109

(B) Ratio Analysis

1. Examine historical ratios involving workforce size.

$ sales No. of new customers ??:elpmaxE

1.0 FTE 1.0 FTE

2. Assume ratio will be true in future. 3. Use ratio to predict future HR requirements.

Example: (a) $40,000 sales

1.0 FTE (b) Sales forecast is $4,000,000 (c) HR requirements 100 FTEs

(C) Regression Analysis

1. Statistically identify historical predictors of workforce size.

2. Only use equations with predictors found to be statistically significant. 3. Predict future HR requirements, using equation.

Example: (a) FTEs 7 .0004 sales .02 new customers (b) Projected sales $1,000,000

Projected new customers 300 (c) HR requirements 7 400 6 413

Example: FTEs a b sales b new customers1 2

(A) Trend Analysis

1. Gather data on sta�ng levels over time and arrange in a spreadsheet with one column for employment levels and another column for time. 2. Predict trend in employee demand by fitting a line to trends in historical sta�ng levels over time (this can be done by using regression or graphical methods in most spreadsheet programs). 3. Calculate period demand index by dividing each period’s demand by the average annual demand.

Example: January demand index = Avg. January FTE/Avg. annual FTE

Example: A retail store finds that the average number of employees over the past five years has been 142, 146, 150, 155, and 160. This represents a consistent 3% increase per year; to predict the next year’s average demand, multiply 160 by 1.03 to show a 3% expected increase. Over this same time period, the store averaged 150 FTEs per month, with an average of 200 FTEs in December. This means the December demand index is 200/150 = 1.33, so its estimate for next year’s December FTE demand will be (160 × 1.03) × 1.3 = 219 FTEs.

4. Multiply the previous year’s FTEs by the trend figure, then multiply this figure by the period’s demand index.

is past ratio

EXHIBIT 3.7 Examples of Statistical Techniques to Forecast HR Requirements

099-67811_ch03_4P.indd 109 10/27/17 10:28 AM

110 PART TWO Support Activities

of demand is often used in health care and retail settings, where staffing levels vary greatly over the course of a year and even at dif fer ent times of the day.

The trend analy sis approach implicitly assumes that the pattern of staffing needs in the past will be predictive of the future but does not take any external factors, like the overall state of the economy or product market demand, into account.

Ratio analy sis is a more sophisticated approach that uses data from prior sales figures or other operational data to predict expected head count. In the example in Exhibit 3.7, estimates of sales growth are used to predict how many employees will be needed. This technique is useful for incorporating data from other functional areas to predict the future. However, this model cannot directly account for any changes in technology or skill sets that might change these ratios.

The regression analy sis technique can be used with historical predictors and can make more statistically precise estimates of future expectations by taking several factors into account si mul ta neously. In the example, sales data and new customer data from orga nizational rec ords are used to predict staffing needs in the past. Then the estimates from these predictions are combined with projections for the future to generate future FTE requirements. This procedure is more thorough than the ratio analy sis approach, which incorporates only a single predictor of workforce size. However, collecting enough data to make good estimates can be time­ consuming and requires judgment calls.

Judgmental Techniques Judgmental techniques represent human decision­ making models that are used for forecasting HR requirements. Unlike statistical techniques, judgmental tech­ niques use a decision maker who collects and weighs the information subjec­ tively and then turns it into forecasts of HR requirements. The decision maker’s forecasts may or may not agree very closely with those derived from statistical techniques. This is not necessarily a weakness of either approach. Ideally, the pre­ cision of statistical techniques should be coupled with on­ the­ ground knowledge represented by judgmental techniques to provide estimates that have both rigor and relevance.

Implementation of judgmental forecasting can proceed from either a top­ down or bottom­up approach. In the former, top man ag ers of the organ ization, orga­ nizational units, or functions rely on their knowledge of business and orga nizational plans to predict what future head counts should be. At times, these projections may, in fact, be dictates rather than estimates, necessitated by strict adherence to the business plan. Such dictates are common in organ izations undergoing signifi­ cant change, such as restructuring, mergers, and cost­ cutting actions.

In the bottom­up approach, lower­ level man ag ers make initial estimates for their unit (e.g., department, office, or plant) on the basis of what they have been told or presume are the business and orga nizational plans. These estimates are then con­ solidated and aggregated upward through successively higher levels of management. Then, top management establishes the HR requirements in terms of numbers.

099-67811_ch03_4P.indd 110 10/27/17 10:28 AM

CHAPTER THREE Planning 111

Scenario Planning Scenario planning is a technique that has been explored in a variety of fields to predict future outcomes in an uncertain environment.21 The previous methods we have described are all designed to give a specific estimate of the number of people who will be needed in the organ ization in the future. Scenario planning provides a range of estimates based on vari ous pos si ble changes in the external and internal environments. For example, ratio analy sis uses forecasts of future product demand to predict how many FTEs will be required; in our example in Exhibit 3.7, 100 FTEs will be required based on sales forecasts. Scenario planning provides a range of pos si ble FTE requirements based on a variety of potential product demand levels; thus, three distinct estimates of FTE requirements will be developed for worst­ case, expected, and best­ case demand levels.

The advantage of scenario planning is that it allows HRP to incorporate uncer­ tainty and prepare for the unexpected. Because it explic itly acknowledges ways that the future might be dif fer ent from the past, it also incorporates judgmental tech­ niques. Considering all the complex factors that go into vari ous scenarios is often challenging, so simulation software is often part of the pro cess. These programs allow man ag ers to change vari ous features of a situation to see how an outcome (in this case, projected FTEs) will change. Evidence suggests that the pro cess of doing scenario planning can change the ways decision makers think by promoting more holistic views of a prob lem that incorporate a wide range of factors.22

Forecasting HR Availabilities

In Exhibit 3.6, head­ count data are given for the current workforce and their avail­ ability as forecast in each job category/level. These forecasted figures take into account movement into and out of each job category/level and exit from the orga­ nizational unit or the organ ization. Described below are three approaches for fore­ casting availabilities: man ag er judgment, Markov Analy sis, and replacement and succession planning.

Man ag er Judgment Individual man ag ers may use their judgment to make availability forecasts for their work units. This is especially appropriate in smaller organ izations or in ones that lack centralized workforce internal mobility data and statistical forecasting capa­ bilities. Continuing the example from Exhibit 3.6, assume the man ag er is asked to make an availability forecast for the entry sales job category A1. The template to follow for making the forecast and the results of the forecast are shown in Exhibit 3.8. To the current staffing level in A1 (100) is added likely inflows to A1 (10), and then likely outflows from A1 (37) are subtracted to yield the forecasted staffing availability (73). Determining the inflow and outflow numbers requires judgmental estimates as to the numbers of promotions, transfers, demotions, and exits. As shown at the bottom of Exhibit 3.8, promotions involve an upward change

099-67811_ch03_4P.indd 111 10/27/17 10:28 AM

112 PART TWO Support Activities

of job level within or between job categories, transfers are lateral moves at the same job level across job categories, and demotions are downward changes of job level within or between job categories. Separate forecasts may be done for the other job category/levels (A2, B1, and B2).

To provide reliable estimates, the man ag er must be very knowledgeable about both orga nizational business plans and individual employee plans or preferences for staying in their current job versus moving to another job. Knowledge of busi­ ness plans will be helpful in judging the likely internal mobility opportunities for employees. Business expansion, for example, will likely mean expanding internal mobility opportunities. Knowledge of employee plans or preferences will help pinpoint which employees are likely to change jobs or leave the work unit or organ ization.

The estimated staffing availability (n = 73) in Exhibit 3.8 coincides closely with the availability estimate (n = 71) derived from forecasting based on Markov Analy­ sis results, discussed below. This is intentional. Markov Analy sis uses historical mobility data and probabilities to forecast future availabilities, while man ag er judgment uses current knowledge of business and employees’ plans to forecast employee movements person by person. Results from these two approaches to availability forecasts will not necessarily coincide. When there are discrepancies, they can be resolved by considering why there are differences. For example, a man ag er may underestimate future needs because she or he has not seen a full pre­ sen ta tion of recent data, or alternatively, the Markov Analy sis approach may not take internal cultural factors driving turnover into account.

Markov Analy sis Markov Analy sis uses historical patterns of job stability and movement among employees to predict availabilities. Consider again the four job category/levels (A1,

Time 1

Current Sta�ng Level 100

Time 2

Forecasted Sta�ng Avail. 73

Inflows

Promotion 0 Transfer 9 Demotion 1

Outflows

Promotion 10 Transfer 15 Demotion 0 Exit 12

Job Category/Level: Sales (A1)

EXHIBIT 3.8 Manager Forecast of Future HR Availabilities

Note: Promotion is A1 to A2, A1 to B2, B1 to B2, or B1 to A2; transfer is A1 to B1, A2 to B2, B1 to A1, or B2 to A2; demotion is A2 to A1, A2 to B1, B2 to B1, or B2 to A1.

099-67811_ch03_4P.indd 112 10/27/17 10:28 AM

CHAPTER THREE Planning 113

A2, B1, and B2) in the sales and customer ser vice unit in Exhibit 3.6. Note that between any two time periods, the following possibilities exist for each employee in the internal labor market:

1. Job stability (remain in A1, A2, B1, or B2) 2. Promotion (move to a higher level: A1 to A2, A1 to B2, B1 to B2, or B1

to A2) 3. Transfer (move at the same level: A1 to B1, B1 to A1, A2 to B2, or B2 to A2) 4. Demotion (move to a lower level: A2 to A1, A2 to B1, B2 to B1, or B2 to A1) 5. Exit (move to another orga nizational unit or leave the organ ization)

These possibilities may be thought of in terms of flows and rates of flow or movement rates. Past flows and rates may be mea sured and then used to forecast the future availability of current employees. For example, if it is known that the historical promotion rate from A1 to A2 is .10 (10% of A1 employees are promoted to A2), we might predict that A1 will experience a 10% loss of employees due to promotion to A2 over the relevant time period.

The ele ments of Markov Analy sis are shown in Exhibit 3.9 for the orga nizational unit originally presented in Exhibit 3.6. Refer first to part A of Exhibit 3.9, where movement rates between two time periods (T and T+1) are calculated for four job category/level combinations. This is accomplished as follows. For each job cat­ egory/level, take the number of employees at time period T, and use this number as the denominator for calculating job stability and movement rates. Next, for each of these employees, determine which job category/level they were employed in at

A. Transition Probability Matrix Job Category and Level A1 A2

T 1

B1 B2 Exit

01.00.02.01.06.1A 53.00.00.06.50.2A

T 03.50.06.00.50.1B 02.08.00.00.00.2B

B. Forecast of Availabilities Current

Workforce A1 100 60 10 20 0 A2 20 1 12 0 0 B1 200 10 0 120 10 B2 15 0 0 0 12

71 22 140 22

EXHIBIT 3.9 Use of Markov Analysis to Forecast Availabilities

099-67811_ch03_4P.indd 113 10/27/17 10:28 AM

114 PART TWO Support Activities

T+1. Then, sum up the number of employees in each job category/level at T+1, and use these as the numerators for calculating stability and movement rates. Fi nally, divide each numerator separately by the denominator. The result is the stability and movement rates expressed as proportions, also known as transition probabilities. The rates for any row (job category/level) must add up to 1.0.

For example, consider job category/level A1. Assume that at time T in the past, A1 had 400 people. Further assume that at T+1, 240 of these employees were still in A1, 40 had been promoted to A2, 80 had been transferred to B1, 0 had been promoted to B2, and 40 had exited the orga nizational unit or the organ ization. The resulting transition probabilities, shown in the row for A1, are .60, .10, .20, .00, and .10. Note that these rates sum to 1.00.

By referring to these figures, and the remainder of the transition probabilities in the matrix, an organ ization can begin to understand the workings of the unit’s internal labor market. For example, it becomes clear that 60%–80% of employees experienced job stability and that exit rates varied considerably, ranging from 10% to 35%. Promotions occurred only within job categories (A1 to A2, B1 to B2), not between job categories (A1 to B2, B1 to A2). Transfers were confined to the lower of the two levels (A1 to B1, B1 to A1). Only occasionally did demotions occur, and only within a job category (A2 to A1). Presumably, these stability and movement rates reflect specific staffing policies and procedures that were in place between T and T+1.

With these historical transitional probabilities, it becomes pos si ble to forecast the future availability of the current workforce over the same time interval, T and T+1, assuming that the historical rates will be repeated over the time interval and that staffing policies and procedures will not change. Refer now to part B of Exhibit 3.9. To forecast availabilities, simply take the current workforce column and multiply it by the transition probability matrix shown in part A. The resulting availability figures (note that these are the same as those shown in Exhibit 3.6) appear at the bottom of the columns: A1 = 71, A2 = 22, B1 = 140, and B2 = 22. The remainder of the current workforce (80) is forecast to exit and will not be available at T+1.

Limitations of Markov Analy sis. Markov Analy sis is an extremely useful way to capture the under lying workings of an internal labor market and then use the results to forecast future HR availabilities. It is, however, subject to some limitations.23

The first and most fundamental limitation is that of sample size, or the number of current workforce employees in each job category/level. As a rule, it is desirable to have 20 or more employees in each job category/level. Transition probabilities based on small samples yield unstable estimates of future availabilities. Markov Analy sis also does not detect multiple moves by employees between T and T+1; it only classifies employees and counts their movement according to their begin­ ning (T) and ending (T+1) job category/level, ignoring any intermittent moves.

099-67811_ch03_4P.indd 114 10/27/17 10:28 AM

CHAPTER THREE Planning 115

To minimize the number of undetected multiple moves, it is necessary to keep the time interval consistent with orga nizational promotion and transfer rates.

The job category/level combinations created to serve as the unit of analy sis can also be problematic. These must be meaningful to the organ ization for the HRP purposes of both forecasting and action planning. Thus, extremely broad catego­ ries (e.g., man ag ers or researchers) and categories without any level designations should be avoided. Note that this recommendation may conflict somewhat with organ izations with a non­ bureaucratic or team­ based structure.

Fi nally, the transition probabilities reflect only gross, average employee move­ ment and not the under lying causes of the movement. Stated differently, all employ­ ees in a job category/level are assumed to have an equal probability of movement. This is unrealistic because organ izations take many factors into account (e.g., se niority, per for mance appraisal results, and KSAOs) when making movement decisions about employees. This is where man ag er discretion should supplement data­ based estimates.

Individual Internal Forecasts Both the managerial judgment and Markov Analy sis approaches are designed to estimate future internal HR availabilities for large numbers of employees. Replace­ ment and succession planning focus on identifying individual employees who will be considered for promotion. Through replacement and succession planning, the organ ization constructs internal talent pipelines that ensure steady and known flows of qualified employees to higher levels of responsibility and impact. An increasing body of research suggests that effective succession planning at top executive ranks is associated with superior firm per for mance, while in effec tive succession plans can have catastrophic consequences.24

Replacement and succession planning can occur at any and all levels of the organ ization. They are most widely used at the management level, starting with the chief executive officer and extending downward to the other officers or top man ag ers. They can also be used throughout the entire management team, includ­ ing the identification and preparation of individuals for promotion into entry­ level management. They may also be used for linchpin positions— ones that are critical to organ ization effectiveness (such as se nior scientists in the research and devel­ opment function of a technology­ driven organ ization) but not necessarily housed within the management structure.

Replacement Planning. Replacement planning focuses on identifying indi­ vidual employees who will be considered for promotion and thoroughly assess­ ing their current capabilities and deficiencies. Training and development plans to improve the fit between capabilities and requirements are also developed. The focus is thus on both the quantity and the quality of availability. The results of replacement planning are shown on a replacement chart, an example of which is

099-67811_ch03_4P.indd 115 10/27/17 10:28 AM

116 PART TWO Support Activities

shown in Exhibit 3.10. The chart is based on the previous sales– customer ser vice unit in Exhibit 3.6. The focus is on replacement planning for the sales man ag er (A2) from the ranks of sales associates (A1) as part of the organ ization’s “grow your own,” promotion­ from­ within HR strategy. The top part of the chart indicates the orga nizational unit and jobs covered by replacement planning, as well as the minimum criteria for promotion eligibility. The next part shows the information for the incumbent department man ag er (Woo) and the two eligible sales associ­ ates (Williams and Stemke) in the menswear department at the Cloverdale store. The key data are length of ser vice, overall per for mance rating, and promotability rating. When the incumbent sales man ag er (Woo) is promoted to group sales man­ ag er, both sales associates will be in the promotion pool. Williams will likely get the position because of her “ready now” promotability rating. Given his relatively short length of ser vice and readiness for promotion in less than one year, Stemke is prob ably considered a “star” or a “fast tracker” whom the organ ization will want to promote rapidly. Similar replacement charts could be developed for all depart­ ments in the store and for all hierarchical levels up to and including store man ag er. Replacement chart data could then be aggregated across stores to provide a corpo­ rate composite of talent availability.

The pro cess of replacement planning has been greatly accelerated by human resources information systems (HRISs). Many HRISs make it pos si ble to keep data on KSAOs for each employee based on job history, training, and outside education. Software also allows organ izations to create lists of employees who are ready to move into specific positions, and to assess potential risks that man ag ers or leaders will leave the organ ization. The ability to keep track of employees across the organ­ ization by standardized inventories of skill sets means that staffing man ag ers will be able to compare a variety of individuals for new job assignments quickly and consistently. A large database of candidates also makes it pos si ble to seek out pas­ sive internal job candidates who are not actively looking for job changes but might be willing to take new positions if offered. Many organ izations that use integrated database systems to track candidates across a variety of locations report that they are able to consider a larger pool of candidates than they would with a paper­ based system. Some HRISs automatically alert HR when key positions become open, and thus the pro cess of finding a replacement can get under way quickly. The development of comprehensive replacement planning software is typically quite expensive, with costs reaching hundreds of thousands of dollars. The software is prob ably most useful for large organ izations that are able to capitalize on the costs of a large system. However, smaller organ izations may find it pos si ble to create their own databases of skills as a means of facilitating the internal replacement pro cess.25

Succession Planning. Succession plans build on replacement plans and directly tie into leadership development. The intent is to ensure that candidates for promo­ tion will have the specific KSAOs and general competencies required for success

099-67811_ch03_4P.indd 116 10/27/17 10:28 AM

CHAPTER THREE Planning 117

O rg

an iz

at io

n al

U n

it: M

e rc

h an

d is

in g

— S

o ft

G o

o d

s R

e p

la ce

m e

n t

fo r:

D e

p ar

tm e

n t

S al

e s

M an

ag e

r (A

2 )

P ip

e lin

e s

fo r

R e

p la

ce m

e n

t: D

e p

ar tm

e n

t S

al e

s (A

1) —

p re

fe rr

e d

;E xt

e rn

al H

ir e

— la

st re

so rt

M in

im u

m E

lig ib

ili ty

R e

q u

ir e

m e

n ts

:T w

o y

e ar

s’ f

u ll-

tim e

s al

e s

e xp

e ri

e n

ce ; o

ve ra

ll p

e rf

o rm

an ce

r at

in g

o f

“e xc

e e

d s

e xp

e ct

at io

n s”

;p ro

m o

ta b

ili ty

ra tin

g o

f “r

e ad

y n

o w

” o

r “r

e ad

y in

< 1

yr .”

D e

p ar

tm e

n t:

M e

n sw

e ar

S to

re :C

lo ve

rd al

e

In cu

m b e n t M a n a g e r

Y e a rs

in Jo

b O ve

ra ll P e rf o rm

a n ce

R a ti n g

S e

n g

W o

o 7

E xc

e e

d s

e xp

e ct

at io

n s

M e

e ts

e xp

e ct

at io

n s

B e

lo w

e xp

e ct

at io

n s

X

P ro m o te

to P ro m o ta b ili ty

R a ti n g

G ro

u p

S al

e s

M an

ag e

r R

e ad

y n

o w

R e

ad y

in <

1 yr

. R

e ad

y in

1– 2

yr s.

N o

t p

ro m

o ta

b le

X

R e p la ce

m e n t

Y e a rs

in Jo

b O ve

ra ll P e rf o rm

a n ce

R a ti n g

S h

an ta

ra W

ill ia

m s

8 E

xc e

e d

s e

xp e

ct at

io n

s M

e e

ts e

xp e

ct at

io n

s B

e lo

w e

xp e

ct at

io n

s X

P ro m o te

to P ro m o ta b ili ty

R a ti n g

S al

e s

M an

ag e

r R

e ad

y n

o w

R e

ad y

in <

1 yr

. R

e ad

y in

1– 2

yr s.

N o

t p

ro m

o ta

b le

X

R e p la ce

m e n t

Y e a rs

in Jo

b O ve

ra ll P e rf o rm

a n ce

R a ti n g

La rs

S te

m ke

2 E

xc e

e d

s e

xp e

ct at

io n

s M

e e

ts e

xp e

ct at

io n

s B

e lo

w e

xp e

ct at

io n

s X

P ro m o te

to P ro m o ta b ili ty

R a ti n g

S al

e s

M an

ag e

r R

e ad

y n

o w

R e

ad y

in <

1 yr

. R

e ad

y in

1– 2

yr s.

N o

t p

ro m

o ta

b le

X

E X

H IB

IT 3

.1 0

R

e p

la ce

m e

n t

C h

a rt

E xa

m p

le

099-67811_ch03_4P.indd 117 10/27/17 10:28 AM

118 PART TWO Support Activities

across their careers. The key to succession planning is assessing each promot­ able employee for KSAO or competency gaps and then creating employee training and development plans that will close those gaps. A survey conducted by SHRM showed that over half of HR professionals indicated that their organ ization had implemented some form of succession planning.26

Continuing the example from replacement planning, Exhibit 3.11 shows a suc­ cession plan for the two promotable sales associates. The organ ization has devel­ oped a set of general leadership competencies for all man ag ers, and for each management position (such as department sales man ag er), it indicates which of those competencies are required for promotion, in addition to the minimum eli­ gibility requirements. It is the focus on these competencies, and the development plans to instill them in candidates for promotion who lack them, that differentiates replacement and succession planning.

It can be seen that Williams, who is “ready now,” has no leadership compe­ tency gaps, with the pos si ble exception of an in­ house training course on bud get

Organizational Unit: Merchandising—Soft Goods Department: Menswear Position to Be Filled: Department Sales Manager (A2) Leadership Competencies Required • Plan work unit activities • Budget preparation and monitoring • Performance management of sales associates

Eligible Replacement

Promotability Rating

Competency Gaps

Development Plans

S. Williams Ready now Budget prep

Budget prep

Now completing in-house training course

L. Stemke Ready in < 1 year

Plan work Shadowing sales manager

Starting in-house training course

Perf. mgt. Serving as sales manager 10 hours per week

Taking course on performance management at university extension

EXHIBIT 3.11 Succession Plan Example

099-67811_ch03_4P.indd 118 10/27/17 10:28 AM

CHAPTER THREE Planning 119

preparation and monitoring, which she is currently completing. Stemke, while having “star” potential, must undertake development work. When he successfully completes that work, he will be promoted to sales man ag er as soon as pos si ble. Alternatively, he might be placed in the organ ization’s acceleration pool. This pool contains high­ potential individuals like Stemke from within the organ ization who are being groomed for management positions generally, and for rapid acceleration upward, rather than progressing through the normal promotion paths.

Replacement and succession planning require both training and man ag ers’ time and expertise to direct them. Effective per for mance appraisal and training and development systems are also necessary. For example, overall per for mance and promotability ratings, assessment of competency gaps, and development plans need to be integrated as regular components of the organ ization’s practices and culture. Promotability and development assessments require man ag ers to make tough and honest decisions. A study of successful succession management in sev­ eral Fortune 500 organ izations concluded, “Succession management is pos si ble only in an orga nizational culture that encourages candor and risk taking at the executive level. It depends on a willingness to differentiate individual per for mance and a corporate culture in which the truth is valued more than politeness.”27

Reconciliation and Gaps

The reconciliation and gap determination pro cess is best examined by means of an example. Exhibit 3.12 pres ents the reconciliation and gap determination pro cess by way of the example in Exhibit 3.6. Attention is now directed to the reconcilia­ tion and gaps column. It represents the results of bringing together requirements and availability forecasts with the results of external and internal environmental scanning. Gap figures must be deci ded on and entered in the column, and the likely reasons for the gaps need to be identified.

Let’s first consider job category/level A1. A relatively large shortage is pro­ jected due to a mild expansion in requirements coupled with a substantial drop in availabilities. This drop is not due to an excessive exit rate but to losses through promotions and job transfers (refer back to the availability forecast in Exhibit 3.9).

For A2, decreased requirements coupled with increased availabilities lead to a projected surplus. Clearly, changes in current staffing policies and procedures will have to be made to stem the availability tide, such as a slowdown in the promotion rate into A2 from A1, or to accelerate the exit rate, such as through an early retire­ ment program.

Turning to B1, note that a huge shortage is forecast. This is due to a major surge in requirements and a substantial reduction in availabilities. To meet the short­ age, the organ ization could increase the transfer of employees from A1. While this would worsen the already­ projected shortage in A1, it might be cost­ effective and would beef up the external staffing for A1 to cover the exacerbated shortage. Alter­ nately, a massive external staffing program could be developed and undertaken for

099-67811_ch03_4P.indd 119 10/27/17 10:28 AM

120 PART TWO Support Activities

E X

H IB

IT 3

.1 2

O

p e

ra ti

o n

a l F

o rm

a t

a n

d E

xa m

p le

o f

H u

m a

n R

e so

u rc

e P

la n

n in

g

O rg

a n

iz a

ti o

n a

lU n

it :S

a le

s a

n d

C u

st o

m e

r S

e rv

ic e

Jo b

C a

te g

o ry

a n

d L

e ve

l C

u rr

e n

t W

o rk

fo rc

e

F o

re ca

st fo

r W

o rk

fo rc

e —

O n

e Y

e a

r

R e

q u

ir e

m e

n ts

A va

ila b

ili ti

e s

R e

co n

ci lia

ti o

n a

n d

G a

p s

A ct

io n

P la

n n

in g

A 1 (S al e s)

10 0

11 0

71 3 9

(s h o rt ag

e )

R e cr u itm

e n t

A 2

(S al e s m an

ag e r)

2 0

15 2 2

7 (s u rp lu s)

S e le ct io n

E m p lo ym

e n t

B 1 (C u st o m e r se

rv ic e

re p re se

n ta tiv e )

2 0 0

2 5 0

14 0

11 0

(s h o rt ag

e )

R e te n tio

n C o m p e n sa tio

n

B 2

(C u st o m e r se

rv ic e

m an

ag e r)

15 2 5

2 2

3 (s h o rt ag

e )

T ra in in g an

d d e ve

lo p m e n t

3 3 5

4 0 0

2 5 5

14 5

(s h o rt ag

e )

099-67811_ch03_4P.indd 120 10/27/17 10:28 AM

CHAPTER THREE Planning 121

B1 alone. Or, a combination of internal transfers and external staffing for both A1 and B1 could be attempted. To the extent that external staffing becomes a candi­ date for consideration, this will naturally spill over into other HR activities, such as establishing starting­ pay levels for A1 and B1. Fi nally, a very dif fer ent strategy would be to develop and implement a major retention program for employees in customer ser vice.

For B2 there is a small projected shortage. This gap is so small, however, that for all practical purposes it can be ignored. The HRP pro cess is too imprecise to warrant concern over such small gap figures.

In short, the reconciliation and gap phase of HRP involves coming to grips with projected gaps and the likely reasons for them. Quite naturally, thoughts about future implications begin to creep into the pro cess. Even in the simple example shown, it can be seen that considerable action will have to be contemplated and undertaken to respond to the forecasting results for the orga nizational unit. That will involve mixtures of external and internal staffing, with compensation as another likely HR ingredient. Through action planning, these possibilities become real.

STAFFING PLANNING

After the HRP pro cess is complete, it is time to move toward the development of specific plans for staffing. This is a vital phase of the planning pro cess, in which staffing objectives are developed and alternative staffing activities are generated. The objectives are the targets the organ ization establishes to determine how many employees will be needed and in which job categories. The activities are the spe­ cific methods, including recruiting and se lection strategies, that will be used to meet these objectives. We devote special attention in this section to one of the most critical decisions made during staffing planning: Should the organ ization use a core workforce or a flexible workforce, or should parts of the workforce be outsourced?

Staffing Planning Pro cess

Staffing Objectives Staffing objectives are derived from identified gaps between requirements and availabilities. Thus, these objectives respond to both shortages and surpluses. They may require the establishment of quantitative and qualitative targets.

Quantitative targets should be expressed in head count or FTE form for each job category/level and will be very close in magnitude to the identified gaps. Indeed, to the extent that the organ ization believes in the gaps as forecast, the objectives will be identical to the gap figures. A forecast shortage of 39 employees in A1, for example, should be transformed into a staffing objective of 39 accessions (or something close to it) to be achieved by the end of the forecasting time interval.

099-67811_ch03_4P.indd 121 10/27/17 10:28 AM

122 PART TWO Support Activities

Exhibit 3.13 illustrates these points. For each cell, enter a positive number for head­ count additions and a negative number for head­ count subtractions.

Qualitative staffing objectives refer to the qualities of people in KSAO­ type terms. For external staffing objectives, these may be stated in terms of averages, such as average education level for new hires and average scores on ability tests. Internal staffing objectives of a qualitative nature may also be established. These may reflect desired KSAOs in terms of se niority, per for mance appraisal rec ord over a period of years, types of on­ and off­ the­ job training, and so forth.

The results of replacement and succession planning, or something similar to that, will be very useful to have as well.

Generating Alternative Staffing Activities With quantitative and, possibly, qualitative objectives established, it is necessary to begin identifying pos si ble ways of achieving them. At the beginning stages of generating alternatives, it is not wise to close the door prematurely on any of them. Exhibit 3.14 provides a full range of options for dealing with employee shortages and surpluses. As with previous planning pro cesses, the focus is not on specific programs at this stage but rather on broad classes of potential activities.

As shown in the exhibit, both short­ and long­ term options for shortages, involv­ ing a combination of staffing and workload management, are pos si ble. Short­ term options include utilizing current employees better (through more overtime, pro­ ductivity increases, and buybacks of vacation and holidays), outsourcing work to other organ izations (subcontracts, transferring work out), and acquiring additional employees on a short­ term basis (temporary hires and assignments). Long­ term options include staffing additional employees (recalling former employees, transfer­ ring in employees from other work units, adding new permanent hires), enhancing skills (retraining), and pushing work to other organ izations (transferring work out).

Note: The objective is to close each gap exactly.

Job Category

and Level Gap

Objectives

New Hires Promotions Transfers Demotions Exits Total

A1 A2 B1 B2

39 7

110 3

39 7

110 3

52 0

+140 +2

–6 +2 –5 +4

–3 –8 –3 – 1

0 0

–2 0

–4 –1

–20 –2

+

+

+

+

– –

EXHIBIT 3.13 Setting Numerical Staffing Objectives

099-67811_ch03_4P.indd 122 10/27/17 10:28 AM

CHAPTER THREE Planning 123

EXHIBIT 3.14 Staffing Alternatives to Deal With Employee Shortages and Surpluses

Employee shortage

Long-term options

Short-term options

Recalls Hires Permanent in-transfers

Retrain Transfer work out

Increase overtime or

part time

Increase subcontracts

Increase productivity

Buy back vacation or

holidays

Temporary assignments

Temporary hires

Transfer work out

Employee surplus

Long-term options

Short-term options

Freeze hires and use attrition

Permanent out-transfers

Layo�s Retirement incentives

Retrain Transfer work in

Freeze hires and use attrition

Reduce overtime or

part time

Transfer work in

Reduce workweek

Temporary shutdown or layo�s

Excused absences

Temporary assignments

Retrain or

train

Accumulate surplus

099-67811_ch03_4P.indd 123 10/27/17 10:28 AM

124 PART TWO Support Activities

Assessing and Choosing Alternatives As should be apparent, a veritable smorgasbord of alternative staffing activities are available to address staffing gaps. Each of these alternatives needs to be assessed systematically to help decision makers choose from among them.

The goal of assessment is to identify one or more preferred activities. A preferred activity offers the highest likelihood of attaining the staffing objective within the time limit established, at the least cost or at a tolerable cost, and with the fewest negative side effects. A wide variety of metrics are available to assess potential activities. First, a common set of assessment criteria (e.g., time for completion, cost, and probability of success) should be identified and agreed on. Second, each alternative should be assessed according to each of these criteria. In this way, all alternatives will receive equal treatment, and tendencies to jump at an initial alter­ native will be minimized.

All of these alternatives must be considered within the broader context of how the organ ization creates and structures its workforce. This involves the key stra­ tegic issue of core versus flexible workforce usage. The choice should be consid­ ered in light of the organ ization’s staffing philosophy, in par tic u lar, the difference between an internal and external emphasis. Many of the staffing activity alterna­ tives are more applicable to one type of workforce than another.

Core Workforce

A core workforce is defined as regular full­ time and part­ time employees of the organ ization. The key advantages of a core workforce are stability, continuity, and predictability. The organ ization can depend on its core workforce and build stra­ tegic plans based on it. Several other advantages accrue to the organ ization from using a core workforce. The regularity of the employment relationship fosters a sense of commitment and shared purpose toward the organ ization’s mission. In addition, the organ ization maintains the legal right to control employees working in its behalf, in terms of both work pro cess and expected results, rather than having to divide or share that right with organ izations providing a flexible workforce, such as temporary employment agencies. Fi nally, the organ ization can directly control how it acquires its workforce and the qualifications of those it employs through the management of its own staffing systems. By doing so, the organ ization may build not only a highly qualified workforce but also one more likely to be retained, thus lessening pressure to continually restaff.

A core workforce also has several disadvantages. The implied permanence of the employment relationship “locks in” the organ ization’s workforce, with a potential loss of staffing flexibility to rapidly increase, reduce, or redeploy its workforce in response to changing market conditions and proj ect life cycles. Reducing the core workforce can be very costly in terms of severance pay packages, low morale, and damage to the organ ization’s reputation as a good employer. Additionally, the labor costs of the core workforce may be greater than those of the flexible workforce

099-67811_ch03_4P.indd 124 10/27/17 10:28 AM

CHAPTER THREE Planning 125

due to (1) higher wages, salaries, and benefits for the core workforce, and (2) the fixed nature of these labor costs, relative to the more variable costs associated with a flexible workforce. By using a core workforce, the organ ization incurs numer­ ous legal obligations— particularly taxation and employment law compliance— that could be fully or partially avoided through the use of flexible workforce provid­ ers, which would be the actual employer. Fi nally, use of a core workforce may deprive the organ ization of new technical and administrative knowledge that could be infused into it by use of flexible workers such as programmers and con sul tants.

Consideration of these numerous advantages and disadvantages needs to occur separately for vari ous jobs and orga nizational units covered by the HR plan. In this way, usage of a core workforce proceeds along selective, strategic lines. Referring back to the original example in Exhibit 3.6, staffing planners should do a unique core workforce analy sis for the sales and customer ser vice unit, and within that unit, for both sales and customer ser vice jobs at the entry and managerial levels. The analy sis may result in a decision to use only full­ time core workers for the managerial jobs, both full­ time and part­ time core workers for sales jobs, and full­ time core customer ser vice representatives augmented by both full­ time and part­ time temporary customer ser vice representatives during peak sales periods. Once the job and work unit locations of the core workers have been determined, specific staffing planning for effective acquisition must occur. This involves planning of recruitment, se lection, and employment activities; these topics will be covered in subsequent chapters.

Flexible Workforce

The two major components of the flexible workforce are temporary employees provided by a staffing firm and in de pen dent contractors. Planning for usage of the flexible workforce must occur in tandem with core workforce planning; hence, it should begin with a review of the advantages and disadvantages of a flexible workforce.28

The key advantage is staffing flexibility. The flexible workforce may be used for adjusting staffing levels quickly in response to changing technological or con­ sumer demand conditions and to ebbs and flows of orders for products and ser­ vices. Other flexibility advantages are the ability to quickly staff new areas or proj ects and the ability to fill in for core workers absent due to illness, vacations, and holidays. Relative to the core workforce, the flexible workforce may also pres­ ent labor cost advantages in the form of lower pay and benefits, more variable labor costs, and reduced training costs. Another advantage for the organ ization is pos­ sibly being relieved of many tax and employment law obligations, since flexible workers are often not considered employees of the organ ization.

The flexible workforce, especially in the professional and technical ranks, may also be an impor tant source of new knowledge about orga nizational best practices and new skills not pres ent in the core workforce. In a related vein, organ izations

099-67811_ch03_4P.indd 125 10/27/17 10:28 AM

126 PART TWO Support Activities

use temporary or interim top executives to fill in until a permanent hire is found, to spur change, and to launch special proj ects requiring their expertise. However, most evidence suggests that temporary or interim executives often perform signifi­ cantly worse than their more established, permanent counter parts, so the decision to use a flexible managerial workforce needs to be undertaken carefully, and only if it is a good match to the organ ization’s strategic needs.29

These numerous advantages must be weighed against several potential disad­ vantages. Research clearly demonstrates that contingent workers are significantly less committed to their employers, and therefore are less likely to engage in extra­ role be hav iors, like volunteering to help coworkers, providing creative sugges­ tions, or exerting exceptional effort during times of high demand. The legal loss of control over flexible workers is another major concern. Although the organ­ ization has great flexibility in initial job assignments for flexible workers, it is very limited in the amount of supervision and per for mance management it can conduct for them. Exacerbating the situation, frictions between core and flexible workers may also arise. Core workers, for example, may feel that flexible workers lack knowledge and experience, and do not act like committed team players. Also, flexible workers may lack familiarity with equipment, policies, procedures, and impor tant customers; such deficiencies may be compounded by a lack of training in specific job requirements. Fi nally, the quality of the flexible workforce depends heavi ly on the quality of the staffing and training systems used by the provider of the flexible workers. The organ ization may end up with flexible but poorly quali­ fied workers.

Staffing Firms Recall that staffing firms (also called temporary help agencies) are the legal employers of the workers being supplied, though matters of co­ employment may arise. Hence, the staffing firm conducts recruitment, se lection, training, compensa­ tion, per for mance appraisal, and retention activities for the flexible workers. The firm is also responsible for on­ site supervision and management, as well as all payrolling and the payment of legally required insurance premiums. For such ser­ vices, the firm charges the organ ization a general fee for its labor costs (wages and benefits) plus a markup percentage of labor costs (usually 40%–50%) to cover these ser vices’ costs plus provide a profit. There may be additional charges for specially provided ser vices, such as extra testing or background checks or skill training. Temp­ to­ perm workers may be hired away from the firm (with its permis­ sion and for a special fee) by the organ ization to become regular employees in the core workforce. For larger clients the firm may provide an on­ site man ag er to help the organ ization plan its specific staffing needs, supervise and appraise the per for­ mance of the temporary workers, handle discipline and complaints, and facilitate firm– organ ization relations. With such additional staffing ser vices, the firm func­ tions increasingly like a staffing partner rather than just a staffing supplier.

099-67811_ch03_4P.indd 126 10/27/17 10:28 AM

CHAPTER THREE Planning 127

Use of a staffing firm requires advanced planning, rather than a panicky phone call to a firm at the moment of staffing need. In addition to becoming aware of firms that might be accessed, it is wise to become familiar with their characteristics and ser vices. Shown in Exhibit 3.15 are the vari ous factors and issues to become knowledgeable about for any firm.

Factor Issues Agency and Its Reputation How long in business; location; references from clients

available. Types of Workers Provided What occupation and KSAO levels; how many available. Planning and Lead Time Does agency help client plan staffing levels and needs;

how quickly can workers be provided. Services Provided Recruitment What methods are used; how targeted and truthful is

recruitment process. Selection What selection techniques are used to assess KSAOs. Training What types of training, if any, are provided before workers

are placed with client. Wages and Benefits How are wages determined; what benefits are provided. Orientation How does the agency prepare workers for assignment

with client; does agency have an employee handbook for its workers.

Supervision How does agency supervise its workers on site of client; does agency provide on- site manager.

Temp-to-Perm Does agency allow client to hire its temporary workers as permanent employees.

Client Satisfaction How does agency attempt to gauge client satisfaction with services, workers, costs.

Worker Effectiveness Punctuality and Attendance Does the agency monitor these; what is its record with

previous clients. Job Performance Is it evaluated; how are the results used. Retention How long do workers remain on an assignment voluntarily;

how are workers discharged by the agency. Cost Markup What is the percentage over base wage charged to client

(often it is 50% to cover benefits, overhead, profit margin). For Special Services What services cost extra beyond the markup (e.g., temp-

to- perm); what are those costs.

EXHIBIT 3.15 Factors to Consider When Choosing a Staffing Firm

099-67811_ch03_4P.indd 127 10/27/17 10:28 AM

128 PART TWO Support Activities

When the organ ization chooses a firm, both parties should enter into a formal written agreement. The agreement should cover such matters as specific ser vices to be provided, costs, steps to ensure that the flexible workers are employees of the firm (such as having an on­ site man ag er for them), and the pro cess for terminat­ ing the firm– organ ization relationship. It is best to have legal counsel prepare and review the agreement.

The organ ization may decide to establish its own in­ house staffing firm. When this is done, the employees of the firm may even be employees of the organ ization. Man ag ers thus have readily available flexible workers to whom they can turn, without having to go through all the planning steps mentioned above.

In de pen dent Contractors An in de pen dent contractor (IC) provides specific task and proj ect assistance to the organ ization, such as maintenance, bookkeeping, advertising, programming, and consulting. The IC can be a single individual (self­ employed, freelancer) or an employer with its own employees. Neither the IC nor its employees are intended to be employees of the organ ization utilizing the IC’s ser vices, and care should be taken to ensure that the IC is not treated like an employee (see Chapter 2).30

As with staffing firms, the organ ization must take the initiative to identify and check out ICs for pos si ble use in advance of when they are actually needed. It is desirable to solicit and examine references from past or current clients of the IC. In addition, as much as pos si ble the organ ization should seek to determine how the IC staffs, trains, and compensates any employees. This could occur during a preliminary meeting with the IC. If a single individual will be working as an IC, it is advisable to use some of the same tools we describe later in the book for assessing job candidates, including an assessment of KSAOs through a standardized inter­ view pro cess and collection of references related to these characteristics.

Outsourcing

Outsourcing of work functions can be defined as the transfer of a business pro­ cess to an external organ ization. This is a more drastic step than simply using ICs or temporary employees. The primary difference is that when pro cesses are out­ sourced, the organ ization expects to receive a completely finished product from the external source. This means the organ ization does not direct or control the way in which work is performed; rather, it only receives the end result of the work.

Within the HR department, it has become the norm for organ izations to completely outsource routine or highly specialized tasks, including payroll, benefits, legal com­ pliance, or development of online recruiting strategies. Other core functions like employee training, per for mance tracking, compensation system administration, and recruiting system management can also be outsourced. Smaller organ izations with­ out the resources for multiple HR staff are especially likely to use outsourcing.31

099-67811_ch03_4P.indd 128 10/27/17 10:28 AM

CHAPTER THREE Planning 129

Organ izations outsource for a variety of reasons. An obvious reason for out­ sourcing of manufacturing and routine information­ processing tasks is the avail­ ability of less expensive labor in the global market. Often, specialized vendors can achieve economies of scale for routine tasks that are performed across a variety of organ izations. Organ izations also outsource functions that have highly cyclical demand so that they do not have to make major capital outlays and go through the cost of hiring and training permanent workers to perform tasks that may not be needed in the future. Sometimes organ izations outsource functions that require specific expertise that cannot be eco nom ically generated in­ house. Smaller organ­ izations that require legal ser vices, for example, often choose to hire an external law firm rather than establish their own pool of legal specialists. As we have noted, many organ izations also outsource routine business functions, such as having third­ party vendors take care of payroll or benefits administration tasks.

One variant of outsourcing is termed “offshoring,” which means that products or ser vices are provided by an external source outside the country where the organ­ ization’s core operations take place.32 The outsourcing of manufacturing to lower­ wage countries has a long history, and this practice is likely to continue unabated. For example, in the computer industry it is common for large companies to have many subcomponent electronic parts manufactured by third­ party vendors over­ seas, with final assembly of products performed domestically. Many companies have outsourced routine computer programming and telephone help ser vices to third­ party providers in India because of the availability of a highly skilled labor force that typically draws only a fraction of the wages paid in North Amer i ca. Offshoring is no longer limited to blue­ and pink­ collar jobs. There has been a dramatic increase in offshoring white­ collar technical and professional work in the twenty­ first century, fueled by improvements in global education, an increasingly positive climate for business in China and India, and increased demand for prod­ ucts and ser vices in multinational organ izations.

The decision to outsource is likely to be controversial. Outsourcing is usually done for activities that have low added value for the organ ization. Normal trans­ actional or procedural work that is easily replicated is likely to be outsourced. Best practices identified by research across many studies suggest that outsourcing of routine functions that is focused on enhancing efficiency and cost savings can have a positive outcome for firm per for mance, at the price of reduced flexibility and responsiveness created by the bureaucracy needed to manage the relationship with an external partner. Other firms also engage in outsourcing for the purpose of acquiring technical knowledge that they cannot replicate in­ house. Such interac­ tions can increase innovation, especially if the com pany maintains a “hands­ off” relationship with the external partner so they can truly generate innovative solu­ tions to prob lems. On the other hand, a simpler picture emerges when it comes to outsourcing core functions related to strategy development and implementation. Outsourcing these functions almost always leads to worse per for mance.33

099-67811_ch03_4P.indd 129 10/27/17 10:28 AM

130 PART TWO Support Activities

Additionally, offshoring has been the focus of media and po liti cal scrutiny. Extremely low wages and dangerous working conditions provided by external partners in foreign countries have created a backlash against certain companies that have offshored manufacturing jobs. Negative press about poor working conditions in overseas “sweatshops” has been especially prominent in the clothing industry. When outsourcing, an organ ization needs to make certain that it is not losing too much control over its major work pro cesses. Just because a business pro cess has been outsourced does not mean that the organ ization has lost the responsibility (and this sometimes includes legal liability) for the actions of external partners.

DIVERSITY PLANNING

Diversity programs arise out of a recognition that the labor force is becoming more demographically and culturally diverse. Diversity planning in staffing requires developing a strategy to recruit and select a diverse group of employees. Another major focus of diversity programs is the assimilation and adaptation of a diverse workforce.

To foster workforce diversity and to help strengthen the diversity– orga nizational effectiveness link, organ izations have designed and implemented a wide variety of diversity initiatives and programs. Many of these initiatives involve staffing, as a diverse workforce must be actively identified, acquired, deployed, and retained. Most organ izations supplement the staffing component of their diversity initiatives with many other programs, including diversity training for man ag ers and employ­ ees to heighten awareness and ac cep tance of diversity, mentoring relationships, work/life balance actions such as flexible work schedules, team building, and spe­ cial career and credential­ building job assignments.

Demography of the American Workforce

In part, organ izations need to take diversity into account because the workforce has become more diverse. There has been a massive shift in the makeup of the American workforce over the past 30 years.34 Once excluded from large portions of the workforce, women now make up half of the labor force, along with making up a majority of university gradu ates. There has also been a dramatic increase in the ethnic and racial diversity of the workforce. Immigration into the United States has brought large numbers of Latinos and Asians, and the pro gress of civil rights legislation has removed previous barriers to employment faced by African Ameri­ cans. Legislation and technology have combined to make accommodations that allow the entry of individuals with disabilities into the workforce more feasible. The age diversity of the workforce has increased over time, as greater numbers of individuals continue working into their sixties and seventies. There has also been an increased presence of openly lesbian, gay, bisexual, and transgender (LGBT)

099-67811_ch03_4P.indd 130 10/27/17 10:28 AM

CHAPTER THREE Planning 131

employees in the workforce, which has been accompanied by numerous state and local statutes making sexual orientation and/or gender identity a protected class.35

These shifts in the makeup of the workforce have permanently altered the requirements for successful HR management. Surveys conducted by SHRM sug­ gest that man ag ers are especially concerned about the loss of skills due to the retirement of baby boomers, increases in medical expenses that arise as the work­ force ages, and employee elder­ care responsibilities.36 A host of other issues have been identified as arising from demographic changes, including providing work­ life benefits for dual­ career couples and developing multilingual training materials for workers who primarily speak a language other than En glish.

Business Case for Diversity

There is a strong impetus for effectively managing a diverse workforce. In fact, many argue that above and beyond the ethical need to treat all employees fairly and with re spect, there is a financial imperative to manage diversity effectively.37 Many investigations of diversity and firm per for mance have shown that simply increasing the number of people from diverse backgrounds does little to help firm performance— the potential gains from a diverse workforce are realized only when a culture is supportive of diversity. As we noted in the introductory chapter, there are two ways organ izations can address issues related to diversity. In passive diver­ sity planning, the organ ization reviews all policies and practices to ensure there is no discrimination on the basis of race, religion, national origin, gender, disability status, age, or other protected classes covered locally. In active diversity planning, the organ ization goes a step further by encouraging underrepresented groups to apply for positions, actively recruiting from a variety of sources that are likely to be seen by underrepresented groups, and providing additional training and mentor­ ing to encourage the advancement of underrepresented groups.

There are certain advantages of an active diversity management strategy. Exhibit 3.16 illustrates ways in which an effective diversity management strategy can enhance orga nizational effectiveness in several domains. It should be noted that these are not speculative staffing outcomes— all are supported by prior research findings. In some areas, like legal compliance, the goal is to minimize negative consequences. However, the foundation of diversity management should be based on the potential advantages of effective diversity management. It is more produc­ tive for an organ ization to emphasize diversity management as an opportunity for gain, rather than as a way of protecting against a threat. Emphasizing the posi­ tive impact that all workers will see when diversity is managed effectively will also enhance managerial motivation to implement diversity­ oriented policies.38

At the same time, there are costs associated with these active diversity efforts that must be considered, as additional recruiting, se lection, and training programs do not come for free. Empirical evidence suggests that despite the conceptual advantages of having more diverse points of view in work groups, demographically diverse teams

099-67811_ch03_4P.indd 131 10/27/17 10:28 AM

132 PART TWO Support Activities

are not more effective than more homogenous teams.39 Active diversity efforts that are specifically directed to some groups of employees and not others may uninten­ tionally send a message to members of the demographic majority that they are less welcome in the organ ization. Therefore, an organ ization needs to carefully consider how to engage in active diversity planning and select the right mix of passive and active strategies to maximize orga nizational effectiveness.

Planning for Diversity

Whether an organ ization adopts an active or passive diversity strategy, there are several ways that workforce diversity should be taken into account in the staffing planning pro cess. First and foremost, top management must state that diversity goals are impor tant and will be mea sured.40 Clear communications regarding diver­ sity strategies should be made, and updated frequently, to remind employees of the importance of nondiscrimination for the organ ization’s mission.

Many recruiting activities can help enhance the diversity of the workforce. One such activity is to advertise positions in media sources that target a variety of

EXHIBIT 3.16 Making the Business Case for Diversity

Area of Concern Effective Diversity Management

Legal and policy compliance • Avoids lawsuits • Minimizes operational disturbances • Prevents negative press due to government

investigations

Staffing levels • Broadens base of candidates from which to select • Increases diversity of employee KSAOs • Improves potential to respond to environmental

change • Improves retention of employees

Employee attitudes and behavior • Enhances engagement • Creates perceptions of justice • Fosters cooperation and collaboration among

employees

Product/service market • Increases insight into diverse customer groups’ preferences

• Heightens sensitivity in interacting with the public • Improves relationships with communities and

regulatory agencies

099-67811_ch03_4P.indd 132 10/27/17 10:28 AM

CHAPTER THREE Planning 133

demographic groups.41 Organ izations that wish to increase the diversity of their workforce may also consider recruiting at colleges, universities, and other institu­ tions that have large numbers of underrepresented minorities. These efforts can have a major impact on employee attitudes. Studies show that women and minori­ ties prefer to work at companies that show a commitment to diversity in their recruiting efforts. Internally, orga nizational promotion efforts should target quali­ fied members of underrepresented groups, possibly supplemented with mentoring programs to overcome gaps in skills.42

There are also techniques that can incorporate diversity into the se lection pro­ cess. Requirements that might lead to lower repre sen ta tion of traditionally under­ represented groups should be considered carefully, and if they are not absolutely necessary for job per for mance, they should be eliminated. Additionally, efforts to incorporate objective standards for judging candidate qualifications and policies that encourage nondiscrimination have been shown to diminish the extent of dis­ crimination in the hiring pro cess.43

Unfortunately, evidence suggests that many organ izations do not take demo­ graphic shifts in the workplace into account when developing staffing plans. Pro­ grams to help dual­ career couples manage work and child­ care arrangements are implemented in a rather scattered fashion, with some organ izations doing little to recognize the needs of such families. Other organ izations have failed to adequately address the needs of employees with disabilities, even though disability rights advocates note that most accommodations are relatively inexpensive and do not affect core job tasks. Often, the needs of older workers are also overlooked. A sur­ vey of over 700 organ izations found that 77% of companies had not analyzed pro­ jected retirement rates of their workforce or had done so to only a limited extent.44 Similarly, data show that about a third of employers report that they do not have enough programs for the recruitment and training of older workers.45

Research shows that diversity­ oriented practices, including targeted recruitment, inclusion of women and African Americans on the top management team, work/fam­ ily accommodations, the creation of AAPs, and diversity councils, can increase the racial and gender diversity of the organ ization’s entire managerial workforce.46 The effects of such practices on the composition of the nonmanagerial workforce are not well known, nor have the effects of these practices on orga nizational per for mance been documented. Similar programs with a strong behavioral component designed to improve the repre sen ta tion of individuals with disabilities and older workers should also be considered. It is in ter est ing to note that while concrete programs like those mentioned above have been highlighted as improving workforce diversity, attitude­ based diversity training interventions have not shown as much effectiveness.

The Aging Workforce The aging workforce has proven to be a recent staffing challenge facing organ­ izations (and individuals seeking employment). It is estimated that the number

099-67811_ch03_4P.indd 133 10/27/17 10:28 AM

134 PART TWO Support Activities

of individuals who are more than 74 years old and still employed has increased by a whopping 172% over the 1977–2007 period. However, this growth signifi­ cantly tapered off after the Great Recession, with employment rising by a mere 3% between 2007 and 2016.47 Although many older individuals continued to work after the Great Recession out of financial necessity (many saw their retirement portfolios shrink to substandard levels), their continued push for employment, even as the economy has rebounded, is due to other factors. Not only are people living longer, but many jobs are not as physically demanding as they were in previous generations, allowing individuals to work well past the traditional retire­ ment age.

Older workers are frequently burdened by myths and ste reo types that may influ­ ence employers’ perceptions of their competence and potential for success. Such myths include perceptions that older workers are poor performers, unmotivated, unhealthy, and resistant to change and skill acquisition. A recent meta­ analysis of these ste reo types found that most are exaggerations. Less willingness to train on the part of older workers was the sole exception, although the magnitude of this effect was not great. Thus, the increasing number of older individuals seeking employment pres ents both opportunities and challenges for se lection systems.48

LEGAL ISSUES

The major legal issues in HR and staffing planning are AAPs and diversity pro­ grams. AAPs originate from many sources— voluntary employer efforts, court­ imposed remedies for discriminatory practices, conciliation or consent agreement, and requirements as a federal contractor. Regardless of the source, all AAPs seek to rectify the effects of past employment discrimination by increasing the repre­ sen ta tion of certain groups (minorities, women, veterans, and qualified individ­ uals with disabilities) in the organ ization’s workforce. This is achieved through establishing and actively pursuing hiring and promotion goals for these groups. As described above, diversity programs are undertaken for competitive reasons, rather than as a legal response to discrimination. However, diversity programs may share components with AAPs.

This section describes the general content of AAPs, discusses the affirmative action requirements for federal contractors under AAP regulations, and provides some general indications as to the legality of AAPs and diversity programs.

Affirmative Action Plans

AAPs are organization­ specific plans that, as noted above, have a legal origin and basis. They precede diversity programs, which organ izations typically undertake for strategic business reasons rather than legal ones. Often, however, the struc­ ture and content of AAPs and diversity programs are very similar. While AAPs

099-67811_ch03_4P.indd 134 10/27/17 10:28 AM

CHAPTER THREE Planning 135

are organ ization specific, they all share a common architecture composed of three major components— availability analy sis of women and minorities, placement (hir­ ing and promotion) goals derived from comparing availability with incumbency (percentages of women and minority employees), and action­ oriented programs for meeting the placement goals. These components, and accompanying details, are spelled out in the federal regulations put forth and enforced by the Office of Federal Contract Compliance Programs (OFCCP). The Federal Contractor Com­ pliance Manual may also be consulted (dol​.​gov​/​ofccp).

Affirmative Action Programs Regulations All but very small federal contractors must develop and implement AAPs accord­ ing to the OFCCP’s affirmative action regulations. Below are a summary of those regulations and a sample of an AAP for small employers from the OFCCP website. The contractor must develop a separate AAP for each of its establishments with more than 50 employees. With advance approval from the OFCCP, the contractor may sidestep separate establishment plans by developing a functional plan that covers employees in discrete functional or business units, even though they are in dif fer ent locations. All employees must be included in either AAP. The description that follows is for an establishment plan. It uses race, ethnicity, and job category designations on the EEO­1 form (see Chapter 13). OFCCP race, ethnicity, and job category designations are somewhat dif fer ent. Usage of either EEOC or OFCCP designations is acceptable.

Organ ization Display. An organ ization display depicts the staffing pattern within an establishment. It provides a profile of the workforce at the establish­ ment, and it assists in identifying units in which women or minorities are under­ represented. Key ele ments are a showing of orga nizational structure of lines of progression (promotion) among jobs or organ ization units, the total number of job incumbents, the total number of male and female incumbents, and the total number of male and female incumbents in each of the following groups: Hispanic and Latino, white, black or African American, Native Hawaiian or other Pacific Islander, Asian, American Indian or Alaskan Native, and two or more races.

Job Group Analy sis. Jobs with similar content, wage rates, and opportunities (e.g., promotion, training) must be combined into job groups, and each group must include a list of job titles. Small establishments (fewer than 150 employees) may use the categories on the EEO­1 form: executives/se nior level officials and man­ ag ers, first/mid­ level officials and man ag ers, professionals, technicians, sales workers, administrative support workers, craft workers, operatives, laborers and helpers, and ser vice workers. The percentage of minorities and the percentage of women (determined in the previous step) employed in each job group must be indicated.

099-67811_ch03_4P.indd 135 10/27/17 10:28 AM

136 PART TWO Support Activities

Availability Determination. The availability of women and minorities must be determined separately for each job group. At a minimum, the following two factors should be considered when determining availability:

1. The percentage of minorities or women with requisite skills in the reasonable recruitment area

2. The percentage of minorities or women among those promotable, transfer­ able, and trainable within the organ ization

Current census data, job ser vice data, or other data should be consulted to deter­ mine availability. When there are multiple job titles in a job group, with dif fer ent availability rates, a composite availability figure for the group must be calculated. This requires summing weighted availability estimates for the job titles.

Exhibit 3.17 shows an example of availability determination for a single job group based on the EEO­1 form. Listed on the left are the two availability factors that must be considered. Shown next are the raw statistic availability estimates for females and minorities (summed across the four minority groups) for both of the availability factors (refer to the “Source of Statistics” column to see the sources of data for these estimates). Next, the value weights represent an estimate of the percentages of the total females and minorities available according to each avail­ ability factor (50% for each group). The weighted statistics represent the raw sta­ tistics multiplied by the value weight (e.g., 41.8% × .50 = 20.9%). A summation of the weighted statistics yields the total availability estimate percentages (47.6% for female, 18.1% for minority).

Comparison of Incumbency With Availability. For each job group, the per­ centages of women and minority incumbents must be compared with their avail­ ability. When the percentage employed is less than would reasonably be expected by the availability percentage, a placement goal must be established.

Exhibit 3.18 compares incumbency with availability for eight job groups, includ­ ing job group 1. The comparisons are shown separately for females and minorities. Where incumbency is less than availability, the organ ization may decide to estab­ lish a placement goal. In job group 1, it was concluded that the differences between availability and incumbency percentages for both females and minorities were suf­ ficient to warrant placement goals (47.6% for females and 18.1% for minorities). Note that an incumbency percentage less than an availability percentage does not automatically trigger a placement goal (e.g., females in job group 5).

How does the organ ization decide whether to set a placement goal for females or minorities in a job group? The OFCCP permits some latitude. One possibility is to set a placement goal whenever incumbency is less than availability, on the theory that any differences between availability and incumbency represent underuti­ lization of females and minorities. A second possibility is based on the theory that some differences in percentages are due to chance, so some amount of tolerance of

099-67811_ch03_4P.indd 136 10/27/17 10:28 AM

CHAPTER THREE Planning 137

E X

H IB

IT 3

.1 7

D

e te

rm in

in g

A va

ila b

ili ty

o f

M in

o ri

ti e

s a

n d

W o

m e

n

S o

u r

c e:

S am

p le

A ff

ir m

at iv

e A

ct io

n P

ro g

ra m

f o

r S

m al

l E m

p lo

ye rs

, 2 0

0 4

(w w

w .d

o l.g

o v/

o fc

cp ).

Jo b

G ro

u p

: 1 R

aw S

ta tis

tic s

V al

u e

W e

ig h

t W

e ig

h te

d S

ta tis

tic s

R e

as o

n f

o r

W e

ig h

tin g

1. P

e rc

e n

ta g

e o

f m

in o

ri tie

s o

r w

o m

e n

w ith

r e

q u

is ite

sk

ill s

in t

h e

r e

as o

n ab

le re

cr u

itm e

n t

ar e

a

2 .

P e

rc e

n ta

g e

o f

m in

o ri

tie s

o r

w o

m e

n a

m o

n g

t h

o se

p

ro m

o ta

b le

, t ra

n sf

e ra

b le

, an

d t

ra in

ab le

w ith

in t

h e

co

n tr

ac to

r’ s

o rg

an iz

at io

n

2 0

0 0

C e

n su

s D

at a

T h

e re

as o

n ab

le re

cr u

itm e

n t

ar e

a fo

r th

is jo

b g

ro u

p is

th e

S t.

Lo u

is ,

M O

– IL

m e

tr o

p o

lit an

st at

is tic

al a

re a

(M S

A ).

5 0

% o

f p

la ce

m e

n t

in to

t h

is jo

b g

ro u

p is

m ad

e f

ro m

e xt

e rn

al h

ir e

s.

5 0

% o

f p

la ce

m e

n t

in to

t h

is jo

b g

ro u

p is

m ad

e f

ro m

in te

rn al

p ro

m o

tio n

s.

T h

e g

ro u

p o

f p

ro m

o ta

b le

e m

p lo

ye e

s in

jo b

g ro

u p

2

4 1.

8 %

9 .4

% 5

0 .0

% 2

0 .9

% 4

.7 %

5 3

.3 %

2 6

.7 %

5 0

.0 %

2 6

.7 %

13 .4

%

F e

m al

e

M in

o ri

ty F

e m

al e

M

in o

ri ty

r otcaF la

niF <

% 0

0 1

:slat o

T 4 7 .6 %

18 .1 %

Jo b

G ro

u p

: 1

V al

u e

W e

ig h

t S

ta tis

tic s

S o

u rc

e o

f

099-67811_ch03_4P.indd 137 10/27/17 10:28 AM

138 PART TWO Support Activities

Jo b

G ro

u p

F e

m al

e In

cu m

b e

n cy

F e

m al

e A

va ila

b ili

ty E

st ab

lis h

G o

al ?

Y e

s/ N

o

If Y

e s,

G o

al f

o r

F e

m al

e s

M in

o ri

ty In

cu m

b e

n cy

M in

o ri

ty A

va ila

b ili

ty E

st ab

lis h

G o

al ?

Y e

s/ N

o

If Y

e s,

G o

al f

o r

M in

o ri

tie s

1 2 4 5 6 7 8

0 .0

%

4 5

.5 %

2 0

.0 %

8 3

.3 %

9 .3

%

10 .0

%

6 .3

%

4 7.

6 %

4 3

.8 %

3 4

.5 %

8 7.

7%

5 .5

%

6 .3

%

19 .1

%

4 7 .6 %

3 4 .5 %

19 .1 %

Y e s

N o

Y e s

N o

N o

N o

Y e s

11 .1

%

18 .2

%

0 .0

%

4 3

.3 %

3 4

.9 %

3 0

.0 %

3 7.

5 %

18 .1

%

8 .2

%

12 .4

%

2 7.

6 %

2 3

.2 %

3 7.

5 %

2 6

.3 %

18 .1 %

12 .4 %

Y e s

N o

Y e s

N o

N o

N o

N o

E X

H IB

IT 3

.1 8

D

e te

rm in

in g

A ff

ir m

a ti

ve A

ct io

n G

o a

ls : C

o m

p a

ri n

g In

cu m

b e

n cy

W it

h

A va

ila b

ili ty

a n

d A

n n

u a

l P la

ce m

e n

t G

o a

ls

N o

te : T

h e

8 0

% r

u le

o f

th u

m b

is f

o llo

w e

d in

d e

cl ar

in g

u n

d e

ru til

iz at

io n

a n

d e

st ab

lis h

in g

g o

al s

w h

e n

t h

e a

ct u

al e

m p

lo ym

e n

t o

f m

in o

ri tie

s o

r fe

m al

e s

is le

ss t

h an

8 0

% o

f th

e ir

a va

ila b

ili ty

. I f

th e

f e

m al

e /m

in o

ri ty

in cu

m b

e n

cy p

e rc

e n

ta g

e (%

) i s

le ss

t h

an t

h e

f e

m al

e /m

in o

ri ty

av

ai la

b ili

ty p

e rc

e n

ta g

e (%

) a n

d t

h e

r at

io o

f in

cu m

b e

n cy

t o

a va

ila b

ili ty

is le

ss t

h an

8 0

% , a

p la

ce m

e n

t g

o al

s h

o u

ld b

e in

cl u

d e

d in

t h

e

ap p

ro p

ri at

e “

If Ye

s” c

o lu

m n

. S

o u

r c

e: S

am p

le A

ff ir

m at

iv e

A ct

io n

P ro

g ra

m f

o r

S m

al l E

m p

lo ye

rs , 2

0 0

4 (w

w w

.d o

l.g o

v/ o

fc cp

).

099-67811_ch03_4P.indd 138 10/27/17 10:28 AM

CHAPTER THREE Planning 139

differences is permissible. The suggested rule is 80% tolerance. This means that if the ratio of incumbency percentage to availability percentage is greater than 80%, no placement goal is needed. If the ratio is less than 80%, a placement goal must be set. The 80% rule was followed in Exhibit 3.18. Though the incumbency per­ centage for females was less than the availability percentage in both job groups 1 and 5, the difference was less than 80% in only job group 1, triggering a placement goal just for that group.

Placement Goals. If an annual placement goal is set, it should at least equal the availability percentage for women or minorities in a job group. Placement goals may not be rigid or inflexible quotas; quotas are expressly forbidden. Place­ ment goals do not require hiring a person who lacks the qualifications to perform the job successfully, or hiring a less qualified person in preference to a more quali­ fied one.

Designation of Responsibility. An official of the organ ization must be desig­ nated as responsible for the implementation of the AAP.

Identification of Prob lem Areas. The organ ization must evaluate the following:

• Prob lems of minority or female utilization or distribution in each job group • Personnel activity (applicant flow, hires, terminations, and promotions) and

other personnel actions for pos si ble se lection disparities • Compensation systems for pos si ble gender­ , race­ , or ethnicity­ based

disparities • Se lection, recruitment, referral, and other procedures to see whether they

result in disparities in employment or advancement of minorities or women

Action- Oriented Programs. The organ ization must develop and execute action­ oriented programs to correct any identified prob lem areas and attain placement goals. Specific examples of these programs are shown in Exhibit 3.19.

Internal Audit and Reporting. An auditing system must be developed that peri­ odically mea sures the effectiveness of the total AAP.

Legality of AAPs and Diversity Programs

AAPs have been controversial since their inception, and there have been many challenges to their legality. Questions of legality involve complex issues of constitu­ tionality, statutory interpretations, differences in the structure of the AAPs being challenged in the courts, claims that affirmative action goals represent hiring quo­ tas, and, very importantly, differences in the amount of weight placed on race or gender in the ultimate se lection decisions made about job applicants.

099-67811_ch03_4P.indd 139 10/27/17 10:28 AM

140 PART TWO Support Activities

EXHIBIT 3.19 Examples of Action-Oriented Programs for an AAP

1. Conducting annual analyses of job descriptions to ensure they accurately reflect job functions;

2. Reviewing job descriptions by department and job title using performance criteria;

3. Making job descriptions available to recruiting sources and to all members of management involved in the recruiting, screening, selection, and promotion processes;

4. Evaluating the total selection process to ensure freedom from bias through:

a. Reviewing job applications and other preemployment forms to ensure information requested is job related;

b. Evaluating selection methods that may have a disparate impact to ensure that they are job related and consistent with business necessity; and

c. Training in EEO for management and supervisory staff.

5. Using techniques to improve recruitment and increase the flow of minority and female applicants:

a. Include the phrase “Equal Opportunity/Affirmative Action Employer” in all printed employment advertisements;

b. Place help-wanted advertisements, when appropriate, in local minority news media and women’s interest media;

c. Disseminate information on job opportunities to organizations representing minorities, women, and employment development agencies when job opportunities occur;

d. Encourage all employees to refer qualified applicants;

e. Actively recruit at secondary schools, junior colleges, and colleges and universities with predominantly minority or female enrollment; and

f. Request employment agencies to refer qualified minorities and women.

6. Hiring a statistical consultant to perform a self-audit of compensation practices; and

7. Ensuring that all employees are given equal opportunity for promotion:

a. Post promotional opportunities;

b. Offer counseling to assist employees in identifying promotional opportunities, and offer training and educational programs to increase promotions and opportunities for job rotation or transfer; and

c. Evaluate job requirements for promotion.

Source: Adapted from Sample Affirmative Action Program for Small Employers, 2010 (www.dol.gov/ofccp).

099-67811_ch03_4P.indd 140 10/27/17 10:28 AM

CHAPTER THREE Planning 141

Despite these prob lems, it is pos si ble to provide several conclusions and recom­ mendations regarding affirmative action. AAPs in general are legal in the eyes of the Supreme Court. However, to be acceptable, an AAP should be based on the following guidelines:49

• The plan should have as its purpose the remedying of specific and identifiable effects of past discrimination.

• The plan should address the current underutilization of women and/or minori­ ties in the organ ization, using goals and not quotas or setting aside positions.

• Regarding non­ minority and male employees, the plan should not unsettle their legitimate expectations, should not result in their discharge or layoff and replacement with minority or women employees, and should not create an absolute bar to their promotion.

• The plan should be temporary and should be eliminated once affirmative action goals have been achieved.50

• All candidates for positions should be qualified for those positions. • The plan should include orga nizational enforcement mechanisms as well as a

grievance procedure.

Court rulings on the constitutionality of federal and state government AAPs suggest that even more strict guidelines than these may be necessary. Insofar as these programs are concerned, racial preferences are subject to strict constitutional scrutiny. They may be used only when there is specific evidence of identified dis­ crimination, when the remedy has been narrowly tailored to only the identified discrimination, when only those who have suffered discrimination may benefit from the remedy, and when other individuals will not carry an undue burden, such as job displacement, from the remedy. Lesser scrutiny standards may apply for gender preferences.51 Some states have even banned the use of AAPs by govern­ ment employers, contractors, and educational institutions.52

Turning to diversity programs, the EEOC states the following about how they differ from AAPs, as well as their permissibility:

Diversity and affirmative action are related concepts, but the terms have dif­ fer ent origins and legal connotations. Workforce diversity is a business man­ agement concept under which employers voluntarily promote an inclusive workplace. Employers that value diversity create a culture of re spect for indi­ vidual differences in order to “draw talent and ideas from all segments of the population” and thereby potentially gain a “competitive advantage in the increasingly global economy.” Many employers have concluded that a diverse workforce makes a com pany stronger, more profitable, and a better place to work, and they implement diversity initiatives for competitive reasons rather than in response to discrimination, although such initiatives may also help to avoid discrimination.

099-67811_ch03_4P.indd 141 10/27/17 10:28 AM

142 PART TWO Support Activities

Title VII permits diversity efforts designed to open up opportunities to every one. For example, if an employer notices that African Americans are not applying for jobs in the numbers that would be expected given their availability in the labor force, the employer could adopt strategies to expand the applicant pool of qualified African Americans such as recruiting at schools with high African American enrollment. Similarly, an employer that is changing its hir­ ing practices can take steps to ensure that the practice it selects minimizes the disparate impact on any racial group. For example, an employer that previously required new hires to have a college degree could change this requirement to allow applicants to have a college degree or two years of relevant experience in the field. A need for diversity efforts may be prompted by a change in the population’s racial demographics, which could reveal an underrepre sen ta tion of certain racial groups in the work force in comparison to the current labor pool.53

AAPs for Veterans and Individuals With Disabilities

There are specific AAP regulations for federal contractors under the Vietnam Era Veterans’ Readjustment Assistance Act and the Rehabilitation Act. Though each law has its own regulations, the regulations include many common requirements, most importantly for staffing:

1. Establishing an annual hiring goal (8% for veterans and 7% for qualified indi­ viduals with disabilities)

2. Conducting a review of personnel pro cesses to ensure they provide for care­ ful, thorough, and systematic consideration of the job qualifications of appli­ cants and employees for job vacancies filled by hiring or promotion and for training opportunities

3. Reviewing all physical or mental job qualifications to ensure that they do not tend to screen out individuals with disabilities or veterans, and that the quali­ fications are job related and consistent with business necessity

4. Providing reasonable accommodation for physical and mental limitations, unless it would impose an undue hardship on the operation of the business

5. Undertaking appropriate outreach and positive recruitment activities (many suggested activities are listed) and evaluating their effectiveness annually

6. Inviting voluntary self­ identification by applicants pre­ offer, and employees post­ offer, of disabilities and veteran status

EEO and Temporary Workers

The EEOC has provided guidance on coverage and responsibility requirements for temporary employment agencies (and other types of staffing firms) and their client organ izations.54 When both the agency and the client exercise control over

099-67811_ch03_4P.indd 142 10/27/17 10:28 AM

CHAPTER THREE Planning 143

the temporary employee and both have the requisite number of employees, they are considered employers and jointly liable under the Civil Rights Act, the Age Discrimination in Employment Act (ADEA), the ADA, and the Equal Pay Act. It should be noted that these laws also apply to individuals placed with organ izations through welfare­ to­ work programs. The agency is obligated to make referrals and job assignments in a nondiscriminatory manner, and the client may not set discrimi­ natory job referral and job assignment criteria. The client must treat the temporary employees in a nondiscriminatory manner; if the agency knows this is not happen­ ing, the agency must take any corrective actions within its control. The agency, the client, or both parties could face substantial penalties for noncompliance (e.g., back pay, front pay, and compensatory damages). There is special guidance for ADA­ related issues.

SUMMARY

Internal and external forces shape the conduct and outcomes of HRP. The key forces and trends that emerge are orga nizational strategy, orga nizational culture, labor markets, and technology.

HRP is a pro cess and set of activities conducted to forecast future HR require­ ments and availabilities, resulting in the identification of likely employment gaps (shortages and surpluses). Action plans are then developed for addressing the gaps. Before HRP begins, initial decisions must be made about its comprehensiveness, planning time frame, job categories and levels to be included, how to “count heads,” and the roles and responsibilities of line and staff (including HR) man ag ers.

A variety of statistical and judgmental techniques may be used in forecasting. Those used in forecasting requirements are typically used in conjunction with business and organ ization planning. For forecasting availabilities, techniques must be used that take into account the movements of people into, within, and out of the organ ization, on a job­ by­ job basis. Here, man ag er judgment, Markov Analy­ sis, and replacement and succession planning are suggested as particularly useful techniques.

Staffing planning is a form of action planning. It is shown to generally require setting staffing objectives, generating alternative staffing activities, and assessing and choosing from among those alternatives. A fundamental alternative involves the use of core or f lexible workforces, as identified in staffing strategy. Plans must be developed for acquiring both types of workforces, and the advantages and disadvantages of each type should be reviewed to reaffirm strategic choices about the use of each. After this step, planning can begin. For the core workforce, this involves matters of staffing philosophy that will guide the planning of recruit­ ment, se lection, and employment activities. For the flexible workforce, the organ­ ization should establish early contact with the providers of the flexible workers

099-67811_ch03_4P.indd 143 10/27/17 10:28 AM

144 PART TWO Support Activities

(i.e., staffing firms and in de pen dent contractors). Orga nizational leaders should also consider the advantages and disadvantages of outsourcing some jobs at this point.

Changes in the demographic makeup of the workforce suggest that organ izations need to take employee diversity into account in the planning pro cess. Activities to address a diverse workforce include recruiting, se lection, training, development, and retention.

AAPs are an extension and application of general HR and staffing planning. AAPs have several components. The Affirmative Action Programs Regulations, which apply to federal contractors, specify requirements for these components. The legality of AAPs has been clearly established, but the courts have fashioned limits to their content and scope. To clarify how EEO laws apply to temporary employees and agencies, the EEOC has issued specific guidance.

DISCUSSION QUESTIONS

1. What are ways in which the organ ization can ensure that KSAO deficiencies do not occur in its workforce?

2. What types of experiences, especially staffing­ related ones, will an organ­ ization be likely to have if it does not engage in HR and staffing planning?

3. Why are decisions about job categories and levels so critical to the conduct and results of HRP?

4. What are the advantages and disadvantages of doing succession planning for all levels of management instead of just top management?

5. What is meant by reconciliation, and how can it be useful as an input to staff­ ing planning?

6. What criteria would you suggest using for assessing the staffing alternatives shown in Exhibit 3.14?

7. What prob lems might an organ ization encounter in creating an AAP that it might not encounter in regular staffing planning?

ETHICAL ISSUES

1. Does an organ ization have an ethical responsibility to share with all of its employees the results of its forecasting of HR requirements and availabili­ ties? Does it have an ethical responsibility not to do this?

2. Identify examples of ethical dilemmas an organ ization might confront when developing an AAP.

099-67811_ch03_4P.indd 144 10/27/17 10:28 AM

CHAPTER THREE Planning 145

APPLICATIONS

Markov Analy sis and Forecasting

The Doortodoor Sports Equipment Com pany sells sports clothing and equipment for amateur, light sport ( running, tennis, walking, swimming, badminton, and golf) enthusiasts. It is the only com pany in the nation that does this door­ to­ door, seek­ ing to bypass the retail sporting goods store and sell directly to the customer. Its salespeople have sales kits that include both sample products and a full­ line cata­ log they can use to show the products and discuss them with customers. The sales function is composed of full­ time and part­ time salespeople (level 1), assistant sales man ag ers (level 2), and regional sales man ag ers (level 3).

The com pany has deci ded to study the internal movement patterns of people in the sales function, as well as forecast their likely availabilities in future time periods. The results will be used to help identify staffing gaps (surpluses and short­ ages) and to develop staffing strategy and plans for future growth.

To do this, the HR department first collected data for 2014 and 2015 to con­ struct a transition probability matrix, as well as the number of employees for 2016 in each job category. It then wanted to use the matrix to forecast availabilities for 2017. The following data were gathered:

Use these data to answer the following questions:

1. Describe the internal labor market of the com pany in terms of job stability (staying in same job), promotion paths and rates, transfer paths and rates, demotion paths and rates, and turnover (exit) rates.

2. Forecast the numbers available in each job category in 2017. 3. Indicate potential limitations to your forecasts.

Deciding Whether to Use Flexible Staffing

The Kaiser Manufacturing Com pany (KMC) has been in existence for over 50 years. Its main products are specialty implements for use in both the crop and the dairy herd sides of the agricultural business. Products include special attachments for

Transition Probabilities (2014–15) Current (2016) Job Category Level SF SP ASM RSM Exit No. Employees Sales, Full-time (SF) 1 .50 .10 .05 .00 .35 500 Sales, Part-time (SP) 1 .05 .60 .10 .00 .25 150 Ass’t. Sales Mgr. (ASM) 2 .05 .00 .80 .10 .05 50 Region. Sales Mgr. (RSM) 3 .00 .00 .00 .70 .30 30

099-67811_ch03_4P.indd 145 10/27/17 10:28 AM

146 PART TWO Support Activities

tractors, combines, and discers and add­on devices for milking and feeding equip­ ment that enhance the per for mance and safety of the equipment.

KMC has a small corporate office and four manufacturing plants (two in the Midwest and two in the South). It has a core workforce of 725 production workers, 30 clerical workers, 32 engineers and professional workers, and 41 man ag ers. All employees are full time, and KMC has never used either part­ time or temporary workers. Those in charge of staffing feel very strongly that the strategy of using only a core workforce has paid big dividends over the years in attracting and retain­ ing a committed and highly productive workforce.

Sales have been virtually flat at $175 million annually since 2012. At the same time, KMC has begun to experience more erratic placement of orders for its prod­ ucts, making sales less predictable. This appears to be a reflection of more turbu­ lent weather patterns, large swings in interest rates, new entrants into the specialty markets, and general uncertainty about the future direction and growth of the agricultural industry. Increased unpredictability in sales has been accompanied by steadily rising labor costs. This is due to KMC’s increasingly older workforce, as well as shortages of all types of workers (particularly production workers) in the immediate labor markets surrounding the plants.

Assume you are the HR man ag er responsible for staffing and training at KMC. You have just been contacted by a representative of the Flexible Staffing Ser vices (FSS) Com pany, Mr. Tom Jacoby. Mr. Jacoby has proposed meeting with you and the president of KMC, Mr. Herman Kaiser, to talk about FSS and how it might be of ser vice to KMC. You and Mr. Kaiser agree to meet with Mr. Jacoby. At that meeting, Mr. Jacoby makes a formal pre sen ta tion to you in which he describes the ser vices, operation, and fees of FSS and highlights the advantages of using a more flexible workforce. During that meeting, you learn the following from Mr. Jacoby.

FSS is a recent entrant into what is called the staffing industry. Its general pur­ pose is to furnish qualified employees to companies (customers) on an as­ needed basis, thus helping the customer implement a flexible staffing strategy. It furnishes employees in four major groups: production, clerical, technical, and professional/ managerial. Both full­ time and part­ time employees are available in each of these groups. Employees may be furnished to the customer on a strictly temporary basis (“temps”) or on a “temp­ to­ perm” basis, in which the employees convert from being temporary employees of FSS to being permanent employees of the customer after a 90­ day probationary period.

For both the temp and the temp­ to­ perm arrangements, FSS offers the following ser vices. In each of the four employee groups it will recruit, select, and hire people to work for FSS, which will in turn lease them to the customer. FSS performs all recruitment, se lection, and employment activities. It uses a standard se lection sys­ tem for all applicants, composed of an application blank, reference checks, drug testing, and a medical exam (given after making a job offer). It also offers custom­ ized se lection plans in which the customer chooses from among a set of special skill tests, a personality test, an honesty test, and background investigations. Based

099-67811_ch03_4P.indd 146 10/27/17 10:28 AM

CHAPTER THREE Planning 147

on the standard and/or custom assessments, FSS refers to the customer what it views as the top candidates. FSS tries to furnish two people for every vacancy, and the customer chooses from between the two.

New hires at FSS receive a base wage that is similar to the market wage, as well as close to the wage of the customer’s employees with whom they will be directly working. In addition, new hires receive a paid vacation (one week for every six months of employment, up to four weeks), health insurance (with a 25% employee co­ pay), and optional participation in a 401(k) plan. FSS performs and pays for all payroll functions and deductions. It also pays the premiums for workers’ compen­ sation and unemployment compensation.

FSS charges the customer as follows. There is a standard fee per employee fur­ nished of 1.55 × base wage × hours worked per week. The 1.55 is labeled “markup”; it covers all of FSS’s costs (staffing, insurance, benefits, and administration) plus a profit margin. On top of the standard fee is an additional fee for customized se lection ser vices. This fee ranges from .50 to .90 × base wage × hours worked per week. Fi nally, there is a special one­ time fee for temp­ to­ perm employees (a find­ er’s fee of one month’s pay), payable after the employee successfully completes the 90­ day probationary period and becomes an employee of the customer.

Mr. Jacoby concludes his pre sen ta tion by stressing three advantages of flex­ ible staffing as provided by FSS. First, use of FSS employees on an as­ needed basis will give KMC greater flexibility in its staffing to match fluctuating product demand, as well as movement from completely fixed labor costs to more variable labor costs. Second, FSS provides considerable administrative con ve nience, reliev­ ing KMC of most of the burden of recruitment, se lection, and payrolling. Fi nally, KMC will experience considerable freedom from litigation (workers’ comp, EEO, torts) since FSS and not KMC will be the employer.

After Mr. Jacoby’s pre sen ta tion, Mr. Kaiser tells you he is favorably impressed, but that the organ ization clearly needs to do some more thinking before it embarks on the path of flexible staffing and the use of FSS as its provider. He asks you to prepare a brief preliminary report including the following:

1. A summary of the pos si ble advantages and disadvantages of flexible staffing 2. A summary of the advantages and disadvantages of using FSS as a ser vice

provider 3. A summary of the type of additional information you recommend gathering

and using as part of the decision­ making pro cess

ENDNOTES

1. W. Bliss, “Engaging in Strategic Planning,” SHRM​Templates​and​Toolkits, Mar. 21, 2013 (www​ .​shrm​.​org).

2 . D. Ulrich, J. Younger, W. Brockbank, and M. Ulrich, HR​ From​ the​ Outside​ In (New York: McGraw­ Hill, 2012); M. Fiester, “Practicing Strategic Human Resources,” SHRM​ Templates​

099-67811_ch03_4P.indd 147 10/27/17 10:28 AM

148 PART TWO Support Activities

and​Toolkits, Mar. 21, 2013 (www​.​shrm​.​org); D. Ulrich, J. Allen, W. Brockbank, J. Younger, and M. Nyman, HR​ Transformation:​ Building​ ​Human​ Resources​ From​ the​ Outside​ In (New York: McGraw­ Hill, 2009); D. Ulrich, J. Younger, W. Brockbank, and M. Ulrich, HR​Transformation (New York: McGraw­ Hill, 2009); P. M. Wright, J. W. Boudreau, D. A. Pace, E. Sartain, P. Mc ­ Kinnon, and R. L. Antoine, The​ Chief​ HR​ Officer:​ Defining​ the​ New​ Role​ of​ ​Human​ Resource​ Leaders (San Francisco: Jossey­ Bass, 2011).

3. M. L. Davis, “The CHRO as Cultural Champion,” in P. M. Wright, J. W. Boudreau, D. A. Pace, E. Sartain, P. McKinnon, and R. L. Antoine (eds.), The​Chief​HR​Officer:​Defining​the​New​Role​ of​​Human​Resource​Leaders (San Francisco: Jossey­ Bass, 2011), pp. 93–97.

4. S. Hargreaves, “Jobs With the Lowest (and Highest) Unemployment,” CNN​Money, Jan. 7, 2013 (money​.​cnn​.​com).

5 . A. Hogan and B. Roberts, “Occupational Employment Projections to 2024,” Monthly​ ​Labor​ Review, Dec. 2015 (www​.​bls​.​gov​/​opub​/​mlr​/​2015​/​article​/​occupational​-​employment​-​projections​-​to​ -​2024​.​htm).

6 . Hogan and Roberts, “Occupational Employment Projections to 2024.” 7. A. Spitz­ Oener, “Technical Change, Job Tasks, and Rising Educational Demands: Looking Out­

side the Wage Structure,” Journal​of​​Labor​Economics, 2006, 24, pp. 235–270. 8. Society for Human Resource Management, Critical​Skills​Needs​and​Resources​for​the​Changing​

Workforce (Alexandria, VA: author, 2008). 9. M. Toossi, “ Labor Force Projections to 2024: The Labor Force Is Growing, but Slowly,” Monthly​

​Labor​ Review, Dec. 2015 (www​.​bls​.​gov​/​opub​/​mlr​/​2015​/​article​/​labor​-​force​-​projections​-​to​-​2024​ .​htm); S. E. Fleck, “International Comparisons of Hours Worked: An Assessment of the Statistics,” Monthly​ ​Labor​ Review, May 2009, pp. 3­31; E. Lalé, “Multiple Jobholding Over the Past Two De cades,” Monthly​ ​Labor​ Review, Apr. 2015 (www​.​bls​.​gov​/​opub​/​mlr​/​2015​/​article​ /​multiple​-​jobholding​-​over​-​the​-​past​-​two​-​decades​.​htm); P. J. Kiger, “With Baby Boomers Graying, Employers Are Urged to Act Now to Avoid Skills Shortages,” Workforce​ Management, 2005, 84(13), pp. 52–54; Manpower Inc., Employment​Outlook​Survey:​United​States (Milwaukee, WI: author, 2007).

10. Society for Human Resource Management, SHRM​ Research:​ Workforce​ Readiness​ and​ Skills​ Shortages (Alexandria, VA: author, 2015).

11. M. Rich, “Factory Jobs Return, but Employers Find Skills Shortage,” New​ York​ Times​ Online, July 1, 2010.

12. M. J. Handel, “Skills Mismatch in the Labor Market,” Annual​ Review​ of​ Sociology, 2003, 29, pp. 135–165.

13. BMP Forum and Success Factors, Per​for​mance​and​Talent​Management​Trend​Survey​2007 (San Mateo, CA: author, 2007).

14. Bureau of Labor Statistics, “Employed and Unemployed Full­ and Part­ Time Workers by Age, Race, Sex and Hispanic or Latino Ethnicity,” Feb. 2016 (www​.​bls​.​gov).

15 . M. C. Noonan and J. L. Glass, “The Hard Truth About Telecommuting,” Monthly​​Labor​Review, June 2012, pp. 38–45; Bureau of Labor Statistics, “American Time Use Survey” (www​.​bls​.​gov​/​tus​/​), accessed Aug. 21, 2016.

16. Bureau of Labor Statistics, “Changing the U.S. Labor Market in 2005,” June 2006 (www​.​bls​.​gov​ /​tus​/​).

17 . M. Goos and A. Manning, “Lousy and Lovely Jobs: The Rising Polarization of Work in Britain,” Review​of​Economics​and​Statistics, 2007, 89, pp. 118–133; T. Kristal, “The Cap i tal ist Machine: Computerization, Workers’ Power, and the Decline in Labor’s Share Within US Industries,” American​ So​cio​log​i​cal​ Review, 2013, 78, pp. 361–389; Spitz­ Oener, “Technical Change, Job Tasks, and Rising Educational Demands: Looking Outside the Wage Structure.”

099-67811_ch03_4P.indd 148 10/27/17 10:28 AM

CHAPTER THREE Planning 149

18. HR Council for the Nonprofit Sector, “HR Planning” (www​.​hrcouncil​.​ca​/​hr​-​toolkit​/​planning​ -​strategic​.​cfm), accessed Sept. 10, 2016; J. Clarke, “Making the Case for More Effective Work­ force Planning,” Workforce​ Online, Jan. 2010 (www​.​workforce​.​com); Society for Human Resource Management, “Practicing the Discipline of Workforce Planning,” Dec. 2015 (www​.​shrm​.​org).

19 . L. Rubis, “Strategic Planning Not So Hard If Done Right,” HR​News, June 26, 2011 (www​.​shrm​ .​org); Society for Human Resource Planning, “Practicing the Discipline of Workforce Planning.”

20. F. Hansen, “Strategic Workforce Planning in an Uncertain World,” Workforce​ Management​ Online, Sept. 7, 2011 (www​.​workforce​.​com).

21 . S. Overman, “Staffing Management: A Better Forecast,” Staffing​Management​Magazine, Apr. 1, 2008 (www​.​shrm​.​org); T. J. Chermack, Scenario​Planning​in​Organ​izations:​How​to​Create,​Use,​ and​Assess​Scenarios (San Francisco: Berrett­ Koehler, 2011).

22. M. B. Glick, T. J. Chermack, H. Luckel, and B. Q. Gauck, “Effects of Scenario Planning on Par­ ticipant Mental Models,” Eu​ro​pean​Journal​of​Training​and​Development, 2012, 36, pp. 488–507.

23. H. G. Heneman III and M. H. Sandver, “Markov Analy sis in Human Resource Administration: Applications and Limitations,” Acad​emy​of​Management​Review, 1977, 2, pp. 535–542.

24. W. J. Rothwell, Effective​ Succession​ Planning:​ Ensuring​ Leadership​ Continuity​ and​ Building​ Talent​From​Within (New York: AMACOM, 2015); S. White, “Ensuring Success in Succession Planning,” Society​for​​Human​Resource​Management, Mar. 2016 (www​.​shrm​.​org).

25 . E. Frauenheim, “Software Products Aim to Streamline Succession Planning,” Workforce​Manage- ment, Jan. 2006 (www​.​workforce​.​com) .

26 . S. Fegley, 2006​Succession​Planning (Alexandria, VA: Society for Human Resource Management, 2006).

27. D. E. Smith, “What’s the Plan on Succession Planning,” Workforce​ Online, Dec. 2014 (www​ .​workforce​.​com); P. Duarte, “What’s a Succession Plan for an Aging Workforce?” Workforce​ Online, Jan. 2014 (www​.​workforce​.​com).

28 . B. A. Lautsch, “Uncovering and Explaining Variance in the Features and Outcomes of Contingent Work,” Industrial​and​​Labor​Relations​Review, 2002, 56(1), pp. 23–43; S. J. Ashford, E. George, and R. Blatt, “Old Assumptions, New Work: The Opportunities and Challenges of Research on Nonstandard Employment,” Acad​emy​ of​ Management​ Annals, 2007, 1(1), pp. 65–117; C. L. Wilcin, “I Can’t Get No Satisfaction: Meta­ Analysis Comparing Permanent and Contin­ gent Workers,” Journal​of​Orga​nizational​Be​hav​ior, 2013, 34(1), pp. 47–64; J. G. Weikamp and A. S. Göriz, “Orga nizational Citizenship Be hav ior and Job Satisfaction: The Impact of Occu­ pational Future Time Perspective,” ​Human​Relations, 2016, 69(11), pp. 2091–2115; R. Maurer, “The Temp Trend Is Permanent,” HR​Magazine, Sept. 2015, p. 24; I. Speizer, “Special Report on Contingent Staffing,” Workforce​Management, Nov. 2009 (www​.​workforce​.​com).

29 . Schumpeter, “Talent on Tap,” Economist, Dec. 10, 2009, p. 74; C. H. Mooney, M. Semadeni, and I. F. Kesner, “Se lection of an Interim CEO: Boundary Conditions and the Pursuit of Temporary Leadership,” Journal​of​Management, 2014, 43(2), 455–475; J. Greenstone Miller and M. Miller, “The Rise of the Supertemp,” Harvard​Business​Review, May 2012, pp. 50–62.

30. D. Weil, Administrator’s​Interpretation​No.​2015-1 (Washington, DC: US Department of Labor, 2015); Society for Human Resource Management, In​de​pen​dent​ Contractor:​ Audit​ Checklist​ for​ Maintaining​In​de​pen​dent​Contractor​Status (Alexandria, VA: author, 2014).

31. Society for Human Resource Management, Outsourcing​ the​ HR​ Function (Alexandria, VA: author, 2015).

32. P. Babcock, “Amer i ca’s Newest Export: White­ Collar Jobs,” HR​Magazine, Apr. 2004, pp. 50–57; B. Tai and N. R. Lockwood, Outsourcing​ and​ Offshoring​ HR​ Series​ Part​ I (Alexandria, VA: Society for Human Resource Management, 2006); R. J. Moncarz, M. G. Wolf, and B. Wright,

099-67811_ch03_4P.indd 149 10/27/17 10:28 AM

150 PART TWO Support Activities

“Service­ Providing Occupations, Offshoring, and the Labor Market,” Monthly​ ​Labor​ Review, Dec. 2008, pp. 71–86.

33. A. Fox, “The Ins and Outs of Customer Contact Centers,” HR​ Magazine​ Online, May 2010; O. Bertrand and M. J. Mol, “The Antecedents and Innovation Effects of Domestic and Offshore R&D Outsourcing: The Contingent Impact of Cognitive Dissonance and Absorptive Capac­ ity,” Strategic​Management​Journal, 2013, 34, pp. 751–760; A. Rodríguez and M. Nieto, “Does R&D Offshoring Lead to SME Growth? Dif fer ent Governance Modes and the Mediating Role of Innovation,” Strategic​ Management​ Journal, 2016, 37(8), pp. 1734–1753; W. L. Tate and L. M. Ellram, “Ser vice Supply Management Structure in Offshore Outsourcing,” Journal​of​Sup- ply​Chain​Management, 2012, 48, pp. 8–29; S. Lahiri, “Does Outsourcing Really Improve Firm Per for mance? Empirical Evidence and Research Agenda,” International​Journal​of​Management​ Reviews, 2016, 18, pp. 464–497.

34. L. Lieber, “Changing Demographics Will Require Changing the Way We Do Business,” Employ- ment​Relations​​Today, Fall 2009, pp. 91–96; A. Fox, “At Work in 2020,” HR​Magazine​Online, Jan. 1, 2010.

35. M. P. Bell, M. F. Özbilgin, T. A. Beauregard, and O. Sürgevil, “Voice, Silence, and Diversity in 21st Century Organ izations: Strategies for Inclusion of Gay, Lesbian, Bisexual, and Transgender Employees,” ​Human​Resource​Management, 2011, 50, pp. 131–146.

36. J. Coombs, J. Schramm, and A. Alonso, Workplace​ Visions:​ Generational​ Change​ in​ the​ Work- place (Alexandria, VA: Society for Human Resource Management, 2014).

37. S. E. Jackson, A. Joshi, and N. L. Erhardt, “Recent Research on Team and Orga nizational Diversity: SWOT Analy sis and Implications,” Journal​ of​ Management, 2003, 29, pp. 801–830; A. Hajro, C. Gibson, and M. Pudelko, “Knowledge Exchange Pro cesses in Multicultural Teams: Linking Orga nizational Diversity Climates to Teams’ Effectiveness,” Acad​emy​of​Management​Jour- nal, 2015, online before print: amj.2014.0442; S. R. Fitzsimmons, “Multicultural Employees: A Framework for Understanding How They Contribute to Organ izations,” Acad​emy​ of​ Manage- ment​Review, 2013, 38, pp. 525–549; Y. Chung, H. Liao, S. E. Jackson, M. Subramony, S. Cola ­ koglu, and Y. Jiang, “Cracking but Not Breaking: Joint Effects of Faultline Strength and Diversity Climate on Loyal Be hav ior,” Acad​emy​of​Management​Journal, 2015, 58, pp. 1495–1515.

38. R. R. Hastings, “Diversity Efforts Should Include White Employees,” SHRM​ HR​ Topics​ and​ Strategy, July 7, 2012 (www​.​shrm​.​org); Society for Human Resource Management, Global​Diver- sity​and​Inclusion:​Perceptions,​Practices,​and​Attitudes (Alexandria, VA: author, 2009).

39. S. T. Bell, A. J. Villado, M. A. Lukasik, L. Belau, and A. L. Briggs, “Getting Specific About Demo­ graphic Diversity Variable and Team Per for mance Relationships: A Meta­ Analysis,” Journal​of​ Management, 2011, 37, 709–743; S. K. Horwitz and I. B. Horwitz, “The Effects of Team Diversity on Team Outcomes: A Meta­ Analytic Review of Team Demography,” Journal​ of​ Management, 2007, 33, 987–1015; H. van Dijk, M. L. van Engen, and D. van Knippenberg, “Defying Conven­ tional Wisdom: A Meta­ Analytical Examination of the Differences Between Demographic and Job­ Related Diversity Relationships With Per for mance,” Orga​nizational​ Be​hav​ior​ and​ ​Human​ Decision​Pro​cesses, 2012, 119, 38–53.

40. K. Gurchiek, “12 Truths About Spearheading Diversity and Inclusion,” Society​ for​ ​Human​ Resource​ Management, Oct. 2016 (www​.​shrm​.​org); L. H. Nishii, “The Benefits of Climate for Inclusion for Gender­ Diverse Groups,” Acad​emy​ of​ Management​ Journal, 2013, 56, pp. 1754–1774.

41. D. R. Avery and P. F. McKay, “Target Practice: An Orga nizational Impression Management Approach to Attracting Minority and Female Job Applicants,” Personnel​Psy​chol​ogy, 2006, 59, pp. 157–187; D. R. Avery, S. D. Volpone, R. W. Stewart, A. Luksyte, M. Hernandez, P. F. McKay, and M. R. Hebl, “Examining the Draw of Diversity: How Diversity Climate Perceptions Affect

099-67811_ch03_4P.indd 150 10/27/17 10:28 AM

CHAPTER THREE Planning 151

Job­ Pursuit Intentions,” ​Human​Resource​Management, 2013, 52, pp. 175–193; D. A. Newman and J. S. Lyon, “Recruitment Efforts to Reduce Adverse Impact: Targeted Recruiting for Person­ ality, Cognitive Ability, and Diversity,” Journal​of​Applied​Psy​chol​ogy, 2009, 94, pp. 298–317.

42. S. B. Welch, “Diversity as Business Strategy: Com pany Faced Racial Tensions Head On,” Work- force​Management​Online, Apr. 2009; Lieber, “Changing Demographics Will Require Changing the Way We Do Business.”

43. J. M. Sacco, C. R. Scheu, A. M. Ryan, and N. Schmitt, “An Investigation of Race and Sex Similarity Effects in Interviews: A Multilevel Approach to Relational Demography,” Journal​of​ Applied​ Psy​chol​ogy, 2003, 88, pp. 852–865; J. C. Ziegert and P. J. Hanges, “Employment Dis­ crimination: The Role of Implicit Attitudes, Motivation, and a Climate for Racial Bias,” Journal​ of​Applied​Psy​chol​ogy, 2005, 90, pp. 553–562.

44. P. J. Kiger, “Few Employers Addressing Impact of Aging Workforce,” Workforce​ Management, Jan. 2010, pp. 6–7.

45. A. Nancherla, “Getting to the Foundation of Talent Management,” T + D, Feb. 2010, p. 20. 46. M. E. A. Jayne and R. L. Dipboye, “Leveraging Diversity to Improve Business Per for mance:

Research Findings and Recommendations for Organ izations,” ​Human​ Resource​ Management, 2004, 43, pp. 409–424; A. Kalev, F. Dobins, and E. Kelley, “Best Practices or Best Guesses? Assessing the Efficacy of Corporate Affirmative Action and Diversity Policies,” American​So​cio- log​i​cal​Review, 2006, 71, pp. 589–617.

47. Bureau of Labor Statistics, “Older Workers,” July 2008 (https://​stats​.​bls​.​gov); D. DeSilver, “More Older Americans Are Working, and Working More, Than They Used To,” Pew Research Center, June 20, 2016, (www​.​pewresearch​.​org​/​fact​-​tank​/​).

48 . C. Dugas, “Tips for Gray­ Haired Job Searchers; It Can Be Tough, but Programs Are Out There to Help,” USA​​Today, Apr. 24, 2013, p. 6B; C. Dugas, “More Older Americans Remaining Part of the Workforce,” USA​​Today, Jan. 14, 2013, p. 2B; T. W. H. Ng and D. C. Feldman, “Evaluating Six Common Ste reo types About Older Workers With Meta­ Analytical Data,” Personnel​Psy​chol- ogy, 2012, 65, pp. 821–858.

49. D. J. Walsh, Employment​Law​for​​Human​Resource​Practice, 5th ed. (Boston: Cengage Learning, 2016), pp. 368–372; D. D. Bennett­ Alexander and L. P. Hartman, Employment​Law​for​Business, 8th ed. (New York: McGraw­ Hill Education, 2015), pp. 231–236.

50. For an example of eliminating an AAP once affirmative action goals have been achieved, see A. R. McIlvaine, “Court: Boston Must Hire White Firefighters,” ​Human​ Resource​ Executive, Feb. 2004, p. 13.

51. R. U. Robinson, G. M. Franklin, and R. F. Wayland, Employment​ Regulation​ in​ the​ Workplace (Armonk, NY: M. E. Sharpe, 2010), pp. 182–219; Walsh, Employment​Law​for​​Human​Resource​ Practice, pp. 272–282.

52. M. P. Crockett and J. B. Thelen, “Michigan’s Proposal 2: Affirmative Action Law Shifts at the State Level,” ​Legal​Report, Society for Human Resource Management, July/Aug. 2007, pp. 5–8.

53. EEOC Compliance Manual, 2006 (www​.​eeoc​.​gov​/​policy​/​docs​/​race​-​color​.​html). 54 . Equal Employment Opportunity Commission, Enforcement​Guidance:​Application​of​the​ADA​to​

Contingent​ Workers​ Placed​ by​ Temporary​ Agencies​ and​ Other​ Staffing​ Firms (Washington, DC: author, 2000).

099-67811_ch03_4P.indd 151 10/27/17 10:28 AM

099-67811_ch04_4P.indd 152 11/17/17 12:51 PM

C H A P T E R F O U R

Job Analy sis and Rewards

Learning Objectives and Introduction Learning Objectives Introduction

The Need for Job Analy sis Types of Job Analy sis The Changing Nature of Jobs

Job Requirements Job Analy sis Overview Job Requirements Matrix Job Descriptions and Job Specifications Collecting Job Requirements Information

Competency- Based Job Analy sis Overview Nature of Competencies Collecting Competency Information

Job Rewards Types of Rewards Employee Value Proposition Collecting Job Rewards Information

Legal Issues Job Relatedness and Court Cases Essential Job Functions

Summary

Discussion Questions

Ethical Issues

099-67811_ch04_4P.indd 153 11/17/17 12:51 PM

Applications Conducting a Job Requirements or Job Rewards Job Analy sis Maintaining Job Descriptions

Endnotes

099-67811_ch04_4P.indd 154 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 155

LEARNING OBJECTIVES AND INTRODUCTION

Learning Objectives

• Understand the rationale behind job analy sis • Know the difference between a job description and a job specification • Learn about methods for collecting job requirements • Understand why competency- based job analy sis has grown in prominence • Learn about methods for collecting competencies • Recognize the types of rewards associated with jobs • Become familiar with the legal issues surrounding job analy sis

Introduction

Once the planning pro cess is complete, the next step in developing an effective, strategic staffing system is to develop a thorough understanding of the jobs to be filled. The pro cess of studying and describing the specific requirements of a job is called job analy sis. Anyone who has ever looked for a job is familiar with a tradi- tional job description, which lists the major tasks, duties, and responsibilities of a job. Such descriptions are just part of the wealth of information collected during the job analy sis pro cess. As we will see later in the book, job analy sis information can be used for identifying recruiting pools, designing se lection tools, and assess- ing and improving employee per for mance.

At first blush, describing a job may seem to be a straightforward task. How- ever, there are some impor tant considerations that will determine which technique should be employed for collecting this information. In many cases, a traditional task- based job analy sis is sufficient to cover both the operational and legal require- ments of an organ ization’s staffing strategy. In other cases, it will make more sense to focus on a general set of KSAOs (knowledge, skill, ability, and other character- istics) that span a wide variety of jobs in the organ ization. The choice of technique will depend on both the nature of the jobs involved and the organ ization’s plans for the future.

The chapter begins by explaining the rationale behind job analy sis and review- ing the challenges that arise when developing a description of jobs in a changing environment. Then, methods for performing job analy sis are discussed. The first approach, job requirements job analy sis, is guided by the job requirements matrix, which includes tasks, KSAOs, and job context. Next, competency- based job analy- sis is described. This approach to job analy sis starts from the organ ization’s mis- sion and goals and then develops a list of the general KSAOs that will help the organ ization meet these needs. Attention then turns to job rewards, including both intrinsic and extrinsic rewards that jobs may provide to employees. Fi nally, legal issues pertaining to job analy sis are addressed.

099-67811_ch04_4P.indd 155 11/17/17 12:51 PM

156 PART TWO Support Activities

THE NEED FOR JOB ANALY SIS

Jobs are the building blocks of an organ ization, in terms of both job content and the hierarchical relationships that emerge among them. They are explic itly designed and aligned in ways that enhance the production of the organ ization’s goods and ser vices. Job analy sis thus must be considered within the broader framework of the design of jobs and the organ ization as a whole, for it is through their design that jobs acquire their requirements and rewards. The information from job analy sis will be used in every single phase of the staffing pro cess. In this sense, job analy- sis is a support activity to the vari ous functional staffing activities. Indeed, without thorough and accurate information about job requirements and/or competencies, the organ ization is greatly hampered in its attempts to acquire a workforce that will be effective in terms of human resource (HR) outcomes such as per for mance, satis- faction, and retention. Thus, job analy sis is the foundation upon which successful staffing systems are constructed.

Types of Job Analy sis

Job analy sis may be defined as the pro cess of studying jobs in order to gather, ana- lyze, synthesize, and report information about job requirements and rewards (note in this definition that job analy sis is an overall pro cess as opposed to a specific method or technique). An organ ization can approach the job analy sis pro cess in several dif fer ent ways. First, a job requirements job analy sis seeks to identify and describe the specific tasks, KSAOs, and job context for a par tic u lar job. This type of job analy sis aims to be objective and has a very well- developed body of techniques to support its implementation. A second type of job analy sis, competency- based, attempts to identify and describe job requirements in the form of general KSAOs required across a range of jobs; task and work context requirements are of little concern. Competency- based approaches focus on how jobs relate to orga nizational strategy. A third approach to job analy sis focuses on the rewards employees receive from their work. Unlike the job requirements and competency- based approaches, the rewards- based approach is used to assess what types of positive outcomes employees receive from performing a job. From a staffing perspective, knowing the rewards of a job can be very useful in attracting individuals to apply for, and ultimately accept, jobs in the organ ization.

To help demonstrate the differences and similarities among job requirements, competency- based, and job rewards methods of job analy sis, Exhibit 4.1 describes the method, pro cess, and staffing implications of each of the three types. As can be seen, every phase of the staffing pro cess is rooted in job analy sis, from initial planning to retention. Each technique contributes dif fer ent information and uses dif fer ent sources. Job requirements analy sis is mostly rooted in documenting what employees currently do, competency analy sis focuses on how executives see work roles contributing to strategy, and rewards analy sis determines what employees

099-67811_ch04_4P.indd 156 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 157

get from their jobs. These techniques are not mutually exclusive, of course, and organ izations can benefit from using all three methods of analy sis si mul ta neously.

The Changing Nature of Jobs

The traditional way of designing a job is to identify and define its ele ments and tasks precisely and then incorporate them into a job description. The core task includes virtually all tasks associated with the job, and from it a fairly inclusive list of KSAOs will flow. Thus defined, there are clear lines of demarcation between jobs in terms of both tasks and KSAOs, and there is little overlap between jobs. Each job also has its own set of extrinsic and intrinsic rewards. Such job design is marked by formal orga nizational charts, clear and precise job descriptions and specifications, and well- defined relationships between jobs in terms of mobility

EXHIBIT 4.1 Comparison of Types of Job Analysis

Job Analysis Technique

Job Requirements Competency Job Rewards

Method Collect information on activities performed on the job and use this information to assess needed KSAOs for each job

Collect information on company strategy and use this information to determine KSAOs and behavioral capabilities needed across the organization

Collect information from employees on preferences and outcomes of jobs and combine with preferences identified in the labor market as a whole

Process Review occupational requirements; collect data on tasks, duties, and responsibilities from incumbents and supervisors; develop job requirements matrix

Discuss strategy with executives to determine overall goals, then meet with division or department leaders to review how each job fits with the overall goals

Develop a list of potential rewards for a job and survey job incumbents and leaders

Staffing Implications

Documents task requirements for legal purposes and determines specific KSAOs for selection

Links organizational strategy with planning process and determines broad KSAOs for selection

Provides guidance for how to develop recruiting materials and retention strategies

099-67811_ch04_4P.indd 157 11/17/17 12:51 PM

158 PART TWO Support Activities

(promotion and transfer) paths. Also, traditional jobs are very static, with little or no change occurring in tasks or KSAOs.

One challenge to this traditional perspective is that jobs are constantly evolv- ing.1 Generally, these changes are not so radical that a job ceases to exist, and they are often due to technological or workload changes. An excellent example of such an evolving job is that of administrative assistant. Traditional or core tasks associ- ated with the job include typing, filing, taking dictation, and answering phones. However, in nearly all organ izations the job has evolved to include new tasks such as managing multiple proj ects, creating spreadsheets, purchasing supplies and office technology, and gathering information on the Internet. These task changes led to new KSAO requirements such as planning and coordination skills and knowledge of spreadsheet software. Accompanying these changes is a switch in job title to that of “administrative assistant.” Note that jobs may also evolve due to changing orga nizational and technology requirements, as well as employee- initiated changes through a pro cess of job crafting.

Another challenge to the traditional view is the need for flexibility. Flexible jobs have frequently changing task and KSAO requirements. Sometimes these changes are initiated by the job incumbent, who constantly adds and drops (or passes off) new assignments or proj ects in order to work toward moving targets of opportunity. Other times the task changes may be dictated by changes in production schedules, client demands, or technology. Many small- business owners, general man ag ers of start-up strategic business units, and top management members perform such flexible jobs.

Team- based work enhances the need for flexibility and further complicates the pro cess of job analy sis. A work team is an interdependent collection of employ- ees who share responsibility for achieving a specific goal. Examples of such goals include developing a product, delivering a ser vice, winning a game, conducting a pro cess, developing a plan, and making a joint decision. No matter its form or function, every team is composed of two or more employees and has an identifiable collection of tasks to perform. Usually, these tasks are grouped into specific clus- ters, and each cluster constitutes a position or job. A proj ect management team, for example, may have separate jobs and job titles for bud get specialists, technical specialists, coordinators, and field staff. While teams differ in many re spects, two differences are very impor tant in terms of their job analy sis and staffing implica- tions. Many team members perform multiple jobs (rather than a single job). In such cases, staffing must emphasize recruitment and se lection for both job- specific KSAOs and job- spanning KSAOs. Many job- spanning KSAOs involve flexibility, adaptability, and the ability to quickly learn skills that will facilitate performing, and switching between, multiple jobs.2 Therefore, job analy sis for team- based work has to account for this highly varied and constantly evolving set of task demands.

Fi nally, the more open and flexible nature of work described above has sug- gested a need to identify factors that make people go beyond what is simply written in a job description. Job analy sis has typically focused on skills and abilities to a

099-67811_ch04_4P.indd 158 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 159

greater degree than motivational factors. As more and more organ izations empha- size employee engagement—or the degree to which an employee identifies with and has enthusiasm for his or her work— our analy sis of jobs needs to take moti- vational factors into account. A large- scale study of 7,939 business units showed that organ izations whose employees reported above- average levels of engagement performed significantly better (63% of such organ izations had above- average levels of per for mance) than those whose employees were below average on engagement (37% of such organ izations had above- average levels of per for mance).3 One way to incorporate engagement is to consider it a general competency in competency- based job analy sis coupled with job rewards analy sis. As one reviewer of the engagement lit er a ture suggests, “Identify those candidates who are best- suited to the job and your organ ization’s culture.”4

JOB REQUIREMENTS JOB ANALY SIS

Overview

As noted earlier, job requirements job analy sis identifies the tasks, KSAOs, and context for a job. Due to the ambiguous and fluid nature of some jobs, organ- izations may focus on defining them in terms of competencies rather than specific tasks and KSAOs. Recent developments in job analy sis encourage raters to explic- itly describe potential changes in future job requirements in an effort to adapt to these jobs.5

Concepts under lying job requirements can be arranged in a hierarchy from observable tasks up to job families. Job requirements job analy sis starts with tasks, which are identifiable work activities that are logical and necessary steps in the per for mance of the job. Task dimensions are groups of similar types of tasks. A job is a grouping of positions that have similar tasks. Jobs that are similar to one another can be grouped into job categories. Fi nally, a job family is a grouping of jobs according to function. For example, within the community and social ser vice job family there are categories of jobs like health workers, counselors, and social workers. Under this category are specific jobs like mental health counselor and rehabilitation counselor. Tasks like collecting information, developing treatment plans, and counseling clients make up the job of mental health counselor. A posi- tion is a grouping of task dimensions that constitutes the total work assignment of a single employee; there are as many positions as there are employees.

A framework depicting job requirements job analy sis is shown in Exhibit 4.2. As can be seen, the job analy sis begins by identifying the specific tasks and job context for a par tic u lar job.6 After these have been identified, the KSAOs neces- sary for performing these tasks within the work context are inferred. For example, after identifying the task of “developing and writing monthly sales and marketing plans” for a sales man ag er’s job, the job analy sis would proceed by inferring which

099-67811_ch04_4P.indd 159 11/17/17 12:51 PM

160 PART TWO Support Activities

KSAOs are necessary to perform this task. The task might require knowledge of intended customers, arithmetic skills, creative ability, and willingness and avail- ability to travel frequently to vari ous orga nizational units. Par tic u lar job context factors, such as physical demands, may not be relevant to per for mance of this task or to its required KSAOs. The task and job context information is recorded in a job description, whereas the KSAO requirements are placed in a job specification. In practice, these are often contained within a single document.

Job Requirements Matrix

The job requirements matrix shows the key components of job requirements job analy sis, each of which must be explic itly considered for inclusion. Job information, including the specific tasks, task dimensions, task importance, specific KSAOs, and their importance, must be gathered, analyzed, synthesized, and expressed in a usable form.

A completed job requirements matrix, a portion of which is shown in Exhibit 4.3 for the job of administrative assistant, serves as the basic informational source or document for the requirements of any job. The resultant information serves as a basic input and guide to all subsequent staffing activities.

Referring to Exhibit 4.3, five specific tasks identified via job analy sis are listed. Note that only a portion of the total tasks of the job is shown. In turn, these have been categorized into two general task dimensions— supervision and document preparation. Their importance to the overall job is indicated with the percentage of time spent on each—30% and 20%, respectively. For each task dimension and its specific tasks, several KSAOs have been inferred to be necessary for per for mance. The nature of these KSAOs is presented, along with a 1–5 rating of how impor tant

EXHIBIT 4.2 Job Requirements Approach to Job Analysis

Identify tasks and context

Result: Job specification

Result: Job description

Infer required KSAOs

099-67811_ch04_4P.indd 160 11/17/17 12:51 PM

Chapter Four Job Analy sis and Rewards 161

e X

h IB

It 4

.3

p o

rt io

n o

f Jo

b r

e q

u ir

e m

e n

ts M

a tr

ix f

o r

Jo b

o f

a d

m in

is tr

a ti

ve a

ss is

ta n

t

s O

A S

K sksa

T

S p e ci fi c T a sk

s T a sk

D im

e n si o n s

Im p o rt a n ce

(% ti m e

sp e n t)

N a tu re

Im p o rt a n ce

to T a sk

s (1 – 5 ra ti n g )

1. A

rr an

g e

sc h

e d

u le

s w

ith o

ffi ce

A .

S u

p e

rv is

io n

3 0

% 1.

K n

o w

le d

g e

o f

o ffi

ce 9.

4 o

p e

ra tio

n s

an d

p o

lic ie

s as

si st

an t/

vo lu

n te

e rs

t o

e n

su re

A b

ili ty

t o

m at

ch p

e o

p le

t o

. 2

th at

o �

ce w

ill b

e s

ta �

e d

ta sk

s ac

co rd

in g

t o

t h

e ir

s ki

lls d

u ri

n g

p re

sc ri

b e

d h

o u

rs 6.

4 an

d h

o u

rs o

f av

ai la

b ili

ty n

oisivre p

uS .

A A

ss ig

n o

� ce

t as

ks t

o o

� ce

. 2

S ki

ll in

in te

ra ct

io n

w ith

. 3

as si

st an

t/ vo

lu n

te e

rs t

o e

n su

re 9.

2 d

iv e

rs e

p e

o p

le co

o rd

in at

io n

o f

ac tiv

iti e

s 4

. S

ki ll

in d

e te

rm in

in g

ty p

e s

an d

p ri

o ri

tie s

o f

ta sk

s 4

.0

3 .

C o

m p

o se

a n

d e

d it

le tt

e rs

, m

e m

o s,

an d

re p

o rt

s b

as e

d o

n s

u p

e rv

is o

ry d

ir e

ct io

n

B .

D o

cu m

e n

t p

re p

ar at

io n

4 .

P re

p ar

e g

ra p

h s

an d

o th

e r

vi su

al m

at e

ri al

to su

p p

le m

e n

t re

p o

rt s

5 .

P ro

o fr

e ad

ty p

e d

co p

y an

d co

rr e

ct g

ra m

m ar

,p u

n ct

u at

io n

, an

d ty

p o

g ra

p h

ic al

e rr

o rs

in o

rd e

r to

p ro

d u

ce h

ig h

-q u

al ity

m at

e ri

al s

B .

D o

cu m

e n

t p

re p

ar at

io n

B .

D o

cu m

e n

t p

re p

ar at

io n

2 0

% 1.

K n

o w

le d

g e

o f

ty p

in g

fo rm

at s

2 .

K n

o w

le d

g e

o f

g ra

m m

ar a

n d

st yl

e r

u le

s 3

. K

n o

w le

d g

e o

f g

ra p

h ic

s d

is p

la y

so ft

w ar

e 4

. A

b ili

ty to

p ro

o fr

e ad

an d

co rr

e ct

w o

rk 5

. S

ki ll

in u

se o

f M

S W

o rd

(m o

st cu

rr e

n t

ve rs

io n

) 6

. S

ki ll

in cr

e at

in g

vi su

al ly

ap p

e al

in g

an d

u n

d e

rs ta

n d

ab le

g ra

p h

s

3 .1

5 .0

2 .0

5 .0

4 .3

3 .4

Jo b C o n te xt :I

n d

o o

rs ,c

u b

ic le

,b u

si n

e ss

cl o

th e

s, m

o st

ly si

tt in

g an

d st

an d

in g

,n o

e n

vi ro

n m

e n

ta lo

r jo

b h

az ar

d s.

9781259756559_ch04_p152_201.indd 161 12/17/17 7:38 PM

162 PART TWO Support Activities

each KSAO is for per for mance of the task dimension. At the bottom of the matrix are indications of job context factors pertaining to work setting (indoors), privacy of work area (cubicle), attire (business clothes), body positioning (mostly sitting and standing), and physical work conditions (no environmental or job hazards).

Task Statements Job analy sis begins with the development of task statements. Task statements are objectively written descriptions of the major tasks an employee performs in a job. They serve as the building blocks for the remainder of the job requirements job analy sis. The statements are made in simple declarative sentences.

Ideally, each task statement will show several things:

1. What the employee does, using a specific action verb at the start of the task statement

2. To whom or what the employee does what he or she does, stating the object of the verb

3. What is produced, indicating the expected output of the verb 4. What equipment, materials, tools, or procedures are used

In addition to the preceding four requirements, we offer several other sugges- tions for effectively writing task statements. First, use specific action verbs that have only one meaning. Examples of verbs that do not conform to this suggestion include “supports,” “assists,” and “ handles.”

Second, do not include minor or trivial activities in task statements; focus only on major tasks and activities. An exception to this recommendation is when a so- called minor task is judged to have great importance to the job (see the following discussion).

Third, ensure that the list of task statements is reliable.7 A good way to do this is to have two or more people (analysts) in de pen dently evaluate the task statement list in terms of both inclusiveness and clarity. Close agreement between people sig- nifies high reliability. If there is disagreement, the nature of the disagreement can be discussed and the task statements can be appropriately modified. It should be acknowledged that differences in task statements are not necessarily an indication of error. Dif fer ent incumbents may perform their jobs in dif fer ent ways.8 The final job analy sis document should reflect these varying perspectives clearly. Failure to acknowledge this variety can lead to an overly narrow set of desired KSAOs, and may even lead to legal prob lems if the job analy sis documents used to make deci- sions do not reflect the vari ous ways jobs are actually performed.

Task Dimensions It is useful to group sets of task statements into task dimensions and then attach a name to each such dimension. Other terms for task dimensions are “duties,” “accountability areas,” “responsibilities,” and “per for mance dimensions.”

099-67811_ch04_4P.indd 162 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 163

A useful way to facilitate the grouping pro cess is to create a task dimension matrix. Each column in the matrix represents a potential task dimension. Each row in the matrix represents a par tic u lar task statement. Cell entries in the matrix represent the assignment of task statements to task dimensions (the grouping of tasks). The goal is to have each task statement assigned to only one task dimension.

There are many dif fer ent grouping procedures, ranging from straightforward judgmental ones to highly sophisticated statistical ones.9 For most purposes, a simple judgmental pro cess is sufficient, such as having the people who created the task statements also create the groupings as part of the same exercise. As a rule, there should be four to eight dimensions, depending on the number of task state- ments, regardless of the specific grouping procedure used. It is impor tant that the grouping procedure yield a reliable set of task dimensions acceptable to man ag ers, job incumbents, and other orga nizational members.

Task/Dimension Importance Rarely are all tasks/dimensions of a job thought to be of equal weight or impor- tance. Normally, assessments of importance are made just for task dimensions, though it is certainly pos si ble to make them for individual tasks as well.

Before actual weighting can occur, two decisions must be made: (1) the specific attribute of importance to be assessed must be deci ded (e.g., time spent on the task/ dimension, ratings of criticality), and (2) whether the attribute will be mea sured in categorical terms (e.g., essential or nonessential) or continuous terms (e.g., per- centage of time spent, 1–5 rating of importance). Exhibit 4.4 shows examples of the results of these two decisions in terms of commonly used importance attributes and their mea sure ment. Task importance judgments are likely to vary across raters even more than task statements, so it is necessary to collect judgments from several sources.10

KSAOs KSAOs are inferred or derived from knowledge of the tasks and task dimensions themselves. The inference pro cess requires that the analysts think explic itly in specific cause- and- effect terms. For each task or dimension, the analysts must in essence ask themselves, “Exactly which KSAOs do I think will be necessary for per for mance of this task or dimension?”

Our discussion of KSAOs is grounded in information provided by the US Depart- ment of Labor’s Occupational Information Network, or O*NET. The development and refinement of the O*NET database is ongoing, and many new observations from both job incumbents and trained analysts are being added regularly.11 O*NET contains extensive research- based taxonomies in several categories: occupational tasks, knowledge, skills, abilities, education and experience/training, work con- texts, orga nizational contexts, occupational interests and values, and work styles.12 Additionally, O*NET contains ratings of specific factors within each category for

099-67811_ch04_4P.indd 163 11/17/17 12:51 PM

164 PART TWO Support Activities

many occupations, and ratings for additional occupations are continually being added. Statistical techniques link O*NET KSAO ratings for a job to specific se lection tools, like standardized literacy tests.13 Use of O*NET information is helpful in preparing KSAO statements, but they will prob ably have to be supple- mented with more job- specific statements crafted by the job analyst.

Exhibit 4.5 provides an overview of the distinction among knowledge, skill, abil- ity, and other characteristics. For each KSAO category, brief examples are given, along with an explanation of their relevance. As the exhibit shows, making a dis- tinction across the categories can have impor tant implications for staffing. For example, abilities must be possessed by the candidate at the point of hire, whereas knowledge can be acquired through formal class sessions and skills can be devel- oped while working.

Knowledge. Knowledge is a body of information (conceptual, factual, proce- dural) that can be applied directly to the per for mance of tasks. It tends to be quite focused or specific in terms of the job, organ ization, or occupation. O*NET provides definitions of 33 types of knowledge that might generally be neces- sary in varying levels in certain occupations, including areas like business and

EXHIBIT 4.4 Ways to Assess Task/Dimension Importance

A. Relative Time Spent For each task/dimension, rate the amount of time you spend on it, relative to all other tasks/dimensions of your job.

1 2 3 4 5 Very small amount

Average amount

Very large amount

B. Percentage (%) of Time Spent For each task/dimension, indicate the percentage (%) of time you spend on it (percentages must total to 100%).

Dimension % Time spent

C. Importance to Overall Performance For each task/dimension, rate its importance to your overall job performance.

1 2 3 4 5 Minor

importance Average

importance Major

importance

099-67811_ch04_4P.indd 164 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 165

management, manufacturing and production, engineering and technology, mathe- matics and science, health ser vices, education and training, arts and humanities, law and public safety, communications, and transportation. Knowledge is often divided into declarative and procedural categories. Declarative knowledge is fac- tual in nature, whereas procedural knowledge concerns pro cesses. A surgeon, for example, has declarative knowledge of the symptoms of heart disease and can state them, and also has procedural knowledge of the steps to perform open- heart

Business and management Administration and management Clerical Economics and accounting Sales and marketing Customer and personal service Personnel and human resources

Manufacturing and production Production and processing Food production

Engineering and technology Computers and electronics Engineering and technology Design Building and construction Mechanical

Mathematics and science Mathematics Physics Chemistry Biology Psychology Sociology and anthropology Geography

Health services Medicine and dentistry Therapy and counseling

Education and training Education and training

Arts and humanities English language Foreign language Fine arts History and archaeology Philosophy and theology

Law and public safety Public safety and security Law, government, and jurisprudence

Communications Telecommunications Communications and media

Transportation Transportation

••

EXHIBIT 4.5 Knowledge, Skill, Ability, and Other Characteristics

KSAO Category What Is It? Examples Workplace Relevance

Knowledge Information that can be applied to tasks

• Knowing what a solid state drive is and why it’s useful for a computer

• Knowing the steps in writing a job description

• Easily assessed with factual questions

• Forms the basis for communication

• Knowledgeable individuals can train others

Skill Competence for working with or applying knowledge

• Skill in diagnosing and repairing problems with solid state drives

• Skill in efficiently collecting job analysis information and writing task statements

• Assessed with job simulations or experience

• Directly linked to performance of the job

• Can be learned on the job with guidance

Ability Underlying trait useful for learning about and performing a task

• Ability to perform fine motor activities

• Ability to understand complex, multistep instructions

• Assessed through abstract tests

• Linked to future potential

• Must be present at selection; very hard to develop

Other characteristics

Characteristics that guide or direct actions

• Motivation to perform well

• Being responsible and organized

• Values consistent with organizational norms

• Challenging to assess because subjective

• Very important for turning KSAs into performance

099-67811_ch04_4P.indd 165 11/17/17 12:51 PM

166 PART TWO Support Activities

surgery. Both declarative and procedural knowledge should be reflected in job analy sis documents.14

Skill. Skill refers to an observable competence for working with or applying knowledge to perform a par tic u lar task or a closely related set of tasks. A skill is not an enduring characteristic of the person; it depends on experience and practice. Skill requirements are directly inferred from observation or knowledge of tasks performed. Returning to our example, skill refers to the actual demonstrated capac- ity of the surgeon to perform an operation in an efficient and competent manner.

Considerable research has been devoted to identifying par tic u lar job- related skills and organ izing them into taxonomies. Job analysts should begin the skills inference pro cess by referring to the results of this research.

O*NET identifies and defines 42 skills applicable across the occupational spec- trum. These include basic skills involving acquiring and conveying information, such as reading comprehension, actively listening, mathe matics, science, and critical thinking, as well as cross- functional skills more directly related to task per for mance, such as social skills, complex prob lem solving, resource management, technical skills, and system skills.

Ability. An ability is an under lying, enduring trait of the person that is useful for learning about and performing a range of tasks. It differs from a skill in that it is less likely to change over time and that it is applicable across a wide set of tasks encountered in many dif fer ent jobs. One can think of ability as the under- lying personal characteristics that determine how quickly one can acquire and to what degree one can master the knowledge and skills required for a job.15 Four general categories of abilities are commonly recognized: cognitive (e.g., verbal, quantitative, perceptional, spatial, and memory abilities), psychomotor (e.g., fine manipulative, control movement, and reaction time abilities), physical (e.g., strength, endurance, and coordination abilities), and sensory (e.g., visual and auditory abilities).

Other Characteristics. “Other characteristics” are a variety of factors that are impor tant for determining how individuals will act on the job. These characteris- tics can be personality traits that describe a person’s preferences or typical behav- ioral tendencies. While knowledge, skills, and abilities reflect whether someone can do a task, “other characteristics” mostly focus on whether a person wants to do a task or how much effort the person will expend. They can also be a general state of motivation or liking for a specific type of job task, such as a preference for routine or variety, or a preference for working alone or with others. Values are another impor tant set of other characteristics that are crucial for facilitating person/ or ga ni za tion match.

All of these traits can be difficult to mea sure, because they are often more subjective or loosely defined relative to KSAs, and it’s often pos si ble for a job

099-67811_ch04_4P.indd 166 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 167

applicant to pretend that he or she has a trait. Despite these difficulties, as we will see later in the book, traits like conscientiousness have been shown to differentiate good from poor performers.

KSAO Importance As suggested in the job requirements matrix, the KSAOs of a job may differ in their weight or contribution to task per for mance. Hence, their relative importance must be explic itly considered, defined, and indicated. Failure to do so means that all KSAOs will be assumed to be of equal importance by default.

As with task importance, deriving KSAO importance requires two decisions. First, what will be the specific attribute(s) on which importance is judged? Second, will the mea sure ment of each attribute be categorical (e.g., required, preferred) or continuous (e.g., 1–5 rating scale)? Examples of formats for indicating KSAO importance are shown in Exhibit 4.6. O*NET uses a 1–5 rating scale format and also provides actual importance ratings for many jobs.

Ratings of KSAO importance generally can be divided into time and impor- tance.16 Time- oriented mea sures include things like time spent, frequency, and duration scales. Importance includes things like criticality, difficulty, and overall importance. In most organ izations, time spent and importance are completely dis- tinct, and so both should be mea sured to get a full picture of the job’s requirements. It should be noted that there are systematic differences in ratings of time spent and importance across observers. For example, new employees may spend more time

EXHIBIT 4.6 Ways to Assess KSAO Importance

A. Importance to (acceptable) (superior) task performance 1 minimal importance 2 some importance 3 average importance 4 considerable importance 5 extensive importance

B. Should the KSAO be assessed during recruitment/selection? Yes No

C. Is the KSAO required, preferred, or not required for recruitment/selection? Required Preferred Not required (obtain on job and/or in training)

099-67811_ch04_4P.indd 167 11/17/17 12:51 PM

168 PART TWO Support Activities

developing relationships, whereas established employees spend time maintaining relationships. Thus, multiple perspectives will need to be integrated.

Job Context As shown in the job requirements matrix, tasks and KSAOs occur within a broader job context. A job requirements job analy sis should include consideration of the job context and the factors that are impor tant in defining it. Such consideration is necessary because these factors may have an influence on tasks and KSAOs; fur- ther, information about the factors may be used in the recruitment and se lection of job applicants. For example, the information may be given to job applicants during recruitment, and consideration of job context factors may be helpful in assessing likely person/or ga ni za tion fit during se lection.

O*NET contains a wide array of job and work context factors useful for char- acterizing occupations. The job context information contained in O*NET involves interpersonal, physical, and structural characteristics, as shown in Exhibit 4.7. These characteristics can be useful for determining additional KSAO requirements and may be especially impor tant for determining whether a job can or cannot be modified to accommodate an individual who is disabled.

Job Descriptions and Job Specifications

As previously noted, it is common practice to express the results of job require- ments job analy sis in written job descriptions and job specifications. Referring back to the job requirements matrix, note that its sections pertaining to tasks and job context are similar to a job description, and the section dealing with KSAOs is similar to a job specification.

Interpersonal Relationships • Communication • Role relationships • Responsibility for others • Conflictual contact

Structural Job Characteristics • Criticality of position • Routine vs. challenging work • Competition • Pace and scheduling

Physical Work Conditions • Work setting • Environmental conditions • Job hazards • Body positioning • Work attire

EXHIBIT 4.7 Job Context Contained in O*NET

099-67811_ch04_4P.indd 168 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 169

There are no standard formats or other requirements for either job descrip- tions or job specifications. In terms of content, however, 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 that the job analy sis was conducted. A job specification should include job family, job title, job summary, KSAOs (separate section for each), importance indicators, and date conducted. An example of a combined job description/specification is shown in Exhibit 4.8.

Collecting Job Requirements Information

Job analy sis involves consideration of not only the types of information (tasks, KSAOs, and job context) to be collected but also the methods, sources, and pro- cesses to be used for such collection. These issues are discussed next, and as will be seen, there are many alternatives to choose from for developing an overall job analy sis system for any par tic u lar situation. Potential inaccuracies and other limi- tations of the alternatives will also be pointed out.17

Methods Job analy sis methods represent procedures or techniques for collecting job infor- mation. Many specific techniques and systems have been developed and named (e.g., Functional Job Analy sis, Position Analy sis Questionnaire [PAQ]). Rather than discuss each technique separately, we will concentrate on the major generic methods that underlie all specific techniques and applications.18

Prior Information. Organ izations that have performed job analy sis in the past will have information on the tasks, duties, and responsibilities of the job as well as the corresponding KSAOs. While such information can be helpful, the changing nature of work suggests that all older information should be considered carefully and evaluated relative to the current set of requirements. In fact, organ izations that rely excessively on old information can get into legal trou ble if there is a discrep- ancy between the job on rec ord and the job as it is actually performed.

O*NET, which we discussed in detail earlier, is another starting point for job analy sis information. Obvious advantages of O*NET are its flexibility (it can be applied to many dif fer ent types of jobs) and its ease of use.19 Because the data were collected by professionals across a wide variety of locations, they are also consid- ered to be of high quality. The chief disadvantage of O*NET is that it describes occupations and not jobs. Occupational information indicates what individuals performing a certain job title do across a wide variety of orga nizational contexts, whereas job information reflects the unique characteristics of how work is done in a specific com pany. In other words, while O*NET has a very well- developed description of what marketing man ag ers do, it cannot say anything about the spe- cific nature of a marketing man ag er job at Apple.

099-67811_ch04_4P.indd 169 11/17/17 12:51 PM

170 PART TWO Support Activities

EXHIBIT 4.8 Example of Combined Job Description/Specification

FUNCTIONAL UNIT: CHILDREN’S REHABILITATION JOB TITLE: REHABILITATION SPECIALIST

DATE: 12/5/15 JOB SUMMARY

developmental strengths and weaknesses, develop rehabilitation plans, deliver and coordinate rehabilitation activities, and evaluate e ectiveness of those plans and activities.

PERFORMANCE DIMENSIONS AND TASKS Time Spent (%) %01tnemssessA.1

Administer formal and informal motor screening and evaluation instruments to conduct assessments. Perform assessments to identify areas of strengths and need.

%52gninnalP.2 Collaborate with parents and other providers to directly develop the individualized family service plan. Use direct and consultative models of service in developing plans.

%05yrevileD.3

children and families. Provide service coordination to designated families. Work with family care and child care providers to provide total services. Collaborate with other sta members and professionals from community agencies to obtain resources and specialized assistance.

%51noitaulavE.4 Observe, interpret, and report on client to monitor individual progress. Assist in collecting and reporting intervention data in order to prepare formal program evaluation reports. Write evaluation reports to assist in developing new treatment strategies and programs.

JOB SPECIFICATIONS 1. License: License to practice physical therapy in the state 2. Education: B.S. in physical or occupational therapy required; M.S.

preferred 3. Experience: Prefer (not required) one year experience working with

children with disabilities and their families 4. Skills: Listening to and interacting with others (children, family

members, coworkers) Developing treatment plans Organizing and writing reports using Microsoft Word

JOB CONTEXT: Indoors, office, business clothes, no environmental or job hazards.

Works with children with disabilities and their families to identify

Carry out individual and small-group motor development activities with

099-67811_ch04_4P.indd 170 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 171

Observation. Simply observing job incumbents performing the job is an excel- lent way to learn about tasks, KSAOs, and context. It provides a thoroughness and richness of information unmatched by any other method. It is also the most direct form of gathering information because it does not rely on intermediary infor- mation sources, as would be the case with other methods (e.g., interviewing job incumbents and supervisors).

The following potential limitations to observation should be kept in mind. First, observation is most appropriate for jobs with physical (as opposed to mental) com- ponents and ones with relatively short job cycles (i.e., amount of time required to complete job tasks before repeating them). Second, the method may involve substantial time and cost. Third, the ability of the observer to do a thorough and accurate analy sis is open to question; it will most likely be necessary to train observers prior to the job analy sis. Fourth, the method will require coordination with, and approval from, many people (e.g., supervisors and incumbents). Fi nally, the incumbents being observed may distort their be hav ior during observation in self- serving ways, such as making tasks appear more difficult or time- consuming than they really are.

Interviews. Interviewing job incumbents and others, such as their man ag ers, has many potential advantages. It re spects the interviewee’s vast source of informa- tion. The interview format allows the interviewer to explain the purpose of the job analy sis and how the results will be used, thus enhancing likely ac cep tance of the pro cess by the interviewees. It can be structured in format to ensure standardiza- tion of collected information.

As with any job analy sis method, the interview is not without potential limi- tations. It is time- consuming and costly, and this may cause the organ ization to skimp on it in ways that jeopardize the reliability and content validity of the infor- mation gathered. The interview, not providing anonymity, may lead to suspicion and distrust on the part of interviewees. The quality of the information obtained, as well as interviewee ac cep tance, depends on the skill of the interviewer. The interviewers should thus be carefully selected and trained. Fi nally, the success of the interview also depends on the skills and abilities of the interviewee, such as the person’s verbal communication skills and the ability to recall tasks performed.

Task Questionnaire. A typical task questionnaire contains a lengthy list of task statements that cut across many dif fer ent job titles and is administered to incum- bents (or samples of them) in these job titles. For each task statement, the respondent is asked to indicate (1) whether the task applies to the respondent’s job (respon- dents should always be given a DNA [does not apply] option) and (2) task impor- tance (e.g., a 1–5 scale rating difficulty or time spent).

The advantages of task questionnaires are numerous. They are standardized in content and format, and thus constitute a uniform method of information gather- ing. They can obtain considerable information from large numbers of people and

099-67811_ch04_4P.indd 171 11/17/17 12:51 PM

172 PART TWO Support Activities

are eco nom ical to administer and score. Additionally, task questionnaires are (and should be) completed anonymously, thus enhancing respondent participation, hon- esty, and ac cep tance.20

The development of task questionnaires has also facilitated the development of linkages between task dimensions and required KSAOs. Some of these develop- ments have involved a technique called synthetic validation, which helps deter- mine the most appropriate types of se lection tools for a job.21 As the databases linking task dimensions to KSAOs have increased in size and scope over time, it has become increasingly pos si ble to know which se lection predictors are most appropriate for a given job without having to resort to a local validation study, as will be discussed in Chapter 7.

A task questionnaire is potentially limited in certain ways. The task statement content needs to match the job, so task questionnaires are not useful for describ- ing idiosyncratic jobs. The respondents need to have the under lying intelligence, experience, and education to answer accurately. Respondents will also need to be motivated to complete the questionnaire accurately. If the questionnaire is an unwelcome and unrewarded addition to regular job tasks, the quality of responses will be low.

Committee or Task Force. Job analy sis is often guided by an ad hoc committee or task force. Members of this group typically include job experts— both man ag- ers and employees—as well as an HR representative. They may conduct a number of activities, including (1) reviewing existing information and gathering sample job descriptions; (2) interviewing job incumbents and man ag ers; (3) overseeing the administration of job analy sis surveys and analyzing the results; (4) writing task statements, grouping them into task dimensions, and rating the importance of the task dimensions; and (5) identifying KSAOs and rating their importance. A committee or task force brings considerable job analy sis expertise to the pro cess, facilitates reliability of judgment through conversation and consensus building, and enhances ac cep tance of the final results.

Criteria for Choice of Methods. Some explicit choices regarding methods of job analy sis need to be made. One set of choices involves deciding whether to use a par tic u lar method of information collection. An organ ization must decide whether to use an off- the- shelf method or its own par tic u lar method that is suited to its own needs and circumstances. A second set of choices involves how to blend together a set of methods that will be used in varying ways and degrees in the actual job analy sis. Some criteria for guidance in such decisions are shown in Exhibit 4.9. In practice, job analy sis is usually conducted through a combination of these methods so that the weaknesses of any one method are offset by the strengths of another.

099-67811_ch04_4P.indd 172 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 173

M e

th o

d S

o u

rc e

s A

d va

n ta

g e

s a

n d

D is

a d

va n

ta g

e s

P ri

o r

in fo

rm at

io n

C u

rr e

n t

jo b

d e

sc ri

p tio

n s

Tr ai

n in

g m

an u

al s

P e

rf o

rm an

ce a

p p

ra is

al s

O *N

E T

R e

ad ily

a va

ila b

le In

e xp

e n

si ve

E xt

e rn

al s

o u

rc e

s m

ay n

o t

m at

ch jo

b s

in y

o u

r o

rg an

iz at

io n

F o

cu s

is o

n h

o w

jo b

s h

av e

b e

e n

d o

n e

p re

vi o

u sl

y, n

o t

h o

w t

h e

y w

ill b

e d

o n

e in

t h

e f

u tu

re

O b

se rv

at io

n Tr

ai n

e d

jo b

a n

al ys

ts o

r H

R  p

ro fe

ss io

n al

s w

at ch

in

cu m

b e

n ts

p e

rf o

rm t

h e

jo

b

T h

o ro

u g

h , r

ic h

in fo

rm at

io n

D o

e s

n o

t re

ly o

n in

te rm

e d

ia ry

in fo

rm at

io n

s o

u rc

e s

N o

t ap

p ro

p ri

at e

f o

r jo

b s

th at

a re

la rg

e ly

m e

n ta

l i n

c h

ar ac

te r

In cu

m b

e n

ts m

ay b

e h

av e

d iff

e re

n tly

if t

h e

y kn

o w

t h

e y’

re b

e in

g

o b

se rv

e d

In te

rv ie

w s

H R

p ro

fe ss

io n

al s

d is

cu ss

jo

b r

e q

u ir

e m

e n

ts w

ith jo

b

in cu

m b

e n

ts a

n d

m an

ag e

rs

Ta ke

s th

e in

cu m

b e

n t’s

k n

o w

le d

g e

o f

th e

p o

si tio

n in

to a

cc o

u n

t T

im e

-c o

n su

m in

g a

n d

c o

st ly

Q u

al ity

d e

p e

n d

s o

n t

h e

k n

o w

le d

g e

a n

d a

b ili

ty o

f th

e

in te

rv ie

w e

e a

n d

s ki

ll o

f th

e in

te rv

ie w

e r

Ta sk

q u

e st

io n

n ai

re Jo

b in

cu m

b e

n ts

, m an

ag e

rs ,

an d

H R

p ro

fe ss

io n

al s

co m

p le

te a

s ta

n d

ar d

iz e

d

fo rm

w ith

q u

e st

io n

s re

g ar

d in

g t

h e

jo b

S ta

n d

ar d

iz e

d m

e th

o d

a cr

o ss

a v

ar ie

ty o

f jo

b s

C an

c o

m b

in e

in fo

rm at

io n

f ro

m la

rg e

n u

m b

e rs

o f

in cu

m b

e n

ts

q u

ic kl

y D

e ve

lo p

in g

q u

e st

io n

n ai

re s

ca n

b e

e xp

e n

si ve

a n

d

tim e

-c o

n su

m in

g R

e q

u ir

e s

th at

in cu

m b

e n

ts b

e c

ap ab

le o

f co

m p

le tin

g t

h e

f o

rm s

ac cu

ra te

ly

C o

m m

itt e

e o

r

ta sk

f o

rc e

M an

ag e

rs , r

e p

re se

n ta

tiv e

s fr

o m

H R

, a n

d in

cu m

b e

n ts

m

e e

t to

d is

cu ss

jo b

d

e sc

ri p

tio n

s

B ri

n g

s e

xp e

rt is

e o

f a

va ri

e ty

o f

in d

iv id

u al

s in

to t

h e

p ro

ce ss

In cr

e as

e s

re lia

b ili

ty o

f th

e p

ro ce

ss E

n h

an ce

s ac

ce p

ta n

ce o

f th

e f

in al

p ro

d u

ct S

ig n

ifi ca

n t

in ve

st m

e n

t o

f st

af f

tim e

E X

H IB

IT 4

.9

C ri

te ri

a f

o r

G u

id in

g C

h o

ic e

o f

Jo b

A n

a ly

si s

M e

th o

d s

099-67811_ch04_4P.indd 173 11/17/17 12:51 PM

174 PART TWO Support Activities

Sources to Be Used Choosing sources of information involves considering who will be sought to pro- vide the information needed. While this matter is not entirely in de pen dent of job analy sis methods (e.g., use of a task questionnaire normally requires use of job incumbents as the source), it is treated this way in the sections that follow.

Job Analyst. A job analyst is someone who, by virtue of job title and training, is suited to conduct job analyses as well as to guide the job analy sis pro cess. The job analyst is also “out of the loop,” being neither man ag er nor incumbent of the jobs analyzed. Thus, the job analyst brings a combination of expertise and neutrality to the work.

Despite such advantages and appeals, reliance on a job analyst as the job infor- mation source is not without potential limitations. First, the analyst may be per- ceived as an outsider by incumbents and supervisors, a perception that may result in questioning the analyst’s job knowledge and expertise, as well as trustworthi- ness. Second, the job analyst may, in fact, lack detailed knowledge of the jobs to be analyzed, especially in an organ ization with many dif fer ent job titles. Lack of knowledge may cause the analyst to bring inaccurate job ste reo types to the analy- sis pro cess. Fi nally, having specially designated job analysts ( either employees or outside con sul tants) tends to be expensive.

Job Incumbents. Job incumbents seem like a natu ral source of information to be used in job analy sis, and indeed they are relied on in most job analy sis systems. The major advantage of working with incumbents is their familiarity with tasks, KSAOs, and job context. In addition, job incumbents may become more accepting of the job analy sis pro cess and its results through their participation in it.

Some skepticism should be maintained about job incumbents as a source of workplace data, as is true for any source. They may lack the knowledge or insights necessary to provide inclusive information, especially if they are probationary or part- time employees. Some employees may also have difficulty describing the tasks involved in their job or being able to infer and articulate the under lying KSAOs necessary for the job. There are also concerns about job incumbents not responding to job analy sis surveys; most studies show that fewer than half of job incumbents voluntarily respond to job analy sis surveys. Response rates are lower among lower- level employees and those with less education.22 Another potential limitation of job incumbents as an information source pertains to their motiva- tion to be a willing and accurate source. Feelings of distrust and suspicion may greatly hamper employees’ willingness to function capably as sources. For example, incumbents may intentionally fail to report certain tasks as part of their job so that those tasks are not incorporated into the formal job description. Incumbents may also deliberately inflate the importance ratings of tasks in order to make the job appear more difficult than it actually is.

099-67811_ch04_4P.indd 174 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 175

Supervisors. Supervisors are excellent sources for use in job analy sis. They not only supervise employees performing the job to be analyzed but also have played a major role in defining it and in adding or deleting job tasks (as in evolving and flex- ible jobs). Moreover, because supervisors ultimately have to accept the resulting descriptions and specifications for jobs they supervise, including them as a source is a good way to ensure such ac cep tance.

Subject Matter Experts. Often, job analysts, job incumbents, and supervisors are called subject matter experts (SMEs). Other individuals may also be used as SMEs. These people bring par tic u lar expertise to the job analy sis pro cess, an expertise not thought to be available through standard sources. Though the exact qualifications for being designated an SME are far from clear, examples of sources so designated include previous jobholders (e.g., recently promoted employees), private con sul tants, customer/clients, and citizens- at- large for some public sector jobs (e.g., superintendent of schools for a school district). What ever the sources of SMEs, a common requirement is that they have recent, firsthand knowledge of the job being analyzed.23

Job Analy sis Pro cess Collecting job information through job analy sis requires development and use of an overall pro cess. Unfortunately, there is no uniformly best pro cess to be followed; the pro cess has to be tailor- made to suit the specifics of the situation in which it occurs. Many key issues must be dealt with in the construction and operation of the pro cess.24 Each of these is briefly commented on next.

Purpose. The purpose(s) of job analy sis should be clearly identified and agreed on. Since job analy sis is a pro cess designed to yield job information, the organ- ization should ask exactly what job information is desired and why. Here, it is use- ful to refer back to the job requirements matrix to review the types of information that can be sought and obtained in a job requirements job analy sis. Management must decide exactly what types of information are desired (task statements, task dimensions, and so forth) and in what format. Once the desired output and the results of job analy sis have been determined, the organ ization can then plan a pro- cess that will yield the desired results.

Scope. The issue of scope involves which job(s) to include in the job analy- sis. Decisions about actual scope should be based on (1) the importance of the job to the functioning of the organ ization, (2) the number of job applicants and incumbents, (3) whether the job is entry level and thus subject to constant staffing activity, (4) the frequency with which job requirements (both tasks and KSAOs) change, and (5) the amount of time that has lapsed since the previous job analy sis.

099-67811_ch04_4P.indd 175 11/17/17 12:51 PM

176 PART TWO Support Activities

Internal Staff or Con sul tant. The organ ization may use its own staff to conduct the job analy sis or it may procure external con sul tants. This is a difficult decision because it involves not only the obvious consideration of cost but also many other considerations. Exhibit 4.10 highlights some of these concerns and the trade- offs involved.

Organ ization and Coordination. Any job analy sis proj ect, whether conducted by internal staff or external con sul tants, requires careful organ ization and coordi- nation. Two key steps help ensure that this is achieved. First, an orga nizational member should be appointed as proj ect man ag er for the total pro cess (if con sul tants are used, they should report to this proj ect man ag er). The proj ect man ag er should

EXHIBIT 4.10 Factors to Consider in Choosing Between Internal Staff and Consultants for Job Analysis

tnatlusnoCffatSlanretnI

Cost of technical or procedural failure is low

Cost of technical or procedural failure is high

Project scope is limited Project scope is comprehensive and/or large

Need for job data ongoing Need for job data is a one-time, isolated event

There is a desire to develop internal sta� skills in job analysis

There is a need for assured availability of each type and level o�ob analysis skill

Strong management controls are in place to control project costs

Predictability of project cost can depend on adhering to work plan

Knowledge of organization’s norms, ‘‘culture,’’ and jargon is critical

Technical innovativeness and quality are critical

Technical credibility of internal sta� is high

Leverage of external ‘‘expert’’ status is needed to execute project

Process and products of the project are unlikely to be challenged

Process and products of the project are likely to be legally, technically, or politically scrutinized

Rational or narrative job analysis methods are desired

Commercial or proprietary job analysis methods are desired

Data collected are qualitative Data collection methods are structured, standardized, and/or quantitative

Source: D. M. Van De Vort and B. V. Stalder, “Organizing for Job Analysis,” in S. Gael (ed.), The Job Analysis Handbook for Business, Industry and Government. Copyright © 1988 by John Wiley & Sons, Inc. Reprinted by permission of John Wiley & Sons, Inc.

099-67811_ch04_4P.indd 176 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 177

be assigned overall responsibility for the total proj ect, including its organ ization and control. Second, the roles and relationships for the vari ous people involved in the proj ect— HR staff, proj ect staff, line man ag ers, and job incumbents— must be clearly established.

Work Flow and Time Frame. Job analy sis involves a mixture of people and paper in a pro cess that can become entangled very quickly. The proj ect man ag er should develop and adhere to a work flowchart that shows the steps to be followed in the job analy sis. This should be accompanied by a time frame showing critical completion dates for proj ect phases, as well as a final deadline.

Analy sis, Synthesis, and Documentation. Once collected, job information must be analyzed and synthesized through the use of vari ous procedural and statistical means. These should be planned in advance and incorporated into the work- flow and time- frame requirements. Likewise, provisions need to be made for preparation of written documents, especially job descriptions and job specifica- tions, and their incorporation into relevant policy and procedure manuals.

Maintenance of the System. Job analy sis does not end with completion of the proj ect. Rather, mechanisms must be developed and put into place to maintain the job analy sis and information system over time. This is critical because the system will be exposed to numerous influences requiring response and adaptation. Examples include (1) changes in job tasks and KSAOs— additions, deletions, and modifications; (2) job redesign, restructuring, and realignment; and (3) creation of new jobs. In short, job analy sis must be thought of and administered as an ongoing orga nizational pro cess.

Example of Job Analy sis Pro cess. Because of the many factors involved, there is no best or required job analy sis pro cess. Rather, the pro cess must be designed to fit each par tic u lar situation. Exhibit 4.11 shows an example of the job analy- sis pro cess with a narrow scope, namely, for a single job— that of administrative assistant. This was a specially conducted job analy sis that used multiple methods (prior information, observation, and interviews) and multiple sources (job analyst, job incumbents, and supervisors). A previous job holder (SME) conducted the job analy sis and prepared a written job description as the output of the pro cess, which took about 20 hours over a 30- day period.

COMPETENCY- BASED JOB ANALY SIS

Job requirements job analy sis is a technique that was originally developed in the first half of the twentieth century to cata log the requirements for well- defined job roles with very specific and observable characteristics that would be the same

099-67811_ch04_4P.indd 177 11/17/17 12:51 PM

178 PART TWO Support Activities

E X

H IB

IT 4

.1 1

E xa

m p

le o

f Jo

b R

e q

u ir

e m

e n

ts J

o b

A n

a ly

si s

1. M

e e

t w

ith m

an ag

e r

o f

th e

jo b

, d is

cu ss

p ro

je ct

→ 2

. →

3 .

P re

p ar

e te

n ta

tiv e

se t

o f

ta sk

st at

e m

e n

ts →

4 .

R e

vi e

w ta

sk st

at e

m e

n ts

w ith

in cu

m b

e n

ts an

d m

an ag

e rs

;a d

d , d

e le

te ,

re w

ri te

st at

e m

e n

ts

→ 5

. F

in al

iz e

ta sk

st at

e m

e n

ts ,g

e t

ap p

ro va

lf ro

m in

cu m

b e

n ts

an d

m an

ag e

rs

→ 6

. F

o rm

u la

te ta

sk d

im e

n si

o n

s, as

si g

n ta

sk s

to d

im e

n si

o n

s, d

e te

rm in

e %

o f

tim e

sp e

n t

(im p

o rt

an ce

)f o

r e

ac h

d im

e n

si o

n

7. In

fe r

n e

ce ss

ar y

K S

A O

s, d

e ve

lo p

t e

n ta

tiv e

lis t

→ 8

. R

e vi

e w

K S

A O

s w

ith in

cu m

b e

n ts

an d

m an

ag e

rs ;a

d d

,d e

le te

,a n

d re

w ri

te K

S A

O s

→ 9

. F

in al

iz e

K S

A O

s, g

e t

ap p

ro va

lf ro

m in

cu m

b e

n ts

an d

m an

ag e

r →

10 .

D e

ve lo

p jo

b re

q u

ir e

m e

n ts

m at

ri x

an d

/o r

jo b

d e

sc ri

p tio

n in

u sa

b le

f o

rm at

→ 1

1. P

ro vi

d e

m at

ri x

o r

jo b

d e

sc ri

p tio

n to

p ar

tie s

(e .g

., in

cu m

b e

n ts

, m

an ag

e rs

,H R

d e

p ar

tm e

n t)

12 .

U se

m at

ri x

o r

jo b

d e

sc ri

p tio

n in

st af

fin g

ac tiv

iti e

s, su

ch as

co m

m u

n ic

at in

g w

ith re

cr u

its an

d re

cr u

ite rs

,d e

ve lo

p in

g th

e se

le ct

io n

p la

n

G at

h e

r e

xi st

in g

jo b

in fo

rm at

io n

fr

o m

O *N

E T

, c u

rr e

n t

jo b

d

e sc

ri p

tio n

, o b

se rv

at io

n o

f in

cu m

b e

n ts

099-67811_ch04_4P.indd 178 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 179

across many organ izations. As the pace of change increased, new technology rendered many of these jobs obsolete, and organ izations adopted more flexible roles; thus, the relevance of job requirements job analy sis came into question.25 As a result, the competency- based type of job analy sis came into being. Usage of competencies and competency models in staffing reflects a desire to (1) connote job requirements in ways that extend beyond the specific job itself, (2) design and implement staffing programs focused around competencies (rather than just specific jobs) as a way of increasing staffing flexibility in job assignments, and (3) make it easier to adapt jobs to a changing orga nizational context.

Overview

The chief difference between job requirements analy sis and competency- based job analy sis is the direction of information flow. The job requirements analy sis begins by looking at very specific tasks and then aggregates these from the bottom up to form jobs and job categories that are found throughout an organ ization. Due to its linkage with overall orga nizational capacities, competency- based job analy sis has become closely aligned with the strategic perspective on HR management. Because of this explicit link to orga nizational strategy, and the use of terminol- ogy that is consistent with strategic plans, most job analysts in the field find that executives are much more supportive of competency- based analy sis relative to job requirements analy sis.26

Many techniques have been developed over time that facilitate competency- based job analy sis, and it has progressively become a much more rigorous approach than it once was. From this development, a standard set of best practices for con- ducting and using a competency analy sis perspective has emerged.27 The compe- tency analy sis begins by considering the organ ization’s goals and strategies and then determines how each job corresponds to these strategic goals. Competency models should explic itly consider the orga nizational context. This is a key point, because the top- down approach of competency modeling makes it much easier to address how jobs fit together and complement one another to produce goods and ser vices compared with the task focus of job requirements job analy sis. Fi nally, because competency models are tied to the organ ization’s strategy, it is impor tant to emphasize that requirements can potentially change over time. The competen- cies assessed in the pro cess should be sufficiently general to address both pres ent and future orga nizational needs.

Nature of Competencies

A competency is an under lying characteristic of an individual that contributes to job or role per for mance and to orga nizational success.28 Competencies specific to a par tic u lar job are the familiar KSAO requirements established through job require- ments job analy sis. Competency requirements may extend beyond job- specific

099-67811_ch04_4P.indd 179 11/17/17 12:51 PM

180 PART TWO Support Activities

ones to those of multiple jobs, general job categories, or the entire organ ization. These competencies are much more general or generic KSAOs, such as techni- cal expertise or adaptability. A competency model is a combination of the several competencies deemed necessary for a par tic u lar job or role.

Despite the strong similarities between competencies and KSAOs, there are two notable differences. First, competencies may be job spanning, meaning that they contribute to success in multiple jobs. Members of a work team, for example, may each hold specific jobs within the team but may be subject to job- spanning compe- tency requirements, such as adaptability and teamwork orientation. Such require- ments ensure that team members will interact successfully with one another and will even perform portions of others’ jobs if necessary. As another example, com- petency requirements may span jobs within the same category, such as sales jobs or managerial jobs. All sales jobs may have product knowledge as a competency requirement, and all managerial jobs may require planning and results orientation. Such requirements allow for greater flexibility in job placements and job assign- ments within the category.

Second, competencies can contribute not only to job per for mance but also to orga nizational success. These are very general competencies applicable to, and required for, all jobs. They serve to align requirements of all jobs with the mis- sion and goals of the organ ization. A restaurant, for example, may have “customer focus” as a competency requirement for all jobs as a way of indicating that servic- ing the needs of its customers is a key component of all jobs.

Competency Example An illustration of the competency approach to job requirements is shown in Exhibit 4.12. The Green Care Corporation produces several lawn maintenance products. The organ ization is in a highly competitive industry. To survive and grow, its core mission consists of product innovation and product reliability; its goals are to achieve 10% annual growth in revenues and 2% growth in market share. To help fulfill its mission and goals, the organ ization has established four general (strategic) workforce competencies— creativity/innovation, technical expertise, customer focus, and results orientation. These requirements are part of every job in the organ ization. At the business unit (gas lawn mowers) level, the organ ization has also established job- specific and job- spanning require- ments. Some jobs, such as design engineer, are traditional or slowly evolving jobs and, as such, have only job- specific KSAO or competency requirements. Because the products are assembled via team pro cesses, jobs within the assem- bly team (such as engine assembler or final assembler) have both job- specific and job- spanning competency requirements. The job- spanning competencies— team orientation, adaptability, and communication— are general and behavioral. They are necessary because of task interdependence between engine assem- bly and final assembly jobs and because employees may be shifted between the two jobs in order to cover sudden employee shortages due to unscheduled

099-67811_ch04_4P.indd 180 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 181

absences and to maintain smooth production f lows. Each job in the business unit thus has four general competency requirements, multiple job- specific competency requirements, and where appropriate, job- spanning competency requirements.

Company: Green Care Corporation Products: Gas and electric lawn mowers, gas and electric weed whackers, manual lawn

edgers, electric hedge trimmers

Organization Level

Business Unit Level

Design engineer

Engine assembler

Final assembler

TasksTasksTasks

Specific competencies

Specific competencies

Specific competencies

Job-spanning competencies

• Team orientation • Adaptability • Communication

Gas Lawn Mower Business Unit

Design department Assembly team

Green Care: Mission and Goals

Product innovation Product reliability

General (Strategic) Competencies

Creativity/ innovation

Technical expertise

Customer focus

Results orientation

EXHIBIT 4.12 Examples of Competencies

099-67811_ch04_4P.indd 181 11/17/17 12:51 PM

182 PART TWO Support Activities

Organ ization Usage Organ izations have increasingly developed competency models and have used them as the under pinnings of several HR applications.29 Research indicates that the experimentation is occurring in organ izations of all sizes, but especially in large ones. The three key strategic HR reasons for doing competency modeling are to (1) create awareness and understanding of the need for change in business, (2) enhance skill levels in the workforce, and (3) improve teamwork and coordi- nation. Most of the emphasis has been on establishing general competencies, as illustrated by the “ Great Eight” competencies used in one framework:30

• Leading (initiates action, gives direction) • Supporting (shows re spect, puts people first) • Presenting (communicates and networks effectively) • Analyzing (thinks clearly, applies expertise) • Creating (thinks broadly, handles situations creatively) • Organ izing (plans ahead, follows rules) • Adapting (responds to change, copes with setbacks) • Performing (focuses on results, shows understanding of organ ization)

Competency models are being used for many HR applications, especially staff- ing, career development, per for mance management, and compensation. Pertaining to staffing, one impor tant application is in HR and staffing planning. Here, workforce requirements are specified in competency terms and compared with current workforce competency levels to identify competency gaps. Such com- parisons may be particularly appropriate in replacement and succession planning. Another impor tant staffing application is in external and internal se lection, where applicants are assessed not only for job- specific competencies but also for general competencies. For external hiring, competency- based interviews with applicants are conducted to gauge general competencies as a key factor in se lection decisions and in job placement decisions for new incumbents. For promotion decisions, competency- based interviews are used in conjunction with supervisory assess- ments of promotability.31

Collecting Competency Information

Techniques and pro cesses for collecting competency information are continually being developed.32 General competencies at the orga nizational (strategic) level are likely to be established by top management, with guidance from strategic HR man ag ers. At a minimum, effective establishment of general competency require- ments would seem to demand the following. First, it is crucial that the organ ization establish its mission and goals prior to determining competency requirements; this will help ensure that general competencies are derived from knowledge of mission and goals, much as job- specific competencies are derived from previously identi-

099-67811_ch04_4P.indd 182 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 183

fied job tasks. Second, the general competencies should be truly impor tant at all job levels so that their usage as job requirements will focus and align all jobs with the organ ization’s mission and goals. This princi ple also holds in the case where general competency requirements are at the strategic business unit or subunit level instead of at the orga nizational level. Third, all general competencies should have specific behavioral definitions, not just labels. These definitions provide substance, meaning, and guidance to all concerned.

For job- spanning competencies, these definitions will necessarily be more task specific. To ensure effective identification and definition, several tasks should be undertaken. First, it is crucial to know the major tasks for which the competen- cies are to be established, meaning that some form of job analy sis should occur first. For now, the organ ization will have to craft that pro cess since we lack pro- totypes or best- practice examples as guidance. Second, SMEs familiar with all the jobs or roles to which the competencies will apply should be part of the pro cess. Third, careful definition of the competencies will be necessary. Acquiring defini- tions from other organ izations, con sul tants, or O*NET will be useful here. Train- ing programs can improve the quality of competency information. In one instance, man ag ers who attended a program that included an explanation of the competency modeling approach, specific guidance in translating the required be hav iors of a role into competencies, and feedback on the quality of practice exercises produced competency data that were more accurate, more detailed, and more consistent across raters relative to competency data produced by man ag ers who had not received training.33

When competency modeling first appeared, staffing experts expressed concern about the lack of agreement across multiple raters when evaluating the same job’s competencies. One rater might claim that a job entails a high level of interpersonal skill, while another might emphasize the analytical demands of the job. Increas- ingly, it has been recognized that this inconsistency might be an accurate reflection of the many ways people can do the same job.34 In par tic u lar, in complex jobs with high levels of personal autonomy and discretion, dif fer ent job incumbents engage in completely dif fer ent be hav iors requiring completely dif fer ent skills. Compe- tency data may be more likely to show differences across raters than job require- ments analy sis because competency analy sis is more likely to focus on complex jobs with high autonomy. Indeed, evidence suggests that decisions based on well- designed and implemented competency- based job analyses can be as rigorous and accurate as those based on job requirements approaches.35

Example of Job Analy sis Pro cess Similar to our previous example of a job requirements job analy sis in Exhibit 4.11, an example of a competency- based job analy sis is presented in Exhibit 4.13. A number of key differences are immediately apparent. Unlike the job require- ments approach, which can focus on a single job category, the competency- based approach is usually conducted at the orga nizational level and incorporates a

099-67811_ch04_4P.indd 183 11/17/17 12:51 PM

184 PART TWO Support Activities

large variety of jobs. The vital importance of coordinating competencies across levels of the organ ization is ref lected in the meetings involving executives, busi- ness unit directors, and supervisors. In the end, a competency- based approach will focus on an entire system of relationships across levels, so ensuring consis- tency and coherence is a key concern. As one might expect, conducting this sort of whole- organization analy sis is more time- consuming than analyzing a single pre- defined role, especially in terms of executive time involvement. This additional effort is justified if the final product helps integrate the organ ization’s strategic goals and objectives with the whole HR management system.

EXHIBIT 4.13 Example of Competency-Based Job Analysis

1. Evaluate organizational strategy and goals with executive team

2. Consult lists from existing competency models to establish a baseline for comparison

3. Develop initial set of organization-spanning competencies with executive team

4. Interview business- unit-level directors to develop initial set of job-spanning competencies

5. Interview managers and supervisors to develop initial set of job-specific competencies

6. Evaluate fit across levels of competencies and identify areas of potential inconsistency

7. Develop systems and hierarchies of relationships among competencies

8. Revise competency statements in conjunction with executives and directors

9. Create competency system in easily interpreted format across organizational, unit, and job levels

10. Provide competency system information to all parties, including executives, directors, and managers

11. Incorporate competency system into plans for internal career development and promotion

12. Use competency- based system in sta�ng activities including recruiting, selection, and placement

099-67811_ch04_4P.indd 184 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 185

JOB REWARDS

In the person/job match model, jobs are composed of requirements and rewards. The focus so far in this chapter has been on job requirements and competencies vis- à- vis the discussion of job analy sis. Attention now turns to job rewards. Providing and using rewards is a key staffing strategy for motivating several HR outcomes— applicant attraction, employee per for mance, and employee retention in par tic u lar. Successfully matching the rewards with what employees desire will be critical in attaining HR outcomes. Doing so first requires specifying the types of rewards potentially available and desired.

Types of Rewards

Organ izations and jobs provide a wide variety of rewards. Rewards are com- monly classified as either extrinsic or intrinsic in nature. Extrinsic rewards are tangible factors external to the job itself that are explic itly designed and granted to employees by representatives of the organ ization (e.g., pay, benefits, work sched- ule, 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 actu- ally doing the job and being a member of the organ ization (e.g., variety in work duties, autonomy, feedback, coworker and supervisor relations).36

Employee Value Proposition

The totality of rewards, both extrinsic and intrinsic, associated with the job consti- tutes the employee value proposition (EVP).37 The EVP is akin to the “package” or “bundle” of rewards provided to employees and to which employees respond by joining, performing for, and remaining with the organ ization. It is the “deal” or “bargain” struck between the organ ization and the employee, first as a promise to the prospective employee and later as a real ity to the actual new employee. This new deal evolves and changes over time due to reward improvements and/or inter- nal job changes. The EVP thus functions as the glue that binds the employee and the organ ization, with the employee providing certain be hav iors (attraction, per for- mance, retention, and so forth) in exchange for the EVP.

The challenge to the organ ization is to create EVPs for vari ous employee groups that, on average, are both attractive and affordable (how to create an individual EVP in the form of a formal job offer to a prospective employee is considered in Chapter 12). No reward, extrinsic or intrinsic, is costless; the organ ization must figure out what it can afford as it creates its EVPs. Regardless of cost, however, the rewards must also be attractive to those for whom they are intended, so attraction and cost must be considered jointly when developing EVPs. The dual affordability- attractiveness requirements for EVPs may create some potential prob lems: they may be of the wrong magnitude, may be of the wrong mix, or may not be distinc- tive enough.38

099-67811_ch04_4P.indd 185 11/17/17 12:51 PM

186 PART TWO Support Activities

Wrong magnitude refers to a package of rewards that is either too small or too great monetarily. To the prospective or current employee, too small a package may be viewed as simply inadequate, noncompetitive, or an insult, none of which are desirable perceptions to be creating. Such perceptions may arise very early in the applicant’s job search, before the organ ization is even aware of the applicant, due to word- of- mouth information from others (e.g., former applicants or employees) or information obtained about the organ ization, such as through its print or elec- tronic recruitment information. Alternatively, too small a package may not become an issue until fairly late in the job search pro cess, as additional bits of reward package information become known to the applicant. Regardless of when the too- small perceptions emerge, they can be deal killers that lead the person to self- select out of consideration for the job, turn down the job, or quit. While too- small packages may be unattractive, they often have the virtue of being affordable for the organ ization.

Too large of a package creates affordability prob lems for the organ ization. Those prob lems may not surface immediately, but long term they can threaten the organ- ization’s financial viability and possibly even its survival. Affordability prob lems may be particularly acute in service- providing organ izations, where employee com- pensation costs are a substantial percentage of total operating costs.

Wrong mix refers to a situation in which the composition of the rewards package is out of sync with the preferences of prospective or current employees. A package that provides excellent retirement benefits and long- term per for mance incentives to a relatively young and mobile workforce, for example, is most likely a wrong mix. Its attraction and retention power in all likelihood is minimal. It might also be relatively expensive to provide.

Not distinctive refers to individual rewards packages that are viewed as ho- hum in nature. They have no uniqueness or special appeal that would either win or retain employees. They do not signal anything distinctive about the organ ization or give the job seeker or employee any special reason to think the “deal” is one that simply cannot be passed up.

In short, creating successful EVPs is a challenge, and the results can have impor- tant implications for workforce attraction, retention, and cost. To create successful EVPs, the organ ization should seek to systematically collect information about rewards and their importance to employees as well as the extent to which these rewards are currently provided.

Collecting Job Rewards Information

Unlike job analy sis as a mechanism for collecting job requirements information, mechanisms for collecting job rewards information are more fragmentary. None- theless, several things can be done to assess employee preferences and the rewards employees associate with their work. Armed with knowledge about employee pref- erences and perceived rewards, the organ ization can begin to build EVPs that are of

099-67811_ch04_4P.indd 186 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 187

the right magnitude, mix, and distinctiveness. Learning about job rewards involves looking both within and outside the organ ization. It is impor tant to note that a meaningful job rewards analy sis must be specific to each job category— overall preferences and rewards in the organ ization as a whole tend to be vague and will not be useful for assessing person/job fit.

Within the Organ ization To learn about employee reward perceptions within the organ ization, interviews with employees or surveys of employees might be used.

Interviews With Employees. The interview approach requires decisions about who will guide the pro cess, interview content, sampling confidentiality, data recording and analy sis, and reporting of the results. The following are a few suggestions to guide each of those decisions. First, a person with special expertise in the employee interview pro cess should guide the total pro cess. This could be a person within the HR department, a person outside HR with the expertise (such as in marketing research), or an outside con sul tant. The person guiding the pro- cess may be the only interviewer; if not, he or she should carefully select and train those who will do the interviews, including supervising a dry run of the interview.

Second, the interviews should be structured and guided. The major content areas and specific questions should be deci ded in advance, tested on a small sample of employees as to their clarity and wording, and then placed in a formal interview protocol to be used by the interviewer. Potential questions are shown in Exhibit 4.14. Note that the major content areas covered in the interview are rewards offered, reward magnitude, reward mix, and reward distinctiveness.

Third, employees from throughout the organ ization should be part of the sam- ple. In small organ izations, it might be pos si ble to include all employees; in larger organ izations, random samples of employees will be necessary. When sampling, it is impor tant to include employees from all job categories, orga nizational units, and orga nizational levels.

Fourth, it is strongly recommended that the interviews be treated as confi- dential and that the responses of individuals be seen only by those recording and analyzing the data. At the same time, it would be useful to gather (with their permission) interviewees’ demographic information (e.g., age, gender) and orga- nizational information (e.g., job title, orga nizational unit) since this will permit breakouts of responses during data analy sis. Such breakouts will be very useful in decisions about whether to create separate EVPs for separate employee groups or orga nizational units.

Surveys of Employees. A survey of employees should proceed along the same lines as the employee interview pro cess, following many of the same recommen- dations. The biggest difference is the mechanism for gathering the data— namely,

099-67811_ch04_4P.indd 187 11/17/17 12:51 PM

188 PART TWO Support Activities

a written set of questions with response scales rather than a verbally administered set of questions with open- ended responses. To construct the survey, a listing of rewards must be developed. These could be chosen from a listing of the job’s cur- rent extrinsic and intrinsic rewards. An example of a partial employee reward pref- erences survey is shown in Exhibit 4.15. Note that questions involve both extrinsic and intrinsic rewards and ask about the importance of vari ous rewards as well as the extent to which each job provides these rewards.

As with interviews, it is recommended that a person with special expertise guide the proj ect, that the survey content be specially constructed (rather than canned), that sampling include employees throughout the organ ization, that employees be assured of confidentiality, that results be thoroughly analyzed, and that reports of the findings be prepared for orga nizational representatives.

Which to Use? Should the organ ization opt to use interviews, surveys, or both? The advantages of an interview are numerous: it is of a personal nature; employees are allowed to respond in their own words; it is pos si ble to create questions that

Rewards O�ered • What are the most rewarding elements of your job? Consider both the work itself and

the pay and benefits associated with your job. • Looking ahead, are there any changes you can think of that would make your job more

rewarding?

Reward Magnitude • Overall, do you think the level of complexity and challenge in your job is too much,

too little, or about right, compared with that of other jobs in the organization? • Describe the amount of potential for growth and development in your job. • Do you feel like the pay and benefits provided for your job are adequate for the work

you do? If not, what would you change?

Reward Mix • If you could change the mix of rewards provided in your job, what would you add? • Of the rewards associated with your job, which two are the most important to you? • What types of rewards associated with your job are irrelevant to you?

Reward Distinctiveness • Which rewards that you receive in your job are you most likely to tell others about? • Which of our rewards really stand out to you? To job applicants? • What rewards could we start o�ering that would be unique?

EXHIBIT 4.14 Examples of Job Rewards Interview Questions

099-67811_ch04_4P.indd 188 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 189

E X

H IB

IT 4

.1 5

E

xa m

p le

o f

Jo b

R e

w a

rd s

S u

rv e

y

To w

h a

t e

xt e

n t

a re

t h

e f

o llo

w in

g jo

b r

e w

a rd

s im

p o

rt a

n t

to y

o u

?

N o

t a

t A

ll Im

p o

rt a

n t

U n

im p

o rt

a n

t S

o m

e w

h a

t Im

p o

rt a

n t

Im p

o rt

a n

t V

e ry

Im

p o

rt a

n t

E xt

ri n

si c

R e

w a

rd s

B as

e p

ay 1

2 3

4 5

In ce

n tiv

e p

ay 1

2 3

4 5

H e

al th

in su

ra n

ce 1

2 3

4 5

In tr

in si

c R

e w

a rd

s

U si

n g

m y

sk ill

s 1

2 3

4 5

D o

in g

s ig

n ifi

ca n

t ta

sk s

1 2

3 4

5

R e

la tio

n sh

ip s

w ith

c o

w o

rk e

rs 1

2 3

4 5

To w

h a

t e

xt e

n t

d o

e s

yo u

r jo

b p

ro vi

d e

t h

e f

o llo

w in

g r

e w

a rd

s to

y o

u ?

V e

ry L

o w

E

xt e

n t

Lo w

E

xt e

n t

M o

d e

ra te

E

xt e

n t

H ig

h

E xt

e n

t V

e ry

H ig

h

E xt

e n

t

E xt

ri n

si c

R e

w a

rd s

B as

e p

ay 1

2 3

4 5

In ce

n tiv

e p

ay 1

2 3

4 5

H e

al th

in su

ra n

ce 1

2 3

4 5

In tr

in si

c R

e w

a rd

s

U si

n g

m y

sk ill

s 1

2 3

4 5

D o

in g

s ig

n ifi

ca n

t ta

sk s

1 2

3 4

5

R e

la tio

n sh

ip s

w ith

c o

w o

rk e

rs 1

2 3

4 5

099-67811_ch04_4P.indd 189 11/17/17 12:51 PM

190 PART TWO Support Activities

probe perceptions regarding reward magnitude, mix, and distinctiveness; and a very rich set of data is obtained that provides insights beyond mere rating- scale responses. On the downside, interviews are costly to schedule and conduct, data analy sis is messy and time- consuming, and statistical summaries and analy sis of the data are difficult. Surveys are easier to administer (especially online), and they permit statistical summaries and analyses that are very helpful in interpreting responses. The biggest downsides to surveys are the lack of richness of data and the difficulty in constructing questions that tap into employees’ preferences about reward magnitude, mix, and distinctiveness.

Assuming adequate resources and expertise, a combined interview and survey approach would be best. This would allow the organ ization to capitalize on the unique strengths of each approach, as well as offset some of the weaknesses of each. In such cases, interviews usually are done first and then the information gath- ered from the open- ended responses is used as a springboard to develop specific survey questions.

A final cautionary note is that both interviews and surveys of current employees miss out on two other groups from whom reward preference information would be useful. The first group is departing or departed employees, who may have left due to dissatisfaction with the EVP. Chapter 14 discusses the exit interview as a proce- dure for learning about this group. The second group is potential job applicants. Presumably the organ ization could conduct interviews and surveys with this group, but that could be administratively challenging (especially with Internet applicants). Additionally, applicants might feel they are “tipping their hand” to the organ ization in terms of what they desire or would accept in a job offer. The more common way to learn about applicant reward preferences is from surveys of employees outside the organ ization, who might represent the types of applicants the organ ization will encounter.

Outside the Organ ization

Other Employees. Data on the reward preferences of employees outside the organ ization are available from surveys of employees in other organ izations. To the extent these employees are similar to the organ ization’s own applicants and employees, the data will likely provide a useful barometer of preferences. An exam- ple is the Job Satisfaction survey conducted by the Society for Human Resource Management (SHRM). This survey was administered online to a national random sample of 600 employees. The employees rated the importance of 25 extrinsic and intrinsic rewards to their overall satisfaction on a 1–5 (very unimportant to very impor tant) scale. The percentage of employees rating each reward as “very impor- tant” is shown in Exhibit 4.16.

Possibly reflecting employee anxiety surrounding the poor economic conditions in 2010, job security was ranked as the top aspect of satisfaction. Next came the extrinsic reward of “benefits,” which was closely followed by intrinsic rewards of

099-67811_ch04_4P.indd 190 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 191

E X

H IB

IT 4

.1 6

“V

e ry

Im p

o rt

a n

t” A

sp e

ct s

o f

E m

p lo

ye e

J o

b S

a ti

sf a

ct io

n (

E m

p lo

ye e

s)

N e

tw o

rk in

g

O rg

an iz

at io

n ’s

c o

m m

itm e

n t

to p

ro fe

ss io

n al

d e

ve lo

p m

e n

t

C ar

e e

r d

e ve

lo p

m e

n t

o p

p o

rt u

n iti

e s

R e

la tio

n sh

ip w

ith im

m e

d ia

te s

u p

e rv

is o

r

V ar

ie ty

o f

w o

rk Jo

b -s

p e

ci fic

t ra

in in

g C

ar e

e r

ad va

n ce

m e

n t

o p

p o

rt u

n iti

e s

M e

an in

g fu

ln e

ss o

f jo

b O

ve ra

ll co

rp o

ra te

c u

ltu re

F le

xi b

le t

o b

al an

ce li

fe a

n d

w o

rk is

su e

s A

u to

n o

m y

an d

in d

e p

e n

d e

n ce

C o

m m

u n

ic at

io n

b e

tw e

e n

e m

p lo

ye e

s an

d s

e n

io r

m an

ag e

m e

n t

M an

ag e

m e

n t

re co

g n

iti o

n o

f e

m p

lo ye

e jo

b p

e rf

o rm

an ce

F e

e lin

g s

af e

in t

h e

w o

rk e

n vi

ro n

m e

n t

C o

m p

e n

sa tio

n /p

ay T

h e

w o

rk it

se lf

B e

n e

fit s

Jo b

s e

cu ri

ty

O p

p o

rt u

n iti

e s

to u

se s

ki lls

a n

d a

b ili

tie s

R e

la tio

n sh

ip s

w ith

c o

w o

rk e

rs C

o n

tr ib

u tio

n s

o f

w o

rk t

o o

rg an

iz at

io n

’s b

u si

n e

ss g

o al

s

O rg

an iz

at io

n ’s

c o

m m

itm e

n t

to c

o rp

o ra

te s

o ci

al r

e sp

o n

si b

ili ty

+

O rg

an iz

at io

n ’s

fi n

an ci

al s

ta b

ili ty

+

P ai

d t

ra in

in g

a n

d t

u iti

o n

r e

im b

u rs

e m

e n

t p

ro g

ra m

s+

O rg

an iz

at io

n ’s

c o

m m

itt m

e n

t to

a “

g re

e n

” w

o rk

p la

ce +

+ T

h is

a sp

e ct

w as

a d

d e

d in

2 0

10 . T

h e

re fo

re , n

o c

o m

p ar

ab le

d at

a e

xi st

f o

r 2

0 0

4 .

2 0

10 (n

u m

b e

r o

f re

sp o

n d

e n

ts =

6 0

0 )

2

0 0

4 (n

u m

b e

r o

f re

sp o

n d

e n

ts =

6 0

4 )

2 0

% 10

% 0

% 5

0 %

4 0

% 3

0 %

70 %

6 0

% 8

0 %

S o

u r

c es

: S o

ci e

ty f

o r

H u

m an

R e

so u

rc e

M an

ag e

m e

n t,

2 0

10 E

m p

lo ye

e J

o b

S a

ti sf

a ct

io n

(A le

xa n

d ri

a, V

A : a

u th

o r)

, p . 7

; E . E

ss e

n , J

o b

S

a ti

sf a

ct io

n S

e ri

e s

(A le

xa n

d ri

a, V

A : S

o ci

e ty

f o

r H

u m

an R

e so

u rc

e M

an ag

e m

e n

t, 2

0 0

4 ),

p . 1

5 6

. U se

d w

ith p

e rm

is si

o n

.

099-67811_ch04_4P.indd 191 11/17/17 12:51 PM

192 PART TWO Support Activities

“opportunities to use skills and abilities” and “the work itself.” Note that relation- ships with supervisors, recognition, and communication were all rated highly.

Not shown in Exhibit 4.16 are two other impor tant findings. First, a sample of HR professionals were asked to predict the importance that employees attached to the rewards, and the HR professionals’ predictions did not correspond all that closely to the actual employee ratings. A second finding was that there were some differences in reward importance as a function of employee age, tenure, gender, and industry; these differences, however, were relatively small.39

Additional information regarding the rewards associated with jobs can be found in O*NET. Every job in O*NET has accompanying salary information. There is also a set of work values associated with each job, evaluating the extent to which a job provides intrinsic rewards like achievement, in de pen dence, recogni- tion, relationships, support, and working conditions. As with other O*NET infor- mation, these data are collected at the occupational level rather than the job level, so they will need to be supplemented with information from the organ ization as well.

Orga nizational Practices. A less direct way to assess the importance of rewards to employees is to examine the actual rewards that other organ izations provide their employees. The assumption here is that these organ izations 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 impor tant to become knowledgeable of other organ izations’ pay and benefit practices to assist in the development of the EVP.

The best single source of pay and benefit information comes from the National Compensation Survey, conducted by the Bureau of Labor Statistics (BLS) within the Department of Labor. The pay part of the survey reports average pay for employees, broken out by occupation, private- public sector, organ ization size, and geographic area. The benefits part of the survey pres ents detailed data about the percentage of employees who have access to a benefit or are provided an average level of benefits. Data on the following benefits are provided: retirement, health care coverage (medical, dental, and vision) and required employee contributions, short- and long- term disability, paid holidays, paid vacation, child care, flexible workplace, wellness programs, and several others. The data are broken out by occu- pation, industry, and geographic area.

Another impor tant source of information about benefits is the SHRM Annual Benefits Survey. It provides very detailed information about specific benefits pro- vided in each of the following areas: family friendliness, housing and relocation, health care and wellness, personal ser vices, finances, business travel, leave, and other benefits. The data are broken out by organ ization size.

099-67811_ch04_4P.indd 192 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 193

LEGAL ISSUES

Job analy sis plays a crucial role in establishing the foundations for staffing activi- ties, and that role continues from a legal perspective. Job analy sis becomes inti- mately involved in court cases involving the job relatedness of staffing activities. It also occupies a prominent position in the Uniform Guidelines on Employee Se lection Procedures (UGESP). Additionally, the Americans With Disabilities Act (ADA) requires that the organ ization determine the essential functions of each job, and job analy sis can play a pivotal role in that pro cess. The job requirements matrix and its development are very relevant to these issues.

Job Relatedness and Court Cases

In equal employment opportunity and affirmative action (EEO/AA) court cases, the organ ization is confronted with the need to justify its challenged staffing prac- tices as being job related. Common sense suggests that this requires the organ- ization to conduct some type of job analy sis to identify job requirements. If the case involves an organ ization’s defense of its se lection procedures, the UGESP requires conducting a job analy sis. In addition, specific features or characteristics of the job analy sis make a difference in the organ ization’s defense. Specifically, an examination of court cases indicates that for purposes of legal defensibility the organ ization should conform to the following recommendations:

1. “Job analy sis must be performed and must be for the job for which the se lection instrument is to be utilized.

2. Analy sis of the job should be in writing. 3. Job analysts should describe in detail the procedure used. 4. Job data should be collected from a variety of current sources by knowledge-

able job analysts. 5. Sample size should be large and representative of the jobs for which the

se lection instrument is used. 6. Tasks, duties, and activities should be included in the analy sis. 7. The most impor tant tasks should be represented in the se lection device. 8. Competency levels of job per for mance for entry- level jobs should be

specified. 9. Knowledge, skills, and abilities should be specified, particularly if a content

validation model is followed.”40

These recommendations are consistent with our view of job analy sis as the basic foundation for staffing activities. Moreover, even though these recommendations were made many years ago, there is little reason to doubt or modify any of them on the basis of more recent court cases.

099-67811_ch04_4P.indd 193 11/17/17 12:51 PM

194 PART TWO Support Activities

Essential Job Functions

Recall that under the ADA, the organ ization must not discriminate against a quali- fied individual with a disability who can perform the “essential functions” of the job, with or without reasonable accommodation. This requirement raises three questions: What are essential functions? What is the evidence of essential func- tions? What is the role of job analy sis?

Essential Functions The ADA employment regulations provide the following statements about essential functions:

1. “The term essential functions refers to the fundamental job duties of the employment position the individual with a disability holds or desires. The term essential function does not include the marginal functions of the posi- tion; and

2. A job function may be considered essential for any of several reasons, includ- ing but not limited to the following: • The function may be essential because the reason the position exists is to

perform the function; • The function may be essential because of the limited number of employees

available among whom the per for mance of that job function can be distrib- uted; and/or

• The function may be highly specialized so that the incumbent in the posi- tion is hired for his or her expertise or ability to perform the par tic u lar function.”

Evidence of Essential Functions The employment regulations go on to indicate what constitutes evidence that any par tic u lar function is in fact an essential one. Exhibit 4.17 shows the major types of evidence, along with examples and explanations. Other evidence might also be used.

Role of Job Analy sis Behind each of the evidence types lies some type of implicit, informal job analy sis. In this sense the regulations touch on job analy sis. The separate technical assis- tance manual from the EEOC mentions, and provides examples of, more formal job analy sis that might be done to help identify essential job functions. It makes four major points about such job analy sis.41 First, while job analy sis is not required by law as a means of establishing the essential functions of a job, it is strongly recommended. Second, the job analy sis should focus on tasks associated with the job. Where KSAOs are studied or specified, they should be derived from an explicit consideration of their probable links to the essential tasks. Third, with regard to

099-67811_ch04_4P.indd 194 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 195

tasks, the focus should be on the tasks themselves and their outcome or results, rather than the methods by which they are performed. Fi nally, the job analy sis should be useful in identifying potential reasonable accommodations.42

SUMMARY

Organ izations design vari ous types of jobs—as jobs change and evolve, new design approaches are sometimes needed. All design approaches result in job content in the form of job requirements and rewards. Job analy sis is described as the pro cess used to gather, analyze, synthesize, and report information about job content. The job requirements approach to job analy sis focuses on job- specific tasks, KSAOs, and job context. Competency- based job analy sis seeks to identify more general KSAOs that apply across jobs and roles. The job rewards approach focuses on understanding the outcomes of work for employees.

The job requirements approach is guided by the job requirements matrix. The matrix calls for information about tasks and task dimensions, as well as their importance. In a parallel fashion, it requires information about KSAOs necessary for the tasks, plus indications about the importance of those KSAOs. The final component of the matrix deals with numerous ele ments of the job context.

• The employer’s judgment. Is this a “must do” task or expected result? An employer requires a customer service representative to handle customer complaints and resolve them within one week.

• A written job description prepared before advertising or interviewing job applicants. Identify the most important—essential—functions of the job.

• Amount of time spent performing the job. The higher the percentage of work time spent on a task or function, the more likely it is essential.

• The consequences of not requiring a person to perform a task. There may be pre-surgery protocols for ensuring patient safety, and not requiring nurses to follow the protocols could threaten patient safety and surgical outcomes.

• The terms of a collective bargaining agreement. The CBA may contain job descriptions or duties.

• The work experience of previous or current employees on the job. Learning from these people actual tasks done can help identify what tasks are essential.

EXHIBIT 4.17 Types of Essential Job Function Evidence

099-67811_ch04_4P.indd 195 11/17/17 12:51 PM

196 PART TWO Support Activities

When gathering the information called for by the job requirements matrix, the organ ization is confronted with a multitude of choices. Those choices are shown to revolve around vari ous job analy sis methods, sources, and pro cesses. The organ- ization must choose from among these; all have advantages and disadvantages associated with them. The choices should be guided by a concern for the accuracy and acceptability of the information being gathered.

Competency- based job analy sis seeks to identify general competencies (KSAOs) necessary for all jobs because the competencies support the organ ization’s mission and goals. Within work units, other general competencies (job- spanning KSAOs) may also be established that cut across multiple jobs. Techniques and pro cesses for collecting competency information were suggested.

Jobs offer a variety of rewards, both extrinsic and intrinsic. The totality of these rewards constitutes the EVP. To help form EVPs, it is necessary to collect informa- tion about employee reward preferences and rewards given to employees at other organ izations. Numerous techniques for doing this are available.

From a legal perspective, job analy sis is very impor tant in creating staffing sys- tems and practices that comply with EEO/AA laws and regulations. The employer must ensure (or be able to show) that its practices are job related. This requires not only conducting a job requirements job analy sis but also using a pro cess that itself has defensible characteristics. Under the ADA, the organ ization must identify the essential functions of the job. Though this does not require a job analy sis, the organ ization should strongly consider it as one of the tools to be used. Over time, we will learn more about how job analy sis is treated under the ADA.

DISCUSSION QUESTIONS

1. What is the purpose of each type of job analy sis, and how can the three types described in this chapter be combined to produce an overall understanding of work in an organ ization?

2. How should task statements be written, and what sorts of prob lems might you encounter in asking a job incumbent to write these statements?

3. Would it be better to first identify task dimensions and then create specific task statements for each dimension, or should task statements be identified first and then used to create task dimensions?

4. What would you consider when deciding what criteria (e.g., percentage of time spent) to use for gathering indications about task importance?

5. What are the advantages and disadvantages of using multiple methods of job analy sis for a par tic u lar job? Multiple sources?

6. What are the advantages and disadvantages of identifying and using general competencies to guide staffing activities?

099-67811_ch04_4P.indd 196 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 197

7. Referring back to Exhibit 4.16, why do you think HR professionals were not able to accurately predict the importance of many rewards to employees? What are the implications for creating the EVP?

ETHICAL ISSUES

1. It has been suggested that ethical conduct be formally incorporated as a gen- eral competency requirement for any job within the organ ization. Discuss the pros and cons of this suggestion.

2. Assume you are assisting in the conduct of job analy sis as an HR department representative. You have encountered several man ag ers who want to delete certain tasks and KSAOs from the formal job description that have to do with employee safety, even though they clearly are job requirements. How should you handle this situation?

APPLICATIONS

Conducting a Job Requirements or Job Rewards Job Analy sis

Job analy sis is defined as the pro cess of studying jobs in order to gather, synthesize, and report information about job content. Based on the person/job match model, job content consists of job requirements (tasks and KSAOs) and job rewards (extrinsic and intrinsic). The goal of a job requirements job analy sis is to produce the job requirements matrix.

Choose a job you want to study and conduct either a job requirements or job rewards job analy sis. Write a report of your proj ect that includes the following sections:

1. The job— What job (job title) did you choose to study and why? 2. The methods used— What methods did you use (prior information, observa-

tion, interviews, task questionnaires, committee, combinations of these), and exactly how did you use them?

3. The sources used— What sources did you use (job analyst, job incumbent, supervisor, SMEs, or combinations of these), and exactly how did you use them?

4. The pro cess used— How did you go about gathering, synthesizing, and report- ing the information? Refer back to Exhibit 4.11 for an example.

5. The matrix— Pres ent the actual job requirements matrix.

099-67811_ch04_4P.indd 197 11/17/17 12:51 PM

198 PART TWO Support Activities

Maintaining Job Descriptions

The InAndOut, Inc., com pany provides digital printing and distribution ser vices for organ izations and booksellers. Electronic documents are initially received by design experts, who improve the appearance of materials by creating or editing illustrations and figures, determining font size and placement, and finalizing lay- outs. Technical experts then adapt materials to a variety of digital formats, deter- mine compatibility across devices and operating systems, and evaluate feasibility of custom print runs. Marketing experts facilitate distribution to online stores and the generation of publicity and advertising messages. Customer ser vices rep- resentatives generate new accounts and also ser vice existing accounts. All these employees report to either the supervisor of operations or the supervisor of customer ser vice, both of whom report to the general man ag er.

The owner and president of InAndOut, Inc., Alta Fossom, is in de pen dently wealthy and delegates all day- to- day management matters to the general man ag er, Marvin Olson. Alta requires, however, that Marvin clear any new ideas or initia- tives with her before taking action. The com pany is growing and changing rapidly, along with adding many new, and often large, accounts. Publishers are demanding more ser vices and faster order fulfillment. Information technology is constantly being upgraded, and new platforms and operating systems are continually coming online that affect all phases of the pro cess. The workforce is growing in size to meet the business growth. The com pany now has 37 employees, and Marvin expects to hire 15–20 new employees within the next year.

Job descriptions for the com pany were originally written by a con sul tant about eight years ago. They have never been revised and are hopelessly outdated. The job of marketing representative does not even have a job description, because the job was created only five years ago. As general man ag er, Marvin is responsible for all HR management matters, but he has little time to devote to them. To get a better grip on HR responsibilities, Marvin has hired you as a part- time HR intern. He has a gut feeling that the job descriptions need to be updated, or in some cases created, and has assigned this proj ect to you. Since Marvin has to clear new proj ects with Alta, he wants you to prepare a brief proposal that he can take to her for approval and that suggests the following:

1. Reasons why it is impor tant to update or write new job descriptions 2. An outline of a pro cess for doing this that will yield a set of thorough, current

job descriptions 3. A pro cess to be used in the future for periodically reviewing and updating job

descriptions

Marvin wants to meet with you and discuss each of these points. He wants the proposal to contain specific suggestions and ideas. What exactly would you sug- gest to Marvin?

099-67811_ch04_4P.indd 198 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 199

ENDNOTES

1. J. I. Sanchez and E. L. Levine, “The Rise and Fall of Job Analy sis and the Future of Work Analy- sis,” Annual Review of Psy chol ogy, 2012, 63, pp. 397–425.

2. M. T. Brannick, E. L. Levine, and F. P. Morgeson, Job and Work Analy sis (Thousand Oaks, CA: Sage, 2007).

3. J. K. Harter, F. L. Schmidt, and T. L. Hayes, “Business- Unit- Level Relationship Between Employee Satisfaction, Employee Engagement, and Business Outcomes: A Meta- Analysis,” Journal of Applied Psy chol ogy, 2002, 87, pp. 268–279.

4. R. J. Vance, Employee Engagement and Commitment (Alexandria, VA: Society for Human Resource Management, 2006), pp. 1, 13; Harter, Schmidt, and Hayes, “Business- Unit- Level Relationship Between Employee Satisfaction, Employee Engagement, and Business Outcomes: A Meta- Analysis.”

5. Vance, Employee Engagement and Commitment, pp. 1, 13; Harter, Schmidt, and Hayes, “Business- Unit- Level Relationship Between Employee Satisfaction, Employee Engagement, and Business Outcomes: A Meta- Analysis.”

6. For excellent overviews and reviews, see Brannick, Levine, and Morgeson, Job and Work Analy­ sis; R. D. Gatewood, H. S. Feild, and M. Barrick, Human Resource Se lection, 7th ed. (Orlando, FL: Harcourt, 2010), pp. 267–363; P. R. Sackett and R. M. Laczo, “Job and Work Analy sis,” in W. Borman, D. Ilgen, and R. Klimoski (eds.), Handbook of Psy chol ogy: Industrial and Orga­ nizational Psy chol ogy, Vol. 12 (New York: Wiley, 2003), pp. 21–37.

7. E. T. Cornelius III, “Practical Findings From Job Analy sis Research,” in S. Gael (ed.), The Job Analy sis Handbook for Business, Industry and Government, Vol. 1 (New York: Wiley, 1988), pp. 48–70.

8. Sanchez and Levine, “The Rise and Fall of Job Analy sis and the Future of Work Analy sis.” 9. C. J. Cranny and M. E. Doherty, “Importance Ratings in Job Analy sis: Note on the Misinterpre-

tation of Factor Analy sis,” Journal of Applied Psy chol ogy, 1988, 73, pp. 320–322. 10. Sanchez and Levine, “The Rise and Fall of Job Analy sis and the Future of Work Analy sis.” 11. F. P. Morgeson and E. C. Dierdorff, “Work Analy sis: From Technique to Theory,” in S. Zedeck

(ed.), APA Handbook of Industrial and Orga nizational Psy chol ogy, Vol. 2 (Washington, DC: American Psychological Association, 2011), pp. 3–41; Sanchez and Levine, “The Rise and Fall of Job Analy sis and the Future of Work Analy sis.”

12. N. G. Peterson, M. D. Mumford, W. C. Borman, P. R. Jeanneret, E. A. Fleishman, K. Y. Levin, M. A. Campion, M. S. Mayfield, F. S. Morgeson, K. Pearlman, M. K. Gowing, A. R. Lancaster, M. B. Silver, and D. M. Dye, “Understanding Work Using the Occupational Information Net- work: Implications for Research and Practice,” Personnel Psy chol ogy, 2001, 54, pp. 451–492.

13. C. C. LaPolice, G. W. Car ter, and J. W. Johnson, “Linking O*NET Descriptors to Occupational Literacy Requirements Using Job Component Validation,” Personnel Psy chol ogy, 2008, 61, pp. 405–441.

14. Morgeson and Dierdorff, “Work Analy sis: From Technique to Theory.” 15. Morgeson and Dierdorff, “Work Analy sis: From Technique to Theory.” 16. Sanchez and Levine, “The Rise and Fall of Job Analy sis and the Future of Work Analy sis.” 17. F. P. Morgeson, K. Delaney- Klinger, M. S. Mayfield, P. Ferrara, and M. A. Campion, “Self-

Presentations Pro cesses in Job Analy sis: A Field Experiment Investigating Inflation in Abilities, Tasks, and Competencies,” Journal of Applied Psy chol ogy, 2004, 89, pp. 674–686.

18. For detailed treatments, see Brannick, Levine, and Morgeson, Job Work Analy sis; Gael (ed.), The Job Analy sis Handbook for Business, Industry and Government, pp. 315–468; Gatewood, Feild,

099-67811_ch04_4P.indd 199 11/17/17 12:51 PM

200 PART TWO Support Activities

and Barrick, Human Resource Se lection, pp. 267–363; M. Mader- Clark, The Job Description Handbook (Berkeley, CA: Nolo, 2006).

19. R. Reiter- Palmon, M. Brown, D. L. Sandall, C. B. Buboltz, and T. Nimps, “Development of an O*NET Web- Based Job Analy sis and Its Implementation in the U.S. Navy,” Human Resource Management Review, 2006, 16, pp. 294–309.

20. Brannick, Levine, and Morgeson, Job and Work Analy sis. 21. T. A. Stetz, J. M. Beaubien, M. J. Keeney, and B. D. Lyons, “Nonrandom Response and Vari-

ance in Job Analy sis Surveys: A Cause for Concern?” Public Personnel Management, 2008, 37, pp. 223–241.

22. P. D. G. Steel and J. D. Kammeyer- Mueller, “Using a Meta- Analytic Perspective to Enhance Job Component Validation,” Personnel Psy chol ogy, 2009, 62, pp. 533–552; P. D. G. Steel, A. I. Huffcutt, and J. D. Kammeyer- Mueller, “From the Work One Knows the Worker: A Systematic Review of the Challenges, Solutions, and Steps to Creating Synthetic Validity,” International Journal of Se lection and Assessment, 2006, 14, pp. 16–36.

23. R. G. Jones, J. I. Sanchez, G. Parameswaran, J. Phelps, C. Shop- taught, M. Williams, and S. White, “Se lection or Training? A Two- Fold Test of the Validity of Job- Analytic Ratings of Trainability,” Journal of Business and Psy chol ogy, 2001, 15, pp. 363–389; D. M. Truxillo, M. E. Paronto, M. Collins, and J. L. Sulzer, “Effects of Subject Matter Expert Viewpoint on Job Analy- sis Results,” Public Personnel Management, 2004, 33(1), pp. 33–46.

24. See Brannick, Levine, and Morgeson, Job and Work Analy sis; Gael (ed.), The Job Analy sis Hand­ book for Business, Industry and Government, pp. 315–390; Gatewood, Feild, and Barrick, Human Resource Se lection, pp. 267–363.

25. G. W. Stevens, “A Critical Review of the Science and Practice of Competency Modeling,” Human Resource Development Review, 2013, 12, pp. 86–107.

26. M. A. Campion, A. A. Fink, B. J. Ruggeberg, L. Carr, G. M. Phillips, and R. B. Odman, “ Doing Competencies Well: Best Practices in Competency Modeling,” Personnel Psy chol ogy, 2011, 64, pp. 225–262.

27. Campion, Fink, Ruggeberg, Carr, Phillips, and Odman, “ Doing Competencies Well: Best Prac- tices in Competency Modeling.”

28. J. S. Schippman, “Competencies, Job Analy sis, and the Next Generation of Modeling,” in J. C. Scott and D. H. Reynolds (eds.), Handbook of Workplace Assessment (San Francisco: Jossey- Bass, 2010), pp. 197–231; J. S. Schippman, R. A. Ash, M. Battista, L. Carr, L. D. Eyde, B. Hesketh, J. Kehoe, K. Pearlman, E. P. Prien, and J. I. Sanchez, “The Practice of Competency Modeling,” Personnel Psy chol ogy, 2000, 53, pp. 703–740.

29. Schippman, “Competencies, Job Analy sis, and the Next Generation of Modeling.” 30. D. Bartram, “The Great Eight Competencies: A Criterion- Centric Approach to Validation,” Jour­

nal of Applied Psy chol ogy, 2007, 90, pp. 1185–1203. 31. Schippman et al., “The Practice of Competency Modeling.” 32. Schippman et al., “The Practice of Competency Modeling.” 33. F. Lievens and J. I. Sanchez, “Can Training Improve the Quality of Inferences Made by Rat-

ers in Competency Modeling? A Quasi- Experiment,” Journal of Applied Psy chol ogy, 2007, 92, pp. 812–819.

34. F. Lievens, J. I. Sanchez, D. Bartram, and A. Brown, “Lack of Consensus Among Competency Ratings of the Same Occupation: Noise or Substance?” Journal of Applied Psy chol ogy, 2010, 95, pp. 562–571; Sanchez and Levine, “The Rise and Fall of Job Analy sis and the Future of Work Analy sis.”

35. V. M. Catano, W. Darr, and C. A. Campbell, “Per for mance Appraisal of Behavior- Based Compe- tencies: A Reliable and Valid Procedure,” Personnel Psy chol ogy, 2007, 60, pp. 201–230.

099-67811_ch04_4P.indd 200 11/17/17 12:51 PM

CHAPTER FOUR Job Analy sis and Rewards 201

36. R. V. Dawis, “Person- Environment Fit and Job Satisfaction,” in C. J. Cranny, P. C. Smith, and E. F. Stone (eds.), Job Satisfaction (New York: Lexington, 1992), pp. 69–88; G. Ledford, P. Mul- vey, and P. LeBlanc, The Rewards of Work (Scottsdale, AZ: WorldatWork/Sibson, 2000).

37. E. E. Ledford and M. I. Lucy, The Rewards of Work (Los Angeles: Sibson Consulting, 2003). 38. Ledford and Lucy, The Rewards of Work, p. 12. 39. Vance, Employee Engagement and Commitment, pp. 1, 13; Harter, Schmidt, and Hayes, “Business-

Unit- Level Relationship Between Employee Satisfaction, Employee Engagement, and Business Outcomes: A Meta- Analysis.”

40. D. E. Thompson and T. A. Thompson, “Court Standards for Job Analy sis in Test Validation,” Personnel Psy chol ogy, 1982, 35, pp. 865–874.

41. Equal Employment Opportunity Commission, Technical Assistance Manual on the Employment Provisions (Title 1) of the Americans With Disabilities Act (Washington, DC: author, 1992), pp. II-19 to II-21.

42. K. E. Mitchell, G. M. Alliger, and R. Morgfopoulos, “ Toward an ADA- Appropriate Job Analy- sis,” Human Resource Management Review, 1997, 7, pp. 5–26; F. Lievens, J. I. Sanchez, and W. De Corte, “Easing the Inferential Leap in Competency Modelling: The Effects of Task- Related Information and Subject Matter Expertise,” Personnel Psy chol ogy, 2001, 57, pp. 847–879; Lievens and Sanchez, “Can Training Improve the Quality of Inferences Made by Raters in Com- petency Modeling: A Quasi- Experiment,” pp. 812–819.

099-67811_ch04_4P.indd 201 11/17/17 12:51 PM

The Staffing Organizations Model

Organization

Mission Goals and Objectives

Organization Strategy HR and Sta�ng Strategy

Sta�ng Policies and Programs

Sta�ng System and Retention Management

Legal compliance Planning Job analysis and rewards

Recruitment: external, internal Selection: measurement, external, internal Employment: decision making, final match

Core Sta�ng ActivitiesSupport Activities

099-67811_ch05_4P.indd 202 11/17/17 12:37 PM

PA R T T H R E E

Staffing Activities: Recruitment

C H A P T E R F I V E External Recruitment

C H A P T E R S I X Internal Recruitment

099-67811_ch05_4P.indd 203 11/17/17 12:37 PM

099-67811_ch05_4P.indd 204 11/17/17 12:37 PM

C H A P T E R F I V E

External Recruitment

Learning Objectives and Introduction Learning Objectives Introduction

Strategic Recruitment Planning Defining Strategic External Recruitment Goals Open Versus Targeted Recruitment Organ ization and Administration

Applicant Reactions Reactions to Job and Orga nizational Characteristics Reactions to Recruiters Reactions to the Recruitment Pro cess Reactions to Diversity Issues

Communication Communication Message Communication Media

Strategy Implementation Individual Recruitment Sources Social Recruitment Sources Orga nizational Recruitment Sources Recruitment Metrics

Transition to Se lection

Legal Issues Definition of a Job Applicant Affirmative Action Programs Electronic Recruitment Job Advertisements Fraud and Misrepre sen ta tion

099-67811_ch05_4P.indd 205 11/17/17 12:37 PM

Summary

Discussion Questions

Ethical Issues

Applications Improving a College Recruitment Program Internet Recruitment

Endnotes

099-67811_ch05_4P.indd 206 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 207

LEARNING OBJECTIVES AND INTRODUCTION

Learning Objectives

• Engage in strategic recruitment planning activities • Understand the difference between open and targeted recruitment • Create a persuasive communication message • Learn about a variety of recruitment media • Recognize how applicant reactions influence the effectiveness of a recruitment

plan • Utilize a variety of recruitment sources • Evaluate recruitment based on established metrics

Introduction

An effective recruitment pro cess is the cornerstone of an effective staffing system. If the recruitment system works, high- quality applicants will be attracted to the organ ization, the best candidates will be available for se lection and eventual hiring, and the organ ization will have a much easier time reaching its strategic staffing goals. Conversely, if recruitment fails to attract enough qualified applicants, none of the other components of the staffing system can function properly— after all, you can’t hire people who don’t apply.

In external recruitment, the organ ization is trying to sell itself to potential appli- cants, so many marketing princi ples are applied to improve recruitment yields. You’ll learn how recruiters choose from three types of messages— employment brand, targeted, or realistic—to attract the right types of candidates. Over the course of this chapter, you’ll also learn about the advantages and disadvantages of recruitment methods such as social media, corporate websites, employee referrals, college job fairs, and many others.

The recruitment pro cess begins with a strategic planning phase, during which strategic recruitment goals are defined, a decision is made about whether an open or targeted technique will be employed, and orga nizational and administrative plans are developed. Following the formation of a strategy, the message to be com- municated to job applicants is established, along with the media that will be used to convey the message. Special consideration must be given to applicant reactions to recruiters and the recruitment pro cess in undertaking each of these phases of the external recruitment pro cess. Fi nally, the organ ization will implement its cho- sen strategy, based on careful consideration of all the factors that have been men- tioned previously. Close attention must also be given to legal issues. This includes consideration of the definition of job applicant, disclaimers, targeted recruitment, electronic recruitment, job advertisements, and fraud and misrepre sen ta tion.

099-67811_ch05_4P.indd 207 11/17/17 12:37 PM

208 PART THREE Staffing Activities: Recruitment

STRATEGIC RECRUITMENT PLANNING

Recruitment is a pro cess that attracts potential future employees who have KSAOs (knowledge, skill, ability, and other characteristics) that will help the organ ization achieve its strategic goals. If strategic goals are to be fulfilled, each step must flow from the foundation established during the recruitment planning pro cess. Exhibit 5.1 provides an overview of how this pro cess should operate.

Consistent with this model, three issues must be resolved before the organ ization can begin attracting applicants. First, the organ ization needs to define its strategic goals for the recruitment pro cess. The needs that were identified in the planning pro cess will guide the pro cess of identifying exactly what types of employees need

EXHIBIT 5.1 Planning, Communicating, and Implementing Strategic Recruitment

Consider potential applicant reactions to recruitment methods

Create communication message and select media

Implement recruitment strategy and evaluate ongoing outcomes

Select open versus targeted approach

Make organization and administration decisions

Define recruitment goals

099-67811_ch05_4P.indd 208 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 209

to be recruited, how quickly these needs will be fulfilled, and the time frame for the recruitment pro cess. Next, the organ ization needs to decide how broadly it will recruit. Fi nally, orga nizational and administrative issues need to be considered, including who will do the recruitment and bud geting.

Defining Strategic External Recruitment Goals

Any recruitment drive must begin from a careful consideration of the organ ization’s strategic goals.1 Defining specific desired outcomes for the pro cess can ensure that the organ ization can concentrate its efforts on applicants who will contribute most to overall orga nizational success. The definition of strategic goals includes develop- ing goals for attraction, goals for speed, and a time frame.

Goals for Attraction Knowing how to recruit effectively and strategically begins by knowing the organ- ization’s current needs and future needs. For example, a global computer hard- ware manufacturer considering international expansion will need to consider what national cultures and languages its employees will need to understand. A phar- ma ceu ti cal com pany in a dynamic market will need to think of the expertise of current employees as well as recruits’ ability to learn and develop as the business environment evolves. The key issues an organ ization needs to resolve in defining its goals for attraction involve consideration of the fit issues we discuss throughout the book.

In terms of person/job fit, the organ ization will need to determine what types of applicants are most likely to have the required KSAOs, identified through the pro- cess of job analy sis. At this stage in the pro cess, goals should proceed from general statements to specifics. Determine whether you need a highly educated workforce or one with lots of practical experience, and then get more specific about what types of degrees employees should have or specific jobs employees should have previously held. After the KSAOs have been well defined, think about which of the recruitment sources we discuss later in the chapter are most likely to attract interested individuals with the right competencies.

In terms of person/or ga ni za tion fit, the techniques for recruitment should closely match the organ ization’s culture and values. Companies that pride themselves on environmental sustainability and a team- oriented environment will want to send a message to new recruits that is much dif fer ent from the message of companies that have a revenue- driven culture that promotes aggressive growth. Every thing from the areas of the country where recruitment will take place to the types of media that will be employed will send a message to potential applicants about what the organ ization’s culture is like, so choices about recruitment should always take these considerations into account.

099-67811_ch05_4P.indd 209 11/17/17 12:37 PM

210 PART THREE Staffing Activities: Recruitment

Goals for Speed While goals for attraction answer the question of what types of job seekers the organ ization needs to attract, goals for speed answer the question of how fast the organ ization needs to attract applicants. When an organ ization needs to fill a posi- tion quickly with an employee who will contribute right away, recruitment will have to focus on methods that contact highly qualified and experienced individu- als who are prob ably doing similar work already. Attracting these candidates does not involve the same strategy that would be employed if an organ ization wants to attract applicants with raw talent and ability who can be molded to fit the needs of the organ ization with training and experience.

Goals for speed can also influence the ways an organ ization recruits in more immediate ways as well. When an organ ization needs to fill a position quickly, tech- niques that identify a large pool of interested individuals who want to start right away should be implemented. On the other hand, the organ ization’s long- term hiring strat- egy should include establishing personal relationships with a broad pool of talented individuals, regardless of their immediate availability, through ongoing networking. Some technology companies start the recruitment pro cess by providing scholar- ships and mentoring opportunities for college students, with the hope of identify- ing and attracting individuals who will be interested in a job when they gradu ate.

Time Frame The last issue that needs to be resolved in defining strategic goals is the time frame during which recruitment will take place. This can be particularly impor tant in a legal sense because the applicant pool definition depends on the length of time applicants will have to apply. Defining a time frame means determining how long the position will be advertised prior to consideration of applications, and at what point a final offer for se lection tests and interviews will be sent to applicants. Dur- ing the time- frame goal development phase, general princi ples for determining how long a job will remain open are considered in light of strategic goals for the recruitment pro cess. Fi nally, specific decisions about timing are left for the organ- ization and administration phase.

When an organ ization is seeking applicants for a very specific, in- demand posi- tion, the time frame should be similarly specific, with applications accepted only until a firm deadline is reached, after which no other applications will be accepted or considered. When an organ ization is seeking a larger number of applicants for an entry- level managerial or professional job category, recruiters might attend job fairs and encourage applications from attendees. If an organ ization has the goal of filling a large number of positions that traditionally have relatively high turnover, such as sales or customer ser vice jobs, then recruitment may not have a termination point. Instead, recruitment will be considered ongoing, as with a policy of “always taking applications.”

099-67811_ch05_4P.indd 210 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 211

Open Versus Targeted Recruitment

One of the most difficult aspects of recruitment is knowing where to look for appli- cants. In theory, the pool of potential job applicants is the eligible labor force (i.e., employed, unemployed, discouraged workers, new labor force entrants, and labor force reentrants). In practice, the organ ization must narrow down this vast pool into segments or strata of workers believed to be the most desirable applicants. To do so, organ izations can use open or targeted recruitment methods.

Open Recruitment With an open recruitment approach, organ izations cast a wide net to identify poten- tial applicants for specific job openings. Very little effort is made in segmenting the market into applicants with the most desirable KSAOs. This approach is very passive in that anyone can apply for an opening, and all who apply for a posi- tion are considered, regardless of their qualifications. An advantage of the open recruitment method is that applicants often see it as being “fair” in that every- one has the opportunity to apply. Open recruitment helps ensure that a diverse set of applicants— including minorities, teens, former retirees, veterans, people with disabilities, and other potentially overlooked employee groups— are given a fair shot at being considered. Another advantage of open recruitment is that it is useful— perhaps even essential— when large numbers of applicants must be hired. The disadvantage to this approach is that a large number of applications must be considered, so it is pos si ble that qualified applicants may be overlooked in the pro- cess. Unfortunately, with the growth of web- based recruitment, many employers have found that open recruitment yields too many applicants, making it very time- consuming to review all the résumés and other application materials.2

Targeted Recruitment A targeted recruitment approach is one whereby the organ ization identifies seg- ments in the labor market where qualified candidates are likely to be. Often, this is done to find applicants with specific characteristics pertinent to person/job or person/or ga ni za tion match. Some experts propose that a targeted strategy may be more effective because it allows the organ ization to prepare a specific message that appeals to the audience, rather than relying on a general message that is mildly appealing to some candidates but strongly appealing to none.3

Following is a list of some of the potential target recruitment groups (of course, these categories are not mutually exclusive):

• Key KSAO holders— the objective here is to identify applicants with specific new areas of knowledge or “hot” skills

• Diverse job seekers— often, one must go beyond open recruitment and make special efforts to reach diverse groups

099-67811_ch05_4P.indd 211 11/17/17 12:37 PM

212 PART THREE Staffing Activities: Recruitment

• Passive job seekers or non- candidates— sometimes excellent candidates can be found in “trailing spouses” or other dual- career couples

• Former military personnel— especially those with key competencies such as leadership

• Employment- discouraged— long- term unemployed, homemakers, welfare recip- ients, teen agers, and people with disabilities

• Reward- seekers— those who are attracted to the organ ization’s employee value proposition, which might offer benefits such as flexible work schedules and fully paid health care

• Former employees— those with good track rec ords while they were employees • Reluctant applicants— individuals who have interest in an organ ization but are

conflicted; research shows that flexible work arrangements may help attract such individuals4

Making the Choice The choice between open and targeted recruitment is impor tant, as it dictates recruitment methods and sources. This is not to suggest that open and targeted recruitment necessarily achieve dif fer ent goals. Targeted recruitment can achieve the same ends of inclusion as open recruitment, but through a dif fer ent mechanism. Whereas open recruitment achieves inclusiveness by encouraging every one to apply, targeted recruitment may actually seek out par tic u lar groups that would not respond in an open recruitment environment. In theory, open and targeted recruit- ment can be used in combination. For example, an organ ization may encourage all applications by posting jobs on its website and advertising broadly, while still making special efforts to reach certain populations. Of course, by seeking out one group, another may be inadvertently overlooked from consideration. So, before targeted recruitment is undertaken, the organ ization needs to carefully consider which groups to target, as well as the job skills necessary to perform the job(s) in question. Similarly, before open recruitment is selected, the organ ization needs to decide whether it is prepared to handle and fairly consider the large number of applications that may flow in.

Recruitment experts say it is not necessary to use just one strategy.5 An organ- ization might choose a very open strategy for jobs that are not core to its per for- mance, such as clerical and administrative functions, but then use a much more targeted approach for employees who need highly specific KSAOs. Accenture Consulting, for example, suggests that retailers identify the most critical segments of the workforce, analyze the per for mance of the most successful employees, and then target the recruitment to attract employees sharing relevant character- istics with star performers in these high- leverage positions. For less critical posi- tions, a less resource- intensive pro cess might be advisable. Exhibit 5.2 reviews the advantages of open and targeted recruitment and suggests when each approach is appropriate.

099-67811_ch05_4P.indd 212 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 213

Organ ization and Administration

Once the organ ization has a good idea of which types of candidates to recruit, decisions must be made regarding how the pro cess will proceed. Recruitment can be coordinated mostly in- house, or in conjunction with an external recruitment partner. Given the flexibility of this pro cess, authority to recruit will have varying degrees of centralization as well.

Incorporating In- House and External Recruitment Partners With the growth of software ser vices to facilitate recruitment, the need to pro cess large amounts of applicant data, and the complexity of media for disseminating recruitment messages, it has become difficult for an organ ization to manage its recruitment function completely by itself.6 Thus, organ izations need to determine which recruitment functions should be fulfilled in- house and which should be conducted by external partners. Even large organ izations with dedicated human resources staff can benefit from external partnerships. Still, responsibility for developing an integrated recruitment strategy needs to remain in- house.

External partners have a vital role to play in facilitating recruitment. There are many software platforms that can be used to collect, track, and analyze data from recruits. Companies often enter into long- term partnerships with these software

Technique Advantages Best When

Open Advertising positions with Ensures that a diverse Large numbers of a message appealing to a set of applicants are applicants are wide variety of job seekers contacted and considered required in a variety of media outlets that will reach the largest Lower resource and Pre-entry qualifications possible audience personnel cost per are not as important applicant located

Targeted Focusing advertising and Narrows the pool of The organization needs recruiting efforts by potential applicants, specific skill sets that tailoring message content allowing the organization are in short supply to attract segments of the to concentrate efforts on labor market with specific the most qualified Hiring for high- KSAOs or demographic leverage positions characteristics Facilitates a more personal approach to each applicant

EXHIBIT 5.2 Choosing Between Open and Targeted Recruitment

099-67811_ch05_4P.indd 213 11/17/17 12:37 PM

214 PART THREE Staffing Activities: Recruitment

providers to customize functions. Specialized recruitment firms are constantly in touch with a wide variety of applicants and therefore have detailed knowledge of many potential candidates. Recruitment firms also often have databases of avail- able applicants that they have collected over time, which can mean very rapid access to many interested individuals.

However, directing and coordinating recruitment in- house is also impor tant. In par tic u lar, in- house recruiters know much about their organ ization’s culture and can convey that information to recruits more credibly because they actually work for the com pany. Additionally, employees may perceive that a com pany that does its own recruitment is more interested in the applicants and has a more people- oriented culture than an organ ization that leaves this pro cess to an outside firm. Taken as a whole, it’s best to use external partners for activities that involve devel- oping specialized application portals, coordinating activities across social media and other online sources, and tracking applicants, whereas crafting messages and making contact with applicants are best handled in- house. Despite the scope for automated communication, direct contact with candidates still needs to be person- alized by man ag ers.

Centralized Versus Decentralized Recruitment An organ ization can centralize or decentralize the recruitment of external job appli- cants. In centralized recruitment, one group coordinates the recruitment activities, usually human resources (HR) professionals in the corporate offices. In a decen- tralized recruitment system, individual business units or man ag ers coordinate the recruitment activities. Although the ultimate hiring decisions reside in the business unit, most organ izations centralize the administrative activities associated with recruitment and screening applicants.

One advantage of centralized recruitment is that efforts are not duplicated. For example, when recruiting at a school, only one advertisement is placed, rather than separate ads for multiple orga nizational business units. Another advantage is that a centralized approach ensures that policy is being interpreted consistently across business units. For example, GM centralized its recruitment system in order to convey a consistent message to applicants.7 Along these same lines, a central- ized function helps ensure compliance with relevant laws and regulations. Another factor that facilitates centralized recruitment is the growth in staffing software (see Chapter 13).

Some organ izations prefer decentralized recruitment functions. Case studies suggest that research and development departments, for example, often develop specialized recruitment practices to attract talent. These strategies are focused on university recruitment and emphasize proj ects that are likely to interest highly educated and intrinsically motivated researchers.8 One advantage of decentralized recruitment is that when there are fewer people to recruit, placement can take place more quickly than when a centralized approach is used. Also, the recruitment

099-67811_ch05_4P.indd 214 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 215

search may be more responsive to the business unit’s specific needs because the local man ag ers involved with recruitment may be closer to the day- to- day opera- tions of the business unit than are their corporate counter parts.

Timing Two factors that drive the decision of when to look for job applicants are lead time concerns and time sequence concerns. As staffing man ag ers have been increas- ingly called on to show concrete results for their work, the importance of docu- menting the time to fill requisitions has grown. These deadlines are very impor tant for procedural justice and even legal defensibility, as both current employees and potential applicants expect the organ ization to abide by the specified date require- ments. Once a goal for the time frame is established, the organ ization should not pursue a certain applicant before the deadline or consider applicants who apply after the deadline.

Lead Time Concerns. Although man ag ers would like to fill each position imme- diately upon approval of the requisition, this is not pos si ble since recruiters handle a large number of vacancies at any one time. It is pos si ble, however, to minimize the delay in filling vacancies by planning for openings well in advance of their actual occurrence. Effective planning requires that top management prioritize job openings so that they can be filled in the order that best meets the needs of the business. It also requires that recruiters be fully prepared to conduct the searches. Therefore, recruiters must be aware of the deadlines for placing ads in the appropri- ate periodicals, and they should be knowledgeable about the availability of labor in the marketplace. Furthermore, hiring today has largely become continuous given the growth of Internet recruitment.9 For example, many large organ izations keep a list of job openings on their websites that are continually updated through their HR information systems.

Time Sequence Concerns. In a successful recruitment program, the steps involved in the pro cess are clearly defined and sequenced in a logical order. A staffing flow- chart should be used to or ga nize all components of the recruitment pro cess. The sequence of recruitment activities will affect the amount of time needed to fill job vacancies.

A very useful set of indicators for time sequence concerns is known as time- lapse statistics. These statistics provide data on the average length of time between vari- ous phases in the recruitment pro cess. Organ izations should routinely collect these data in order to assist man ag ers in planning when vacancies are to be filled.

Recruitment Bud get and Return on Investment The recruitment pro cess is a very expensive component of orga nizational staffing. Costs include staff time developing a recruitment message, a website, advertising,

099-67811_ch05_4P.indd 215 11/17/17 12:37 PM

216 PART THREE Staffing Activities: Recruitment

personal contacts and follow-up with potential candidates, and logistics for on- site candidate visits. Because recruitment is such an expensive proposition, it is vital for HR to track both the costs and the returns of its recruitment practices.10 The use of applicant tracking systems makes it easier for leaders to estimate metrics from a variety of recruitment practices.

The high costs of recruitment also point to the importance of establishing a well- developed recruitment bud get. An example of a recruitment bud get is shown in Exhibit 5.3. It is impor tant to account for staff time, the salaries of recruiters, and other expenses incurred in a recruitment drive, including memberships with online recruitment sources and social media, hiring external vendors to assist with the development and dissemination of recruitment materials, and travel costs that may be incurred when candidates are geo graph i cally dispersed.

Once a bud get is in place and the recruitment techniques are implemented, the organ ization should take the additional step of assessing the effectiveness of the chosen techniques. An applicant tracking system makes it pos si ble to assess how many individuals are attracted and hired through each source, and helps identify

EXHIBIT 5.3 Example of a Recruitment Budget for 500 New Hires

Administrative Expenses 000,23 000,54 000,01

$87,000

Recruiter Expenses 000,042 000,69 000,051

$486,000

Candidate Expenses 000,023 000,592 000,05

Relocation $815,000

Total Recruitment Expenses 87,000 486,000 815,000 $1,388,000

Total Cost per Hire $1,388,000 / 500 new hires $2,776

Sta� Supplies Equipment

Salaries Benefits Expenses

Travel Lodging Fees

150,000

099-67811_ch05_4P.indd 216 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 217

which recruitment sources lead applicants to the organ ization. For example, it is pos si ble to determine how many candidates learned about the job opening from media advertisements, the organ ization’s website, campus visits and job fairs, employee referrals, or other sources. It is also pos si ble to track how many candi- dates are hired from each source. From this information on the number of appli- cants and hires coupled with bud get figures, it is pos si ble to calculate the cost per applicant (total media cost divided by number of applicants) and the cost per hire (total media cost divided by number of hires). Cost- effective methods for attracting candidates can then become the focal part of the organ ization’s recruitment strat- egy, and those that have lower returns on investment can be eliminated.

Development of a Recruitment Guide A recruitment guide is a formal document that details the pro cess to be followed to attract applicants to a job. It should be based on the organ ization’s staffing flowcharts, if available. Included in the guide are details such as the time, money, and staff required to fill the job as well as the steps taken to do so. An example of a recruitment guide is shown in Exhibit 5.4.

Although a recruitment guide takes time to produce— time that may be difficult to find in the face of an urgent requisition to be filled—it is an essential document. It clarifies expectations for both the recruiter and the requesting department as to what will be accomplished, what the costs will be, and who will be held account- able for the results. It also clarifies the steps that need to be taken in order to ensure that the recruitment plan is followed in a consistent fashion and in accordance with organ ization policy as well as relevant laws and regulations. In short, a recruitment guide safeguards the interests of the employer, the applicant, and the recruiter.

Pro cess Flow and Rec ord Keeping Before deciding where and how to look for applicants, the organ ization must pre- pare for the high volume of data that accompanies the filling of vacancies. This high volume of data results from the use of multiple sources to identify candidates (e.g., advertisements, walk- ins, employment agencies), the need to circulate the appli- cant’s credentials to multiple parties (e.g., hiring man ag ers, HR), and the need to communicate with candidates regarding the status of their applications. If pro cess flow and record- keeping issues are not addressed before the recruitment search, the organ ization may become overwhelmed with correspondence that is not dealt with in a timely and professional manner; in turn, the organ ization may lose well- qualified applicants.

To manage the pro cess flow and record- keeping requirements, an information system must be created for recruitment efforts. An effective system allows the candidate, the hiring man ag er, and HR representatives to know the candidate’s status at any time. The information system tracks the applicant’s file as it flows through the organ ization’s recruitment pro cess. The information system can also

099-67811_ch05_4P.indd 217 11/17/17 12:37 PM

218 PART THREE Staffing Activities: Recruitment

periodically issue reports on how timely and accurately the applicant’s informa- tion is being pro cessed.

The pro cess of managing data and rec ords has been transformed by online applications.11 Indeed, one might characterize it as a double- edged sword. On the one hand, data entry and rec ord maintenance are facilitated in that applications are immediately transferred into a searchable standardized database. Online applica- tions often permit candidate screening by checking qualifications and administer- ing online skills tests. This can greatly reduce the time spent weeding out résumés sent in by unqualified candidates. On the other hand, online applications generate

EXHIBIT 5.4 Recruitment Guide for Director of Claims

Position: Director, Claims Processing

Reports to: Senior Director, Claims Processing

Qualifications: 4-year degree in business

which should be in management

Relevant labor market: Regional Midwest

Timeline: week of 1/17: Conduct interviews with qualified applicants 2/1/11: Targeted hire date

Activities to undertake to source well-qualified candidates:

Regional

Post job opening on company website

newspaper advertising

Request employee referrals

Contact regional health and life insurance associations

Call HR departments of regional health and life insurance companies to see if any are outplacing any middle managers

Contact, if necessary, executive recruiter to further source candidates

Sta� members involved:

HR Recruiting Manager Senior Director, Claims Processing VP, Human Resources Potential peers and direct reports

Budget:

$3,000–$5,000

8 years’ experience in health care, including 5 in claims, 3 of

099-67811_ch05_4P.indd 218 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 219

much more data, including applications from individuals who are poorly motivated to join the organ ization or are obviously unqualified for the position. To facilitate combing through all this information, many web- based recruitment systems have integrated screening tools to eliminate unqualified applicants early in the pro cess.

As the applicant progresses through the hiring pro cess, additional rec ord keep- ing is required, such as who has reviewed the file, how long each individual has had the file to be reviewed, what decision has been reached (e.g., reject, invite for a visit, conduct a second interview), and what step needs to be taken next (e.g., arrange for a flight and accommodations, schedule an interview). Throughout the pro cess, communications with the applicant must also be tracked so the applicant knows whether his or her credentials will receive further review and whether he or she needs to take any additional steps to secure employment.

Even when an applicant is rejected for a position, there are record- keeping responsibilities. The applicant’s file should be stored in the event that another search arises that requires someone with the applicant’s qualifications. The applicant’s file should be stored for a maximum of one year (see “ Legal Issues” at the end of the chapter).

APPLICANT REACTIONS

After the organ ization has a clear idea of its strategic plan, the pos si ble reactions of applicants should be considered. Applicant views of an organ ization have been shown to change significantly over time, and the direction of these changes is related to later job choice decisions.12 The first impression an applicant has of an organ ization has a very strong impact on his or her later feelings of fit, so it’s a good idea to devote significant time and energy to improving these reactions. However, it’s just as impor tant to maintain a good impression later on. Applicants who start with a good impression can lose interest if the organ ization fails to main- tain their interest. On the other hand, applicants who don’t have a very good first impression might eventually take a job if new information improves their opinion of the organ ization.

Organ izations should try to collect as much information as pos si ble about poten- tial applicant reactions at all phases of the pro cess, including initial intentions to apply, interest in taking a job if offered, and final choice. Dif fer ent factors can be impor tant at dif fer ent stages. For example, the inf luence of the recruiter on the applicant is likely to be greater in the initial stage than in the latter stages of the recruitment pro cess. In the latter stages, actual job characteristics carry more weight in the applicant’s decision.

Understanding how applicants react to vari ous features of the recruitment pro- cess will help determine which type of communication message content and media should be employed, as well as help facilitate implementation of effective strate- gies. Thus, we review applicant reactions to job and organ ization characteristics,

099-67811_ch05_4P.indd 219 11/17/17 12:37 PM

220 PART THREE Staffing Activities: Recruitment

recruiters, the recruitment pro cess, and diversity issues in turn before turning to communicating a message and receiving applications.

Reactions to Job and Orga nizational Characteristics

In a marketing sense, the job and the organ ization are the products the organ ization is trying to “sell” to potential applicants, so any recruitment strategy will have to take these characteristics into account.

At the job level, research suggests that applicants are most interested in working for organ izations that offer sufficient wages, opportunities for growth and develop- ment, and in ter est ing work characteristics.13 In par tic u lar, opportunities for chal- lenges and development are most strongly associated with applicant attraction. Of course, not all jobs have these desired features, so man ag ers will need to decide exactly how much information about the job should be shared.

In some industries, the payment strategy may help attract candidates who match the job demands. For example, to attract entrepreneurial financial advisors, some financial ser vices firms entice potential applicants with a well- publicized opportu- nity to run their shops in de pen dently and keep 100% of their advisory fees. Attract- ing such individuals supports an orga nizational strategy that focuses on innovation, personal initiative, and achievement.

At the organ ization level, applicants are most drawn to prestigious organ izations that have a reputation for treating their employees well.14 The social environment of the organ ization also matters, with many applicants being attracted to compa- nies where they believe they will work with good coworkers in a positive social environment. Although some research suggests that most potential applicants prefer a supportive orga nizational culture to a competitive culture, a large pro- portion of workers clearly prefer an organ ization that emphasizes individual work and ambition.15 Most experts advise that organ izations should accurately portray their culture in recruitment so they attract employees who will fit well within the organ ization.

Reactions to Recruiters

Considerable research has been conducted and carefully reviewed on the reac- tions of job applicants to the be hav ior and characteristics of recruiters.16 Three key themes have emerged in this lit er a ture, all showing that the main function of an effective recruiter is to communicate the features of the job and organ ization in an accurate, thorough, and engaging manner.

First, though the recruiter does indeed influence job applicant reactions, he or she does not have as much influence on them as do actual job or organ ization characteristics. This indicates that the recruiter cannot be viewed as a substitute for a well- defined and well- communicated recruitment message showing the actual characteristics of the job and organ ization.

099-67811_ch05_4P.indd 220 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 221

Second, the influence of the recruiter is more likely to be felt in the initial atti- tudes of the job applicant than in his or her be hav iors. That is, an applicant who has been exposed to a talented recruiter is more likely to walk away with a favorable impression of the recruiter than to accept a job on the basis of the interaction with a recruiter. This attitudinal effect is impor tant, however, as it may lead to good pub- licity for the organ ization. Positive initial interactions also set the stage for further interest in later interactions with the organ ization. In turn, good publicity may lead to a larger applicant pool to draw from in the future.

Third, two be hav iors of the recruiter seem to have the largest influence on appli- cant reactions. The first is the level of warmth the recruiter shows toward the job applicant. Warmth can be expressed by being enthusiastic, personable, empathetic, and helpful in dealings with the candidate. The second be hav ior is communicat- ing knowledge about the job. This can be conveyed by being well versed in the job requirements matrix and the job rewards matrix. Additionally, recruiters who show interest in the applicant are viewed more positively.

Organ izations can use this information to their advantage by selecting and train- ing recruiters well. Recruiters should be knowledgeable about applicant tracking systems, organ ization and job characteristics, recruitment targets, policies and pro- cedures, and the legal environment around recruitment.17 With the growth of easily accessible data reporting and analy sis tools, it is vital for all recruiters to have the training to utilize these tools effectively, along with a thorough understanding of how applicant tracking systems can benefit the organ ization. Recruiters also need to receive training in marketing and the interpersonal aspects of recruitment. Recruit- ers can be trained on how to do market research, how to find job candidates in the market, and how to identify what candidates want. In developing their marketing skills, recruiters can be shown how to link up with other departments, such as mar- keting and public relations. Recruiters may be able to collaborate with marketing to achieve a brand image that not only sells products to customers but sells the organ ization to prospective hires as well. Interpersonal skills training should include practice scripts, strategies to put recruits at ease, and role- playing exercises.

Fi nally, in their efforts to recruit more creatively, recruiters need training on ethical issues in recruitment. Is it ethical for a recruiter to recruit at a competitor’s place of business? In parking lots? At weddings or funerals? Some recruiters will even lie to applicants in an effort to lure them. To ensure that recruiters behave ethically, standards should be developed and recruiters should be trained on these standards.18

Reactions to the Recruitment Pro cess

Only some administrative components of the recruitment pro cess have been shown to have an impact on applicant reactions.19 Research suggests that above all else, applicants want a system that is fair. First, job applicants are more likely to have favorable reactions to the recruitment pro cess when the screening devices used to

099-67811_ch05_4P.indd 221 11/17/17 12:37 PM

222 PART THREE Staffing Activities: Recruitment

narrow the applicant pool are seen as job related. That is, the pro cess used should be closely related to the content of the job as spelled out in the job requirements matrix. Applicants also see recruitment pro cesses as more fair if they have an opportunity to perform or demonstrate their ability to do the job.

Second, delays in the recruitment pro cess have a negative effect on applicants’ reactions. In par tic u lar, a long delay between the applicant’s expression of interest and the organ ization’s response may lead the applicant to form a negative reaction about the organ ization but not about himself or herself. For example, an applicant who experiences a long delay between an on- site visit and a job offer is more likely to believe that something is wrong with the organ ization than with his or her per- sonal qualifications. This is especially true of the better- qualified candidate, who is likely to act on these feelings by accepting another job offer.

Online recruitment can create additional concerns. Specifically, some appli- cants may find contacts through social media invasive if not handled appropriately. Attempts to learn more about an applicant by viewing online profiles and tracking social media connections can lead to negative reactions and even legal repercus- sions. It is therefore crucial to ensure that recruits are able to control when and how they interact with the organ ization’s social media efforts.

Studies reveal that applicants are able to locate more relevant jobs on the Internet than in traditional sources such as print media. Moreover, applicants generally like using the Internet for evaluating companies and submitting applications, if some provisos are kept in mind. As with general recruitment, perhaps the most impor- tant factor is the degree and speed of follow- up; delays greatly harm the image of the recruiting organ ization, so organ izations need to make sure that online applica- tions are followed up. Also, research shows that job seekers are more satisfied with orga nizational websites when specific job information is provided and security pre- cautions are taken to preserve the confidentiality of the information submitted. One key assurance is that the organ ization will not share résumés with vendors that will spam applicants with vari ous solicitations.20

Reactions to Diversity Issues

In addition to tailoring messages to reach employees with specific KSAO profiles, some organ izations also target specific underrepresented groups, such as women and racioethnic minorities. Most research suggests that the race or gender of a recruiter has relatively little influence on applicant attraction, and that there is not strong support for the idea that individuals react more positively when recruited by someone of their own demographic group. However, the content of the recruitment message and choice of recruitment sources can have an influence.

Research suggests that applicants react more positively to ads that reflect their own demographic group, which should be taken into account when developing a media campaign.21 Such efforts are among the most effective, and the least contro- versial, ele ments of affirmative action programs (AAPs). One of the most common

099-67811_ch05_4P.indd 222 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 223

methods for increasing the diversity of applicant pools is to advertise in publica- tions targeted at women and minorities. Surveys of job seekers show that women and minorities are especially interested in working for employers that endorse diversity through policy statements and in recruitment materials. Advertisements depicting groups of diverse employees are seen as more attractive to women and racioethnic minorities, which is prob ably why most organ izations depict work- force diversity prominently in their recruitment materials. Effective depiction of diversity should take job functions into account as well; diversity advertisements that fail to show women and minorities in positions of orga nizational leadership send a negative message about the diversity climate at an organ ization.22

Some organ izations are also aiming to increase the age diversity of the work- force by targeting older workers. Many traditional recruitment methods, like cam- pus recruitment and job fairs, draw in a primarily younger workforce. However, as noted in Chapter 3, there has been an increase in the proportion of the workforce over 50 years of age that is likely to persist. These older workers are often highly qualified and experienced, and thus attractive candidates for recruitment, but a dif- fer ent targeted approach is required to bring them in. Mature workers are attracted by flexible schedules, health and pension benefits, and part- time opportunities, so the presence of such programs should be noted in recruitment advertisements.

COMMUNICATION

Once the strategic planning phase is completed, it is time to consider how the posi- tion will be marketed to potential applicants. Reaching out to the job market first requires developing a message and then selecting a medium to communicate that message. Both phases are considered in turn.

Communication Message

Types of Messages Recruitment experts have studied the ways in which the content of the recruitment message can influence potential applicants’ thinking about the position. The com- munication message can vary in the extent to which it focuses on the employment brand, information targeted to a specific group of applicants, or realistic informa- tion about the organ ization or job.

Employment Brand Message. Organ izations wishing to convey an appealing message to potential applicants may develop an employment brand to attract appli- cants.23 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 candi- dates. An organ ization’s employment brand is closely tied to its product market image. As with general product awareness, the more “customers” (in this case,

099-67811_ch05_4P.indd 223 11/17/17 12:37 PM

224 PART THREE Staffing Activities: Recruitment

potential applicants) are aware of an organ ization’s employment brand, the more interested they are in pursuing a job. Organ izations that are well known by poten- tial applicants may not need to engage in much advertising for their jobs. Big- name organ izations that market well- known products, such as Microsoft, Apple, Sony, and Disney, often have many more applicants than they need for most openings. Organ izations with lower profiles may have to actively advertise their employment brand to bring in more applicants. One of the best ways for smaller organ izations to emphasize their unique brand is to emphasize their most attractive attributes. Experts in corporate branding also encourage employers to compare their own orga nizational employment offerings with those of the competition to see how they are unique, and then highlight these unique advantages in orga nizational recruit- ment messages. For example, the US Marine Corps emphasized the Marines as an elite group of warriors under its branding strategy, rather than focusing on the financial advantages of enlistment as had been done in the past.

Beyond reputation, another employment brand may be value or culture based. For example, GE has long promoted its high per for mance expectations in order to attract achievement- oriented applicants seeking commensurate rewards. An organ- ization’s website is often used to convey information regarding its culture and to emphasize its employment brand. Most orga nizational websites provide informa- tion on the organ ization’s history, culture, diversity, benefits, and specific job information under a “ careers” heading. It is informative to look at a series of these orga nizational websites to see how organ izations cater to applicants. For example, Merck’s corporate website shows an organ ization that conveys a message of profes- sional development and social responsibility, whereas Goldman Sachs’s empha- sizes per for mance and success, and Coca- Cola’s emphasizes global opportunities and fun.

Branding has several benefits.24 Of course, establishing an attractive employ- ment brand may help attract desired applicants to the organ ization. Moreover, having an established brand may help retain employees who were attracted to the brand to begin with. Research suggests that identifiable employment brands may breed orga nizational commitment on the part of newly hired employees. Appli- cants are attracted to companies with a reputation for corporate social responsi- bility because this is seen as a signal that the com pany will treat employees well. Employment brands associated with empowerment and high compensation have also been shown to be especially attractive to applicants.

Research shows that having an employment brand can attract applicants to an organ ization, even beyond job and orga nizational attributes. Evidence also sug- gests that employers are most able to get their brand image out when they engage in early recruitment activities such as advertising or generating publicity about the organ ization.25

Targeted Message. One way to improve upon matching people with jobs is to target the recruitment message to a par tic u lar audience. The targeted message is

099-67811_ch05_4P.indd 224 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 225

a natu ral complement to a targeted search. Dif fer ent audiences may be looking for dif fer ent rewards from an employer. Unlike the branded recruitment message, where the focus is on the organ ization and what it offers to every one, the targeted message focuses on the unique preferences of specific segments of the potential applicant pool.

To develop a targeted message, an organ ization can use princi ples from market- ing research.26 First, employers can look to media used by dif fer ent groups or visit social media sites. Orga nizational representatives can also conduct focus groups and interviews with dif fer ent groups of potential applicants, and then design mes- sages that highlight features of a job that will fit with these dif fer ent groups. Hav- ing members of targeted groups participate in message crafting is key, to avoid messages that come across as inauthentic or even insulting.

Human resources prac ti tion ers have developed recruitment messages designed to reach groups that differ in terms of both demographic and deeper level diversity.27 Examples of demographic groups that might be targeted include underrepresented minorities, teen agers, older workers, welfare recipients, people with disabilities, veterans, and displaced homemakers, all of whom may have special interests or preferences. Older workers, for example, may be looking for employers that can meet their financial needs (e.g., supplement Social Security), security needs (e.g., retraining), and social needs (e.g., place to interact with people). College students appear to be attracted to organ izations that provide rewards and promotions on the basis of individual rather than group per for mance. Members of minority groups look for both explicit signals endorsing a positive climate for diversity and signals that their group is represented in leadership roles.

Messages can also be targeted toward those with specific interests and values. Evidence suggests that messages targeting those with specific values may have a stronger effect on applicant interests than messages targeting specific demographic groups.28 It is easy to find examples of such policies. Companies like REI empha- size their commitment to the environment and opportunities to use outdoor gear in hopes of attracting employees who share these values. Companies in the health care industry emphasize patient care. Emphasizing diversity policies in recruitment not only serves to increase interest among members of underrepresented minority groups, but also can appeal to majority group members who value diversity as well.

Realistic Recruitment Message. A realistic recruitment message portrays the organ ization and the job as they really are, rather than describing what the organ- ization thinks job applicants want to hear— a practice some would argue is not the best message to send applicants on moral or practical grounds. A message that focuses on being accurate, even incorporating negative information, about the job is called a realistic job preview (RJP).29 According to this practice, job applicants are given a “vaccination” by being told what the actual job is like. The hope is that some potential applicants will realize the job is a poor fit and not apply. When an applicant self- selects out, the organ ization does not face the costs associated with

099-67811_ch05_4P.indd 225 11/17/17 12:37 PM

226 PART THREE Staffing Activities: Recruitment

recruiting, selecting, training, and compensating someone who will quickly leave the organ ization.

An example of the numerous attributes of an RJP for the job of elementary school teacher is shown in Exhibit 5.5. Note that the attributes are quite specific and that they are both positive and negative.

A great deal of research has been conducted on the effectiveness of RJPs, and their use appears to lead to somewhat higher job satisfaction and lower turnover.30 This appears to be true because providing applicants with realistic expectations about future job characteristics helps them cope with job demands once they are hired. RJPs also appear to foster the belief in employees that their employer is honest and concerned with employee well- being, which leads to higher levels of orga nizational commitment.

RJPs may lead applicants to withdraw from the recruitment pro cess, although reviews of studies suggest that RJPs have little effect on such attrition. This may be good news for employers interested in using RJPs: Providing applicants with realis- tic information provides employers with more satisfied and committed employees while still maintaining applicant interest in the position. Unfortunately, research suggests that the negative effects of RJPs on applicant attraction are particularly strong for high- quality applicants. In other words, the best employees are the most likely to self- select out when an RJP is presented.31

Although RJPs appear to have both weakly positive consequences (slightly higher job satisfaction and lower turnover among new hires) and negative conse- quences (slightly reduced ability to hire high- quality applicants), these outcomes have been found to be affected by a number of factors. A meta- analytic review of the research on RJPs offers more insight into their nuanced effects:32

• RJPs presented very early in the recruitment pro cess are less effective in reduc- ing post- hire turnover than those presented just before or just after hiring.

Positive Job Attributes Dental insurance is provided

Innovative teaching strategies are encouraged University nearby for taking classes

Large support staff for teachers

Negative Job Attributes Salary growth has averaged only 2% in past three years

Classes are large The school day is long

Interactions with community have not been favorable

EXHIBIT 5.5 Example of Job Attributes in an RJP for Elementary School Teachers

099-67811_ch05_4P.indd 226 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 227

• Post- hire RJPs lead to higher levels of job per for mance than do RJPs pre- sented before hiring.

• Verbal RJPs tend to reduce turnover more than written or videotaped RJPs.

In general, these findings suggest that RJPs should be given verbally (rather than in writing or by showing a video) and that it is prob ably best to reserve their use for later in the recruitment pro cess (RJPs should not be part of the initial exposure of the organ ization to applicants).

Choice of Messages The dif fer ent types of messages— branded, realistic, and targeted— are not likely to be equally effective under the same conditions. Which message to convey depends on the labor market, vacancy characteristics, and applicant characteristics.

The three types of messages are summarized in Exhibit 5.6. If the labor market is tight and applicants are difficult to come by, realism may not be an effective message, because to the extent that applicants self- select out of the applicant pool, fewer are left for an employer to choose from. Hence, if the employment objective is simply to fill job slots in the short run and worry about turnover later, a realistic message will have counterproductive effects. Obviously, then, when applicants are abundant and turnover is an immediate prob lem, a realistic message is appropriate.

In a tight labor market, branded and targeted messages are likely to be more effective than a realistic message in attracting job applicants. Attraction is strength- ened, as there are inducements in applying for a job. In addition, individual needs are more likely to be perceived as met by a prospective employer. Hence, the applicant is more motivated to apply to organ izations with an attractive or targeted message than those without. During loose economic times when applicants are plentiful, the branded and targeted approaches may be costlier than necessary to attract an adequate supply of labor. Also, they may set up false expectations con- cerning what life will be like on the job and thus lead to turnover.

Job applicants will know more about the characteristics of highly vis i ble jobs than those of less vis i ble jobs. For example, it may be redundant to give a real- istic message when recruiting for highly vis i ble jobs in the ser vice sector, such as that of cashier. Other jobs, such as an outside sales position, are far less vis i ble to people. These jobs may seem glamorous (e.g., sales commissions) to prospective applicants who fail to see the less glamorous aspects of the job (e.g., a lot of travel and paperwork).

The value of the job to the organ ization also has a bearing on the se lection of an appropriate recruitment message. Inducements for jobs of higher value or worth to the organ ization are easier to justify in a bud getary sense than inducements for jobs of lower worth. The job may be of such importance to the organ ization that it is willing to pay a premium through inducements to attract well- qualified candidates.

In regard to the effectiveness of certain messages, some applicants are less likely than others to be influenced in their attitudes and be hav iors by the recruitment

099-67811_ch05_4P.indd 227 11/17/17 12:37 PM

228 PART THREE Staffing Activities: Recruitment

message. For example, one study showed that a realistic message is less effective for those with considerable job experience.33 Highly experienced candidates are more likely than less experienced candidates to be persuaded by high- quality, detailed advertisements.34 Dif fer ent segments of the labor market have dif fer ent contrast points: individuals who are new to the labor market compare jobs against their history in school and might contrast the job against further education, employed job seekers compare jobs against their current job and may see an offer as negotiating leverage in their current job, and those who have recently lost a job compare their job against unemployment.35

Information Conveyed

Applicant Reactions

Potential Drawback Best For

Branded An appealing description is developed based on marketing principles, emphasizing unique features of the organization

Positive view of the organization, increased intention to apply for jobs, and better prehire information about benefits of the job

Overly positive message may result in employee dissatisfaction after hire

Tight labor markets or higher-value jobs

Targeted Advertising themes are designed to attract a specific set of employees

Better fit between application message and specific applicant groups

May dissuade applicants who aren’t interested in the work attributes featured in the message from applying

Specific KSAOs, or seeking a specific type of applicant

Realistic Both positive and negative aspects of a job and organization are described

Some applicants self- select out; those who remain will have a better understanding of the job and will be less likely to leave

The best potential applicants may be more likely to leave

Loose labor markets or when turnover is costly

EXHIBIT 5.6 Comparing Types of Messages

099-67811_ch05_4P.indd 228 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 229

Communication Media

Not only is the message itself an impor tant part of the recruitment pro cess, so, too, is the se lection of media to communicate the message. The most common commu- nication media include advertisements, orga nizational websites, videoconferenc- ing, and direct contact. Although these are all potential ways to get the message out, the most common method of learning about a job is through word of mouth, which is a difficult communication medium for an organ ization to manage.

Effective communication media are high in richness and credibility. Rich media channels allow for timely personal feedback and a variety of methods for convey- ing messages (e.g., visual images, text, figures and charts), and they are customized to each respondent’s specific needs. Credible media channels transmit informa- tion that is honest, accurate, and thorough. Research has shown that respondents have more positive images of organ izations that transmit information that is rich and credible.36 If the information is seen as coming directly from the employees, rather than from the organ ization’s recruitment offices, the message will likely be seen as more honest and unbiased. Experts on advertising advise recruiters to remember that they need to constantly promote their brand to potential employees, because sheer repetition and consistency of a promotional message increase its effectiveness.

Our review of communication media below proceeds from the media that tend to have the least credibility and richness to the media that have the most credibility and richness. Research has shown that greater employer involvement with prospec- tive applicants is likely to improve the image of the organ ization. In turn, a bet- ter image of the organ ization is likely to result in prospective applicants pursuing employment with the organ ization.37 The media with the least richness and cred- ibility usually have an advantage in that they can reach a large number of people at low cost, so they should not be overlooked. Given the vari ous advantages and disadvantages of the methods we review below, organ izations usually select a vari- ety of media that support one another. For example, some organ izations use the broad reach of advertising to get the word out to many potential candidates, and then direct these candidates to the organ ization’s website for a richer pre sen ta tion.

Advertisements Given space limitations for some online and printed media and the potentially limited attention spans of readers, ads are often short and to the point. Unfortu- nately, these ads typically cannot provide rich information because of their short durations. Given that advertisements are obvious attempts at persuasion, they tend to have relatively low credibility. They can have a very broad reach, though, so they should be seriously considered if the organ ization wishes to reach a broad market.

Ads appear in a variety of places other than business publications and can be found in local, regional, and national news media; on tele vi sion and radio; and in bargain shopper inserts, door hangers, direct mail, and welcome wagon packets.

099-67811_ch05_4P.indd 229 11/17/17 12:37 PM

230 PART THREE Staffing Activities: Recruitment

Advertisements can thus be used to reach a broad market segment. There are many dif fer ent types of ads:

• Classified advertisements. Classified ads appear in the “help wanted” section of the newspaper or online at sites like Craigs list. Newspaper ads, whether in print or online, are often limited in length and style, but some online sites allow for much more information. These ads are used most often for quick résumé solicitation for low- level jobs at a low cost. Although there has been a major shift toward the use of electronic recruitment, and all newspapers have online resources as well, surveys suggest that print ads remain a significant presence in the recruitment of hourly workers.38 An example of a classified ad is shown in Exhibit 5.7. The length of this ad is more typical of online sources that do not limit words or characters.

• Banner ads. Banner ads are online advertisements placed on websites that an organ ization believes will be visited by potential applicants, including social media sites, occupation- specific websites, and news media sites. They are limited in size, but viewers can easily click over to the organ ization’s official

HUMAN RESOURCE GENERALIST

ABC Health, a leader in the health care industry, currently has a position available for an experienced Human Resource Generalist.

This position will serve on the human resources team, which serves as a business partner with our operational departments. Our team prides itself on developing and maintaining progressive and impactful human resources policies and programs.

Qualified candidates for this position will possess a bachelor’s degree in business with an emphasis on human resource management, or a degree in a related field, such as industrial psychology. In addition, a minimum of three years of experience as a human resource generalist is required. This experience should include exposure to at least four of the following functional areas: compensation, employment, benefits, training, employee relations, and performance management.

In return for your contributions, we offer a competitive salary as well as comprehensive, flexible employee benefits. If you meet the qualifications and our opportunity is attractive to you, please forward your résumé and salary expectations to:

Human Resource Department ABC Health P.O. Box 123

Pensacola, FL 12345 An Equal Opportunity/Affirmative Action Employer

EXHIBIT 5.7 Classified Ad for Human Resource Generalist

099-67811_ch05_4P.indd 230 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 231

site for a more extensive description of the job. Banner ads can be either rela- tively cheap or quite expensive, depending on which website the organ ization chooses to place the ad.

• Display ads. Display ads are larger and more involved than classified ads, and they are usually developed in conjunction with a professional advertising agency. These ads allow for freedom of design and placement in a publication. Thus, they are very expensive and begin to resemble recruitment brochures. These ads are typically used when an employer is searching for a large number of applicants to fill multiple openings. They are often found in professional publications as part of a targeted marketing strategy.

• Radio and tele vi sion ads. Organ izations that advertise on the radio or on tele- vi sion purchase a 30- or 60- second time slot to advertise openings in specific job categories. Choice of stations and broadcast times will target specific audi- ences. For example, a classical music radio station will likely draw in dif- fer ent applicants than a con temporary pop music radio station; an all- sports network will draw in dif fer ent applicants than a cooking program. Radio and tele vi sion stations often have detailed demographic information available to potential advertisers. The advantage of radio and tele vi sion advertisements is their reach. Individuals who are already searching for jobs generally read help- wanted ads, whereas those who are not currently looking for jobs are more likely to hear radio and tele vi sion ads. Being able to expand the potential job pool to include those who are not actively looking for work can be a real advantage in a tight labor market.

Although most recruiters are familiar with the advantages of the techniques described above, there are other media outlets that have been explored less fre- quently that might offer a recruiter a competitive advantage for attracting candi- dates. For example, BNSF Railway finds that advertising for jobs in movie theaters is an effective way to reach a diverse group of candidates who might not other wise consider working in the rail industry. A large technology firm in Belgium experi- mented with a decidedly old- fashioned method of recruitment by sending handwrit- ten postcards to potential applicants rather than using e- mail. This strategy paid off, with applicants recruited through the postcard method being more likely to reply, more qualified on average, and, among those who did apply, more likely to be invited for a job interview. In another unusual example of innovative media recruitment, the US Army has used a very popu lar online video game called Amer i ca’s Army to draw in thousands of recruits.39

Advertisements can be very costly and need to be monitored closely for yield. Using marketing data on audience demographics, employers can diversify their applicant pool by placing ads in media outlets that reach a variety of applicant populations. By carefully monitoring the results of each ad, the organ ization can make a more informed decision as to which ads should be run in the future. To track ads, each should be coded. Then, as résumés come into the organ ization in

099-67811_ch05_4P.indd 231 11/17/17 12:37 PM

232 PART THREE Staffing Activities: Recruitment

response to the ad, they can be or ga nized according to the codes, and the yield for that ad can be calculated. This information will help the organ ization weed out less effective ads and focus on the more productive ones.

Recruitment Brochures A recruitment brochure is often sent or given directly to job applicants, or it may be included as part of the organ ization’s website. Information in the brochure may be very detailed, and hence, the brochure may be lengthy. A brochure not only cov- ers information about the job but also communicates information about the organ- ization and its location. It may include pictures in addition to written narrative in order to illustrate vari ous aspects of the job, such as the city in which the organ- ization is located and the actual employees. These vari ous means of demonstrating the features of the organ ization enhance the richness of this recruitment technique. The advantage of a brochure is that the organ ization targets who receives a copy. Also, it can be lengthier than an advertisement. A disadvantage is that it can be quite costly to develop, and because it is obviously a sales pitch made by the organ- ization, it might be seen as less credible.

A successful brochure possesses (1) a unique theme or point of view relative to other organ izations in the same industry and (2) a visual distinctiveness in terms of design and photo graphs. A good format for the brochure is to begin with a general description of the organ ization, including its history and culture (values, goals, “brand”). A description of the hiring pro cess should come next, followed by a characterization of pay/benefits and per for mance reviews. Fi nally, the brochure should conclude with contact information.

Orga nizational Websites It may not be an overstatement to conclude that orga nizational websites have become the single most impor tant medium through which organ izations com- municate with potential applicants. Nearly every large organ ization has a “ career opportunities” page on its website, and many small organ izations have com pany and point- of- contact information for job seekers. Websites are a power ful means of not only communicating information about jobs but also reaching applicants who other wise would not bother (or know how or where) to apply. Thus, care must be taken to ensure that the orga nizational website is appealing to potential job candidates. The web is unique in that it may function as both a recruitment source and a recruitment medium. When a web page only serves to communi- cate information about the job or organ ization to potential applicants, it serves as a recruitment medium. However, when a web page attracts actual applicants, particularly when applicants are allowed to apply online, it also functions as a recruitment source.

Research has shown that organ izations can successfully convey cultural mes- sages on their websites by describing orga nizational policies, showing pictures,

099-67811_ch05_4P.indd 232 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 233

and including testimonials. Effective websites also permit users to customize the information they receive by asking questions about their preferences and providing relevant information.40

How can web designers put these findings into practice? The three core attri- butes driving the appeal of an organ ization’s website are engagement, function- ality, and content. First, the website must be vivid and attractive to applicants. Second, while engagement is impor tant, at the same time the website must be func- tional, meaning that it should be quick to load, easily navigable, and interactive. A website that is overly complex may be vivid, but it will only generate frustration if it is hard to decipher or slow to load. Third, an orga nizational website must con- vey the information prospective applicants want to see, including current position openings, job requirements, and steps for applying. Many organ izations integrate video testimonials from current employees as a way to lure potential applicants. In industries where competition for talent is fierce, a textual job description may simply not be compelling enough to compete with a well- produced video featuring enthusiastic current employees.41

Of course, there is more to designing an orga nizational website than the three attributes discussed above. Exhibit 5.8 provides a thorough list of factors to keep in mind when designing a website for orga nizational recruitment.

Videoconferencing Videoconferencing is another way to communicate with applicants.42 Rather than meet in person with applicants, orga nizational representatives meet with applicants face- to- face on a monitor, in separate locations. Nearly all laptop and tablet com- puters have the technology needed for videoconferencing, so most applicants can participate quite easily. Moreover, this technology makes it pos si ble for the organ- ization to screen applicants at multiple or remote locations without actually hav- ing to travel to those locations. Com pany representatives who will participate in these videoconferences should be carefully selected and trained so they can answer questions thoroughly and communicate in a compelling manner. Videoconferenc- ing has most of the advantages of face- to- face communication. It has high richness because the recruiter can answer questions, and it is highly credible because most people trust personal communication with an identifiable person more than they trust a prepackaged message from an organ ization.

Direct Contact The most expensive, but potentially the most power ful, method for communicating with potential applicants is through direct contact. The two most common media for direct contact are telephone messages and e- mail. These techniques are much more personal than the other methods of recruitment because the applicants are specifically approached by the organ ization. Personal contacts are likely to be seen as more credible by respondents. In addition, messages delivered through direct

099-67811_ch05_4P.indd 233 11/17/17 12:37 PM

234 PART THREE Staffing Activities: Recruitment

contact often allow respondents to ask personally relevant questions, which obvi- ously should enhance the richness of the information.

However, in the age of spamming, it is impor tant to remember that most indi- viduals will regard mass e- mails or automated telephone messages with even less enthusiasm than they would for junk mail. Most e- mail programs filter spam, and

1. Keep it simple—surveys reveal that potential job candidates are overwhelmed by complex, difficult- to-navigate websites; never sacrifice clarity for a flashy display—remember, a good applicant is there for the content, not for the bells and whistles.

2. Make access easy; the web page and links should be easy to download—studies reveal that individuals will not wait more than about eight seconds for a page to download (some recent research even suggests that this number is as low as two seconds), so the four- color page that looks great will backfire if it takes the user too much time to download it (also make sure that the link to the recruiting site on the home page is prominently displayed).

3. Provide an online application form—increasingly, potential candidates expect to be able to submit an application online; online forms are not only desired by candidates, organizations can load responses directly into searchable databases.

4. Provide information about company culture—allow applicants to self- select out if their values clearly do not match those of the organization.

5. Include selected links to relevant websites—the words ‘‘selected’’ and ‘‘relevant’’ are key here; links to include might be a cost- of-living calculator and a career advice area.

6. Make sure necessary information is conveyed to avoid confusion—clearly specify job title, location, etc., so applicants know which job they are applying for and, if there are several jobs, don’t apply for the wrong job.

7. Keep the information current—make sure position information is updated regularly (e.g., weekly).

8. Evaluate and track the results—periodically evaluate the performance of the website on the basis of various criteria (number of hits, number of applications, application/hits ratio, quality of hires, cost of maintenance, user satisfaction, time to hire, etc.) or set up a software program to track the response data.

EXHIBIT 5.8 Factors for Designing Organizational Websites

Sources: P. W. Braddy, A. W. Meade, and C. M. Kroustalis, “Online Recruiting: The Effects of Organizational Familiarity, Website Usability, and Website Attractiveness on Viewers’ Impressions of Organizations,” Computers in Human Behavior, 2008, 24, pp. 2992–3001; S. Selden and J. Orenstein, “Government E-Recruiting Web Sites: The Influence of E-Recruitment Content and Usability on Recruiting and Hiring Outcomes in US State Governments,” International Journal of Selection and Assessment, 2011, 19, pp. 31–40; I. O. Williamson, D. P. Lepak, and J. King, “The Effect of Company Recruitment Web Site Orientation on Individuals’ Perceptions of Organizational Attractiveness,” Journal of Vocational Behavior, 2003, 63, pp. 242–263; F. F-H. Nah, “A Study on Tolerable Waiting Time: How Long Are Web Users Willing to Wait?” Behaviour & Information Technology, 2004, 23, pp. 153–163.

099-67811_ch05_4P.indd 234 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 235

the more mass messages that are sent, the more likely it is that mail servers will identify the organ ization’s address as a prob lem. Therefore, e- mail contact should be used only for very specific individuals. Direct contact should be communicated in a way that makes it clear that the receiver is one of a small number of people who will receive the message. The messages should be highly personal, reflecting an understanding of the candidate’s unique qualifications. Providing a response e- mail address or telephone number that allows respondents to ask questions about the job opening will also help increase the yield for the direct contact method. However, personalization and customized responding to questions obviously will increase the cost per individual contacted, so the trade- offs in terms of cost must be considered.

Word of Mouth and Social Media One of the most power ful methods for communicating about a potential job oppor- tunity is one that organ izations cannot directly control: word of mouth.43 This refers to the informal information regarding an organ ization’s reputation, employment practices, and policies that can exert a power ful impact on job seekers’ impressions of an employer. Because word of mouth usually comes from individuals who do not have a vested interest in “selling” the job, the messages are likely to be seen as more credible. The fact that job seekers can ask and have questions answered also makes word of mouth a very rich source of information.

Some word of mouth is no longer conveyed face- to- face, as blogs and social media can also be used to communicate information about employers.44 The larg- est social media sites with employment connections, including Facebook, LinkedIn, and GlassDoor, have reached such a level of prevalence that an employer might regard an applicant who didn’t extensively research the com pany’s online reputation with suspicion. These sites convey information that an organ ization might prefer not to have made public to applicants, such as interpersonal conflicts in vari ous divisions, information about inequitable pay practices, or critiques of career paths. For applicants, this increased transparency may make it easier for them to find a good fit. For recruiters, however, it has become necessary to carefully scan through online content regarding the organ ization and ensure that the com pany has answers to common criticisms.

How can organ izations influence word of mouth? One technique is to carefully cultivate relationships with current employees, recognizing that the way they are treated will come to influence the ways that other potential applicants believe they will be treated. This means making certain that jobs are as intrinsically and extrin- sically satisfying for the current workforce as pos si ble. Organ izations should also make conscious efforts to shape the perception of their employment brand by using online testimonials from current employees. These testimonials act as a sort of virtual equivalent of word of mouth. Although job seekers will likely be somewhat skeptical of any information on a corporate website, a testimonial from

099-67811_ch05_4P.indd 235 11/17/17 12:37 PM

236 PART THREE Staffing Activities: Recruitment

someone who works at the organ ization is still likely to be more persuasive than a conventional sales pitch.

STRATEGY IMPLEMENTATION

Once the recruitment planning phase is complete and the organ ization has spread the word about the job opening through vari ous communication media, the next phase is implementing the recruitment strategy. This pro cess involves gathering applications from a variety of sources and evaluating the quantity of applicants, the quality of applicants, the cost of using each source, and the impact on HR outcomes.

Individual Recruitment Sources

The first category of recruitment sources we consider are those that focus on the individuals the organ ization is attempting to contact. These sources target active job seekers who are submitting applications to a number of potential employers. This means that it is incumbent on the job seeker to actively participate in the pro cess early on. Applicants generally apply only to organ izations they believe are hiring, so effective use of communication media is necessary to elicit enough applications.

Applicant Initiated Applicant- initiated recruitment is among the most traditional and well- accepted techniques for finding a job. Most employers accept applications from job appli- cants who physically walk into the organ ization to apply for a job, who call the organ ization, or who contact the organ ization through the corporate website.

The usual point of contact for walk- ins or phone inquiries is the receptionist in smaller organ izations and the employment office in larger organ izations. When applications are accepted, a contact person responsible for pro cessing such appli- cants needs to be assigned. If the applications will be completed on paper or through an electronic on- site application system like a job kiosk, space must be created for walk- ins to complete applications and preemployment tests. Additionally, hours must be established when applicants can apply for jobs, and procedures must be in place to ensure that data from these individuals are entered into the applicant flow pro cess. If walk- ins or résumé senders are treated like intruders, they may commu- nicate a very negative image about the organ ization to the community.

As we noted previously, a com pany’s website can blend the pro cess of spreading information about a job opening with the pro cess of submitting an application. Although surveys reveal that most employers believe their websites do a better job of attracting applicants than do job boards, many of these websites do not live up to their potential.45 Many have been likened to little more than post office boxes

099-67811_ch05_4P.indd 236 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 237

where applicants can send their résumés. It is impor tant to remember that commu- nication with an applicant shouldn’t end with his or her online application. Many organ izations now have integrated applicant tracking systems that allow applicants to track the status of their applications and provide feedback.

All of the princi ples we described earlier in website design should be kept in mind when it comes to the application pages.46 In par tic u lar, the application portal should be simple, easy to use, informative, and up to date. To assess job seeker pref- erences, con sul tants from Brass Ring watched applicants go through the pro cess of visiting organ ization websites, with the applicants describing their thought pro- cesses aloud. The con sul tants’ research indicates that recruits are often frustrated by complex application systems, especially those that require them to enter the same data multiple times. To keep potential applicants from feeling disconnected from the online recruitment pro cess, it is advisable to keep in touch with them at every stage of the pro cess. To speed things up, some organ izations inform appli- cants immediately if there is a mismatch between the information they provided and the job requirements; thus they can know immediately that they are not under consideration. Quickly eliminating unacceptable candidates also allows recruiters to respond more quickly to applicants who do have sufficient KSAOs. A review of online job solicitation found that the best website advertising offered special features to potential applicants, including opportunities to check where they are in the hiring pro cess, examples of a typical “day in the life” at an organ ization, and useful feedback to applicants regarding their potential fit with the organ ization and job early in the pro cess.

Employment Websites Employment websites have evolved from their original function as job boards and database repositories of jobs and résumés to become fully featured recruitment and screening centers.47 For employers that pay a fee, many employment websites pro- vide ser vices like targeted advertising, video advertising, preemployment screen- ing examinations, and applicant tracking. For job seekers, there are resources to facilitate exploring dif fer ent career paths, information about the communities where jobs are offered, and access to message boards where current and former employees can sound off on the culture and practices of dif fer ent organ izations.

Millions of job seekers submit their résumés to employment websites every year, and there are thousands of job sites to which they can apply. Although it is difficult to obtain precise data on the use of employment websites, some estimates suggest that they are second only to referrals as a source of new hires. On the other hand, research suggests that solicitations for employment from electronic bulletin boards are seen as especially less informative and low in credibility relative to organ izations’ websites or face- to- face meetings at campus placement offices. Therefore, these methods should not be used without having some supporting practices that involve more interpersonal contact.48

099-67811_ch05_4P.indd 237 11/17/17 12:37 PM

238 PART THREE Staffing Activities: Recruitment

One difficulty in utilizing the Internet for recruitment is that many sites spe- cifically designed for recruitment become defunct. Conversely, new employment websites come online almost daily. Thus, one cannot assume that the sites an organ ization used in the past will be the best options in the future, or that they will even exist. Any attempt to summarize the current state of the Internet job posting board scene needs to be taken with a grain of salt, since the landscape for Internet recruitment is shifting very rapidly. Another difficulty with Internet recruitment is the growing prob lem of identity theft, where fake jobs are posted online in order to obtain vital information on a person or to extract a fake fee.

General Employment Websites. Most readers of this book are likely familiar with the biggest employment websites, so it is easy to forget that they have had a major impact on the job search pro cess for only the past 10 or 20 years. Since that time, a few early movers and larger entrants have grabbed the lion’s share of the market. Three of the biggest employment websites are Monster, CareerBuilder, and Indeed, which collectively are estimated to be responsible for a large portion of external Internet hires. Glassdoor is another very popu lar employment website that has done an especially good job of integrating vari ous social media into its approach.

General employment websites are not limited to simple advertising, as noted earlier. Ser vices are rapidly evolving for these sites, and many now offer the ability to create and approve job requisitions online, manage recruitment tasks, track the pro gress of open positions and candidates, and report on recruitment met- rics like time to hire, cost per hire, and equal employment opportunity (EEO). Several of the larger employment websites have developed extensive cross- listing relationships with local newspapers, effectively merging the advantages of local media in terms of credibility and name recognition with the power ful technological advances and large user base of employment websites.49

Niche Employment Websites. Although there are advantages to open recruit- ment, as described earlier, it is also pos si ble to conduct a more targeted web- based recruitment effort through niche employment websites.50 These sites focus on spe- cific occupations ( there are employment websites for jobs ranging from nurses to geologists to metal workers), specific industries (e.g., sports, chemicals, transporta- tion, human ser vices), and specific locations (e.g., cities, states, and regions often have their own sites). Notably, employment websites are now targeting blue- collar jobs as well. Recruiters looking for examples of niche job sites for a specific occu- pation can simply do an Internet search of “employment websites” coupled with the occupation of interest. Although any one niche job board is unlikely to have a huge number of posters, these specialized websites have been estimated to collec- tively account for two- thirds of Internet hiring. Experienced recruiters claim that the audience for niche employment websites is often more highly qualified and interested in specific jobs than are applicants from more general job sites.

099-67811_ch05_4P.indd 238 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 239

Niche job sites have also been developed that cater to specific demographic groups, including women, African Americans, and Hispanics. Organ izations that want to improve the diversity of their work sites or that are under an AAP should consider posting in a variety of such specialized employment websites as part of their search strategy. Survey data suggest that applicants believe that companies that advertise on these targeted websites are more positively disposed toward workforce diversity, further serving to enhance the usefulness of diversity- oriented advertising.51

Searching Employment Website Databases. As opposed to actively posting jobs online, another (but not mutually exclusive) means of recruitment on the web is to search for applicants without ever having posted a position. Under this pro- cess, applicants submit their résumés online, which are then forwarded to employers when they meet the employer’s criteria. Such systems allow searching the databases according to vari ous search criteria, such as job skills, years of work experience, education, major, grade- point average, and so forth. It costs applicants anywhere from nothing to hundreds of dollars to post their résumé or other information on the databases. For organ izations, there is always a cost. The exact nature of the cost depends on both the database(s) to which the organ ization subscribes and the ser- vices requested.

Social Recruitment Sources

A second major type of recruitment source is social networks. These recruitment sources rely on the relationships that potential employees have with either those who currently work for the organ ization or others who might endorse the organ- ization. Although it’s generally the case that these interpersonal recruitment sources will yield fewer applicants than broader media- based recruitment sources used in the individual approaches, there are some distinct advantages to social net- works that we review below.

Employee Referrals Employees currently working for an employer are a valuable source for finding job applicants.52 Employees can refer people they know to their employer for consid- eration. Most estimates suggest that referrals are one of the most commonly used recruitment methods. The vast majority of organ izations accept referrals, though only about half have formal programs. In some organ izations, a cash bonus is given to employees who refer job candidates who prove to be successful on the job for a given period of time. Most bonuses range from a few hundred dollars to thou- sands of dollars. To ensure adequate returns on bonuses for employee referrals, it is essential to have a good per for mance appraisal system in place to mea sure the per- for mance of the referred new hire. There also needs to be a good applicant tracking

099-67811_ch05_4P.indd 239 11/17/17 12:37 PM

240 PART THREE Staffing Activities: Recruitment

system to ensure that new hire per for mance is maintained over time before a bonus is offered.

Referral programs have many potential advantages, including low cost per hire, high- quality hires, decreased hiring time, and an opportunity to strengthen bonds with current employees. Research also shows that individuals hired through refer- rals are less likely to leave.53

Employee referral programs may fail to work for any number of reasons. Cur- rent employees may lack the motivation or ability to make referrals. Additionally, employees sometimes don’t realize the importance of recruitment to the organ- ization. As a result, the organ ization may need to encourage employee participa- tion by providing special rewards and public recognition along with bonuses for successful referrals. And fi nally, employees may not be able to match people with jobs, because they do not know about vacancies or the requirements needed to fill them. Hence, employees must regularly be notified of job vacancies and their requirements.

Former employees can be an ideal source of future applicants, either by recruit- ing them to come back to the organ ization or by asking them to provide referrals. As return employees, they will know the organ ization, its jobs, and its culture and will also be well known to those inside the organ ization. This not only cuts down on orientation costs but also means they can get into the flow of work more quickly. As referral sources, they can convey their personal observations to other job seekers, and thus those who decide to apply will be better informed. Using former employees as a recruitment source naturally means that the organ ization must remain on good terms with departing employees and keep channels of com- munication open after employees leave. Many organ izations that undergo cyclical layoffs or downsizing in lean times might also seek to rehire those who were laid off previously when the organ ization returns to an expansionary strategy.54

Social Media Another way of finding applicants is through social media, where friends or acquain- tances are used to connect those looking for applicants to those looking for jobs. Many recruiters have turned to social networking websites such as Twitter, LinkedIn, and Facebook as sources for finding qualified job candidates.55 The use of social net- working has become so prevalent that recruitment software integrates these sites into the applicant tracking pro cess. Recruiters can automatically post openings to social media sites and receive reports on which channels are resulting in the most leads and the best candidates.56

The use of social media has a number of advantages. Because many of the connections between users are based on professional background or shared work experiences, networking sites often provide access to groups of potential employ- ees with specific skill sets. Some social networking websites geared toward pro- fessionals encourage users to indicate the industry and area in which they work.

099-67811_ch05_4P.indd 240 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 241

Recruiters can set up their own profile pages with these websites, encouraging potential applicants to apply by making personal contacts. By accessing the social networks of those already employed in the organ ization, it is pos si ble to locate passive candidates who are already employed and not necessarily looking for a new job. In fields where the unemployment rate is very low, such as engineering, health care, and information technology (IT), passive candidates may be the pri- mary source of potential applicants.

Despite these advantages, organ izations can face troubling legal and ethical quandaries when using social media, because candidates’ personal information, such as marital status, health status, and demographics, is often publicly available on personal pages. To avoid these prob lems, recruiters are strongly advised not to ask potential applicants to provide access to personal information when conduct- ing networking- based recruitment. Only publicly available information should be viewed. Companies should establish strong guidelines for the use of social media, because man ag ers may be using personal information without the com pany’s knowledge or consent.57

Recruiters have identified some best practices to facilitate social media cam- paigns that are not prone to these privacy concerns.58 Effective campaigns begin by making potential applicants aware of the organ ization and by creating easy ways for them to follow up on their initial interest. The choice to engage with the organ ization initially is left with the applicant himself or herself. If an individual indicates interest in the position, the organ ization works to respond quickly to the candidate, providing customized answers to questions and following up regularly. Unlike one- way media campaigns, once a candidate has indicated interest through social media, it is pos si ble to track his or her level of engagement and likely inter- ests. This information can then be used to identify key developments and other events that might be likely to interest those in the system.

Professional Associations and Meetings Organ izations can take advantage of the relationships their employees have with professional associations. Through networking with others who do similar work, employees can develop contacts with potential new recruits. This contact can be estab- lished informally by reaching individuals via e- mail or through message boards. Professional associations sometimes have a formal placement function that is available throughout the year. For example, the websites of professional associa- tions often advertise both positions available and interested applicants. Others may have a computerized job and application bank.

Many technical and professional organ izations meet around the country at least once a year. Many of these groups run a placement ser vice for their members, and some may charge a fee to recruit at these meetings. This source represents a way to attract applicants with specialized skills or professional credentials. Also, some meetings are an opportunity to attract underrepresented groups.

099-67811_ch05_4P.indd 241 11/17/17 12:37 PM

242 PART THREE Staffing Activities: Recruitment

Orga nizational Recruitment Sources

External organ izations form a third major category of potential recruitment sources. These connections tend to be more formal than social networks, and so they tend not to provide some of the relational advantages of individual contact. However, external organ izations are more likely than the organ ization itself to provide access to a large number of potential applicants. Orga nizational recruitment sources can also help narrow down the applicant pool by providing formal screening ser vices.

Colleges and Placement Offices Colleges are a source of people with specialized skills for professional positions. Most colleges have a placement office or officer who is in charge of ensuring that a match is made between the employer’s interests and the graduating student’s interests. Research has shown that campus recruitment efforts are seen as more informative and credible than organ ization websites or electronic bulletin boards.59 In fact, recruitment experts found that members of the tech- savvy millennial gen- eration are reluctant to use social networking and other Internet job search tools, and that they prefer campus career placement offices to find jobs.60

In most cases, the placement office is the point of contact with colleges. It should be noted, however, that not all students use the ser vices of the placement office. Students sometimes avoid placement offices because they believe they will be competing against the very best students and will be unlikely to receive a job offer. Additional points of contact for students at colleges include professors, department heads, professional fraternities, honor socie ties, recognition socie ties, and national professional socie ties. Organ izations sometimes overlook small col- leges as a recruitment source because the small number of students does not make it seem worth the effort to visit. In order to pres ent a larger number of students to choose from, some small colleges have banded together in consortia. For example, the Oregon Liberal Arts Placement Consortium provides a centralized recruitment source for nine small public and private colleges and universities. It is essential that appropriate colleges and universities be selected for a visit.

A difficult choice for the employer is deciding which colleges and universities to target for recruitment efforts. Some organ izations focus their efforts on schools with the best return on investment and invest in those programs more heavi ly. Other organ izations, especially large ones with relatively high turnover, find they need to cast a much broader net. In the end, the decision of breadth versus depth comes down to the number of individuals who need to be hired, the recruitment bud get, and a strategic decision about whether to invest deeply in a few programs or more broadly in more programs. Some factors to consider when deciding which colleges and universities to target include the following:61

• Past experiences with students at the school— including the quality of recent hires (mea sured in terms of per for mance and turnover), offer ac cep tance rates,

099-67811_ch05_4P.indd 242 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 243

skills, experience, and training in the areas where job openings exist— should be factored in.

• Rankings of school quality. U.S. News and World Report, The Gorman Report, and Peterson’s Guide are comprehensive rankings of colleges and universities and vari ous degree programs. BusinessWeek, the Wall Street Journal, and the Financial Times rank business schools. Applicants recruited from highly ranked programs almost always come at a premium, so organ izations need to make sure they are getting a good return on their investment.

• The costs of recruitment at a par tic u lar school must be assessed. Colleges and universities that are nearby often mean substantially fewer resources expended on travel (both for recruiters traveling to the school and for bring- ing applicants in for interviews).

Some organ izations develop a talent pipeline that includes individuals in educa- tional institutions who may not take a job immediately but may be attracted to the organ ization in the future. Managing an organ ization’s talent pipeline means estab- lishing effective relationships even before positions open up. Some organ izations try to develop early relationships with incoming college freshmen in hopes that they will consider the organ ization as a potential employer when they gradu ate. Organ izations that engage in large- scale collaborative research and development efforts with universities cultivate relationships with faculty, with the hope of even- tually luring them into private sector work. Many organ izations establish folders or databases of high- potential individuals who are still receiving an education or who work for other companies and then regularly send materials to those individuals about potential career prospects within the organ ization. Intel has hosted a compe- tition called the Cornell Cup, in which student teams from a number of universities compete to design the best engineering proj ects. Those who perform well are not only given cash prizes but also invited to take on summer jobs or internships.62

Employment Agencies One traditional source of nonexempt employees and lower- level exempt employees is employment agencies. These agencies contact, screen, and pres ent applicants to employers for a fee. The fee is contingent on successful placement of a candidate with an employer and is usually a percentage of the candidate’s starting pay. In a temp- to- hire arrangement, the employee has a trial period in which his or her con- tract is contingent on per for mance, and then after a period of time the employee will be taken on as a permanent employee of the organ ization. This gives both the applicant and the employer a chance to observe each other and assess the quality of the fit. Many jurisdictions have specific duration requirements for these arrange- ments, such as laws stating that employees may be classified as temporary for only 90 days.

Care must be exercised in selecting an employment agency. It is a good idea to check references, as allegations abound regarding the shoddy practices of some

099-67811_ch05_4P.indd 243 11/17/17 12:37 PM

244 PART THREE Staffing Activities: Recruitment

agencies. A poor agency may, for example, flood the organ ization with résumés of both qualified and unqualified applicants. A good agency will screen out unquali- fied applicants and not attempt to dazzle the organ ization with a large volume of résumés. Poor agencies may misrepresent the organ ization to the candidate and the candidate to the organ ization. Misrepre sen ta tion may take place when the agency is only concerned about a quick placement (and fee) and pays no regard to the costs of poor future relationships with clients. A good agency will be in business for the long run and not misrepresent information and invite turnover. A good agency will not pressure man ag ers, make special deals, or avoid the HR staff. Fi nally, it is impor tant to have a signed contract in place in which mutual rights and responsi- bilities are laid out.

Although employment agencies have traditionally focused on individuals with comparatively low skill levels, many agencies have expanded to include individu- als with specialized or technical skills. There are even employment agencies that specialize in areas like health care and engineering, which require very high levels of expertise. Some of these agencies provide recruitment and screening ser vices for potential employers, and then employees receive an offer of a permanent posi- tion like recruits from any other source. However, even for these technical fields, temp- to- hire arrangements are not unheard of.

Executive Search Firms For higher- level professional positions or jobs with salaries of $100,000 and higher, executive search firms, or “headhunters,” may be used. Like employment agencies, these firms contact and screen potential applicants and pres ent résumés to employ- ers. The difference between employment agencies and search firms lies in two pri- mary areas: (1) search firms typically deal with higher- level positions than those of employment agencies, and (2) search firms are more likely to operate on the basis of a retainer than on a contingency. Search firms that operate on a retainer are paid regardless of whether a successful placement is made. The advantage of operating this way, from the hiring organ ization’s standpoint, is that it aligns the interests of the search firm with those of the organ ization. Thus, search firms operating on retainer do not feel compelled to put forward candidates just so their contingency fee can be paid. Moreover, a search firm on retainer may be less likely to give up if the job is not filled in a few weeks. Of late, business has been slow for executive search firms, partly due to the moderate economic growth and the bustling online recruitment business. Thus, organ izations have been able to negotiate smaller fees (retainers or contingencies).63

Increasingly, executive search firms are getting into the appraisal business, where an organ ization pays the search firm to provide an assessment of the organ ization’s top executives. On one level this makes sense, since executive search firms are in the assessment business. The prob lem is that since the executive assessment pays much less than the retainer or contingency fees for hiring an executive, the search firms

099-67811_ch05_4P.indd 244 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 245

have an incentive to pronounce top executives substandard so as to justify bringing in an outsider. This is exactly what happened with a top executive search firm whose executive recruiters negatively evaluated an executive, only to recommend hiring an outsider, for which the recruiters were compensated handsomely. Given these inher- ent conflicts of interest, an organ ization should avoid using the same search firm to hire new executives and to appraise its existing executive team.64

Social Ser vice Agencies All states have an employment or job ser vice. These ser vices are funded by employer- paid payroll taxes and are provided by the state to help secure employ- ment for those seeking it, particularly those currently unemployed. Typically, these ser vices refer low- to middle- level employees to employers. For jobs to be filled properly, the hiring organ ization must maintain a close relationship with the employment ser vice. Job qualifications need to be clearly communicated to ensure that proper screening takes place by the agency. Positions that have been filled must be promptly reported to the agency so that résumés are not sent for closed positions. The federal Job Corps program is another option. Job Corps is designed to help individuals between 16 and 24 years of age obtain employment. The program targets individuals with lower levels of education and prepares them for entry- level jobs through a combination of work ethic training and general job skills. For employers, Job Corps can provide specialized training, prescreening of applicants, and tax benefits. Some agencies in local communities may also provide outplacement assistance for the unemployed who cannot afford it. Applicants who use these ser vices may also be listed with a state employment ser vice. Community agencies may also offer counseling and training.

The US Department of Labor has provided funding for states to develop one- stop career centers that will provide workers with vari ous programs, benefits, and opportunities related to finding jobs. The centers’ emphasis is on providing customer- friendly ser vices that reach large segments of the population and are fully integrated with state employment ser vices. These centers now offer a variety of skills certification programs, such as the National Work Readiness Credential and the National Career Readiness Certificate, which are highly sought after by employ- ers.65 For example, when Honda deci ded to build its Odyssey plant in Alabama, part of the deal was that the state would establish a close partnership with Honda to recruit and train employees.66 Nissan has established similar relationships with the states of Mississippi and Tennessee. The state of Illinois provides customized appli- cant screening and referral to employers so efficiently that some employers, such as Jewel- Osco, use the ser vice as an extension of their HR department.67

Job Fairs Industry associations, schools, groups of employers, the military, and other inter- ested organ izations often hold career or job fairs to attract applicants. Typically, the

099-67811_ch05_4P.indd 245 11/17/17 12:37 PM

246 PART THREE Staffing Activities: Recruitment

sponsors of a job fair will meet in a central location with a large fa cil i ty in order to provide information, collect résumés, and screen applicants. Often, there is a fee for employers to participate. Job fairs may provide both short- and long- term gains. In the short run, the organ ization may identify qualified applicants. In the long run, it may be able to enhance its visibility in the community, which, in turn, may improve its image and ability to attract applicants for jobs.

For a job fair to yield a large number of applicants, it must be advertised well in advance. Moreover, advertisements may need to be placed in specialized publica- tions likely to attract minorities and women. To attract quality candidates from all those in attendance, the organ ization must be able to differentiate itself from all of the other organ izations competing for applicants at the job fair. Items such as mugs and key chains with the com pany logo can be distributed to remind the applicants of employment opportunities at a par tic u lar organ ization. An even better promo- tion may be to provide fair attendees with assistance in developing their résumés and cover letters.

One strength of job fairs is also a weakness— although a job fair enables the organ ization to reach many people, the typical job fair has around 1,600 applicants vying for the attention of about 65 employers. Given the ratio of 25 applicants for every employer, the typical contact with an applicant is prob ably shallow. In response, some employers instead (or also) devote their resources to information sessions geared toward a smaller group of specially qualified candidates. During these sessions, the organ ization pres ents information about itself, including its culture, work environment, and career opportunities. Small gifts and brochures are also typically given out. One research study showed that applicants who were favorably impressed by an organ ization’s information session were significantly more likely to pursue employment with the organ ization. Other studies show that job fairs that allow for interpersonal interactions between job seekers and organ- ization representatives are seen as especially informative by job seekers. Thus, both applicants and employers find information sessions a valuable alternative, or complement, to job fairs.68

Increasingly, job fairs are being held online with preestablished time limits. One online recruitment site held a job fair that included 240 participating companies. In virtual job fairs, recruiters link up with candidates through chat rooms.

Co- ops and Internships A large number of educational institutions, including many high schools and nearly all technical colleges and universities, require some or all of their students to get work experience as part of their degree programs. Co- ops and internships are two ways that employers can recruit applicants. Under a co-op arrangement, the student works with an employer on an alternating quarter basis. In one quarter the student works full time and in the next quarter the student attends school full time. Under an internship arrangement, the student has a continuous period of

099-67811_ch05_4P.indd 246 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 247

employment with an employer for a specified amount of time. These approaches allow an organ ization to not only obtain ser vices from a part- time employee for a short period of time but also assess the person for a full- time position after gradu- ation. One man ag er experienced in working with interns commented, “Working with them is one of the best talent- search opportunities available to man ag- ers.”69 In turn, interns have better employment opportunities as a result of their experiences.

Internships and co-op assignments can take a variety of forms. One type of assignment is to have the student perform a part of the business that occurs peri- odically. For example, some amusement parks that operate only in the summer in northern climates may have a large number of employees who need to be hired and trained in the spring. A student with a background in HR could perform these hir- ing and training duties. Increasingly, colleges and universities are giving students college credit for—in some cases, even instituting a requirement for— working as part of their professional degree.70 A student in social work, for example, might be required to work in a welfare office for a summer. Occasionally, some internships and co-op assignments do not provide these meaningful experiences that build on the qualifications of the student. Research shows that school- to- work programs often do not provide high utility to organ izations in terms of cost- benefit ratios. Thus, organ izations need to evaluate co- ops and internships not only in terms of quality for the student but in terms of the cost- benefit economic perspective as well.71

Meaningful experiences benefit both the organ ization and the student. The organ ization gains from the influence of new ideas the student has been exposed to in his or her curriculum, and the student gains from the experience of having to apply concepts while facing the realities of orga nizational constraints. For both parties to gain, a learning contract must be developed and signed by the student, the student’s advisor, and the corporate sponsor. The learning contract becomes, in essence, a job description to guide the student’s activities. Also, it establishes the criteria by which the student’s per for mance is assessed for purposes of grading by the academic advisor and for purposes of successful completion of the proj ect for the organ ization. In the absence of a learning contract, internships can result in unrealistic expectations by the corporate sponsor, which, in turn, can result in disappointment when these unspoken expectations are not met.72

To secure the ser vices of students, organ izations can contact the placement offices of high schools, colleges, universities, and vocational technology schools. Also, teachers, professors, and student chapters of professional associations can be contacted to obtain student assistance. Placement officials can provide the hiring organ ization with the policies that need to be followed for placements, while teach- ers and professors can give guidance on the types of skills students could bring to the organ ization and the orga nizational experiences the students would benefit from the most.

099-67811_ch05_4P.indd 247 11/17/17 12:37 PM

248 PART THREE Staffing Activities: Recruitment

Recruitment Metrics

Each recruitment source has strengths and weaknesses. Determining the best method for an organ ization entails assessing the costs and benefits of each method and then selecting the optimal combination of sources to meet the organ ization’s strategic needs. Exhibit 5.9 provides an overview of the metrics that might be expected for the categories of recruitment activities, along with issues considered relevant to each source. Conclusions for the number and types of applicants drawn by each method are informed by a number of studies comparing recruitment sources. Although broad generalizations can be made regarding quantity, quality, cost, and impact on HR outcomes for dif fer ent recruitment methods, each organ ization’s unique labor market situation will need to be considered since the research evi- dence shows considerable variety in the effects of recruitment variables on appli- cant attraction.

Sufficient Quantity The more broadly transmitted the organ ization’s search methods, the more likely it is that a large number of individuals will be attracted to apply. Other methods of recruitment naturally tend to be more focused and will draw a comparatively small number of applicants. While broad recruitment methods such as advertising and Internet postings are able to reach thousands of individuals, it might be to an organ ization’s advantage not to attract too many applicants, because of the costs associated with pro cessing all the applications.

Sufficient Quality Recruitment methods that link employers to a database of employees with excep- tional skills enable an employer to save money on screening and se lection pro- cesses. But if the search is too narrow, the organ ization will likely be engaged in a long- term pro cess of looking.

Cost The costs of any method of recruitment are the direct expenses involved in con- tacting job seekers and pro cessing their applications. Some sources, such as radio advertisements, search firms, and sophisticated website portals that customize information and provide employees with feedback, are quite expensive to develop. These methods may be worth the cost if the organ ization needs to attract a large number of individuals, if KSAOs for a job are in short supply, or if the job is crucial to the organ ization’s success. On the other hand, organ izations that need fewer employees or that require easily found KSAOs discover that lower- cost methods like applicant- initiated recruitment or referrals are sufficient to meet their needs. Some fee- based ser vices, like employment agencies, are able to pro cess applica- tions inexpensively because the pool of applicants is prescreened for relevant KSAOs.

099-67811_ch05_4P.indd 248 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 249

R e

cr u

it in

g

S o

u rc

e Q

u a

n ti

ty Q

u a

lit y

C o

st s

Im p

a ct

o n

H R

A p

p lic

an t

in iti

at e

d C

o n

tin g

e n

t o

n h

o w

w

id e

ly t

h e

c o

m p

an y’

s b

ra n

d is

k n

o w

n

H ig

h ly

v ar

ia b

le K

S A

O

le ve

ls if

n o

s ki

ll re

q u

ir e

m e

n ts

a re

p o

st e

d

A p

p lic

at io

n p

ro ce

ss in

g

an d

c le

ri ca

l s ta

ff t

im e

H ig

h e

r tr

ai n

in g

c o

st s,

lo

w e

r p

e rf

o rm

an ce

, h

ig h

e r

tu rn

o ve

r

E m

p lo

ym e

n t

w e

b si

te s

O ft

e n

o p

e n

s to

v e

ry

la rg

e p

o o

l, al

th o

u g

h

n ic

h e

s ite

s h

av e

a m

o re

n

ar ro

w p

o o

l

C an

p ro

vi d

e s

p e

ci fic

ke

yw o

rd s

to li

m it

ap p

lic at

io n

s to

t h

o se

w

ith s

p e

ci fic

K S

A O

s

S u

b sc

ri p

tio n

f e

e s

o r

u se

r fe

e s

fr o

m d

at ab

as e

se

rv ic

e s

G o

o d

t ra

ck in

g d

at a,

p

o te

n tia

lly lo

w e

r sa

tis fa

ct io

n , a

n d

h ig

h e

r tu

rn o

ve r

E m

p lo

ye e

re

fe rr

al s

G e

n e

ra te

s a

sm al

l n

u m

b e

r o

f ap

p lic

an ts

B e

tt e

r fit

b e

ca u

se

cu rr

e n

t e

m p

lo ye

e s

w ill

in

fo rm

a p

p lic

an ts

a b

o u

t th

e c

u ltu

re

S ig

n in

g b

o n

u se

s ar

e

so m

e tim

e s

p ro

vi d

e d

t o

in

cr e

as e

q u

an tit

y

H ig

h e

r p

e rf

o rm

an ce

, h

ig h

e r

sa tis

fa ct

io n

, l o

w e

r tu

rn o

ve r,

lo w

e r

d iv

e rs

ity

S o

ci al

n

e tw

o rk

in g

si

te s

Po te

nt ia

lly a

la rg

e nu

m be

r of

in di

vi du

al s,

d ep

en di

ng

on e

m pl

oy ee

u se

o f

ne tw

or ks

D e

p e

n d

s o

n w

h e

th e

r n

e tw

o rk

s ar

e m

ad e

u p

o f

o th

e rs

w ith

s im

ila r

sk ill

s an

d k

n o

w le

d g

e

T im

e s

p e

n t

se ar

ch in

g

th ro

u g

h n

e tw

o rk

s an

d

so lic

iti n

g a

p p

lic at

io n

s

P o

te n

tia lly

s im

ila r

re su

lts

to r

e fe

rr al

s, a

lth o

u g

h

re su

lts a

re u

n kn

o w

n

P ro

fe ss

io n

al

as so

ci at

io n

s an

d m

e e

tin g

s

C o

m p

ar at

iv e

ly f

e w

ca

n d

id at

e s

w ill

b e

id

e n

tif ie

d f

o r

e ac

h jo

b

o p

e n

in g

T h

o se

a tt

e n

d in

g

p ro

fe ss

io n

al m

e e

tin g

s w

ill b

e h

ig h

ly e

n g

ag e

d

an d

q u

al ifi

e d

C o

st o

f at

te n

d in

g

m e

e tin

g s

an d

d ir

e ct

in

te rv

ie w

in g

w ith

s ta

ff

ca n

b e

v e

ry h

ig h

S u

p e

ri o

r p

e rf

o rm

an ce

, al

th o

u g

h t

h o

se s

e e

ki n

g

jo b

s at

m e

e tin

g s

m ay

b e

jo

b -h

o p

p e

rs

C o

lle g

e s

an d

p

la ce

m e

n t

o ff

ic e

s

A b

o u

t 5

0 in

d iv

id u

al s

ca n

b

e c

o n

ta ct

e d

a t

e ac

h

u n

iv e

rs ity

p e

r d

ay

H ig

h le

ve ls

o f

jo b

- re

le va

n t

h u

m an

c ap

ita l,

u su

al ly

s cr

e e

n e

d o

n t

h e

b

as is

o f

co g

n iti

ve a

b ili

ty ,

lit tle

w o

rk e

xp e

ri e

n ce

T im

e c

o st

s o

f e

st ab

lis h

in g

re

la tio

n sh

ip s,

t ra

ve lin

g

to c

o lle

g e

lo ca

tio n

s

In iti

al t

ra in

in g

a n

d

d e

ve lo

p m

e n

t fo

r in

e xp

e ri

e n

ce d

w o

rk e

rs ;

ca n

in cr

e as

e a

ve ra

g e

K

S A

O le

ve ls

E X

H IB

IT 5

.9

P o

te n

ti a

l R e

cr u

it m

e n

t M

e tr

ic s

fo r

D if

fe re

n t

S o

u rc

e s

(c o

n ti

n u

e d

)

099-67811_ch05_4P.indd 249 11/17/17 12:37 PM

250 PART THREE Staffing Activities: Recruitment

R e

cr u

it in

g

S o

u rc

e Q

u a

n ti

ty Q

u a

lit y

C o

st s

Im p

a ct

o n

H R

E m

p lo

ym e

n t

ag e

n ci

e s

M an

y ap

p lic

an ts

f o

r lo

w e

r- le

ve l j

o b

s, f

e w

e r

ap p

lic an

ts a

va ila

b le

f o

r m

an ag

e ri

al o

r e

xe cu

tiv e

p

o si

tio n

s

A p

p lic

an ts

w ill

b

e p

re sc

re e

n e

d ;

o rg

an iz

at io

n s

ar e

o

ft e

n a

b le

t o

t ry

o u

t ca

n d

id at

e s

as t

e m

p s

p ri

o r

to h

ir in

g

F e

e s

ch ar

g e

d b

y e

m p

lo ym

e n

t ag

e n

ci e

s R

e d

u ce

d c

o st

s o

f sc

re e

n in

g c

an d

id at

e s,

im

p ro

ve d

p e

rs o

n /jo

b

m at

ch

E xe

cu tiv

e

se ar

ch f

ir m

s O

n ly

a s

m al

l n u

m b

e r

o f

in d

iv id

u al

s w

ill b

e

co n

ta ct

e d

S e

ar ch

f ir

m s

w ill

c ar

e fu

lly

sc re

e n

a p

p lic

an ts

, u su

al ly

e

xp e

ri e

n ce

d c

an d

id at

e s

F e

e s

fo r

e xe

cu tiv

e

se ar

ch e

s ca

n b

e

m o

re t

h an

h al

f o

f th

e

a p

p lic

a n

t’s a

n n

u a

l sa

la ry

R e

d u

ce d

s ta

ff t

im e

re

q u

ir e

d b

e ca

u se

th

e s

e ar

ch f

ir m

f in

d s

ap p

lic an

ts ; v

e ry

h ig

h

co st

s fo

r fir

m s

S o

ci al

s e

rv ic

e

ag e

n ci

e s

U su

al ly

o n

ly a

li m

ite d

n

u m

b e

r o

f in

d iv

id u

al s

ar e

a va

ila b

le , a

lth o

u g

h

th is

v ar

ie s

b y

sk ill

le ve

l

A p

p lic

an ts

m ay

h av

e

h ad

d iff

ic u

lty f

in d

in g

jo b

s th

ro u

g h

o th

e r

ro u

te s

b e

ca u

se o

f la

ck o

f sk

ill s

O ft

e n

t h

e re

a re

d ir

e ct

fin

an ci

al in

ce n

tiv e

s fo

r h

ir in

g f

ro m

t h

e se

ag

e n

ci e

s

P o

te n

tia lly

g re

at e

r tr

ai n

in g

c o

st s,

h ig

h e

r le

ve ls

o f

d iv

e rs

ity

Jo b

f ai

rs A

b o

u t

4 0

a p

p lic

an ts

ca

n b

e c

o n

ta ct

e d

p e

r re

cr u

ite r

p e

r d

ay

O ft

e n

d ra

w s

in in

d iv

id u

al s

w ith

s o

m e

k n

o w

le d

g e

o f

th e

c o

m p

an y

o r

in d

u st

ry

A d

ve rt

is in

g a

n d

h o

st in

g

co st

s ar

e c

o n

si d

e ra

b le

, al

th o

u g

h t

h is

is a

n

e ff

ic ie

n t

w ay

t o

s cr

e e

n

m an

y ca

n d

id at

e s

H ig

h e

r le

ve ls

o f

d iv

e rs

ity if

t ar

g e

te d

to

d iv

e rs

e a

u d

ie n

ce s;

e

ff e

ct s

o n

p e

rf o

rm an

ce ,

sa tis

fa ct

io n

u n

kn o

w n

C o

-o p

s an

d

in te

rn sh

ip s

O n

ly a

s m

al l n

u m

b e

r o

f in

te rn

s ca

n b

e u

se d

in

m o

st o

rg an

iz at

io n

s

H ig

h le

ve ls

o f

fo rm

al

e d

u ca

tio n

al p

re p

ar at

io n

, b

u t

fe w

in te

rn s

w ill

h av

e

w o

rk e

xp e

ri e

n ce

C o

st o

f p

ai d

in te

rn s

ca n

b

e v

e ry

h ig

h ; u

n p

ai d

in

te rn

s ar

e a

h u

g e

c o

st

sa vi

n g

s al

th o

u g

h t

h e

y o

ft e

n r

e q

u ir

e s

ta ff

t im

e

T h

o se

w h

o a

re h

ir e

d

w ill

b e

p re

sc re

e n

e d

, an

d s

h o

u ld

h av

e h

ig h

e r

p e

rf o

rm an

ce a

n d

lo w

e r

tu rn

o ve

r

E X

H IB

IT 5

.9

C o

n ti

n u

e d

S o

u r

c es

: D . S

. C h

ap m

an , K

. L . U

g g

e rs

le v,

S . A

. C ar

ro ll,

K . A

. P ia

se n

tin , a

n d

D . A

. J o

n e

s, “

A p

p lic

an t

A tt

ra ct

io n

t o

O rg

an iz

at io

n s

an

d J

o b

C h

o ic

e : A

M e

ta -A

n al

yt ic

R e

vi e

w o

f th

e C

o rr

e la

te s

o f

R e

cr u

iti n

g O

u tc

o m

e s,

” Jo

u rn

a l o

f A

p p

lie d

P sy

ch o

lo g

y, 2

0 0

5 , 9

0 ,

p p

. 9 2

8 –

9 4

4 ; M

. A . Z

o tt

o li

a n

d J

. P . W

a n

o u

s, “

R e

cr u

itm e

n t

S o

u rc

e R

e se

a rc

h : C

u rr

e n

t S

ta tu

s a

n d

F u

tu re

D ir

e ct

io n

s, ”

H u

m a

n

R e

so u

rc e

M a

n a

g e

m e

n t

R e

vi e

w , 2

0 0

0 , 1

0 , p

p . 3

5 3

– 3

8 2

.

099-67811_ch05_4P.indd 250 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 251

Impact on HR Outcomes A considerable amount of research has been conducted on the effectiveness of vari ous recruitment sources and can be used as a starting point for which sources are likely to be effective. Research has defined effectiveness as the impact of recruitment sources on increased employee satisfaction, job per for mance, diver- sity, and retention. Evidence suggests that, overall, referrals and job trials are likely to attract applicants who have a good understanding of the organ ization and its culture, and therefore they tend to result in employees who are more satisfied, more productive, and less likely to leave. Conversely, sources like employment agencies can produce employees who are less satisfied and productive. Any general conclu- sions regarding the effectiveness of recruitment sources should be tempered by the fact that the location of an organ ization, the compensation and benefits packages provided, the type of workers, and the typical applicant experience and education levels will moderate the efficacy of these practices.

TRANSITION TO SE LECTION

Once a job seeker has been identified and attracted to the organ ization, the organ- ization needs to prepare the person for the se lection pro cess. In preparation, appli- cants need to be made aware of the next steps in the hiring pro cess and what will be required of them. If the recruitment organ ization overlooks this transition step, it may lose qualified applicants who mistakenly think that delays between steps in the hiring pro cess indicate that the organ ization is no longer interested in them or who are fearful that they “ didn’t have what it takes” to successfully compete in the next steps.

The pro cess one sees in many college career placement offices demonstrates how recruitment and se lection are often tied together. Visiting corporations will often host information sessions and social events to advertise themselves to student job seekers. This is usually part of a strong branded- message campaign. In these sessions, job seekers are given information regarding what types of jobs are avail- able, along with previews of the pro cess of se lection and hiring. While providing job seekers an opportunity to assess their fit with potential careers with the organ- ization, many of these social events are structured so that recruiters can get a pre- liminary sense of what the job applicants are like. Preliminary se lection decisions can be made during informal recruitment dinners.

Campus recruiters also conduct preliminary interviews with candidates in the college career center. These interviews involve multiple information- exchange opportunities. At this point, recruiters often introduce some realistic job infor- mation into the discussion, describing what jobs are like and who candidates are likely to meet if they do an interview at the organ ization’s offices. This is another opportunity for the organ ization to explain to the recruits what the se lection pro cess consists of. Candidates who have a strong grasp of what pro cesses are used in

099-67811_ch05_4P.indd 251 11/17/17 12:37 PM

252 PART THREE Staffing Activities: Recruitment

se lection and how they fit together are likely to have a strong sense of trust in the organ ization.

To successfully prepare applicants for the transition to se lection, organ izations should consider reviewing the se lection method instructions with the applicants, describing the rationale behind components of the se lection method, and giving applicants opportunities to discuss the se lection method. These steps should be fol- lowed for all se lection methods in the hiring pro cess that are likely to be unfamiliar to applicants or uncomfortable for them.

LEGAL ISSUES

External recruitment practices are subject to considerable legal scrutiny and influ- ence. During recruitment there is ample room for the organ ization to exclude cer- tain applicant groups (e.g., minorities, women, and people with disabilities) as well as to deceive in its dealings with applicants. Vari ous laws and regulations seek to limit these exclusionary and deceptive practices.

Legal issues regarding several of the practices are discussed in this section. These include the definition of a job applicant, AAPs, electronic recruitment, job advertisements, and fraud and misrepre sen ta tion.

Definition of a Job Applicant

Both the Equal Employment Opportunity Commission (EEOC) and the Office of Federal Contract Compliance Programs (OFCCP) require the organ ization to keep applicant rec ords. Exactly what is a job applicant and what rec ords should be kept? It is necessary to provide guidance on the answer to this question in terms of both traditional hard- copy applicants and electronic applicants.

Hard- Copy Applicants The original (1979) definition of an applicant by the EEOC is in the Uniform Guidelines on Employee Se lection Procedures (UGESP). It reads as follows: “The precise definition of the term ‘applicant’ depends on the user’s recruitment and se lection procedures. The concept of an applicant is that of a person who has indi- cated an interest in being considered for hiring, promotion, or other employment opportunities. This interest may be expressed by completing an application form, or might be expressed orally, depending on the employer’s practice.”

This definition was created prior to the existence of the electronic job applica- tion. It remains in force for hard- copy applications. Because it is so open- ended, it is impor tant to develop and communicate (including to applicants) policies about what the organ ization considers a written applicant. Examples of such policies include requiring all applicants to file a written application, stating specific quali- fications required, stating that a separate application must be submitted for each

099-67811_ch05_4P.indd 252 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 253

opening, not accepting open- ended applications, returning unsolicited applica- tions, having a specific closing date for applications, and applying these policies to search firms and third- party vendors.73

Internet Applicants The OFCCP regulations (the Internet Applicant rule) provide a definition of an Internet applicant for federal contractors, as well as establish record- keeping requirements.74 The EEOC has not yet provided a definition of an Internet appli- cant, and although in 2004 a definition was being developed, the commission was not able to finalize it.75

According to the OFCCP, an individual must meet all four of the following cri- teria to be considered an Internet applicant:

• The individual submits an expression of interest in employment through the Internet or related electronic data technologies.

• The employer considers the individual for employment in a par tic u lar position. • The individual’s expression of interest indicates that the individual possesses

the basic qualifications for the position. • At no point in the employer’s se lection pro cess prior to receiving an offer of

employment from the employer does the individual remove himself or herself from further consideration or other wise indicate that he or she is no longer interested in the position.

“Internet or related electronic data technologies” includes e- mail, résumé databases, job banks, electronic scanning technology, applicant tracking system/ applicant ser vice providers, applicant screeners, and résumé submission by fax. Mobile and hand- held devices such as cell phones and smartphones are also likely included. “Basic qualifications for the position” are those established in advance and advertised to potential applicants. They must be non- comparative across appli- cants, objective (e.g., BS in biology), and relevant to per for mance in the specific position.

The employer must keep rec ords of the following:

• All expressions of interest submitted through the Internet and contacts made with the job applicant

• Internal résumé databases— including date of entry, the position for which each search was made, the date of the search, and the search criteria used

• External résumé databases— including the position for which each search was made, the date of the search, search criteria used, and the rec ords for each person who met the basic qualifications for the position

The OFCCP regulations also require the employer to make every reasonable effort to gather race/gender/ethnicity data from both traditional and Internet appli- cants. The preferred method for doing so is voluntary self- disclosure, such as

099-67811_ch05_4P.indd 253 11/17/17 12:37 PM

254 PART THREE Staffing Activities: Recruitment

through tear- off sheets on an application form, postcards, or short forms to request the information or as part of an initial telephone screen. Observation may also be used. A series of questions and answers related to the regulations provides addi- tional information and clarification.

Affirmative Action Programs

Both the EEOC and the OFCCP require that the organ ization undertake strong, positive recruitment and outreach activities as part of its AAP. Passive and infor- mal recruitment is not sufficient. Beyond this general requirement, both agencies provide suggested activities for meeting the recruitment obligation.

The EEOC pres ents a generic list of suggested best- practice recruitment ideas, shown in Exhibit 5.10. It applies to recruitment of persons in any protected class category.

Veterans and persons with disabilities are targeted separately in regulations for the OFCCP.76 Lists of recruitment actions that are consistent with the EEOC suggestions are provided. The lists include examples of many organ izations that should be targeted because of their special interest or expertise in recruiting vet- erans and persons with disabilities. One suggestion from the OFCCP, not found among the EEOC ideas, is to hold a formal briefing session on the organ ization’s premises with representatives from recruiting sources. The session should include “contractor fa cil i ty tours, clear and concise explanations of the current and future job openings, position descriptions, worker specifications (i.e., VSAOs), expla- nations of the com pany’s se lection pro cess, and recruiting lit er a ture.” Moreover, “formal arrangements should be made for the referral of applicants, follow up with sources, and feedback on the disposition of applicants.”

Fi nally, though not AAP focused, a special resource guide for employment of people with disabilities is available. Developed by several federal agencies, it con- tains a wealth of information and references on how to legally and proactively recruit, select, promote, and retain people with disabilities.77

Electronic Recruitment

Technology, particularly via websites and social media, has flooded the recruit- ment pro cess for both the organ ization and job applicants. Numerous legal issues may arise.

Access and Usage The use of electronic recruitment technology may potentially create artificial barriers to employment opportunities.78 In the case of websites, it is assumed that potential applicants have access to computers and the skills necessary to apply online. These may be poor assumptions, especially for some racial minorities and the eco nom ically disadvantaged. To guard against legal challenge and to ensure

099-67811_ch05_4P.indd 254 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 255

• Establish a policy for recruitment and hiring, including criteria, procedures, responsible individuals, and applicability of diversity and affirmative action.

• Engage in short-term and long-term strategic planning: —Identify the applicable barriers to equal employment opportunity;

—Delineate aims;

—Make a road map for implementing the plan.

• Ensure that there is a communication network notifying interested persons of opportunities, including advertising within the organization and, where applicable, not only with the general media but with minority, persons with disabilities, older persons, and women- focused media.

• Communicate the competencies, skills, and abilities required for available positions. • Communicate about family-friendly and work-friendly programs. • Where transportation is an issue, consider arrangements with the local transit authority. • Participate in career and job fairs and open houses. • Work with professional associations, civic associations, and educational institutions with

attractive numbers of minorities, women, persons with disabilities, and/or older persons to recruit.

• Use recruiter, referral, and search firms with instructions to present diverse candidate pools to expand search networks.

• Partner with organizations that have missions to serve targeted groups. • Use internships, work/study, co-op, and scholarship programs to attract interested persons

and to develop interested and qualified candidates.

• Develop and support educational programs and become more involved with educational institutions that can refer a more diverse talent pool.

• Ensure that personnel involved in the recruitment and hiring process are well trained in equal employment opportunity responsibilities.

• Explore community involvement options that will raise the company’s profile and thus may attract more interested persons.

• Eliminate practices that exclude or present barriers to minorities, women, persons with disabilities, older persons, or any individual.

• Include progress in equal employment opportunity recruitment and hiring as a factor in management evaluation.

EXHIBIT 5.10 Best-Practice Recruitment Ideas From the EEOC

Source: EEOC, “Best Practices of Private Sector Employees,” 2013 (www.eeoc.gov/eeoc/task_reports /best_practices.cfm).

099-67811_ch05_4P.indd 255 11/17/17 12:37 PM

256 PART THREE Staffing Activities: Recruitment

accessibility, the organ ization might do several things. One action is to supplement online recruitment with other widely used sources of recruitment, such as news- paper advertisements or other sources that orga nizational experience indicates are frequently used by women and minorities. Alternately, online recruitment and application could be restricted to certain jobs that have strong computer- related KSAO requirements. Applicants in all likelihood will have easy access to comput- ers and online recruitment, as well as the skills necessary to successfully navigate and complete the application.

Another issue is the use of recruitment software that conducts résumé searches within an applicant database using keyword search criteria. Staffing specialists or hiring man ag ers often specify the search criteria to use, and they could select non- job- related criteria that cause adverse impact against women, minorities, or people with disabilities. Examples of such criteria include preferences for gradua- tion from an elite college or university, age, and physical requirements. To guard against such a possibility, the organ ization should set only job- related KSAO requirements, restrict the search criteria to those KSAOs, and train recruiters in the appropriate specification and use of search criteria.

Social Media Social networking sites (e.g., LinkedIn, Facebook, Twitter), while widely used by applicants and organ izations, pres ent challenges. The lack- of- access and usage prob lems noted above are troublesome since research indicates that African Amer- icans and Latinos have lower social media usage rates than other groups. Reliance on some social media sites thus may lead to disproportionately screening out cer- tain protected groups from application to, or consideration by, the organ ization. Casting wider recruitment nets and using multiple recruitment sources and media are necessary to counteract such pos si ble adverse impact.

On top of that, the organ ization should ensure that its recruitment messages do not discourage applications based on EEO protected characteristics and, conversely, that the messages portray welcoming openness toward applicant diversity. In addi- tion, the organ ization should make sure that its recruitment information is accurate and does not make any false promises about job offer content or future business and employment opportunities (see “Fraud and Misrepre sen ta tion” below).79

People With Disabilities The OFCCP provides specific regulations for people with disabilities.80 If the employer routinely offers applicants vari ous methods (including online) of apply- ing for a job and all are treated equally, that may be sufficient for compliance purposes. If an online application system is the only method used, however, it must be made accessible to all. Examples here include making the organ ization’s website compatible with screen readers and using assistive technology and adap- tive software.

099-67811_ch05_4P.indd 256 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 257

The regulations also indicate that the employer is obligated to provide reason- able accommodation to the applicant, if requested. Examples include the following:

• Making job vacancy application information available in Braille and respond- ing to job inquiries via telecommunications devices for the deaf (TDDs) or telephone relay systems

• Providing readers, interpreters, or similar assistance during the application pro cess

• Extending the time limit for completing an online examination • Making testing locations fully accessible to those with mobility impairments

Job Advertisements

Job advertising that indicates preferences or limitations for applicants based on legally protected characteristics is generally prohibited (see Chapter 2). Questions continually arise as to exceptions or less blatant forms of advertising, as the follow- ing examples indicate.81

Title VII permits indicating preferences based on sex, religion, or national origin (but not race or color) if they are bona fide occupational qualifications (BFOQs). The organ ization should be sure about the legality and validity of any BFOQ claims before conducting such advertising. Use of gender- specific job titles such as “wait- ress” or “repairman,” however, generally should be avoided.

Using the phrase “ women and minorities are encouraged to apply” in a job advertisement is OK because it is an inclusive effort to generate the largest pool of qualified applicants. An indication that the organ ization is “seeking” a par tic u lar type of applicant (e.g., stay- at- home moms), however, is not permitted, because it connotes a preference for a par tic u lar group rather than an encouragement to apply.

Regarding age preferences, advertisements cannot limit or deter potential older applicants from seeking a position. One example is the term “recent gradu ate,” which could signal a younger age preference and hence should not be used. Another example is “digital native,” which could imply a desire for someone under 40 and therefore also should not be used. It is permissible, however, to show a preference for older workers, using phrases such as “over age 60,” “retirees,” or “supplement your pension.”

These examples show that the line between permissible and prohibited ad con- tent is quite murky. The organ ization thus should monitor the construction and content of all its job advertisements.

Fraud and Misrepre sen ta tion

Puffery, promises, half- truths, and even outright lies are all encountered in recruit- ment under the guise of selling the applicant on the job and the organ ization. Too much of this type of selling can be legally dangerous. When it occurs, under

099-67811_ch05_4P.indd 257 11/17/17 12:37 PM

258 PART THREE Staffing Activities: Recruitment

workplace tort law, applicants may file suit claiming fraud or misrepre sen ta tion.82 Claims may cite false statements of existing facts (e.g., the nature and profitabil- ity of the employer’s business) or false promises of future events (e.g., promises about terms and conditions of employment, pay, promotion opportunities, and geo- graphic location). It does not matter if the false statements were made intentionally (fraud) or negligently (misrepre sen ta tion). Both types of statements are a reason- able basis for a claim by an applicant or newly hired employee.

To be successful in such a suit, the plaintiff must demonstrate that

1. A misrepre sen ta tion of a material fact occurred 2. The employer knew, or should have known, about the misrepre sen ta tion 3. The plaintiff relied on the information to make a decision or take action 4. The plaintiff was injured because of reliance placed on the statements made

by the employer

Though these four requirements may appear to be a stiff set of hurdles for the plain- tiff, they are by no means insurmountable, as many successful plaintiffs can attest. Avoidance of fraud and misrepre sen ta tion claims in recruitment requires straight- forward action by the organ ization and its recruiters. First, provide applicants with the job description and specific, truthful information about the job rewards. Sec- ond, be truthful about the nature of the business and its profitability. Third, avoid specific promises about future events regarding terms and conditions of employ- ment or business plans and profitability. Fi nally, make sure that all recruiters fol- low these suggestions when they recruit job applicants.

SUMMARY

The objective of the external recruitment pro cess is to identify and attract quali- fied applicants to the organ ization. To meet this objective, the organ ization must conduct strategic recruitment planning. The single most impor tant issue at this stage is developing a strong link between orga nizational strategy and the goals of the recruitment pro cess. The organ ization will also choose whether to implement an open strategy or a targeted strategy. At this stage, attention must also be given to both orga nizational issues (e.g., centralized versus decentralized recruitment func- tion) and administrative issues (e.g., size of the bud get).

The next stage is to develop a message for the job applicants and to select a medium to convey that message. The message may be branded, targeted, or real- istic. There is no one best message; it depends on the characteristics of the labor market, the job, and the applicants. The message can be communicated through several dif fer ent media, each of which has strengths and weaknesses.

099-67811_ch05_4P.indd 258 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 259

Applicants are influenced by characteristics of recruiters and the recruitment pro cess. Through proper attention to these characteristics, the organ ization can help provide applicants with a favorable recruitment experience.

Choices the organ ization makes about which sources to use follow from the pre- vious stages. The strategy implementation pro cess involves comparing individual, social, and orga nizational sources and evaluating their effectiveness through a vari- ety of recruitment metrics. After a sufficient number of individuals have applied, the organ ization begins the pro cess of transition to se lection. Recruitment prac- tices and decisions come under intense legal scrutiny because of their potential for discrimination at the beginning of the staffing pro cess. The legal definition of a job applicant creates record- keeping requirements for the organ ization that, in turn, have major implications for the design of the entire recruitment pro cess. Affirmative Action Programs Regulations likewise affect the entire recruitment pro cess, prod- ding the organ ization to set targeted placement goals for women and minorities and to be aggressive in recruitment outreach actions. Job advertisements may not con- tain applicant preferences regarding protected characteristics such as age and gen- der. Fi nally, recruitment communication with applicants must be careful to avoid false statements or promises, lest prob lems of fraud and misrepre sen ta tion arise.

DISCUSSION QUESTIONS

1. List and briefly describe each of the administrative issues that needs to be addressed in the planning stage of external recruitment.

2. List 10 sources of applicants that organ izations turn to when recruiting. For each source, identify needs specific to the source, as well as pros and cons of using the source for recruitment.

3. In designing the communication message to be used in external recruitment, what kinds of information should be included?

4. What are the advantages of conveying a realistic recruitment message as opposed to portraying the job in a way that the organ ization thinks that job applicants want to hear?

5. What strategies are organ izations using to ensure that they attract women and underrepresented racioethnic groups?

ETHICAL ISSUES

1. Many organ izations have adopted a targeted recruitment strategy. For exam- ple, some organ izations target workers 50 years of age and older in their recruitment efforts, which includes advertising specifically in media outlets

099-67811_ch05_4P.indd 259 11/17/17 12:37 PM

260 PART THREE Staffing Activities: Recruitment

frequented by older individuals. Other organ izations target recruitment mes- sages at women, minorities, or those with the desired skills. Do you think targeted recruitment systems are fair? Why or why not?

2. Most organ izations have job boards on their web page where applicants can apply for jobs online. What ethical obligations, if any, do organ izations have to individuals who apply for jobs online?

APPLICATIONS

Improving a College Recruitment Program

The White Feather Corporation (WFC) is a rapidly growing consumer products organ ization that specializes in the production and sales of specialty house hold items such as lawn furniture cleaners, spa (hot tub) accessories, mosquito and tick repellents, and stain- resistant garage floor paints. The organ ization has 400 exempt employees and 3,000 nonexempt employees, almost all of whom are full time. In addition to its corporate office in Clucksville, Arkansas, the organ ization has five plants and two distribution centers at vari ous rural locations throughout the state.

Two years ago WFC created a corporate HR department to provide centralized direction and control for its key HR functions— planning, compensation, training, and staffing. In turn, the staffing function is headed by the se nior man ag er of staffing, who receives direct reports from three man ag ers: the man ag er of nonex- empt employment, the man ag er of exempt employment, and the man ag er of EEO/ AA. Marianne Collins, the man ag er of exempt employment, has been with WFC for 10 years and has grown with the organ ization through a series of sales and sales management positions. She was chosen for her current position as a result of WFC’s commitment to promotion from within, as well as her broad familiarity with the organ ization’s products and customers. When Marianne was appointed, her key area of accountability was defined as college recruitment, with 50% of her time to be devoted to it.

In her first year, Marianne developed and implemented WFC’s first- ever formal college recruitment program. Working with the HR planning person, WFC set a goal of 40 college gradu ate new hires by the end of the year. They were to be placed in the production, distribution, and marketing functions; specific job titles and descriptions were to be developed during the year. Armed with this forecast, Marianne began the pro cess of recruitment planning and strategy development.

The result of Marianne’s work was the following recruitment pro cess. Recruit- ment was to be conducted at 12 public and private schools throughout the state. Marianne contacted the placement office at each school and set up a one- day recruitment visit. All visits were scheduled during the first week in May. The place- ment office at each school set up 30- minute interviews (16 at each school) and made sure that applicants completed and had on file a standard application form.

099-67811_ch05_4P.indd 260 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 261

To visit the schools and conduct the interviews, Marianne selected three young, up- and- coming man ag ers (one each from production, distribution, and marketing) to be the recruiters. Each man ag er was assigned to four of the schools. Since none of the man ag ers had any recruitment experience, Marianne conducted a recruit- ment briefing for them. During that briefing she reviewed the overall recruitment (hiring) goal, provided a brief rundown on each of the schools, and explained the specific tasks the recruiters were to perform. Those tasks were to pick up the appli- cation materials of the interviewees at the placement office prior to the interviews, review the materials, conduct the interviews in a timely manner (the man ag ers were told they could ask any questions they wanted to that pertained to qualifi- cations for the job), and at the end of the day complete an evaluation form on each applicant. The form asked for a 1–7 rating of overall qualifications for the job, written comments about strengths and weaknesses, and a recommendation of whether to invite the person for a second interview in Clucksville. These forms were to be returned to Marianne, who would review them and decide which appli- cants to invite for a second interview.

After the campus interviews were conducted, prob lems began to surface. Place- ment officials at some of the schools contacted Marianne and lodged several com- plaints. Among those complaints were that (1) one of the man ag ers failed to pick up the application materials of the interviewees, (2) none of the man ag ers were able to provide much information about the jobs they were recruiting for, espe- cially jobs outside their own functional area, (3) the interviewers got off schedule early on, so some applicants were kept waiting and others had shortened inter- views as the man ag ers tried to make up time, (4) none of the man ag ers had any written information describing the organ ization and its locations, (5) one of the man ag ers asked female applicants very personal questions about marriage plans, use of drugs and alcohol, and willingness to travel with male coworkers, (6) one of the man ag ers talked incessantly during the interviews, leaving the interviewees little opportunity to pres ent themselves and their qualifications, and (7) none of the man ag ers were able to tell interviewees when they might be contacted regard- ing a second interview. In addition to these complaints, Marianne had difficulty getting the man ag ers to complete and turn in their evaluation forms (they claimed they were too busy, especially after being away from the job for a week). From the reports she did receive, Marianne extended invitations to 55 of the applicants for a second interview. Of these, 30 accepted the invitation. Ultimately, 25 people were given job offers, and 15 accepted.

To put it mildly, the first- ever college recruitment program was a disaster for WFC and Marianne. In addition to her embarrassment, Marianne was asked to meet with her boss and the president of WFC to explain what went wrong and to receive “guidance” from them as to their expectations for next year’s recruit- ment program. Marianne subsequently learned that she would receive no merit pay increase for the year and that the three man ag ers all received above- average merit increases.

099-67811_ch05_4P.indd 261 11/17/17 12:37 PM

262 PART THREE Staffing Activities: Recruitment

To turn things around for the second year of college recruitment, Marianne real- ized that she needed to engage in a thorough pro cess of recruitment planning and strategy development. As she began this undertaking, her analy sis of past events led her to conclude that one of her key mistakes was to naïvely assume that the three man ag ers would actually be good recruiters and were motivated to do the job effectively. This time around, Marianne deci ded to use 12 man ag ers as recruit- ers, assigning one to each of the 12 campuses. She also deci ded that more than a recruitment briefing was needed. She determined that an intensive, one- day train- ing program must be developed and given to the man ag ers prior to the beginning of the recruitment season.

You work in HR at another organ ization in Clucksville and are a professional acquaintance of Marianne’s. Knowing that you have experience in both college recruitment and training, Marianne calls you for some advice. She asks you if you would be willing to meet and discuss the following questions:

1. What topics should be covered in the training program? 2. What materials and training aids will be needed for the program? 3. What skills should the trainees actually practice during the training? 4. Who should conduct the training? 5. What other changes might have to be made to ensure that the training has a

strong impact on the man ag ers and that during the recruitment pro cess they are motivated to use what they learned in training?

Internet Recruitment

Selma Williams is a recruiter for Mervin/McCall- Hall (MMH), a large publisher of educational textbooks (K–12 and college). Fresh out of college, Selma has received her first big assignment at MMH, and it is a tough one— develop an Internet recruit- ment strategy for the entire organ ization. Previously, MMH had relied on the tra- ditional recruitment methods— college recruitment, word of mouth, newspaper advertisements, and search firms. As more and more of MMH’s textbook business is connected to the web, however, it became clear to Selma’s boss, Jon Beerfly, that MMH needs to consider upgrading its recruitment pro cess. Accordingly, after Selma had acclimated herself to MMH and had worked on a few smaller recruit- ment proj ects (including doing a fair amount of recruitment at college campuses in the past three months), Jon described her new assignment to her, concluding, “Selma, I really don’t know much about this. I’m going to leave it to you to come up with a set of recommendations about what we ought to be doing. We just had a new intern come into the office for a stint in HR, and I’m going to assign this person to you to help on this proj ect.” Assume that you are the intern.

At your first meeting, you and Selma discuss many dif fer ent issues and agree that regardless of what ever else is done, MMH must have a recruitment area on the

099-67811_ch05_4P.indd 262 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 263

corporate website. After further discussion, Selma gives you several assignments toward this objective:

1. Look at three to five corporate websites that have a recruitment area and note their major features, strengths, and weaknesses.

2. Interview three to five students who have used the recruitment area on a corporate website and ask them what they most liked and disliked about it.

3. Prepare a brief report that (1) summarizes your findings from assignments #1 and #2 and (2) recommends the design features that you and Selma will develop for inclusion in the MMH website.

ENDNOTES

1. G. Dessler, A Framework for Human Resource Management, 7th ed. (Upper Saddle River, NJ: Pearson, 2013); E. Page, “Linking Business Strategy to Recruiting Strategy,” Journal of Corporate Recruiting Leadership, 2010, 5(4), pp. 3–6; J. Sullivan, “The 20 Princi ples of Strategic Recruiting,” ERE, July 7, 2008 (www . ere . net / 2008 / 07 / 07 / the - 20 - principles - of - strategic - recruiting).

2 . D. H. Freedman, “The Monster Dilemma,” Inc., May 2007, pp. 77–78; J. Barthold, “Waiting in the Wings,” HR Magazine, Apr. 2004, pp. 89–95; A. M. Chaker, “Luring Moms Back to Work,” New York Times, Dec. 30, 2003, pp. D1– D2.

3. L. Ryan, “10 Ways to Fix Broken Corporate Recruiting Systems,” BusinessWeek, June 13, 2011, p. 3.

4. B. L. Rau and M. M. Hyland, “Role Conflict and Flexible Work Arrangements: The Effects on Applicant Attraction,” Personnel Psy chol ogy, 2002, 55, pp. 111–136.

5. F. Hansen, “Recruiting the Closer: Dealing With a Deal Maker,” Workforce Management Online, Oct. 2007 (www . workforce . com).

6 . R. J. Grossman, “How to Recruit a Recruitment Outsourcer,” HR Magazine, July 1, 2012 (www . shrm . org); R. J. Grossman, “Alternatives to Recruitment Pro cess Outsourcing,” HR Magazine, July 1, 2012 (www . shrm . org).

7 . M. N. Martinez, “Recruiting Here and There,” HR Magazine, Sept. 2002, pp. 95–100. 8. P. O. Ángel and L. S. Sánchez, “R&D Man ag ers’ Adaptation of Firms’ HRM Practices,” R&D

Management, 2009, 39, pp. 271–290. 9. “Cutting Corners to the Best Candidates,” Weddle’s, Oct. 5, 2004 (www . weddles . com). 10 . J. Whitman, “The Four A’s of Recruiting Help Enhance Search for Right Talent,” Workforce

Management Online, Nov. 2009 (www . workforce . com). 11 . D. Dahl, “Recruiting: Tapping the Talent Pool . . . Without Drowning in Résumés,” Inc.,

Apr. 2009, pp. 121–122; M. Ferguson, “Recruiting by Numbers,” Workforce, Aug. 2015 (www . workforce . com).

12 . B. W. Swider, R. D. Zimmerman, and M. R. Barrick, “Searching for the Right Fit: Development of Applicant Person- Organization Fit Perceptions During the Recruitment Pro cess,” Journal of Applied Psy chol ogy, 2015, 100, pp. 880–893; G. Beenen and S. Pichler, “Do I Really Want to Work Here? Testing a Model of Job Pursuit for MBA Interns,” Human Resource Management, 2014, 53, pp. 661–682.

13. D. S. Chapman, K. L. Uggerslev, S. A. Carroll, K. A. Piasentin, and D. A. Jones, “Applicant Attraction to Organ izations and Job Choice: A Meta- Analytic Review of the Correlates of Recruiting Outcomes,” Journal of Applied Psy chol ogy, 2005, 90, pp. 928–944; K. L. Uggerslev,

099-67811_ch05_4P.indd 263 11/17/17 12:37 PM

264 PART THREE Staffing Activities: Recruitment

N. E. Fassina, and D. Kraichy, “Recruiting Through the Stages: A Meta- Analytic Test of Predic- tors of Applicant Attraction at Dif fer ent Stages of the Recruiting Pro cess,” Personnel Psy chol- ogy, 2012, 65, pp. 597–660; Anonymous, “Recruiting Today: In a Tight Marketplace, the Lures Come Out,” Financial Planning, Aug. 2013, pp. 14–16.

14. Uggerslev, Fassina, and Kraichy, “Recruiting Through the Stages: A Meta- Analytic Test of Pre- dictors of Applicant Attraction at Dif fer ent Stages of the Recruiting Pro cess.”

15. D. Catanzaro, H. Moore, and T. R. Marshall, “The Impact of Orga nizational Culture on Attrac- tion and Recruitment of Job Applicants,” Journal of Business and Psy chol ogy, 2010, 25, pp. 649–662; J. E. Slaughter and G. J. Greguras, “Initial Attraction to Organ izations: The Influ- ence of Trait Inferences,” International Journal of Se lection and Assessment, 2009, 17, pp. 1–18.

16. M. L. Connerley, “Recruiter Effects and Recruitment Outcomes,” in D. M. Cable and K. Y. T. Yu (eds.), The Oxford Handbook of Recruitment (New York: Oxford University Press, 2013), pp. 21–34; A. M. Saks and K. L. Uggerslev, “Sequential and Combined Effects of Recruit- ment Information on Applicant Reactions,” Journal of Business and Psy chol ogy, 2010, 25, pp. 351–365.

17. S. A. Carless and A. Imber, “The Influence of Perceived Interviewer and Job and Orga nizational Characteristics on Applicant Attraction and Job Choice Intentions: The Role of Applicant Anxiety,” International Journal of Se lection and Assessment, 2007, 15, pp. 359–371; K. Dunn, “Blame the User, Not the Technology,” Workforce, Aug. 2016 (www . workforce . com).

18 . C. Patton, “Recruiter Attack,” Human Resource Executive, Nov. 2000, pp. 106–109; E. Zimmer- man, “Fight Dirty Hiring Tactics,” Workforce, May 2001, pp. 30–34.

19. A. C. Klotz, S. P. Motta Veiga, M. R. Buckley, and M. B. Gavin, “The Role of Trustworthi- ness in Recruitment and Se lection: A Review and Guide for Future Research,” Journal of Orga- nizational Be hav ior, 2013, 34(S1), S104– S119; Chapman, Uggerslev, Carroll, Piasentin, and Jones, “Applicant Attraction to Organ izations and Job Choice: A Meta- Analytic Review of the Correlates of Recruiting Outcomes”; W. R. Boswell, M. V. Roehling, M. A. LePine, and L. M. Moynihan, “Individual Job- Choice Decisions and the Impact of Job Attributes and Recruitment Practices: A Longitudinal Field Study,” Human Resource Management, 2003, 42, pp. 23–37; A. M. Ryan, J. M. Sacco, L. A. McFarland, and S. D. Kriska, “Applicant Self- Selection: Corre- lates of Withdrawal From a Multiple Hurdle Pro cess,” Journal of Applied Psy chol ogy, 2000, 85, pp. 163–179.

20. B. R. Dineen, S. R. Ash, and R. A. Noe, “A Web of Applicant Attraction: Person- Organization Fit in the Context of Web- Based Recruitment,” Journal of Applied Psy chol ogy, 2002, 87, pp. 723–734; D. C. Feldman and B. S. Klaas, “Internet Job Hunting: A Field Study of Applicant Expe- riences With On- Line Recruiting,” Human Resource Management, 2002, 41, pp. 175–192; K. Maher, “The Jungle,” Wall Street Journal, July 18, 2002, p. B10; D. L. Van Rooy, A. Alonso, and Z. Fairchild, “In With the New, Out With the Old: Has the Technological Revolution Elimi- nated the Traditional Job Search Pro cess?” International Journal of Se lection and Assessment, 2003, 11, pp. 170–174.

21. D. R. Avery, “Reactions to Diversity in Recruitment Advertising: Are the Differences Black and White?” Journal of Applied Psy chol ogy, 2003, 88, pp. 672–679; D. R. Avery and P. F. McKay, “Target Practice: An Orga nizational Impression Management Approach to Attracting Minority and Female Job Applicants,” Personnel Psy chol ogy, 2006, 59, pp. 157–187.

22. P. F. McKay and D. R. Avery, “What Has Race Got to Do With It? Unraveling the Role of Racio- ethnicity in Job Seekers’ Reactions to Site Visits,” Personnel Psy chol ogy, 2006, 59, pp. 395–429; Avery, “Reactions to Diversity in Recruitment Advertising: Are the Differences Black and White?”; Avery and McKay, “Target Practice: An Orga nizational Impression Management Approach to Attracting Minority and Female Job Applicants.”

099-67811_ch05_4P.indd 264 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 265

23. F. Lievens and J. E. Slaughter, “Employer Image and Employer Branding: What We Know and What We Need to Know,” Annual Review of Orga nizational Psy chol ogy and Orga nizational Be hav ior, 2016, 3, pp. 407–440; C. J. Collins, “The Interactive Effects of Recruitment Prac- tices and Product Awareness on Job Seekers’ Employer Knowledge and Application Be hav iors,” Journal of Applied Psy chol ogy, 2007, 92, pp. 180–190; C. J. Collins and C. K. Stevens, “The Relationship Between Early Recruitment- Related Activities and the Application Decisions of New Labor- Market Entrants: A Brand Equity Approach to Recruitment,” Journal of Applied Psy- chol ogy, 2002, 87, pp. 1121–1133; P. J. Kiger, “Talent Acquisition Special Report: Burnishing the Brand,” Workforce Management, Oct. 22, 2007, pp. 39–45.

24. S. High house, M. E. Brooks, and G. Greguras, “An Orga nizational Impression Management Perspective on the Formation of Corporate Reputations,” Journal of Management, 2009, 35, pp. 1481–1493; A. P. Petkova, V. P. Rindova, and A. K. Gupta, “How Can New Ventures Build Reputation? An Exploratory Study,” Corporate Reputation Review, 2008, 11, pp. 320–334; D. Jones, C. Willness, and S. Madey, “Why Are Job Seekers Attracted by Corporate Social Per for- mance? Experimental and Field Tests of Three Signal Based Mechanisms,” Acad emy of Manage- ment Journal, 2014, 57, pp. 383–404.

25. Collins and Stevens, “The Relationship Between Early Recruitment- Related Activities and the Application Decisions of New Labor- Market Entrants: A Brand Equity Approach to Recruit- ment”; F. Lievens and S. High house, “The Relation of Instrumental and Symbolic Attributes to a Com pany’s Attractiveness as an Employer,” Personnel Psy chol ogy, 2003, 56, pp. 75–102.

26. S. D. Volpone, K. M. Thomas, P. Sinisterra, and L. Johnson, “Targeted Recruiting: Identifying Future Employees,” in Cable and Yu (eds.), The Oxford Handbook of Recruitment, pp. 110–125; R. Sheth, “Recruit Talent Using a Marketing Mindset,” T+D, 2014, 68(5), pp. 76–77; E. Dhawan, “Recruiting Strategies for a Tight Talent Market,” Harvard Business Review, Apr. 2016 (www . hbr . org).

27 . S. M. Gully, J. M. Phillips, W. G. Castellano, K. Han, and A. Kim, “A Mediated Moderation Model of Recruiting Socially and Environmentally Responsible Job Applicants,” Personnel Psy- chol ogy, 2013, 66, pp. 935–973.

28. W. J. Casper, J. H. Wayne, and J. G. Manegold, “Who Will We Recruit? Targeting Deep- and Surface- Level Diversity With Human Resource Policy Advertising,” Human Resource Manage- ment, 2013, 52, pp. 331–332.

29. J. E. Baur, M. R. Buckley, Z. Bagdasarov, and A. S. Dharmasiri, “A Historical Approach to Real- istic Job Previews: An Exploration Into Their Origins, Evolution, and Recommendations for the Future,” Journal of Management History, 2014, 20, pp. 200–223; R. S. Landis, D. R. Earnest, and D. G. Allen, “Realistic Job Previews: Past, Pres ent, and Future,” in Cable and Yu (eds.), The Oxford Handbook of Recruitment, pp. 423–436; G. Kranz, “New Employees: ‘We Were Jobbed About This Job,’ ” Workforce Management, Feb. 2013 (www . workforce . com).

30 . D. R. Earnest, D. G. Allen, and R. S. Landis, “Mechanisms Linking Realistic Job Previews With Turnover: A Meta- Analytic Path Analy sis,” Personnel Psy chol ogy, 2011, 64, pp. 865–897.

31. R. D. Bretz, Jr., and T. A. Judge, “Realistic Job Previews: A Test of the Adverse Self- Selection Hypothesis,” Journal of Applied Psy chol ogy, 1998, 83, pp. 330–337.

32. J. M. Phillips, “Effects of Realistic Job Previews on Multiple Orga nizational Outcomes: A Meta- Analysis,” Acad emy of Management Journal, 1998, 41, pp. 673–690.

33. R. J. Vandenberg and V. Scarpello, “The Matching Model: An Examination of the Pro cesses Under lying Realistic Job Previews,” Journal of Applied Psy chol ogy, 1990, 75(1), pp. 60–67.

34. H. J. Walker, H. S. Feild, W. F. Giles, and J. B. Bernerth, “The Interactive Effects of Job Adver- tisement Characteristics and Applicant Experience on Reactions to Recruitment Messages,” Journal of Occupational and Orga nizational Psy chol ogy, 2008, 81, pp. 619–638.

099-67811_ch05_4P.indd 265 11/17/17 12:37 PM

266 PART THREE Staffing Activities: Recruitment

35. W. R. Boswell, R. D. Zimmerman, and B. W. Swider, “Employee Job Search: Toward an Understanding of Search Context and Search Objectives,” Journal of Management, 2012, 38, pp. 129–163.

36. Cable and Yu, “Managing Job Seekers’ Orga nizational Image Beliefs: The Role of Media Rich- ness and Media Capability.”

37. R. D. Gatewood, M. A. Gowen, and G. Lautenschlager, “Corporate Image, Recruitment Image, and Initial Job Choice Decisions,” Acad emy of Management Journal, 1993, 36(2), pp. 414–427.

38. G. Ruiz, “Print Ads See Resurgence as Hiring Source,” Workforce Management, Mar. 26, 2007, pp. 16–17.

39. J. Pont, “Online, In- house,” Workforce Management, May 2005, pp. 49–51; S. Cromheeke, G. Van Hoye, and F. Lievens, “Changing Things Up in Recruitment: Effects of a ‘Strange’ Recruitment Medium on Applicant Pool Quantity and Quality,” Journal of Occupational and Orga nizational Psy chol ogy, 2013, 86, pp. 410–416.

40. G. Ruiz, “Studies Examine the Online Job Hunting Experience,” Workforce Management Online, July 2006 (www . workforce . com); D. G. Allen, R. V. Mahto, and R. F. Otondo, “Web- Based Recruitment: Effects of Information, Orga nizational Brand, and Attitudes Toward a Web Site on Applicant Attraction,” Journal of Applied Psy chol ogy, 2007, 92, pp. 1696–1708; P. W. Braddy, A. W. Meade, J. J. Michael, and J. W. Fleenor, “Internet Recruiting: Effects of Website Con- tent on Viewers’ Perception of Orga nizational Culture,” International Journal of Se lection and Assessment, 2009, 17, pp. 19–34; B. R. Dineen and R. A. Noe, “Effects of Customization on Application Decisions and Applicant Pool Characteristics in a Web- Based Recruitment Context,” Journal of Applied Psy chol ogy, 2009, 94, pp. 224–234.

41. M. Wisniewski, “In Battle for IT Talent, Banks Deploy High- Tech Recruiting Tactics,” American Banker, Aug. 1, 2013, p. 8.

42. E. Baker and J. Demps, “Videoconferencing as a Tool for Recruiting and Interviewing,” Journal of Business and Economics Research, 2009, 7(10), pp. 9–14.

43. G. van Hoye and F. Lievens, “Social Influences on Orga nizational Attractiveness: Investigat- ing If and When Word of Mouth Matters,” Journal of Applied Social Psy chol ogy, 2007, 37, pp. 2024–2047; G. van Hoye, “Nursing Recruitment: Relationship Between Perceived Employer Image and Nursing Employees’ Recommendations,” Journal of Advanced Nursing, 2008, 63, pp. 366–375; H. J. Walker, H. S. Feild, W. F. Giles, A. A. Armenakis, and J. B. Bernerth, “Dis- playing Employee Testimonials on Recruitment Websites: Effects of Communication Media, Employee Race, and Job Seeker Race on Orga nizational Attraction and Information Credibility,” Journal of Applied Psy chol ogy, 2009, 94, pp. 1354–1364.

44. L. A. McFarland and R. E. Ployhart, “Social Media: A Contextual Framework to Guide Research and Practice,” Journal of Applied Psy chol ogy, 2015, 100, pp. 1653–1677; A. M. Sivertzen, E. R. Nilsen, and A. H. Olafsen, “Employer Branding: Employer Attractiveness and the Use of Social Media,” Journal of Product Brand Management, 2013, 22, pp. 473–483; C. Kohli, R. Suri, and A. Kapoor, “ Will Social Media Kill Branding?” Business Horizons, 2015, 58, pp. 35–44.

45. R. T. Cober, D. J. Brown, P. E. Levy, and J. H. Shalhoop, HR Professionals’ Attitudes Toward and Use of the Internet for Employee Recruitment, Executive Report, University of Akron and Society for Human Resource Management Foundation, 2003.

46. Ruiz, “Studies Examine the Online Job Hunting Experience”; D. S. Onley, “Improving Your Online Application Process,” HR Magazine, Oct. 2005 (www.shrm.org).

47. Freedman, “The Monster Dilemma”; R. Zeidner, “Companies Tell Their Stories in Recruitment Videos,” HR Magazine, Dec. 2007, p. 28; J. Borzo, “Taking On the Recruiting Monster,” Fortune Small Business, May 2007, p. 89; E. Frauenheim, “Logging Off Job Boards,” Workforce Man- agement, June 2009, pp. 25–29.

099-67811_ch05_4P.indd 266 11/17/17 12:37 PM

CHAPTER FIVE External Recruitment 267

48. D. M. Cable and K. Y. T. Yu, “Managing Job Seekers’ Orga nizational Image Beliefs: The Role of Media Richness and Media Credibility,” Journal of Applied Psy chol ogy, 2006, 91, pp. 828–840.

49. G. Ruiz, “Newspapers, Job Boards Step Up Partnerships,” Workforce Management, Dec. 11, 2006, pp. 17–18.

50. P. Babcock, “Narrowing the Pool: Employers Ponder Worth of Niche Job Sites, and Many Take the Plunge,” SHRM Online HR Technology Focus Area, May 2007 (www . shrm . org) .

51 . Avery and McKay, “Target Practice: An Orga nizational Impression Management Approach to Attracting Minority and Female Job Applicants.”

52. I. Weller, B. C. Holtom, W. Matiaske, and T. Mellewigt, “Level and Time Effects of Recruitment Sources on Voluntary Employee Turnover,” Journal of Applied Psy chol ogy, 2009, 94, pp. 1146–1162; S. Overman, “Use the Best to Find the Rest,” Staffing Management Magazine, June 2008 (www . shrm . org).

53 . J. R. Pieper, “Uncovering the Nuances of Referral Hiring: How Referrer Characteristics Affect Referral Hires’ Per for mance and Likelihood of Voluntary Turnover,” Personnel Psy chol ogy, 2015, 68, pp. 811–858.

54. P. Weaver, “Tap Ex- Employees’ Recruitment Potential,” HR Magazine, July 2006, pp. 89–91. 55. T. Cote and T. Armstrong, “Why Tweeting Has Become an Ad Agency’s Main Job- Posting Strat-

egy,” Workforce Management Online, May 2009 (www . workforce . com); F. Hansen, “Using Social Networking to Fill the Talent Acquisition Pipeline,” Workforce Management Online, Dec. 2006 (www . workforce . com); E. Frauenheim, “Com pany Profile: Recruiters Get LinkedIn in Search of Job Candidates,” Workforce Management Online, Nov. 2006 (www . workforce . com).

56 . S. F. Gale, “In E- Recruiting, There’s a New Recruit in Town,” Workforce Management, Aug. 2013, p. 8.

57. B. Busch, “Professional Employer Organ izations, Social Media, and the Workplace,” Business People, Aug. 2013, p. 72.

58. S. Greengard, “Recruit Like a Marketer,” Workforce, July 2016 (www . workforce . com). 59 . Cable and Yu, “Managing Job Seekers’ Orga nizational Image Beliefs: The Role of Media Rich-

ness and Media Credibility.” 60. S. Overman, “Do Your Hiring Homework,” Staffing Management Magazine, Jan. 1, 2009 (www

. workforce . com / topics / staffing - management / ). 61 . J. Flato, “Key Success Factors for Managing Your Campus Recruiting Program: The Good Times

and Bad,” in N. C. Burkholder, P. J. Edwards, Sr., and L. Sartain (eds.), On Staffing: Advice and Perspectives From HR Leaders (Hoboken, NJ: Wiley, 2004), pp. 219–229; J. Floren, “Construct- ing a Campus Recruiting Network,” EMT, Spring 2004, pp. 29–31; C. Joinson, “Red Hot College Recruiting,” Employment Management Today, Oct. 4, 2002 (www . shrm . org / emt); J. Mullich, “College Recruitment Goes for Niches,” Workforce Management, Feb. 2004 (www . workforce . com).

62 . B. Perkins, “Jousting for Jobs,” Computerworld, Aug. 12, 2013, p. 40. 63. D. L. McLain, “Headhunters Edge Toward Consulting,” Wall Street Journal, May 5, 2002,

pp. B4– B18; S. J. Wells, “Slow Times for Executive Recruiting,” HR Magazine, Apr. 2003, pp. 61–68.

64. L. Gomes, “Executive Recruiters Face Built- In Conflict Evaluating Insiders,” Wall Street Jour- nal, Oct. 14, 2002, p. B1.

65. D. Cadrain, “Admit One,” Staffing Management Magazine, July 2009 (www . shrm . org). 66 . R. J. Grossman, “Made From Scratch,” HR Magazine, Apr. 2002, pp. 44–52. 67. L. Q. Doherty and E. N. Sims, “Quick, Easy Recruitment Help— From a State?” Workforce,

May 1998, pp. 35–42.

099-67811_ch05_4P.indd 267 11/17/17 12:37 PM

268 PART THREE Staffing Activities: Recruitment

68. D. Aberman, “Smaller, Specialized Recruiting Events Pay Off in Big Ways,” EMA Today, Winter 1996, pp. 8–10; D. M. Cable and T. A. Judge, “Role of Orga nizational Information Sessions in Applicant Job Search and Choice Pro cesses,” Paper presented at the Human Resources Division of the Acad emy of Management National Meeting, Boston; Cable and Yu, “Managing Job Seek- ers’ Orga nizational Image Beliefs: The Role of Media Richness and Media Credibility.”

69. S. Armour, “Employers Court High School Teens,” Arizona Republic, Dec. 28, 1999, p. E5; C. Hymowitz, “Make a Careful Search to Fill Internships: They May Land a Star,” Wall Street Journal, May 23, 2000, p. B1; “In a Tight Job Market, College Interns Wooed,” IPMA News, Nov. 2000, p. 22.

70. P. J. Franks, “Well- Integrated Learning Programs,” in Burkholder, Edwards, Sr., and Sartain (eds.), On Staffing, pp. 230–238.

71. L. J. Bassi and J. Ludwig, “School- to- Work Programs in the United States: A Multi- Firm Case Study of Training, Benefits, and Costs,” Industrial and Labor Relations Review, 2000, 53, pp. 219–239.

72. G. Beenen and D. M. Rousseau, “Getting the Most From Internships: Promoting Intern Learning and Job Ac cep tance,” Human Resource Management, 2010, 49, pp. 3–22.

73. R. H. Glover and R. A. Schwinger, “Defining an Applicant: Maintaining Rec ords in the Elec- tronic Age,” Legal Report, Society for Human Resource Management, Summer 1996, pp. 6–8; G. P. Panaro, Employment Law Manual, 2nd ed. (Boston: Warren Gorham Lamont, 1993), pp. I-51 to I-57.

74. OFCCP, “Frequently Asked Questions About the Internet Applicant Rule,” periodically updated (www . dol . gov / ofccp / regs / compliance / faqs / iappfaqs . htm), accessed Mar. 18, 2010; V. J. Hoffman and G. M. Davis, “OFCCP’s Internet Applicant Definition Requires Overhaul of Recruitment and Hiring Policies,” Legal Report, Society for Human Resource Management, Jan./Feb. 2006; D. Reynolds, “OFCCP Guidance on Defining a Job Applicant in the Internet Age: The Final Word?” Industrial/Or gan i za tional Psychologist, 2006, 43(3), pp. 107–113.

75. EEOC, “Questions and Answers: Definition of ‘Job Applicant’ for Internet and Related Elec- tronic Technologies,” Mar. 2004 (www . eeoc . gov / policy / docs / qanda - ugesp . html).

76 . OFCCP, “The New Regulations: Vietnam Era Veterans’ Readjustment Assistance Act” (dol . gov / ofccp / regs / compliance / vevraa . htm); OFCCP, “New Regulations: Section 503 of the Rehabilita- tion Act” (dol . gov / ofccp / regs / compliance / section503 . htm).

77 . A. Iyer and S. Masling, Recruiting, Hiring, Retaining and Promoting People With Disabilities (Washington, DC: White house, 2015).

78. J. Arnold, “Online Job Sites: Con ve nient but Not Accessible to All,” Society for Human Resource Management, July 31, 2007 (www.shrm.org), accessed Jan. 26, 2016; S. Bates, “Use Social Media Smartly When Hiring,” Society for Human Resource Management, Mar. 19, 2013 (www. shrm.org/hr/disciplines/technology/articles), accessed Jan. 26, 2016.

79. L. S. Rosen, The Safe Hiring Manual, 2nd ed. (Tempe, AZ: BRP Publications, 2013), pp. 413–436; J. A. Segal, “Dancing on the Edge of a Volcano,” HR Magazine, Apr. 2011, pp. 83–86; J. A. Segal, “Widening Web of Social Media,” HR Magazine, June 2012, pp. 117–120.

80. OFCCP, “Frequently Asked Questions About Disability Issues Related to Online Application Systems,” periodically updated (www . dol . gov / ofccp / regs / compliance / faqs / empefaqs . htm), accessed Mar. 18, 2010.

81. EEOC, “Title VII and ADEA: Job Advertisements,” Mar. 3, 2008, (www.eeoc.gov/eeoc/foia /letters/index.cfm), accessed July 28, 2010; EEOC, “ADEA: Job Advertisements Seeking Older Workers,” July 11, 2007 (www . eeoc . gov / eeoc / foia / letters / index . cfm), accessed July 28, 2010.

82. D. J. Walsh, Employment Law for Human Resource Practice, 5th ed. (Mason, OH: Cengage Learning, 2016), pp. 136–137.

099-67811_ch05_4P.indd 268 11/17/17 12:37 PM

C H A P T E R S I X

Internal Recruitment

Learning Objectives and Introduction Learning Objectives Introduction

Strategic Recruitment Planning Defining Strategic Internal Recruitment Goals Mobility Paths and Policies Closed, Open, and Hybrid Recruitment Organ ization and Administration Timing

Applicant Reactions

Communication Communication Message Communication Media

Strategy Implementation Recruitment Sources Recruitment Metrics

Transition to Se lection

Legal Issues Affirmative Action Programs Bona Fide Se niority Systems The Glass Ceiling

Summary

Discussion Questions

Ethical Issues

Applications Recruitment in a Changing Internal Labor Market Succession Planning for a CEO

Endnotes

099-67811_ch06_4P.indd 269 11/17/17 12:37 PM

270 PART THREE Staffing Activities: Recruitment

LEARNING OBJECTIVES AND INTRODUCTION

Learning Objectives

• Be able to engage in effective internal recruitment planning activities • Apply concepts of closed, open, and hybrid recruitment to the internal recruit-

ment pro cess • Recognize which recruitment sources are available for internal candidates • Evaluate internal recruitment based on established metrics • Be able to evaluate communication messages for internal se lection • Recognize how applicant reactions influence the effectiveness of a recruitment

plan • Understand how affirmative action plans are implemented for internal recruit-

ment

Introduction

Internal recruitment is the pro cess of identifying and attracting current employees for open jobs. Internal recruits have numerous advantages: they already know the organ ization’s culture, they have already developed relationships with coworkers, and they may require less training than external hires. The nearly ubiquitous pres- ence of internal labor markets underscores the importance of effective internal recruitment. One survey of 725 human resource (HR) professionals found that as a result of recruitment, se lection, training, and development costs, organ izations are increasingly looking internally to staff positions.1 A majority of those surveyed reported that managing their internal talent pool was either a high (45.6%) or a very high (27.7%) strategic priority in their organ ization. The development of internal talent was seen as one of the top talent management tasks (63% of respondents), even more so than the acquisition of talent (49.4% of respondents).

Unfortunately, despite the imperative placed on improving talent management, this survey also showed that only 25.7% of organ izations have a formal talent management strategy, and only 13.8% of small businesses have a formal talent man- agement system. This relatively limited implementation of effective formal talent management systems means there is much room for improvement. At the same time, a poorly managed internal talent management system can lead to accusations of favoritism, bias, or discrimination. Great care must be taken to ensure that any internal recruitment system is seen as fair.

The first step in the internal recruitment pro cess is recruitment planning. The second step is developing a strategy for where, how, and when to look for recruits. Knowing where to look requires an understanding of open, closed, and hybrid inter- nal recruitment systems. Knowing how to look requires an understanding of job postings, intranets, intra- placement, talent management systems, nominations,

099-67811_ch06_4P.indd 270 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 271

in- house temporary pools, replacement and succession plans, and career develop- ment centers. Knowing when to look requires an understanding of lead time and time sequencing concerns. The third step consists of the communication message and medium for notification of the job vacancy. The fourth step in the pro cess is developing a job posting system and providing applicants with an understanding of the se lection pro cess and how to best prepare for it. The fifth step in the pro cess is the consideration of legal issues. Specific issues to be addressed include Affirma- tive Action Program regulations, bona fide se niority systems, and the glass ceiling.

STRATEGIC RECRUITMENT PLANNING

Like the external recruitment pro cess, the internal recruitment pro cess involves matching employee KSAOs (knowledge, skill, ability, and other characteristics) to orga nizational needs. Unlike external recruitment, the management of an internal recruitment pro cess is directed toward channeling and enhancing existing capa- bilities rather than bringing in new capabilities from the external market. Internal recruitment must be integrated with employee training and development programs. Before identifying and attracting internal applicants to vacant jobs, attention must be directed to orga nizational and administrative issues that facilitate the effective matching of those applicants with available positions.

Defining Strategic Internal Recruitment Goals

The goals of an internal recruitment system will f low from the organ ization’s overall strategic goals. Much like external recruitment, an internal perspective on recruitment entails defining goals for attraction, goals for speed, and a time frame, but the operative issues for each of these topics will change.

Mobility Paths and Policies

The internal recruitment system will be crucially dependent on the mobility paths and policies that have been established in the organ ization. Just as the external labor market can be divided into segments or strata of workers believed to be desir- able job applicants, so, too, can the internal labor market of an organ ization be divided into segments. This division is often done informally inside organ izations. For example, man ag ers might talk about the talented pool of managerial train- ees this year and refer to some of them as “high- potential employees.” As another example, people in the organ ization talk about their “techies,” an internal collec- tion of employees with the technical skills needed to run the business.

At a more formal level, organ izations must create a structured set of jobs for their employees and paths of mobility for them to follow as they advance in their careers.

099-67811_ch06_4P.indd 271 11/17/17 12:37 PM

272 PART THREE Staffing Activities: Recruitment

Mobility Paths A mobility path consists of pos si ble employee movements within the internal labor market structure. Mobility paths are determined by many factors, including KSAO requirements, workforce characteristics, orga nizational culture, and labor market characteristics. Mobility paths are of two types: hierarchical and alternative. Both types determine who is eligible for a new job in the organ ization.

Hierarchical Mobility Paths. Examples of hierarchical mobility paths are shown in Exhibit 6.1. As can be seen, the emphasis is primarily on upward mobility in the organ ization. Due to their upward nature, hierarchical mobility paths are often labeled “promotion ladders.” This label implies that each job is a step toward the top of the organ ization. Employees often see upward promotions as prizes because of the promotions’ desirable characteristics. Employees receive these prizes as they compete against one another for job vacancies. For example, a promotion might lead to a higher rate of pay, and a transfer may result in a move to a better work location. A great deal of research has been conducted on these types of “tour- naments” for higher pay and promotions, with evidence clearly suggesting that individuals increase their effort when faced with the prospect of a large payoff.2 However, this same research suggests that competition can lead to counterproduc- tive be hav ior, like sabotaging other employees or turnover among those who do not receive promotions.

An exception to the primarily upward mobility in the promotion ladders in Exhibit 6.1 shows the lateral moves that sometimes occur for the staff member

EXHIBIT 6.1 Hierarchical Mobility Paths

Nonexempt Employees

Exempt Employees

Technical Specialists

Sta Employees

Senior consulting engineerVice presidentLeadperson

Apprentice

Journeyperson

Vice president

Trainee

Specialist Generalist

manager Division manager

Corporate

Helper Representative

Supervisor

Manager

Engineer

Senior engineer

Consulting engineer

099-67811_ch06_4P.indd 272 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 273

who has both generalist and specialist experience as well as corporate and division experience. This staff member is considered more well- rounded and better able to work within the total organ ization. Experience as a specialist gives the person familiarity with technical issues that arise. Experience as a generalist gives the employee a breadth of knowledge about many matters in the staffing function. Corporate experience provides a policy and planning perspective, whereas division experience provides greater insight into day- to- day operational matters.

Hierarchical mobility paths make it very easy, from an administrative vantage point, to identify where to look for applicants in the organ ization. For promotion, one looks at the next level down in the orga nizational hierarchy, and for transfer, one looks over. Although such a system is straightforward to administer, it is not very flexible and may inhibit matching the best person to the job. For example, the best person for the job may be two levels down and in another division from the vacant job. It is very difficult to locate such a person under a hierarchical mobility path.

Alternative Mobility Paths. Examples of alternative mobility paths are shown in Exhibit 6.2. The emphasis here is on movement in the organ ization in any direction—up, down, and side to side. Employee movement is emphasized to ensure that each employee is continuously learning and that he or she can make the great- est contribution to the organ ization. This is in direct contrast to the hierarchical promotion ladder, where the goal is for each person to achieve a position with ever- higher status. Many organ izations have shifted to alternative mobility paths for two

EXHIBIT 6.2 Alternative Mobility Paths

Lattice TrackParallel Tracks

Vice president engineering

Manager engineering

Supervising engineer

Senior consulting engineer

Consulting engineer

Senior engineer

Engineer

Training manager

Division personnel manager

Compensation supervisor

Recruitment supervisor

Recruiter Compensation specialist

Lateral Track

Production manager Project manager International sales Sales manager

099-67811_ch06_4P.indd 273 11/17/17 12:37 PM

274 PART THREE Staffing Activities: Recruitment

reasons: (1) there is a need to be flexible given global and technological changes, and (2) slower orga nizational growth has made it necessary to find alternative ways to utilize employees’ talents.

Parallel tracks allow for employees to specialize in technical work or manage- ment work and advance within either. Historically, technical specialists had to shift away from technical work to managerial work if they wanted to receive higher- status job titles and pay. In other words, a technical specialist was a dead- end job. Under a parallel track system, however, job titles and salaries of technical special- ists are elevated to be commensurate with their managerial counter parts.

With a lateral track system, there may be no upward mobility at all. The indi- vidual’s greatest contribution to the organ ization may be to stay at a certain level for an extended period of time while serving in a variety of capacities, as shown in Exhibit 6.2.

A lattice mobility path has upward, lateral, and even downward movement. For example, a recruiter may be promoted to a recruitment supervisor position, but to continue to contribute to the organ ization, the person may need to take a downward step to become knowledgeable about all the technical details in compensation. After mastering these details, the person may then become a supervisor again, this time in the compensation area rather than in recruitment. The person may have experience in training from a previous organ ization and be ready to move to training man ag er without training experience internal to the organ ization. Fi nally, the person may make a lateral move to manage all the HR functions in a division (recruitment, compensation, and training) as a division personnel man ag er.

Some organ izations have adopted a team- based structure, hoping to maximize the information flow, increase flexibility, and minimize bound aries among employees.3 These organ izations may do away with formal job titles and ranks altogether, with workers being reassigned to dif fer ent roles in vari ous proj ect teams as needed. Such a structure is generally found mainly in research and development environments. The role of internal recruitment in such organ izations changes completely, as talent man- agement is focused on pairing employee KSAOs with unique proj ect demands that are constantly in flux. This means there is a dramatic increase in the need for assess- ment of employee KSAOs and collaboration with team leaders to reconfigure groups quickly and efficiently. Such team- focused arrangements can be highly motivational for highly skilled individuals who are self- directed and engaged in their profession.

The downside to alternative mobility paths is that they are very difficult to administer. Neat categories of where to look do not exist to the same degree as with hierarchical mobility paths. On the positive side, however, talented inside candi- dates who may not have been identified within a hierarchical system are identified because of the flexibility of the system.

When upward mobility is limited in an organ ization, as in those using alterna- tive mobility paths, special steps need to be taken to ensure that work remains

099-67811_ch06_4P.indd 274 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 275

meaningful to employees. If steps are not taken, the organ ization with limited pro- motional opportunities risks turnover of good employees. Examples of steps to make work more meaningful include the following:

1. Alternative reward systems. Rather than basing pay increases on promotions, pay increases can be based on an individual’s knowledge, skill acquisition, and contribution to the organ ization as a team member. Research has shown that these programs are successful at encouraging employees to develop job- relevant skills.4

2. Team building. Greater challenge and autonomy in the workplace can be created by having employees work in teams where they are responsible for all aspects of work involved in providing a ser vice or product, including self- management.

3. Counseling. Workshops, self- directed workbooks, and individual advising can be used to ensure that employees have a well- reasoned plan for move- ment in the organ ization.

4. Alternative employment. Arrangements can be made for employee leaves of absence, sabbaticals, and consulting assignments to ensure that workers remain challenged and acquire new knowledge and skills.

Mobility Policies Mobility paths show the relationships among jobs, but they do not show the rules by which people move between jobs. These rules are specified in written policies, which must be developed and should specify eligibility criteria.

Policy Development. It is impor tant to ensure that mobility policies meet orga- nizational goals, are seen as fair by employees, and can be administered easily.5 Fortunately, many of the same princi ples that enhance policy fit with strategy enhance perceived justice and also make the system easy to apply. These princi ples include clarity, objectivity, consistency, and transparency. The following are a few key characteristics of an effective mobility policy development pro cess:

• Ensure that leaders of the organ ization who will be affected by the policy have an opportunity to participate in policy creation.

• Provide clear rationales for overall policy frameworks, linking them to orga nizational strategy and goals. Link specific mobility path policies to performance- relevant qualifications based on a job analy sis ( either job require- ments or competency based).

• Clearly state rules for how employees will be notified of openings, deadlines, and data to be supplied; how requirements and qualifications are relevant; how the se lection pro cess will work; and how job offers will be made.

099-67811_ch06_4P.indd 275 11/17/17 12:37 PM

276 PART THREE Staffing Activities: Recruitment

• Outline employee and supervisor responsibilities and opportunities for devel- opment. Develop clear criteria for who is eligible to be considered for a vacancy in a mobility path.

• Communicate procedures and policies to all affected parties.

Policy Implementation. After the organ ization has developed its mobility poli- cies, a strong set of supporting practices should ensure they are implemented as planned. To facilitate effective implementation of the policies and practices, the organ ization should match implementation plans to the components of policy creation:

1. Continually collect data from leaders regarding the fit of mobility policies with orga nizational goals. If implementing the policies as written is difficult or interferes with orga nizational effectiveness, they should be revised.

2. Track compliance with preestablished criteria and reinforce why these crite- ria are impor tant for man ag ers.

3. Use tracking systems that ensure communication and se lection procedures are followed and that favoritism and bias are minimized.

4. Document employee development pro gress. Methods for tracking should be automated (such as through automatic e- mails or posting to a central career management system) and accessible for users.

5. Supervisors and employees should receive regular updates regarding the sta- tus of any internal mobility decisions. This can be automated in a manner similar to the development pro gress system.

Closed, Open, and Hybrid Recruitment

The decision of how to communicate a job announcement to employees is a key component of an internal recruitment system. The choice among closed, open, and hybrid systems can affect employee motivation and perceptions of fairness, so each possibility should be carefully considered.

Closed Internal Recruitment System Under a closed internal recruitment system, employees are not made aware of job vacancies. The only people made aware of promotion or transfer opportunities are those who oversee placement in the HR department, line man ag ers with vacancies, and contacted employees. Exhibit 6.3 shows how a vacancy is typically filled under a closed system.

A closed system is very efficient. There are only a few steps to follow, and the time and cost involved are minimal. However, a closed system is only as good as the files showing candidates’ KSAOs. If the files are inaccurate or out of date, qual- ified candidates may be overlooked. Thus, maintaining accurate human resource information systems (HRISs) that track KSAOs regularly is vital.

099-67811_ch06_4P.indd 276 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 277

Open Internal Recruitment System Under an open internal recruitment system, employees are made aware of job vacan- cies. Usually this is accomplished by a job posting and bidding system. Exhibit 6.4 shows the typical steps followed in filling a vacancy under an open internal recruit- ment system.

An open system gives employees a chance to mea sure their qualifications against those required for advancement. It helps minimize the possibility that supervisors will select favorite employees for promotion or transfer, and it often uncovers hid- den talent.

An open system may, however, create unwanted competition among employees for limited advancement opportunities. It is a very lengthy and time- consuming pro cess to screen all candidates and provide them with feedback. Employee morale may decrease among those who do not advance.

Hybrid System of Internal Recruitment Under a hybrid system, both open and closed steps are followed at the same time. Job vacancies are posted and the HR department conducts a search outside the job posting system. Both systems are used in order to cast as wide a net as pos si ble. The large applicant pool is then narrowed down by KSAOs, se niority eligibility, demographics, and availability of applicants.

EXHIBIT 6.3 Closed Internal Recruitment System

Manager notifies human resources of vacancy

Human resources searches files for candidates

Human resources gives list of candidates to manager

Manager interviews candidates

Manager fills position

099-67811_ch06_4P.indd 277 11/17/17 12:37 PM

278 PART THREE Staffing Activities: Recruitment

Merico Hotels uses a hybrid system that includes both the training and devel- opment of promising employees for specific higher- level positions along with job posting methods.6 The organ ization’s per for mance management system encour- ages employees to specify their potential internal career tracks and indicate which developmental opportunities will help them pro gress. Those who are identified as high- potential employees receive special training within a formal succession plan- ning system. When jobs open, they are posted via an internal job vacancy software program developed specifically by Merico. Employees who are especially quali- fied for these openings are alerted by the organ ization and encouraged to apply.

A hybrid system has four advantages: qualified candidates are identified in advance, a thorough search is conducted, people have equal opportunity to apply for postings, and hidden talent is uncovered. The major disadvantage of a hybrid system is that it entails a time- consuming and costly pro cess.

EXHIBIT 6.4 Open Internal Recruitment System

Manager notifies human resources of vacancy

Human resources posts job opening

Human resources receives bids from interested applicants

Human resources screens candidates

Human resources gives list of candidates to manager

Manager interviews candidates

Manager fills position

099-67811_ch06_4P.indd 278 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 279

Criteria for Choice of System In an ideal world with unlimited resources, one would choose a hybrid system of internal recruitment. However, due to resource constraints, most organ izations must choose between open and closed systems. Several criteria need to be thor- oughly considered before selecting an internal recruitment system. Exhibit 6.5 reviews these criteria.

Although the choice of system is impor tant, the use of staffing software (see Chapter 13) allows bridges to be built between these systems in order to take advan- tage of the best features of each.

Organ ization and Administration

Not only must mobility paths and mobility policies be established as part of the planning pro cess, but so too must administrative matters. Administrative matters include coordination, the bud get, and the recruitment guide.

Coordination Internal and external recruitment efforts need to be coordinated and synchronized via the organ ization’s staffing philosophy. If this is not done, disastrous results can

EXHIBIT 6.5 Choosing Among Open, Closed, and Hybrid Internal Recruiting

Technique Advantages Best When

Open Identifies more candidates, including those who might be overlooked in a closed system

Makes rules and regulations explicit and open to all employees

Sometimes required by labor agreements

Issues exist about perceived fairness

Hidden talent might be overlooked

Closed Less expensive in terms of search costs

Offers a quicker response

Less cumbersome when only a select few meet the minimum requirements

Managers need the new candidate to start immediately

Jobs require a very narrow and specialized set of KSAOs

Hybrid Finds a large number of candidates

Everyone has an opportunity to apply

Adequate resources are available to run such a hybrid system

Jobs are especially key to organizational success

099-67811_ch06_4P.indd 279 11/17/17 12:37 PM

280 PART THREE Staffing Activities: Recruitment

occur. For example, if in de pen dent searches are conducted internally and exter- nally, two people may be hired for one vacancy. If only an external recruitment search is conducted, the morale of current employees may suffer if they feel they have been passed over for a promotion. If only an internal recruitment search is conducted, the person hired may not be as qualified as someone from the exter- nal market. Because of these possibilities, internal and external professionals must work together with the line man ag er to coordinate efforts before the search for candidates begins.

To coordinate activities, policies need to be created that specify the number and types of candidates sought both internally and externally. External recruiters should stay in frequent contact with internal placement professionals.

Bud get An organ ization’s bud geting pro cess for internal recruitment should closely mir- ror that of external recruitment. The cost per hire may, however, differ between internal and external recruitment. The fact that internal recruitment targets candi- dates already working for the organ ization does not mean that the cost per hire is necessarily less than the cost per hire for external recruitment. Sometimes internal recruitment can be costlier than external recruitment because the methods involved in internal recruitment can be quite expensive. For example, internal candidates who are considered for the job but are not hired may need to be counseled on what to do in order to further develop their careers so that they can better compete for the position the next time it is vacant. When an external candidate is rejected, a simple and less costly rejection letter usually suffices.

Recruitment Guide As with external recruitment, internal recruitment activities involve the develop- ment of a recruitment guide, a formal document that details the pro cess to be fol- lowed to attract applicants to a vacant job. Included in the plan are details such as the time, money, and staff activities required to fill the job, as well as the steps to be taken to fill the vacancy created by the internal candidate leaving to take on the new job. An example of an internal recruitment guide is shown in Exhibit 6.6.

Timing

A final strategic consideration is for the organ ization to determine when to look for internal candidates. As with external recruitment, consideration involves the calculation of lead time and time sequencing concerns.

Lead Time Concerns A major difference between internal and external recruitment is that internal recruit- ment not only fills vacancies but also creates them. Each time a vacancy is filled

099-67811_ch06_4P.indd 280 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 281

Position Reassignments Into New Claims Processing Center

Goal: Transfer all qualified medical claims processors and examiners from one company subsidiary to the newly developed claims processing center. Terminate those who are not well qualified for the new positions and whose existing positions are being eliminated.

Assumptions: That all employees have been notified that their existing positions in company subsidiary ABC are being eliminated and that they will be eligible to apply for positions in the new claims processing center.

Hiring responsibility: Manager of Claims Processing and Manager of Claims Examining.

Other resources: Entire human resource department staff.

Time frames: Positions posted internally on April 2, 2016 Employees may apply until April 16, 2016 Interviews will be scheduled/coordinated during week of April 19, 2016 Interviews will occur during the week of April 26, 2016 Selections made and communicated by last week in May

Positions available and corresponding qualification summaries:

Total number of available positions: 60

6 claims supervisors—4-year degree with 3 years of claims experience, including 1 year of supervisory experience.

14 claims data entry operators—6 months of data entry experience. Knowledge of medical terminology helpful.

8 hospital claims examiners—12 months of claims data entry/processing experience. Knowledge of medical terminology necessary.

8 physician claims examiners—12 months of claims data entry/processing experience. Knowledge of medical terminology necessary.

8 dental claims examiners—12 months of claims data entry/processing experience and 6 months of dental claims examining experience. Knowledge of dental terminology necessary.

8 mental health claims examiners—12 months of claims data entry/processing experience and 6 months of mental health claims experience. Knowledge of medical and mental health terminology necessary.

8 substance abuse claims examiners—12 months of claims data entry/processing experience and 6 months of substance abuse experience. Knowledge of medical terminology necessary.

EXHIBIT 6.6 Internal Recruitment Guide

(continued)

099-67811_ch06_4P.indd 281 11/17/17 12:37 PM

282 PART THREE Staffing Activities: Recruitment

Transfer request guidelines: Internal candidates must submit internal transfer request and an accompanying cover page listing all positions for which they are applying, in order of preference.

Internal candidates may apply for no more than five positions.

Transfer requests must be complete and be signed by the employee and the employee’s supervisor.

Candidate qualification review process: Transfer requests from internal candidates will be reviewed on a daily basis. Those not qualified for positions for which they have applied will be notified by phone that day, due to the large volume of requests.

All transfer requests and accompanying cover pages will be filed by the position to which they refer. If internal candidates apply for more than one position, their transfer packet will be copied so that one copy is in each position folder.

Once all candidate qualifications have been received and reviewed, each candidate’s transfer packet will be copied and transmitted to the managers for review and interview selection. Due to the large number of candidates, managers will be required to interview only those candidates with the best qualifications for the available positions. Managers will notify human resources with the candidates with whom they would like interviews scheduled. Whenever possible, the manager will interview the candidate during one meeting for all of the positions applied and qualified for.

Selection guidelines: Whenever possible, the best- qualified candidates will be selected for the available positions.

The corporation has committed to attempting to place all employees whose positions are being eliminated.

Managers reserve the right to not select employees currently on disciplinary probation.

Employees should be slotted into a position with a salary grade comparable to their current salary grade. Employees’ salaries shall not be reduced due to the involuntary nature of the job reassignment.

Notification of nonselection: Candidates not selected for a particular position will be notified by electronic message.

Selection notifications: Candidates selected for a position will be notified in person by the human resource staff and will be given a confirmation letter specifying starting date, position, reporting relationship, and salary.

EXHIBIT 6.6 Continued

099-67811_ch06_4P.indd 282 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 283

with an internal candidate, a new vacancy is created in the spot vacated by the internal candidate.

Because of this difference, it is incumbent on the organ ization to do HR plan- ning along with internal recruitment. This planning involves ele ments of succes- sion planning (see Chapter 3) and is essential for effective internal recruitment.

Internal and external lead time considerations also differ because in an inter- nal market, the employer can actively participate in identifying and developing the knowledge and skills of the pool of eligible internal employees. Strategic tal- ent management means that the organ ization identifies crucial skills that will be needed for future positions and begins cultivating these skills in the workforce well in advance.7 By proactively developing needed skills in advance, the organ ization will be able to significantly reduce the lead time to fill positions with very specific KSAO requirements.

Time Sequence Concerns As previously noted, it is essential that internal and external recruitment activities be properly coordinated. This is especially true with the timing and sequencing of events that must be carefully laid out for both recruitment and placement person- nel. When filling a vacancy, many organ izations start with internal recruitment, followed by external recruitment. Issues to be addressed include the time period for the internal search, whether external recruitment can be done concurrently with internal recruitment, and who will be selected if an internal candidate and an exter- nal candidate with relatively equal KSAOs are identified.

APPLICANT REACTIONS

Internal applicants will have dif fer ent considerations than external applicants regarding recruitment methods. Their familiarity with the organ ization’s structure, reward practices, and decision- making procedures will allow them to better con- sider the long- term consequences of pursuing an internal position. Because they are already embedded within the organ ization, they will prob ably have a longer time horizon and can consider not just the immediate features of the job but also the future benefits of taking on a new position. From the organ ization’s perspective, it is much easier to evaluate the preferences of internal employees than those of external candidates. Supervisors and other orga nizational leaders will be able to discuss these preferences at length, and then customize messages to fit individual needs and preferences.

Perceived fairness of an internal recruitment pro cess is extremely impor tant. A potential applicant who feels that a com pany’s external recruitment policy is unfair is unlikely to pursue a job opportunity, and that generally will mark the end of the interaction. An employee who feels that his or her com pany’s internal recruitment policy is unfair will remain an employee, and the negative perceptions may spill

099-67811_ch06_4P.indd 283 11/17/17 12:37 PM

284 PART THREE Staffing Activities: Recruitment

over to reduce motivation, engagement, and per for mance and might even lead to turnover. As noted earlier in the “Policy Development” and “Policy Implementa- tion” sections, issues of fairness should be resolved through transparency, objectiv- ity, consistency, and clarity. Reviews of the evidence suggest that procedures may be nearly as great a source of dissatisfaction to employees as decisions.8 In some organ izations, dissatisfaction arises because there is no formal policy regarding promotion and transfer opportunities. Ensure that employees are aware of opportu- nities for which they are qualified, and clearly state the under lying logic for encour- aging candidates to take dif fer ent internal mobility paths.

COMMUNICATION

Once the planning and strategy development phases have been conducted, it is time to conduct the search. As with external recruitment, informing potential applicants about the opening and the characteristics of the position will have a strong influ- ence on the types of individuals who apply. However, the content of the message and the media through which it will be transmitted are quite dif fer ent.

Communication Message

Like the external recruitment message, the internal recruitment message can be realistic, targeted, or branded. A realistic message portrays the job as it really is, including positive and negative aspects. A targeted message points out how the job matches the needs of the applicant. A branded message emphasizes the value, culture, and identity of the unit to attract applicants who fit the brand label. For internal recruitment, information will be presented regarding the culture of the work unit or division and how it differs from other areas of the organ ization. The internal applicant will have more information about the organ ization and its practices than would most external applicants, but any additional informa- tion about the job itself might not be accurate and might arrive via rumors or other unreliable internal communication methods. Therefore, any recruitment message should take the internal image of the job into account.

Branded messages can emphasize how a specific area of the organ ization offers unique opportunities to internal applicants. This information can be communicated in a way that takes advantage of what employees already know about the job and organ- ization. For example, a com pany expanding into a new regional market can describe how taking on a position in this new region will be a unique opportunity for personal and professional growth, with detailed information regarding specific products and initiatives that are active in that area, and even mention of key individuals whose reputations might be known in the organ ization who are also active in that area.

Targeted messages along with inducements are likely to attract experienced internal employees. Because internal applicants will be personally known by

099-67811_ch06_4P.indd 284 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 285

coworkers and supervisors, messages can be specifically targeted around each per- son’s identified needs and desires. Targeted messages about the desirability of a position and the actual rewards should come directly from the job rewards matrix. The hiring man ag er needs to clearly communicate factual information in the job rewards matrix, rather than offers of potential rewards that the man ag er may not be able to provide.

Realistic messages can be communicated using a technique known as a realis- tic job preview (RJP). This technique needs to be carefully applied for internal recruitment because applicants may already have a picture of the job since they are already a member of the organ ization. It should not be automatically assumed that all internal candidates have accurate information about the job and organ- ization. In fact, word- of- mouth information, such as rumors, within the organ- ization can lead internal recruits to have inaccurate perceptions about a job that need to be corrected. RJPs are particularly appropriate for internal applicants when they move to an unknown job, a newly created job, or a new geographic area, including an international assignment. Alternatively, it is often pos si ble to give internal recruits informational interviews with future coworkers, site visits, or even hands-on experience in the new work environment, which is less feasible with external recruits.

Communication Media

The actual methods or media used to communicate job openings internally include formal job postings, direct contact with potential supervisors and peers, and word of mouth. In most cases, all three media should be considered as potential parts of the pro cess, although only the first two are encouraged.

A job posting should clearly define the duties and requirements of the job as well as the eligibility requirements. To ensure consistency and fair treatment, job postings are usually coordinated by the HR department. Other documents used to communicate a vacancy may include a description of the work unit and its loca- tion as well as a description of the job. A brochure or video can also be created to show and describe what the job and its location are like. Such a message would be impor tant to applicants asked to relocate to a new geographic area or to accept an international assignment.

Potential supervisors and peers can describe to the internal applicant how the position he or she is considering fits into the larger orga nizational picture. Supervi- sors are knowledgeable about how the position fits with the strategic direction of the organ ization. Hence, they can communicate information regarding the expan- sion or contraction of the business unit within which the job resides. Moreover, supervisors can convey the mobility paths and requirements for future movement by applicants within the business unit, should they be hired. Peers can supplement these supervisory observations by giving candidates a realistic look at what actually happens by way of career development.

099-67811_ch06_4P.indd 285 11/17/17 12:37 PM

286 PART THREE Staffing Activities: Recruitment

Word of mouth is difficult for the organ ization to control when it comes to exter- nal applicant searches, but it can be much more problematic for internal searches. This can be a highly selective, inaccurate, and haphazard method of communicat- ing information. It is selective because, by accident or design, not all employees hear about vacant jobs. Talented personnel, including underrepresented groups, may thus be overlooked. It is inaccurate because it relies on second- or thirdhand information; impor tant details, such as actual job requirements and rewards, are omitted or distorted as they are passed from person to person. Informal methods are also haphazard in that there is no regular communication channel specifying set times for communicating job information. As a result of these prob lems, the organ- ization should be aware of word- of- mouth influences and attempt to minimize their effect on the applicant identification and attraction pro cess.

STRATEGY IMPLEMENTATION

After the focus of the strategic recruitment search has been established and com- munication messages and media have been evaluated, the organ ization must develop a strategy to access viable internal job applicants.

Recruitment Sources

The choice of recruitment sources in an internal search is closely related to whether a closed, open, or hybrid system is employed. Some of the techniques described below are clearly more appropriate for a closed search, while others are more suited to an open search. One unique feature of the internal recruitment effort is that vari- ous sources overlap with one another and will likely be used si mul ta neously.

Job Postings A job posting system is similar to the use of orga nizational websites in external recruitment. A posting spells out the duties and requirements of available jobs and provides a portal through which internal applicants can submit their materials. Organ izations do not have to build these internal systems from the ground up; many HRIS developers integrate internal job posting systems into their programs. This means that when a job that has been designated as part of the internal mar- ket comes open, full posting information based on job analy sis rec ords can easily be put on the com pany intranet in one integrated pro cess. Smaller organ izations with less robust internal labor markets may post jobs through e- mails rather than through establishing a dedicated internal recruitment site. E- mail contact with selected individuals can also be part of a closed recruitment system as well.

An example of the type of information found in an internal job posting is shown in Exhibit 6.7. Such information includes the job title, category, compensation, and work schedule. A brief overview of desired qualifications and a job description can

099-67811_ch06_4P.indd 286 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 287

be pulled directly into the system from job analy sis files. Work unit descriptions can also be developed and standardized to make the pro cess of uploading a new position more efficient. Fi nally, application instructions link the user to three dif- fer ent portals. The submission portal leads to a series of pages where applicants can submit their qualifications and statement of interest. The appraisal information portal allows applicants to link their individual application to previous per for mance

Job code and title (75593) Administrative Specialist II

Position title Assistant to Director of Marketing

Position category Administrative and clerical

Compensation category Nonexempt C [$15.00 to $20.00 per hour to start, depending on qualifications]

Work hours 8:30 am–5:00 pm

Work days MTWThF

Required/preferred qualifications

Prior experience as Administrative Specialist I or II

Excellent professional communication skills

Proficiency with word processing, spreadsheet, asset management, database, electronic mail, and Internet browser software

Knowledge of management principles and functions

Job description Assist the Director of Marketing with clerical and administrative tasks, including preparing correspondence, organizing a calendar of appointments, communicating with individuals within and external to the organization

Work unit description The Director of Marketing works in the corporate offices in downtown Chicago. Employees work closely with one another in the marketing department and support one another through their efforts. There is a formal dress code for all employees in this division and professionalism is emphasized.

Application instructions Click to enter submission portal: ENTER

Click to submit appraisal information from records: ENTER

Click to request recommendations: ENTER

EXHIBIT 6.7 Example of Job Posting Information

099-67811_ch06_4P.indd 287 11/17/17 12:37 PM

288 PART THREE Staffing Activities: Recruitment

appraisal information in the HRIS. Fi nally, the recommendation portal allows the applicant to request recommendations from other individuals within the organ- ization; these requests generate e- mail messages to the relevant parties with infor- mation on how to submit a recommendation to the system. This example shows a very basic, utilitarian format for the posting, but many organ izations supplement their postings with images of or personal messages from individuals working in similar roles.

Despite their advantages, internal job posting systems have some drawbacks. Examples of such difficulties include situations where employees believe that someone was selected before the job was posted (a “bagged” job), cumbersome sys- tems where man ag ers and HR personnel are overwhelmed with résumés of unquali- fied candidates, and criticisms that the HR department is not doing an effective job of screening candidates for positions.

Another impor tant issue with posting systems is in providing feedback. Not only do employees need to know whether they have received the job, but those who did not receive the job need to be made aware of why they did not. Providing this feedback serves two purposes. First, it makes job posting part of the career devel- opment system of the organ ization. Second, it invites candidates to bid on future postings. If employees are not given feedback, they may be less likely to bid for another job because they feel that their attempts are futile.

Talent Management System A talent management system is a comprehensive method for monitoring and track- ing the utilization of employee skills and abilities throughout the organ ization.9 The pro cess of talent management is closely aligned with replacement and succession planning— talent management systems track the KSAOs of the workforce, and then replacement and succession planning translates this information into concrete action plans for specific job roles. Although talent management involves per for- mance management and training pro cesses in addition to managing the internal recruitment pro cess, tracking employees’ KSAOs and their use in the organ ization is the key component of talent management systems.

Although a number of dif fer ent models for implementing talent management systems exist, there are a few key pro cesses common to most. The first stage of the pro cess is identifying the KSAOs required for all jobs in the organ ization. This information can be obtained from job descriptions and job specifications. The complete set of KSAOs required across the organ ization will then be compiled into a master list. The current workforce will need to be assessed for its competence in this set of KSAOs, usually as an adjunct to routine per for mance evaluations. When positions come open, man ag ers make a query to the talent management system to determine which employees are eligible. A pro cess should be in place to make regu- lar comprehensive examinations of the changing nature of KSAO requirements throughout the organ ization. Information from these analyses can then be used as

099-67811_ch06_4P.indd 288 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 289

a springboard for developing comprehensive plans for training and development experiences.

There has been such a strong integration of database software for talent man- agement systems that when staffing man ag ers refer to them, they are often talking about the specific HRIS that is used to facilitate tracking KSAOs in the workforce. While these database applications offer great promise for coordinating informa- tion, many man ag ers find operating talent management systems challenging. Most of the prob lems in implementing the systems in practice do not come from a lack of technology but from an excess of technology that cannot be understood by line man ag ers. A few princi ples should be borne in mind when developing or evaluat- ing a user- friendly talent management system:

• Keep the format for entering data as simple as pos si ble. • Have an easy method for updating basic information with each per for mance

evaluation cycle. • Make it easy to perform database queries. • Provide varied formats for obtaining reports. • Ensure that information is confidential. • Make it pos si ble to perform statistical analyses using relational databases. • Integrate data with other HR files.

Nominations Nominations for internal candidates to apply for open positions can be solicited from potential supervisors and peers. These individuals are an excellent source of names of internal candidates, as they are familiar with what is required to be successful in the position. They can help establish the criteria for eligibility and then, through their contacts in the organ ization, search for eligible candidates. Self- nominations are also useful in that they ensure that qualified candidates are not inadvertently overlooked using other applicant searching methods. Self- nomination is an especially impor tant consideration in the internal recruitment of minorities and women.

In- House Temporary Pools In- house temporary pools are impor tant to the temporary staffing of organ izations, and they are also an excellent source of permanent internal employment. Unlike employees hired through external staffing agencies, those employed through in- house temporary pools are legally treated as employees. Therefore, the full legal liability for these employees falls exclusively on the employer. Using in- house tem- porary employees has a number of advantages.10 Internal temporary employees require less orientation to the organ ization than external hires. Staffing agencies typically charge an employer an hourly fee for each temporary employee. But with an internal system, because the employer does not have to pay an hourly fee to an

099-67811_ch06_4P.indd 289 11/17/17 12:37 PM

290 PART THREE Staffing Activities: Recruitment

external agency, the cost savings can be applied to higher levels of compensation and benefits. It is also easier for an organ ization to ensure the quality and person/ or ga ni za tion fit for employees from an in- house pool relative to a pool of exter- nal hires. Temporary employment can also serve as an “audition” for full- time employment, allowing the temporary employee to try out a number of positions until the employee and the organ ization agree on a good person/job match. In health care, it is common to have “float” staff who are assigned to dif fer ent units regularly, depending on the organ ization’s needs. These pools are especially valu- able in this highly specialized field because quality control and knowledge of orga- nizational policies and procedures are crucial for per for mance. Surveys of health care organ izations show that these pools are seen as an impor tant and effective tool for enhancing per for mance and minimizing costs.11 Substitute teachers are staffed in a similar manner. Such employees must be adaptable to dif fer ent situations, and the organ ization must ensure that the employees have sufficient work. In addition, extra training may be needed for these employees since they are expected to have a broad range of skills in their repertoire.

Replacement and Succession Plans A critical source of internal recruitment is provided by the results of replacement and succession planning. Most succession plans include replacement charts (see Chapter 3), which indicate positions and who is scheduled to fill those slots when they become vacant. Replacement charts usually also indicate when the individual will be ready for the assignment. Succession plans are or ga nized by position and list the skills needed for the prospective position (i.e., “for the employee to be promoted into this position from her current position, she needs to develop the following skills”).

It is critical that succession planning be future oriented, lest the organ ization plan be based on historical competencies that fail to meet new challenges. Soft- ware exists to assist organ izations with succession planning. Companies like Saba Succession, HRsmart, Silk Road Technology, and PilatHR Solutions offer succes- sion planning packages used by many Fortune 500 companies that interface with an organ ization’s HRIS. These packages provide replacement charts and compe- tency libraries that allow an organ ization to identify developmental activities and assignments for individuals in the replacement charts.

CEO succession has always been an impor tant issue for organ izations, but never more so than today. The need for employee development has heightened as an increasing proportion of the workforce is approaching retirement. There is great concern among career development specialists that the mass retirement of baby boomers will lead to a loss of orga nizational memory and knowledge built up with experience. Having strong succession planning techniques that will enable the more recently hired workforce to acquire knowledge from its experienced cowork- ers before moving into managerial positions is one way to minimize the impact

099-67811_ch06_4P.indd 290 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 291

of mass retirements. Interviews with executive recruiters and CEOs have found that industry- and organization- specific competencies are highly desirable.12 This underscores the need to develop these attributes in- house, since they will be hard to find on the open labor market.

The key to avoiding potential fiascoes is to have a succession plan for CEOs. A major retrospective study of CEO transition failures conducted by the Conference Board found that about half of organ izations have neither an emergency succession plan nor a long- term succession plan.13 Key shortfalls identified in CEO succession plans include misalignment of hiring criteria with strategic organ ization needs, a fear of antagonizing the current CEO by trying to identify potential replacements, and a lack of investment in developing the entire workforce from the bottom up.

A succession plan should begin with a thorough job analy sis and a listing of the characteristics and be hav iors of a successful CEO.14 The organ ization should not leave it to the CEO to identify a successor. CEOs are typically not trained or experienced in staffing, and they may have selfish motives in appointing a succes- sor. Alternatively, they may avoid appointing a successor altogether, thus keeping themselves in the job. Therefore, the board must be deeply involved in the se lection pro cess. Boards also need to realize that the succession pro cess should begin well before the CEO departs; in fact, it should be a continuous pro cess. Appropriate succession plans should also examine the pipeline for individuals to replace the top management team members (e.g., chief financial officer, chief operating officer, se nior vice presidents) who might replace the CEO. As we saw in the planning chapter, each time an internal promotion occurs, it creates a need to staff the posi- tion of the individual who was promoted.

Career Development Centers To facilitate internal transfers, many organ izations have an internal office of career development that helps employees explore career options available within the organ ization.15 Career development centers provide employees with opportunities to take interest inventories, assess their personal career goals, and interview with representatives across the organ ization. The goal of career development centers is twofold. First, employees learn about themselves and have a chance to think about what they really want to achieve in their careers. Second, employers have a chance to explain the career options within the organ ization and develop methods to struc- ture internal career paths that match the interests of their employees. Surveys con- ducted in numerous organ izations consistently demonstrate that employees are more satisfied when their employers provide them with ample communication and opportunities for internal advancement—an interactive career development center can do both.16

The interest inventories provided in career development centers often take the form of multiple- choice questionnaires that ask employees to indicate their preferred work activities. For example, respondents might be asked whether they prefer tasks

099-67811_ch06_4P.indd 291 11/17/17 12:37 PM

292 PART THREE Staffing Activities: Recruitment

that involve analytical pro cesses like analyzing financial data or more social tasks like motivating a group of workers. After completing these surveys, employees compare their work preferences with the profiles of activities in a variety of jobs. Career development counselors can help talk employees through their thoughts and concerns about job options. Ideally, these career development inventories, cou- pled with careful analy sis of KSAOs, will be paired with job analy sis information to improve the person/job match. If employees lack the required KSAOs, career development counselors can suggest developmental work experiences or training opportunities.

Any assessment of career development centers needs to take the organ ization’s bottom line into account.17 Having full- time career development staff is a signifi- cant cost for any organ ization, and it is unlikely that small or medium- sized organ- izations will find it cost- effective to develop a comprehensive career development center. For smaller organ izations, it is more advisable to develop smaller- scale informal initiatives based on personal interactions. Smaller organ izations can make use of some career development tools by bringing in external career coaches or con sul tants to work with individuals who are especially interested in career development within the organ ization. To reduce costs, employees could take their career development profiles and receive initial feedback through web- based sur- veys. These electronic survey options save money by reducing staff needs, and employees will not need to go to the career development offices to receive initial counseling.

Although career development centers are complicated to develop and expensive to maintain, they offer organ izations an opportunity to help employees learn about a large spectrum of careers. 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. Because of the cost of career development ser vices, it is especially impor tant to keep track of the return on investment for these ser vices.

Recruitment Metrics

Like external recruitment sources, each internal recruitment source has strengths and weaknesses. Exhibit 6.8 provides an overview of the metrics that might be expected for the categories of recruitment activities, along with issues considered relevant to each source. There is far less research on the costs and benefits of internal recruitment techniques, so our comments here are necessarily somewhat speculative; it is likely that each organ ization will need to consider its unique needs even more thoroughly than it would when selecting external recruitment methods.

Sufficient Quantity Because the organ ization’s pool of employees will necessarily be smaller than the general labor market, most internal recruitment methods will have far lower quantity yields. Techniques that permit job postings and use of the organ ization’s

099-67811_ch06_4P.indd 292 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 293

Recruiting Method Quantity Quality Costs Impact on HR

Job posting Often will be the company’s entire workforce

Because all employees will be able to apply, quality is variable

Staff time to develop the recruiting message

May reduce turnover, reduced time to full performance

Talent management system

Identifies knowledge, skills, and abilities across all employees

High; preselection of applicants based on identified skill sets

Maintenance of databases can be very time and resource intensive

Higher performance, reduced downtime, reduced training costs

Nominations Limited to those who receive positive appraisals by supervisors or coworkers

If supervisors make accurate assessments, will be very good person/job match

Many companies keep routine records of employee performance

Can actively identify those who will be good performers and target identified training needs

In-house temporary pools

Based on organization’s need for temporary staff coverage

Higher quality if in- house temps receive better benefits than what external staffing firms provide

Start-up costs can be significant; reduces payments to external agencies

More accountability relative to external agencies; increased internal flexibility

Replacement and succession plans

A small number of select workers seen as having high potential

Able to assess skill sets very carefully and consider configurations

HRIS start- up costs, data entry, and checking

Reduces gaps in leadership, protects against shocks due to turnover, reduces turnover

Career development centers

The set of employees who are interested in career development

Assesses employee KSAOs and preferences

Start-up costs, cost of staff, system maintenance

Significant reduction in turnover, increased match between KSAOs and work requirements

EXHIBIT 6.8 Potential Recruiting Metrics for Different Sources

099-67811_ch06_4P.indd 293 11/17/17 12:37 PM

294 PART THREE Staffing Activities: Recruitment

intranet will likely produce far more candidates for promotion and advancement than will succession plans.

Sufficient Quality The degree to which the organ ization utilizes its own internal information on candidate qualifications and job per for mance to narrow the pool will determine how qualified the applicants will be. In assessing applicant characteristics, organ- izations that have internal recruitment systems have a huge advantage over those that use external recruitment systems, so the ability of each source to draw in qualified internal candidates should capitalize on the additional capacity to care- fully observe them. Regular per for mance appraisals of all employees, coupled with talent management systems to track KSAOs, are a vital part of an effective internal recruitment system.

Cost Internal recruitment methods have a completely dif fer ent set of costs than external recruitment methods. In some ways, internal recruitment can be far less expensive than external recruitment because the organ ization’s own internal communication systems can usually be utilized. It costs very little to send an e- mail to all qualified staff informing them of job opportunities or to post job advertisements on a physi- cal or an electronic bulletin board. However, more sophisticated systems, such as a corporate intranet or comprehensive talent management system, take more person- nel resources to set up and maintain. Career development centers are very costly propositions, and only organ izations with considerable internal placement needs will find them cost- effective.

Impact on HR Outcomes Very little research has been done on the effectiveness of vari ous internal recruit- ment sources. Thus, it is imperative that orga nizational leaders consider how their internal recruitment systems affect turnover rates, job per for mance, and diversity. Despite the lack of research, it should be easier to monitor these outcomes directly, because it is easier to directly mea sure the applicant pool contacted through inter- nal methods. From anecdotal observations, some preliminary conclusions can be drawn regarding the advantages of internal placement. There is some evidence that internal career opportunities can reduce turnover intentions.18 Internal recruitment methods may reduce the time it takes for employees to reach full per for mance once placed, because they will already be familiar with the organ ization and may know more about the job in question than an external hire would. Any costs of internal recruitment should be compared against the costs of external recruitment, and the replacement of the employee who takes an internal position should also be taken into account.

099-67811_ch06_4P.indd 294 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 295

TRANSITION TO SE LECTION

As with external recruitment, once a job seeker has been identified and attracted to a new job, the organ ization needs to prepare the person for the se lection pro cess. It should not be assumed that just because job seekers come from inside the organ- ization they automatically know and understand the se lection procedures. With the rapid advances being made in se lection methods, the applicant might encounter methods that are dif fer ent from those he or she previously experienced. Even if the same se lection methods are used, the applicant may need to be refreshed on the pro cess since much time may have elapsed between the current and previous se lection decisions.

In many organ izations, the most significant internal mobility decisions involve moving an individual from a role as an individual contributor to the management ranks. In this case, the pro cess of “recruitment” incorporates sharing information about what the organ ization is looking for in a leader and then helping the employee develop these appropriate skills.19 In other words, recruitment, se lection, and devel- opment come together in a succession management effort. When an employee has been identified as having some potential for leadership, there should be a gradual pro cess of preparing him or her for the new role with self- development exercises. The employee’s interest in the position should be assessed to ensure that she or he is interested in mobility. The employee’s capacity to develop these skills should also be evaluated on an ongoing basis without committing to the mobility decision prematurely. Frequent communication regarding needed skills, job expectations, and responsibilities will help facilitate a smooth transition once the organ ization decides to offer the employee a higher- level position.

LEGAL ISSUES

The mobility of people within the organ ization, particularly upward, has long been a matter of equal employment opportunity/affirmative action (EEO/AA) concern. The workings of the internal labor market rely heavi ly on internal recruitment activities. Like external recruitment activities, internal recruitment activities can operate in exclusionary ways, resulting in unequal promotion opportunities, rates, and results for certain groups of employees— particularly women, minorities, people with disabilities, and veterans. Both the Equal Employment Opportunity Commis- sion (EEOC) and the Office of Federal Contract Compliance Programs (OFCCP) have strong positions on improving advancement for these targeted groups. Se niority systems are likewise subject to legal scrutiny, particularly regarding what consti- tutes a bona fide system under the law. More recently, promotion systems have been studied as they relate to the glass ceiling effect and the kinds of barriers that have been found to stifle the upward rise of minorities and women in organ izations.

099-67811_ch06_4P.indd 295 11/17/17 12:37 PM

296 PART THREE Staffing Activities: Recruitment

Affirmative Action Programs

As is the case with external recruitment, the EEOC and OFCCP require strong actions by the organ ization to improve promotion opportunities and results for pro- tected groups. The EEOC provides a set of employer best- practice ideas for such actions. The list is shown in Exhibit 6.9.

Bona Fide Se niority Systems

Title VII (see Chapter 2) explic itly permits the use of bona fide se niority systems as long as they are not the result of an intention to discriminate. This position pres ents the organ ization with a serious dilemma. Past discrimination in external staffing may have resulted in a predominantly white male workforce. A change to a nondiscriminatory external staffing system may increase the presence of women and minorities within an organ ization, but they will still have less se niority than the white males. If eligibility for promotion is based on se niority and/or if se niority is an actual factor considered in promotion decisions, those with less se niority are less likely to be promoted. Thus, the se niority system will have an adverse impact on women and minorities, even though there is no current intention to discrimi- nate. Is such a se niority system bona fide?

Two points are relevant here. First, the law does not define “se niority system.” Generally, however, any established system that uses length of employment as a basis for making decisions (such as promotion decisions) is interpreted as a se niority system. Promotions based on ad hoc judgments about which candidates are “more experienced,” however, would not likely be considered a bona fide se niority system.20 Se niority systems can and do occur outside the context of a collective bargaining agreement.

Second, current interpretation is that, in the absence of discriminatory intent, virtually any se niority system is likely to be bona fide, even if it causes adverse impact.21 This interpretation incentivizes the organ ization not to change its cur- rent seniority- based practices or systems. Other pressures, such as the Affirma- tive Action Program Regulations or a voluntary affirmative action plan (AAP), create an incentive to change in order to eliminate the occurrence of adverse impact in promotion. The organ ization thus must carefully consider exactly what its posture will be toward se niority practices and systems within the context of its overall AAP.

Under the Americans With Disabilities Act (ADA), there is potential conflict between needing to provide reasonable accommodation to an employee (such as job reassignment) and provisions of the organ ization’s se niority system (such as bidding for jobs based on se niority). According to the Supreme Court, it will ordinarily be unreasonable (undue hardship) for a reassignment request to prevail over the se niority system unless the employee can show some special circumstances that warrant an exception.

099-67811_ch06_4P.indd 296 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 297

• Establish a policy for promotion and career advancement, including criteria, procedures, responsible individuals, and the applicability of diversity and affirmative action.

• Engage in short-term and long-term strategic planning: —Define aims;

—Identify the applicable barriers to equal employment opportunity;

—Make a road map for implementing the plan.

• Establish a communication network notifying interested persons of opportunities, including advertising within the organization and, where applicable, not only with the general media, but with minority, persons with disabilities, older persons, and women-focused media.

• Communicate the competencies, skills, and abilities required. • Provide for succession planning. • Build talent pools. • Develop career plans and programs for high potential employees. • Provide sufficient training and opportunities for additional education. • Ensure that tools for continuous learning and optimum job performance are available. • Provide tools to enable employees to self-manage careers. • Provide job transfer/rotation programs for career enhancing developmental experiences. • Provide employee resource centers, so individuals may have more opportunities to develop

career plans.

• Establish mentoring and networking programs and systems to help develop high potential individuals.

• Eliminate practices which exclude or present barriers to minorities, women, persons with disabilities, older persons, or any individuals.

• Ensure that personnel involved in the promotion and advancement process are well trained in their equal employment opportunity responsibilities.

• Include progress in equal employment opportunity in advancement and promotion as factors in management evaluation.

EXHIBIT 6.9 Best-Practice Promotion Ideas From the EEOC

Source: EEOC, “Best Practices of Private Sector Employees,” 2013 (www.eeoc.gov/eeoc/task_reports /best_practices.cfm).

099-67811_ch06_4P.indd 297 11/17/17 12:37 PM

298 PART THREE Staffing Activities: Recruitment

The Glass Ceiling

The “glass ceiling” is a term used to characterize strong but invisible barriers to promotion in the organ ization, particularly to the highest levels, for women and minorities. Evidence demonstrating the existence of a glass ceiling is substantial. The overall labor force is 74% white and 54% male. At the very top in large cor- porations, senior- level man ag ers are overwhelmingly white males. As one goes down the hierarchy and across industries, a more mixed pattern of data emerges. EEOC data show that nationwide the percentage of women who are officials and man ag ers has increased to over 36.4%. In some industries, particularly health care, retail, legal ser vices, and banking, the percentage of women man ag ers is substantially higher. Women account for over 51% of employees in management, professional, and related occupations. In other industries, such as manufacturing, trucking, and architectural/engineering ser vices, the percentage of women man ag- ers is much lower (13%–18%).22 An impor tant study of women’s repre sen ta tion in the corporate pipeline across 118 diverse companies found that their repre sen ta tion decreased as follows: entry- level professional (43%), man ag er (37%), se nior man- ager/director (32%), vice president (27%), se nior vice president (23%), C- suite (17%). Moreover, women’s expected repre sen ta tion at each level was 15% lower than that of men, suggesting broad promotion barriers.23

Unfortunately, similar kinds of data for minorities are not available, though few doubt a general underrepre sen ta tion of minorities in managerial roles as well. Thus, the closer to the top of the hierarchy, the thicker the glass in the ceiling. At lower levels, the glass becomes much thinner. Across industries, there are substan- tial variations in this pattern.

Where glass ceilings exist, two impor tant questions should be asked: What are the reasons for a lack of upward mobility and repre sen ta tion for minorities and women at higher levels of the organ ization? What changes need to be made, espe- cially staffing- related ones, to help shatter the glass ceiling?

Barriers to Mobility An obvious conclusion from such data is that there are barriers to mobility, many of which originate from within the organ ization. The Federal Glass Ceiling Com- mission conducted a four- year study of glass ceilings and barriers to mobility. It identified many barriers: lack of outreach recruitment practices, lack of mentor- ing training in revenue- generating areas, lack of access to critical developmental assignments, initial se lection for jobs in staff areas outside the upward pipeline to top jobs, biased per for mance ratings, little access to informal networks, and harassment by colleagues.24 Added to this list should be another impor tant barrier, namely, child rearing and domestic responsibilities that create difficult work/life balance choices.

The study mentioned above of women in corporate pipelines in 118 compa- nies looked at repre sen ta tion in line roles (positions focused on core operations

099-67811_ch06_4P.indd 298 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 299

and with profit and loss responsibility) and staff roles (support positions for line management, such as legal, accounting, human resources, and IT). Going up the hierarchy, women increasingly held staff roles, while men did not. Since promo- tion to senior- level line positions usually requires line experience, women’s chances of advancement to se nior line roles lessened. This finding is consistent with the findings of the Federal Glass Ceiling Commission, and it highlights the critical importance of line role experience for advancement to top leadership positions.25

Other causal factors for advancement disparities also were found. These included somewhat less desire by women for a top job (especially due to stress/pressure of the role, and lack of interest in the role); women’s perceptions that they have fewer opportunities than men and that their gender has inhibited their advancement suc- cess so far; a belief that gender diversity is not a priority for their CEO or direct man ag er; low participation in work flexibility (e.g., part- time schedule, family leave), professional development (e.g., coaching sessions, executive training), and family- oriented flexibility programs (e.g., maternity leave) due partly to fear of being penalized for using the program; uneven distribution of house hold/child care chores; and fewer men in women’s professional networks.

Overcoming Barriers It is generally recognized that multiple actions, many of them beyond just staffing- system changes, will be needed to overcome barriers to mobility. Exhibit 6.10 shows a suggested listing of such actions. They include both recruitment and other actions.

In terms of specific recruitment practices that may help eliminate the glass ceiling, we offer the following suggestions. Begin with the creation or clarification of mobility paths, particularly alternative paths that will facilitate a free-flow of people to jobs and upward movement. Clearly show upward paths to top management positions, and communicate these paths to everyone. Then, develop and communicate mobility policies that will foster and encourage upward mobility, accompanied by important KSAOs for that mobility. For those KSAOs, pay particular attention to job performance, specific job/project experiences, and training or development experiences. This will help keep the focus on job-related criteria for advancement. The mobility policies and criteria should then be linked in with replacement and succession planning, allowing for identifying candidates for promotion well in advance, creating gender-balanced pools for candidate promotion, identifying training and experience deficiencies that might be holding back women or minorities, and planning appropriate remedies (such as through a career development center). Finally, use recruitment strategy and plans that emphasize broad-based scanning for, and communication with, potential candidates. Recruit through both hierarchical and alternative career paths.

EXHIBIT 6.10

099-67811_ch06_4P.indd 299 11/17/17 12:37 PM

300 PART THREE Staffing Activities: Recruitment

An example of a far- reaching diversity initiative to expand the internal diversity pipeline is the Championing Change for Women: An Integrated Strategy program at Safeway, a retail grocery giant. A focal point is the Retail Leadership Develop- ment (RLD) program, a formal full- time career development program for entry- level grocery store employees to prepare them for moving up into the management ranks (90% of store man ag ers and above come through the program). The program has a par tic u lar focus on women and people of color. Employees apply for the program by taking a retail knowledge and skill exam. Those who complete the program are immediately assigned to a store as an assistant man ag er— the stepping stone to further advancement. To support the advancement program, all man ag ers attend a managing diversity workshop, receive additional on- the- job education, and have access to a toolkit to help them incorporate diversity discussions into their staff meetings. Man ag ers are evaluated in part on their success in meeting diversity goals, and bonus money is riding on that success. Every man ag er is also expected to serve as a mentor, helping his or her protégés acquire the KSAOs necessary for continued advancement. Other ele ments of the program include strong support and participation from the CFO and from women’s leadership network groups (for black, Asian, Hispanic, and LGBT [lesbian, gay, bisexual, and transgender] employees), modification of a requirement to relocate in order to gain experience, and work/life balance initiatives for employees with and without children. Since the program was initiated, the number of women who qualified for and completed the RLD program has risen 37%, and the number of women store man ag ers has increased by 42% (31% for white women and 92% for women of color).26

In summary, solutions to the glass ceiling prob lem require myriad points of attack. First, women and minorities must have visibility and support at top levels— from the board of directors, the CEO, and se nior management. That support must include actions to eliminate prejudice and ste reo types. Second, women and minori- ties must be provided with job opportunities and assignments that will allow them to develop the depth and breadth of KSAOs needed for ascension to, and success in, top management positions. These developmental experiences include assignments in multiple functions, management of diverse businesses, line management expe- rience with direct profit- loss and bottom- line accountability, diverse geographic assignments, and international experience. Naturally, the relative importance of these experiences will vary according to the type and size of the organ ization. Third, the organ ization must provide continual support for women and minorities to help ensure positive person/job matches. Included here are mentoring, training, and flexible work- hour systems. Fourth, the organ ization must gear up its inter- nal recruitment to aggressively and openly track and recruit women and minority candidates for advancement. Fi nally, the organ ization must develop and use valid methods of assessing the qualifications of women and minority candidates (see Chapters 8 and 9).27

099-67811_ch06_4P.indd 300 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 301

SUMMARY

The steps involved in the internal recruitment process— planning, strategy devel- opment, and communication— closely parallel those in the external recruitment pro cess. With internal recruitment, the search is conducted inside rather than out- side the organ ization. In situations where both internal and external searches are conducted, they need to be coordinated with each other.

The planning stage requires that the applicant population be identified. The pro- cess begins by understanding strategic recruitment goals. Next, an understanding of mobility paths in the organ ization and mobility path policies is a vital part of deciding how to implement internal recruitment. To access the internal applicant population, attention must be devoted in advance of the search to the number and types of contacts, the bud get, development of a recruitment guide, and timing. Understanding applicant reactions to internal recruitment policies is also crucial for developing effective systems.

When searching for candidates, the message to be communicated can be realistic, targeted, or branded. Which approach is best depends on the applicants, job, and organ ization. The message is usually communicated with a job posting. It should, however, be supplemented with other media, including input from potential peers and supervisors. Informal communication methods with information that cannot be verified or that is incomplete are to be discouraged.

There are a variety of internal methods for taking applications in the strategy implementation phase. These include posting information about jobs on the com- pany intranet and career development centers with interest inventories and coun- seling staff. Just as with external recruitment, multiple criteria must be considered in choosing internal sources.

The organ ization needs to provide the applicant with assistance for the transi- tion to se lection. This assistance requires that the applicant be made fully aware of the se lection pro cess and how to best prepare for it. Taking this step, along with providing well- developed job postings and clearly articulated mobility paths and policies in the organ ization, should help applicants see the internal recruitment system as fair.

Internal recruitment activities have long been the object of close legal scrutiny. Past and current regulations make several suggestions regarding desirable promo- tion system features. The relevant laws permit bona fide se niority systems, as long as they are not intentionally used to discriminate. Se niority systems may have the effect of impeding promotions for women and minorities because these groups have not had the opportunity to accumulate an equivalent amount of se niority as compared with that of white males. The glass ceiling refers to invisible barriers to upward advancement, especially to the top levels, for minorities and women. Stud- ies of promotion systems indicate that internal recruitment practices contribute to

099-67811_ch06_4P.indd 301 11/17/17 12:37 PM

302 PART THREE Staffing Activities: Recruitment

this barrier. As part of an overall strategy to shatter the glass ceiling, changes are now being experimented with for opening up internal recruitment. These include actions to eliminate ste reo types and prejudices, training and developmental experi- ences, mentoring, aggressive recruitment, and use of valid se lection techniques.

DISCUSSION QUESTIONS

1. Traditional career paths emphasize strict upward mobility within an organ- ization. How does mobility differ in organ izations with innovative career paths? List three innovative career paths discussed in this chapter and describe how mobility occurs in each.

2. A sound promotion policy is impor tant. List the characteristics necessary for an effective promotion policy.

3. Compare and contrast a closed internal recruitment system with an open internal recruitment system.

4. What information should be included in the targeted internal communication message?

5. Exhibit 6.10 contains many suggestions for improving the advancement of women and minorities. Choose the three suggestions you think are most impor tant and explain why.

ETHICAL ISSUES

1. MDN, Inc., is considering two employees for the job of se nior man ag er. An internal candidate, Julie, has been with MDN for 12 years and has received very good per for mance evaluations. The other candidate, Raoul, works for a competitor and has valuable experience in the product market into which MDN wishes to expand. Do you think MDN has an obligation to promote Julie? Why or why not?

2. Do organ izations have an ethical obligation to have a succession plan in place? If no, why not? If so, what is the ethical obligation, and to whom is it owed?

APPLICATIONS

Recruitment in a Changing Internal Labor Market

Mitchell Shipping Lines is a distributor of goods on the Great Lakes. It also manu- factures shipping containers used to store the goods while in transit. The subsidiary that manufactures these containers is Mitchell- Cole Manufacturing, and the presi- dent and CEO is Zoe Brausch.

099-67811_ch06_4P.indd 302 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 303

Brausch is in the middle of converting the manufacturing system from an assem- bly line to autonomous work teams. Each team will be responsible for producing a separate type of container and will have dif fer ent tools, machinery, and manufac- turing routines for its par tic u lar type of container. Members of each team will have the job title “assembler,” and each team will be headed by a leader. Brausch would like all leaders to come from the ranks of current employees, in terms of both the initial set of leaders and the leaders in the future as vacancies arise. In addition, she wants to discourage employee movement across teams in order to build team identity and cohesion. The current internal labor market, however, pres ents a for- midable potential obstacle to her internal staffing goals.

In the long history of the container manufacturing fa cil i ty, employees have always been treated like union employees even though the fa cil i ty is nonunion. Such treat- ment was desired many years ago as a strategy to remain nonunion. It was manage- ment’s belief that if employees were treated like union employees, they would have no need to vote for a union. A cornerstone of the strategy is use of what every one in the fa cil i ty calls the “blue book.” The blue book looks like a typical labor contract, and it spells out all terms and conditions of employment. Many of those terms apply to internal staffing and are typical of traditional mobility systems found in unionized work settings. Specifically, internal transfers and promotions are gov- erned by a facility- wide job posting system. A vacancy is posted throughout the fa cil i ty and remains open for 30 days; identified entry- level jobs that are filled only externally is an exception here. Any employee with two or more years of se niority is eligible to bid for any posted vacancy; employees with less se niority may also bid, but they are considered only when no two- year- plus employees apply or are cho- sen. Internal applicants are assessed by the hiring man ag er and a representative from the HR department. They review applicants’ se niority, relevant experience, past per for mance appraisals, and other special KSAOs. The blue book requires that the most se nior employee who meets the desired qualifications receive the transfer or promotion. Thus, se niority is weighted heavi ly in the decision.

Brausch is worried about the current internal labor market, especially for recruitment and choosing team leaders. These leaders will likely be required to have many KSAOs that are more impor tant than se niority, and KSAOs likely to not even be positively related to se niority. For example, team leaders will need to have advanced computer, communication, and interpersonal skills. Brausch thinks that these skills will be critical for team leaders and that they will more likely be found among ju nior rather than se nior employees. Brausch is in a quandary. She asks for your responses to the following questions:

1. Should se niority be eliminated as an eligibility standard for bidding on jobs— meaning the two- year- plus employees would no longer have priority?

2. Should the job posting system simply be eliminated? If so, what should replace it?

099-67811_ch06_4P.indd 303 11/17/17 12:37 PM

304 PART THREE Staffing Activities: Recruitment

3. Should a strict promotion- from- within policy be maintained? Why or why not?

4. How can career mobility paths be developed that would allow across- team movement without threatening team identity and cohesion?

5. If a new internal labor market system is to be put in place, how should it be communicated to employees?

Succession Planning for a CEO

Lone Star Bank, based in Amarillo, is the fourth- largest bank in Texas. Its leader, Harry “Tex” Ritter, has been with the com pany for 30 years, the last 12 in his cur- rent position as president and CEO. The last three years have been difficult for Lone Star, as earnings have been below average for the industry, and shareholders have grown increasingly impatient. Last month’s quarterly earnings report was the proverbial last straw for the board. Particularly troublesome was Ritter’s failure to invest enough of Lone Star’s assets in higher- yielding investments. Though banks are carefully regulated in terms of their investment strategies, Ritter’s investment strategy was conservative even for a bank.

In a meeting last week, the board deci ded to allow Ritter to serve out the last year of his contract and then replace him. An attractive severance package was hastily put together; when it was presented to Ritter, he agreed to its terms and conditions. Although the board feels it has made a positive step, it is unsure how to identify a successor. When the board members met with Ritter, he indicated that he thought the bank’s se nior vice president of operations, Bob Bowers, would be an able successor. Some members of the board think they should follow Ritter’s suggestion because he knows the inner workings of the bank better than anyone on the board. Others are not sure what to do.

1. How should Lone Star go about finding a successor to Ritter? Should Bowers be recruited to be the next CEO?

2. How should other internal candidates be identified and recruited? 3. Does Lone Star need a succession plan for the CEO position? If so, how

would you advise the board in setting up such a plan? 4. Should Lone Star have a succession plan in place for other individuals at the

bank? If so, why and for whom?

ENDNOTES

1. BMP Forum and Success Factors, Per for mance and Talent Management Trend Survey 2007 (San Mateo, CA: author, 2007).

2. B. L. Connelly, L. Tihanyi, T. R. Crook, and K. A. Gangloff, “Tournament Theory: Thirty Years of Contests and Competitions,” Journal of Management, 2014, 40, pp. 16–47.

099-67811_ch06_4P.indd 304 11/17/17 12:37 PM

CHAPTER SIX Internal Recruitment 305

3. S. E. Seibert, G. Wang, and S. H. Courtright, “Antecedents and Consequences of Psychologi- cal and Team Empowerment in Organ izations: A Meta- Analytic Review,” Journal of Applied Psy chol ogy, 2011, 96, pp. 981–1103; C. Chuang, S. E. Jackson, and Y. Jiang, “Can Knowledge- Intensive Teamwork Be Managed? Examining the Roles of HRM Systems, Leadership, and Tacit Knowledge,” Journal of Management, 2016, 42, pp. 524–554.

4. E. C. Dierdorff and E. A. Surface, “If You Pay for Skills, Will They Learn? Skill Change and Maintenance Under a Skill- Based Pay System,” Journal of Management, 2008, 34, pp. 721–743.

5. J. Gelens, N. Dries, J. Hofmans, and R. Pepermans, “The Role of Perceived Orga nizational Jus- tice in Shaping the Outcomes of Talent Management: A Research Agenda,” Human Resource Management Review, 2013, 23, pp. 341–353; J. A. Colquitt, B. A. Scott, J. B. Rodell, D. M. Long, C. P. Zapata, D. E. Conlon, and M. J. Wesson, “Justice at the Millennium, a De cade Later: A Meta- Analytic Test of Social Exchange and Affect- Based Perspectives,” Journal of Applied Psy­ chol ogy, 2013, 98, pp. 199–236; A. L. García- Izquierdo, S. Moscoso, and P. J. Ramos- Villagrasa, “Reactions to the Fairness of Promotion Methods: Procedural Justice and Job Satisfaction,” International Journal of Se lection and Assessment, 2012, 20, pp. 394–403.

6. R. Fisher and R. McPhail, “Internal Labour Markets as a Strategic Tool,” The Ser vice Industries Journal, Oct. 2010, pp. 1–16.

7. D. G. Collings and K. Mellahi, “Strategic Talent Management: A Review and Research Agenda,” Human Resource Management Review, 2009, 19, pp. 304–313.

8. D. K. Ford, D. M. Truxillo, and T. N. Bauer, “Rejected but Still There: Shifting the Focus in Applicant Reactions to the Promotional Context,” International Journal of Se lection and Assessment, Dec. 2009, pp. 402–416; J. R. Webster and T. A. Beehr, “Antecedents and Outcomes of Employee Perceptions of Intra- organizational Mobility Channels,” Journal of Orga nizational Be hav ior, 2013, 34, pp. 919–941.

9. US Office of Personnel Management, Human Capital Assessment and Accountability Framework (Washington, DC: author, 2005); A. Gakovic and K. Yardley, “Global Talent Management at HSBC,” Organ ization Development Journal, 2007, 25, pp. 201–206; E. Frauenheim, “Talent— Management Keeping Score With HR Analytics Software,” Workforce Management, May 21, 2007, pp. 25–33; K. Oakes, “The Emergence of Talent Management,” T + D, Apr. 2006, pp. 21–24.

10. N. Glube, J. Huxtable, and A. Stanard, “Creating New Temporary Hire Options Through In- House Agencies,” Staffing Management Magazine, June 2002 (www . shrm . org) .

11 . L. J. Weiner, “The Temp Staffing Solution That’s Right Under Your Nose,” HealthLeaders Media, May 18, 2015 (www . healthleadersmedia . com); R. Mauer, “Flexible Work Options in Health Care Can Result in a Win- Win,” HR Today, June 19, 2016 (www . shrm . org).

12 . T. W. Fitzsimmons and V. J. Callan, “CEO Se lection: A Capital Perspective,” Leadership Quar­ terly, Oct. 2016, 27, pp. 765–787.

13. R. Hooijberg and N. Lane, “How Boards Botch CEO Succession,” MIT Sloan Management Review, Apr. 21, 2016 (sloanreview . mit . edu); G. McKee and K. Froelich, “Executive Succession Planning: Barriers and Substitutes in Nonprofit Organ izations,” Annals of Public and Coopera­ tive Economics, 2016, 87, pp. 587–610.

14. National Association of Corporate Directors, The Role of the Board in Corporate Succession (Washington, DC: author, 2006); S. Bates, “Putting a Spotlight on CEO Succession,” HR Maga­ zine, Dec. 2015, pp. 53–56.

15. F. Anseel and F. Lievens, “An Examination of Strategies for Encouraging Feedback Interest After Career Assessment,” Journal of Career Development, 2007, 33, pp. 250–268; T. F. Harrington and T. A. Harrigan, “Practice and Research in Career Counseling and Development—2005,” Career Development Quarterly, 2006, 55, pp. 98–167.

099-67811_ch06_4P.indd 305 11/17/17 12:37 PM

306 PART THREE Staffing Activities: Recruitment

16. T. Minton- Eversole, “Continuous Learning—in Many Forms— Remains Top Recruitment, Reten- tion Tool,” SHRM Online Recruitment & Staffing Focus Area, Feb. 2006 (www . shrm . org); Soci- ety for Human Resource Management, 2007 Job Satisfaction (Alexandria, VA: author, 2007).

17. I. Speizer, “The State of Training and Development: More Spending, More Scrutiny,” Workforce Management, May 22, 2006, pp. 25–26.

18. R. Maurer, “Internal Recruitment Critical to Hiring, Retention: But Few Companies Have Formal Programs,” SHRM, Dec. 2, 2015 (www . shrm . org / resourcesandtools / hr ­ topics / talent ­ acquisition / pages / internal ­ recruitment ­ critical ­ hiring ­ retention . aspx).

19 . H. Monarth, “Evaluate Your Leadership Development Program,” Harvard Business Review, Jan. 22, 2015, pp. 2–4; R. Ashkenas and R. Hausmann, “Leadership Development Should Focus on Experiments,” Harvard Business Review, Apr. 12, 2016, pp. 2–4.

20. D. J. Walsh, Employment Law for Human Resource Practice, 2nd ed. (Mason, OH: Thomson Higher Education, 2007), p. 207.

21. Bureau of National Affairs, Fair Employment Practices (Arlington, VA: author, 2007), sec. 421: 161–166.

22. Equal Employment Opportunity Commission, Glass Ceilings: The Status of Women as Officials and Man ag ers in the Private Sector (Washington, DC: author, 2004).

23 . LeanIn . Org and McKinsey, “ Women in the Workplace,” McKinsey&Com pany, Sept. 2015 (women intheworkplace . com), accessed Jan. 22, 2016.

24. Federal Glass Ceiling Commission, “Good for Business: Making Full Use of the Nation’s Human Capital— Fact- Finding Report of the Federal Glass Ceiling Commission,” Daily Labor Report, Bureau of National Affairs, Mar. 17, 1995, Special Supplement, p. S6.

25. J. Green, “This Is Not a Trend,” Bloomberg Business Week, Sept. 1, 2014, pp. 19–20. 26. A. Pomeroy, “Cultivating Female Leaders,” HR Magazine, Feb. 2007, pp. 44–50. 27. K. L. Lyness and D. E. Thompson, “Climbing the Corporate Ladder: Do Male and Female

Executives Follow the Same Route?” Journal of Applied Psy chol ogy, 2000, 85, pp. 86–101; S. J. Wells, “A Female Executive Is Hard to Find,” HR Magazine, June 2001, pp. 40–49; S. J. Wells, “Smoothing the Way,” HR Magazine, June 2001, pp. 52–58; S. Shellenbarger, “The XX Factor: What’s Holding Women Back?” Wall Street Journal, May 7, 2012, pp. B7– B12; D. J. Walsh, Employment Law for Human Resource Practice, 5th ed. (Boston: Cengage Learning, 2016), pp. 250–255.

099-67811_ch06_4P.indd 306 11/17/17 12:37 PM

099-67811_ch07_4P.indd 307 10/31/17 10:14 PM

The Staffing Organizations Model

Organization

Mission Goals and Objectives

Organization Strategy

HR and Sta�ng Strategy

Sta�ng Policies and Programs

Sta�ng System and Retention Management

Legal compliance Planning Job analysis and rewards

Recruitment: external, internal Selection: measurement, external, internal Employment: decision making, final match

Core Sta�ng ActivitiesSupport Activities

099-67811_ch07_4P.indd 308 10/31/17 10:14 PM

PA R T F O U R

Staffing Activities: Se lection

C H A P T E R S E V E N Mea­sure­ment

C H A P T E R E I G H T External­Se­lection­I

C H A P T E R N I N E External­Se­lection­II

C H A P T E R T E N Internal­Se­lection

099-67811_ch07_4P.indd 309 10/31/17 10:14 PM

099-67811_ch07_4P.indd 310 10/31/17 10:14 PM

C H A P T E R S E V E N

Mea sure ment

Learning Objectives and Introduction Learning­Objectives Introduction

Importance and Use of Mea sures

Key Concepts Mea­sure­ment Scores Correlation­Between­Scores

Quality of Mea sures Reliability­of­Mea­sures Validity­of­Mea­sures Validation­of­Mea­sures­in­Staffing Validity­Generalization Staffing­Metrics­and­Benchmarks

Collection of Assessment Data Testing­Procedures Acquisition­of­Tests­and­Test­Manuals Professional­Standards

Legal Issues Determining­Adverse­Impact Standardization Best­Practices

Summary

Discussion Questions

Ethical Issues

099-67811_ch07_4P.indd 311 10/31/17 10:14 PM

Applications Evaluation­of­Two­New­Assessment­Methods­for­Selecting­Telephone­

Customer­Ser­vice­Representatives Conducting­Empirical­Validation­and­Adverse­Impact­Analy­sis

Endnotes

099-67811_ch07_4P.indd 312 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 313

LEARNING OBJECTIVES AND INTRODUCTION

Learning Objectives

•­Define­validity­and­consider­the­relationship­between­reliability­and­validity •­Compare­ and­ contrast­ the­ two­ types­ of­ validation­ studies­ that­ are­ typically­

conducted •­Consider­ how­ validity­ generalization­ affects­ and­ informs­ validation­ of­ mea­

sures­in­staffing •­Review­the­primary­ways­assessment­data­can­be­collected

Introduction

In­staffing,­mea­sure­ment­is­a­pro­cess­used­to­gather­and­express­information­about­ ­people­and­jobs­in­numerical­form.­Mea­sure­ment­is­critical­to­staffing­­because,­as­ far­as­se­lection­decisions­are­concerned,­a­se­lection­decision­can­only­be­as­effec­ tive­as­the­mea­sures­on­which­it­is­based.

The­ first­ part­ of­ this­ chapter­ pres­ents­ the­ pro­cess­ of­ mea­sure­ment­ in­ staffing­ decisions.­ ­After­ showing­ the­ vital­ importance­ and­ uses­ of­ mea­sure­ment­ in­ staff­ ing­activities,­the­chapter­then­discusses­three­key­concepts.­The­first­concept­is­ that­ of­ mea­sure­ment­ itself,­ along­ with­ the­ issues­ raised­ by­ it—­standardization­ of­ mea­sure­ment,­ levels­ of­ mea­sure­ment,­ and­ the­ difference­ between­ objective­ and­ subjective­ mea­sures.­ The­ second­ concept­ is­ that­ of­ scoring­ and­ how­ to­ express­ scores­in­ways­that­help­facilitate­their­interpretation.­The­final­concept­is­that­of­ correlations­between­scores,­particularly­as­expressed­by­the­correlation­coefficient­ and­its­significance.­Calculating­correlations­between­scores­is­a­very­useful­way­to­ learn­even­more­about­the­meaning­of­scores.

What­ is­ the­ quality­ of­ the­ mea­sures­ used­ in­ staffing?­ How­ sound­ are­ they­ as­ indicators­of­the­attributes­being­mea­sured?­Answers­to­­these­questions­lie­in­the­ reliability­and­validity­of­the­mea­sures­and­the­scores­they­yield.­­There­are­multiple­ ways­of­­doing­reliability­and­validity­analy­sis;­­these­methods­are­discussed­in­con­ junction­with­numerous­examples­drawn­from­staffing­situations.­As­­these­exam­ ples­ show,­ the­ quality­ of­ staffing­ decisions­ (e.g.,­ who­ to­ hire­ or­ reject)­ depends­ heavi­ly­ on­ the­ quality­ of­ mea­sures­ and­ scores­ used­ as­ inputs­ to­ ­these­ decisions.­ Some­organ­izations­rely­only­on­common­staffing­metrics­and­benchmarks—­what­ leading­ organ­izations­ are­ ­doing—to­ mea­sure­ effectiveness.­ Though­ benchmarks­ have­their­value,­reliability­and­validity­are­the­real­keys­in­assessing­the­quality­of­ se­lection­mea­sures.

An­impor­tant­practical­concern­involved­in­the­pro­cess­of­mea­sure­ment­is­the­ collection­of­assessment­data.­Decisions­about­testing­procedures­(who­is­qualified­ to­test­applicants,­what­information­should­be­disclosed­to­applicants,­and­how­to­ assess­applicants­with­standardized­procedures)­need­to­be­made.­The­collection­ of­assessment­data­also­includes­the­acquisition­of­tests­and­test­manuals.­This­pro­cess­

099-67811_ch07_4P.indd 313 10/31/17 10:14 PM

314 PART FOUR Staffing­Activities:­Se­lection

­will­vary­depending­on­­whether­paper­­and­­pencil­or­computerized­se­lection­mea­ sures­are­used.­Fi­nally,­in­the­collection­of­assessment­data,­organ­izations­need­to­ attend­to­professional­standards­that­govern­proper­use­of­the­data.

Mea­sure­ment­ concepts­ and­ procedures­ are­ directly­ involved­ in­ ­legal­ issues,­ particularly­ equal­ employment­ opportunity­ and­ affirmative­ action­ (EEO/AA)­ issues.­This­requires­collection­and­analy­sis­of­applicant­f low­and­stock­statis­ tics.­Also­reviewed­are­methods­for­determining­adverse­impact,­standardization­of­ mea­sures,­and­best­practices­as­suggested­by­the­Equal­Employment­Opportunity­ Commission­(EEOC).

IMPORTANCE AND USE OF MEA SURES

Mea­sure­ment­is­one­of­the­key­ingredients­for,­and­tools­of,­staffing­organ­izations.­ Indeed,­ it­ is­ virtually­ impossible­ to­ have­ any­ type­ of­ systematic­ staffing­ pro­cess­ that­does­not­use­mea­sures­and­an­accompanying­mea­sure­ment­pro­cess.­Further­ more,­with­the­rise­of­the­big­­data­paradigm,­along­with­“fast­data”­looming­on­ the­ horizon,­ the­ importance­ of­ having­ large­­scale,­ instantaneous,­ diverse,­ and­ readily­available­data­upon­which­to­make­dynamic­staffing­decisions­is­becoming­ more­and­more­salient­for­organ­izations.1­Big­­data­sources­such­as­data­obtained­ through­“web­scraping”­(i.e.,­mining­large­amounts­of­information­from­websites)­ and­the­less­widely­accessible­organ­ization­or­government­agency­data­repositories­ are­ being­ used­ more­ frequently­ and­ are­ poised­ to­ change­ the­ nature­ of­ staffing­ by­ catalyzing­ advancements­ in­ adverse­ impact­ analyses,­ leveraging­ social­ media­ for­ diversity­ in­ recruitment­ initiatives­ and­ other­ staffing­ pro­cesses,­ and­ mining­ internal­databases­to­identify­star­employees­as­candidates­for­promotion.2­Despite­ the­explosion­of­interest­surrounding­this­topic,­many­critics­note­that­most­HR­ professionals­do­not­understand­big­data­and­that­proponents­of­big­data­have­for­ the­ most­ part­ failed­ to­ connect­ ­these­ approaches­ to­ increasing­ the­ bottom­ line.­ Dan­Ariely­likened­big­data­to­young­romance,­noting­that­“every­one­talks­about­ it,­ nobody­ ­really­ knows­ how­ to­ do­ it,­ every­one­ thinks­ every­one­ ­else­ is­ ­doing­ it,­ so­every­one­claims­they­are­­doing­it.”3­Regardless,­big­data­and­HR­analytics­are­ impor­tant­ signs­ of­ the­ times­ that­ hold­ clear­ implications­ for­ mea­sure­ment­ pro­ cesses­and­quality.

Mea­sures­are­methods­or­techniques­for­describing­and­assessing­attributes­that­ are­of­concern­to­us.­Examples­include­tests­of­applicants’­knowledge,­skill,­ability,­ and­other­characteristics­(KSAOs)­such­as­personality;­evaluations­of­employees’­ job­per­for­mance;­and­applicants’­ratings­of­their­preferences­for­vari­ous­types­of­ job­rewards.­­These­assessments­of­attributes­are­gathered­through­the­mea­sure­ment­ pro­cess,­which­consists­of­(1)­choosing­an­attribute­of­concern,­(2)­developing­an­ operational­definition­of­the­attribute,­(3)­constructing­a­mea­sure­of­the­attribute­ (if­no­suitable­mea­sure­is­available)­as­it­is­operationally­defined,­and­(4)­using­the­ mea­sure­to­actually­gauge­the­attribute.

099-67811_ch07_4P.indd 314 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 315

The­ goal­ of­ the­ mea­sure­ment­ pro­cess­ is­ to­ produce­ a­ number­ or­ score­ for­ a­ given­attribute,­which­can­then­be­used­to­differentiate­individuals­and­make­deci­ sions­ about­ them.­ For­ example,­ applicants’­ scores­ on­ an­ ability­ test,­ employees’­ per­for­mance­evaluation­rating­scores,­and­applicants’­ratings­of­rewards­in­terms­ of­ their­ importance­ become­ indicators­ of­ the­ attribute.­ Information­ about­ ­these­ attributes­is­then­used­to­make­decisions­about­who­to­hire,­who­to­promote,­and­ how­to­reward­an­employee­for­good­per­for­mance.­Thus,­through­the­mea­sure­ment­ pro­cess,­the­initial­attribute­and­its­operational­definition­are­transformed­into­a­ numerical­expression­of­the­attribute.

KEY CONCEPTS

This­ section­ covers­ a­ series­ of­ key­ concepts­ in­ three­ major­ areas:­ mea­sure­ment,­ scores,­and­correlation­between­scores.

Mea sure ment

In­the­preceding­discussion,­the­essence­of­mea­sure­ment­and­its­importance­and­ use­in­staffing­­were­described.­It­is­impor­tant­to­define­the­term­“mea­sure­ment”­ more­formally­and­explore­implications­of­that­definition.

Definition Mea­sure­ment­ may­ be­ defined­ as­ the­ pro­cess­ of­ assigning­ numbers­ to­ objects­ to­ represent­quantities­of­an­attribute­of­the­objects.4­Exhibit­7.1­depicts­the­general­ pro­cess­ of­ the­ use­ of­ mea­sures­ in­ staffing,­ along­ with­ an­ example­ for­ the­ job­ of­ information­ technology­ analyst.­ The­ first­ step­ in­ mea­sure­ment­ is­ to­ choose­ and­ define­an­attribute­(also­called­a­construct)­to­be­mea­sured.­In­the­example,­this­is­ knowledge­of­programming­languages.­Then,­a­mea­sure­must­be­developed­for­the­ attribute­so­that­it­can­be­physically­mea­sured.­In­the­example,­a­paper­­and­­pencil­ test­ is­ developed­ to­ mea­sure­ programming­ knowledge,­ and­ this­ test­ is­ adminis­ tered­to­applicants.­Once­the­attribute­is­physically­mea­sured,­numbers­or­scores­ are­ determined­ (in­ the­ example,­ the­ programming­ knowledge­ test­ is­ scored).­ At­ that­point,­the­applicants’­scores­are­evaluated­(which­scores­meet­the­job­require­ ments)­and­a­se­lection­decision­can­be­made­(e.g.,­hire­an­information­technology­ analyst).

Of­course,­in­practice,­this­textbook­pro­cess­is­often­not­followed­explic­itly,­and­ thus­se­lection­errors­are­more­likely.­For­example,­if­the­methods­used­to­determine­ scores­on­an­attribute­are­not­explic­itly­determined­and­evaluated,­the­scores­them­ selves­may­be­incorrect.­Similarly,­if­the­evaluation­of­the­scores­is­not­systematic,­ each­se­lection­decision­maker­may­put­his­or­her­own­spin­on­the­scores,­thereby­ defeating­the­purpose­of­careful­mea­sure­ment.­The­best­way­to­avoid­­these­prob­ lems­is­for­all­­those­involved­in­se­lection­decisions­to­go­through­each­step­of­the­

099-67811_ch07_4P.indd 315 10/31/17 10:14 PM

316 PART FOUR Staffing­Activities:­Se­lection

mea­sure­ment­pro­cess­depicted­in­Exhibit­7.1,­apply­it­to­the­job(s)­in­question,­and­ reach­agreement­at­each­step­of­the­way.

Standardization The­hallmark­of­sound­mea­sure­ment­practice­is­standardization.5­Standardization­ is­ a­ means­ of­ controlling­ the­ influence­ of­ outside­ or­ extraneous­ ­factors­ on­ the­ scores­generated­by­the­mea­sure­and­ensuring­that,­as­much­as­pos­si­ble,­the­scores­ obtained­reflect­the­attribute­mea­sured.

A­standardized­mea­sure­has­three­basic­properties:

1.­ The­content­is­identical­for­all­objects­mea­sured­(e.g.,­all­job­applicants­take­ the­same­test).

2.­ The­ administration­ of­ the­ mea­sure­ is­ identical­ for­ all­ objects­ (e.g.,­ all­ job­ applicants­have­the­same­time­limit­on­a­test).

EXHIBIT 7.1 Use of Measures in Staffing

Choose and define attribute

General Process Example for Job of Information Technology Analyst

Knowledge of programming languages

Develop measure of attribute Develop objective paper-and-pencil test

Measure the attribute Administer test to job applicants

Determine number or score Determine test scores using scoring key

Make evaluation

Make decision Make hiring decisions

Evaluate scores relative to job requirements

099-67811_ch07_4P.indd 316 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 317

3.­ The­rules­for­assigning­numbers­are­clearly­specified­and­agreed­on­in­advance­ (e.g.,­a­scoring­key­for­the­test­is­developed­before­it­is­administered).

­These­seemingly­­simple­and­straightforward­characteristics­of­standardization­of­ mea­sures­have­substantial­implications­for­the­conduct­of­many­staffing­activities.­ ­These­implications­­will­become­apparent­throughout­the­remainder­of­this­text.­For­ example,­assessment­devices,­such­as­the­employment­interview­and­letters­of­ref­ erence,­often­fail­to­meet­the­requirements­for­standardization,­and­organ­izations­ must­undertake­steps­to­make­them­more­standardized.

Levels of Mea sure ment ­There­are­varying­degrees­of­precision­in­mea­sur­ing­attributes­and­in­represent­ ing­differences­among­object­attributes.­Accordingly,­­there­are­dif­fer­ent­levels­or­ scales­of­mea­sure­ment.6­It­is­common­to­classify­any­mea­sure­as­falling­into­one­ of­four­levels­of­mea­sure­ment:­nominal,­ordinal,­interval,­or­ratio.

Nominal. With­nominal­scales,­a­given­attribute­is­categorized,­and­numbers­are­ assigned­to­the­categories.­With­or­without­numbers,­however,­­there­is­no­order­or­ level­implied­among­the­categories.­The­categories­are­merely­dif­fer­ent,­and­none­ is­ higher­ or­ lower­ than­ the­ ­others.­ For­ example,­ each­ job­ title­ could­ represent­ a­ dif­fer­ent­ category,­ with­ a­ dif­fer­ent­ number­ assigned­ to­ it:­ customer­ ser­vice­ =­ 1,­ clerical­=­2,­sales­=­3,­and­so­forth.­Clearly,­the­numbers­do­not­imply­any­ordering­ among­the­categories­(sales­is­not­“better”­or­“worse”­than­clerical).

Ordinal. With­ordinal­scales,­objects­are­rank­ordered­according­to­how­much­ of­ the­attribute­they­possess.­Thus,­objects­may­be­ranked­from­best­to­worst­or­ from­highest­to­lowest.­For­example,­five­job­candidates,­each­of­whom­has­been­ evaluated­in­terms­of­overall­qualification­for­the­job,­might­be­rank­ordered­from­ 1­to­5,­or­highest­to­lowest,­according­to­their­job­qualifications.

Though­ useful­ for­ making­ clear­ distinctions­ between­ objects,­ rank­ orderings­ represent­ only­ relative­ differences­ among­ objects;­ they­ do­ not­ indicate­ the­ abso­ lute­levels­of­the­attribute.­Thus,­the­rank­ordering­of­the­five­job­candidates­does­ not­indicate­exactly­how­qualified­each­of­them­is­for­the­job,­nor­are­the­differ­ ences­in­their­ranks­necessarily­equal­to­the­differences­in­their­qualifications.­The­ differences­ in­ qualifications­ between­ applicants­ ranked­ 1­ and­ 2­ may­ not­ be­ the­ same­as­the­differences­between­­those­ranked­4­and­5.­Moreover,­forcing­objects­ to­be­ranked­creates­the­appearance­that­the­differences­between­two­objects­(e.g.,­ between­applicant­1­and­applicant­2)­are­“real”­and­significant,­when­in­fact­­those­ differences­may­be­trivial.­A­good­example­of­this­is­annual­rankings­of­business­ schools,­ where­ a­ switch­ from­ second­ to­ first­ place­ (and­ vice­ versa)­ is­ touted­ as­ noteworthy,­when­in­fact­the­differences­between­the­two­schools­are­prob­ably­not­ meaningful.7

099-67811_ch07_4P.indd 317 10/31/17 10:14 PM

318 PART FOUR Staffing­Activities:­Se­lection

Interval. Like­ordinal­scales,­interval­scales­allow­us­to­rank­order­objects.­How­ ever,­ the­ differences­ between­ adjacent­ points­ on­ the­ mea­sure­ment­ scale­ are­ now­ equal­in­terms­of­the­attribute.­If­an­interval­scale­is­used­to­rank­order­the­five­job­ candidates,­the­differences­in­qualifications­between­­those­ranked­1­and­2­are­equal­ to­the­differences­between­­those­ranked­4­and­5.

In­many­instances,­the­level­of­mea­sure­ment­falls­somewhere­between­an­ordi­ nal­scale­and­an­interval­scale.­That­is,­objects­can­be­clearly­rank­ordered,­but­the­ differences­ between­ the­ ranks­ are­ not­ necessarily­ equal­ throughout­ the­ mea­sure­ ment­scale.­In­the­example­of­the­five­job­candidates,­the­differences­in­qualifica­ tions­between­­those­ranked­1­and­2­might­be­slight­compared­with­the­differences­ between­­those­ranked­4­and­5.

Unfortunately,­this­in­­between­level­of­mea­sure­ment­is­characteristic­of­many­of­ the­mea­sures­used­in­staffing.­Though­it­is­not­a­major­prob­lem,­it­does­signal­the­ need­for­caution­in­interpreting­the­meaning­of­differences­in­scores­among­­people.

Ratio. Like­ interval­ scales,­ ratio­ scales­ have­ equal­ differences­ between­ scale­ points­for­the­attribute­being­mea­sured.­In­addition,­ratio­scales­have­a­logical­or­ absolute­ true­ zero­ point.­ ­Because­ of­ this,­ how­ much­ of­ the­ attribute­ each­ object­ possesses­can­be­stated­in­absolute­terms.

Normally,­ ratio­ scales­ are­ involved­ in­ counting­ or­ weighing­ ­things.­ Examples­ of­ratio­scales­abound­in­staffing­mea­sure­ment,­including­the­assessment­of­how­ much­ weight­ a­ candidate­ can­ carry­ over­ some­ distance­ for­ physically­ demand­ ing­ jobs­ such­ as­ firefighting­ or­ general­ construction.­ Perhaps­ the­ most­ common­ example­ is­ counting­ the­ years­ of­ job­ experience­ that­ job­ candidates­ have,­ where­ zero­is­a­meaningful­number­(indicating­no­job­experience).

Objective and Subjective Mea sures Frequently,­staffing­mea­sures­are­described­as­­either­objective­or­subjective.­The­ term­ “subjective”­ is­ often­ used­ in­ disparaging­ ways­ (“I­ ­can’t­ believe­ how­ sub­ jective­ that­ interview­ was;­ ­there’s­ no­ way­ they­ can­ rate­ me­ fairly­ on­ the­ basis­ of­it”).­Exactly­what­is­the­difference­between­so­­called­objective­and­subjective­ mea­sures?

The­difference,­in­large­part,­pertains­to­the­rules­used­to­assign­numbers­to­the­ attribute­being­assessed.­With­objective­mea­sures,­the­rules­are­predetermined­and­ usually­communicated­and­applied­through­some­sort­of­scoring­key­or­system.­For­ example,­consider­a­basketball­game,­where­the­total­points­a­team­receives­is­an­ objective­ mea­sure.­ In­ employment­ contexts,­ most­ paper­­and­­pencil­ tests­ are­ con­ sidered­objective.­The­scoring­systems­in­subjective­mea­sures­are­more­elusive­and­ often­involve­a­rater­or­judge­who­assigns­the­numbers.­For­example,­consider­a­ gymnastics­competition,­where­the­total­points­a­team­receives­is­a­more­subjective­ mea­sure,­depending­on­how­the­gymnasts­are­rated­by­each­judge.­In­employment­ contexts,­ many­ employment­ interviews­ fall­ into­ this­ category,­ especially­ ­those­

099-67811_ch07_4P.indd 318 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 319

wherein­the­interviewer­has­an­idiosyncratic­way­of­evaluating­­people’s­responses,­ one­that­is­not­known­or­shared­by­other­interviewers.

In­ princi­ple,­ any­ attribute­ can­ be­ mea­sured­ objectively­ or­ subjectively,­ and­ sometimes­ both­ are­ used.­ Research­ shows­ that­ when­ an­ attribute­ is­ mea­sured­ by­both­objective­and­subjective­means,­­there­is­often­relatively­low­agreement­ between­scores­from­the­two­types­of­mea­sures.­A­case­in­point­pertains­to­the­ attribute­of­job­per­for­mance.­Per­for­mance­may­be­mea­sured­objectively­through­ quantity­ of­ output,­ and­ it­ may­ be­ mea­sured­ subjectively­ through­ per­for­mance­ appraisal­ratings,­yet­­these­two­types­of­mea­sures­correlate­only­weakly­with­each­ other.8­Undoubtedly,­the­raters’­lack­of­sound­scoring­systems­for­rating­job­per­ for­mance­is­a­major­contributor­to­the­lack­of­obtained­agreement.­Furthermore,­ the­use­of­subjective­mea­sures­for­per­for­mance­has­been­subject­to­much­dialogue­ and­ scrutiny,­ given­ the­ effects­ of­ rater­ liking­ and­ other­ types­ of­ biases.9­ Vari­ous­ forms­of­rater­training,­including­ensuring­that­all­raters­adopt­the­same­“frame­of­ reference”­prior­to­undertaking­ratings,­have­shown­promise­in­ameliorating­­these­ issues.10

It­appears­that­what­ever­type­of­mea­sure­is­used­to­assess­attributes­in­staffing,­ serious­attention­should­be­paid­to­the­scoring­system­or­key.­In­a­sense,­this­requires­ nothing­more­than­having­a­firm­knowledge­of­exactly­what­the­organ­ization­is­try­ ing­ to­ mea­sure.­ This­ is­ true­ for­ both­ paper­­and­­pencil­ (objective)­ mea­sures­ and­ judgmental­(subjective)­mea­sures,­such­as­the­employment­interview.­It­is­simply­ another­way­of­emphasizing­the­importance­of­standardization­in­mea­sure­ment.

Scores

Mea­sures­yield­numbers­or­scores­to­represent­the­amount­of­the­attribute­being­ assessed.­Scores­are­thus­the­numerical­indicator­of­the­attribute.­Once­scores­have­ been­derived,­they­can­be­manipulated­in­vari­ous­ways­to­give­them­even­greater­ meaning­and­to­better­describe­characteristics­of­the­objects­being­scored.11

Central Tendency and Variability Assume­that­a­group­of­job­applicants­­were­administered­a­test­of­their­knowledge­ of­programming­languages.­The­test­is­scored­using­a­scoring­key,­and­each­appli­ cant­receives­a­score,­known­as­a­raw­score.­­These­are­shown­in­Exhibit­7.2.

Some­ features­ of­ this­ set­ of­ scores­ may­ be­ summarized­ through­ the­ calcula­ tion­of­summary­statistics.­­These­pertain­to­central­tendency­and­variability­in­the­ scores­and­are­also­shown­in­Exhibit­7.2.

The­ indicators­ of­ central­ tendency­ are­ the­ mean,­ the­ median,­ and­ the­ mode.­ Since­it­was­assumed­that­the­data­are­interval­­level­data,­it­is­permissible­to­com­ pute­all­three­indicators­of­central­tendency.­Had­the­data­been­ordinal,­the­mean­ should­not­be­computed.­For­nominal­data,­only­the­mode­would­be­appropriate.­ This­is­­because­it­does­not­make­sense­to­compute­the­average­of­the­number­of­ customer­ ser­vice­ employees­ (assigned­ the­ number­ “1”)­ and­ clerical­ employees­

099-67811_ch07_4P.indd 319 10/31/17 10:14 PM

320 PART FOUR Staffing­Activities:­Se­lection

(assigned­the­number­“2”)—­only­the­most­frequently­occurring­category­is­useful­ information.

The­variability­indicators­consist­of­the­range­and­the­standard­deviation.­The­ range­shows­the­lowest­to­highest­­actual­scores­for­the­job­applicants.­The­standard­ deviation­shows,­in­essence,­the­average­amount­of­deviation­of­individual­scores­ from­ the­ average­ score.­ It­ summarizes­ the­ amount­ of­ spread­ in­ the­ scores.­ The­ larger­the­standard­deviation,­the­greater­the­variability,­or­spread,­in­the­data.

Percentiles A­percentile­score­for­an­individual­is­the­percentage­of­­people­scoring­below­the­ individual­in­a­distribution­of­scores.­Refer­to­the­“Data”­columns­in­Exhibit­7.2­ (where­the­applicants­are­ranked­by­test­score­from­smallest­to­largest)­and­con­ sider­applicant­B.­That­applicant’s­percentile­score­is­in­the­10th­percentile,­given­ that­he­or­she­had­the­second­­lowest­score­of­all­applicants­(2/20­×­100);­this­means­

X

scitsitatSyrammuSataD

Applicant Test Score (X)

A B C D E F G H I J K L M N O P Q R S T

10 12 14 14 15 15 15 15 15 17 17 17 18 18 19 19 19 22 23 24

Total ( ) 338

n 20

A. Central tendency

Median middle score 17 Mode most frequent score 15

B. Variability Range 10 to 24 Standard deviation (SD)

2( ) 3.52

Mean (X) = 338/20 = 16.9 _

X n – 1

EXHIBIT 7.2 Central Tendency and Variability: Summary Statistics

099-67811_ch07_4P.indd 320 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 321

that­ 90%­ of­ the­ applicants­ scored­ better­ than­ applicant­ B.­ Applicant­ R­ is­ in­ the­ 90th­percentile­(18/20­×­100),­meaning­that­only­10%­of­the­applicants­scored­bet­ ter­than­applicant­R.

Standard Scores When­interpreting­ scores,­it­is­natu­ral­to­compare­individuals’­raw­scores­with­ the­mean,­that­is,­to­ask­­whether­scores­are­above,­at,­or­below­the­mean.­How­ ever,­ a­ true­ understanding­ of­ how­ well­ an­ individual­ did­ relative­ to­ the­ mean­ takes­into­account­the­amount­of­variability­in­scores­around­the­mean­(the­stan­ dard­ deviation).­ That­ is,­ the­ calculation­ must­ be­ “corrected”­ or­ controlled­ for­ the­amount­of­variability­in­a­score­distribution­to­accurately­pres­ent­how­well­a­ person­scored­relative­to­the­mean.­Calculation­of­the­standard­score­for­an­indi­ vidual­is­the­way­to­accomplish­this­correction.­The­standard­score­thus­answers­ the­question,­“How­many­standard­deviations­above­or­below­the­mean­did­a­given­ person­score?”

The­formula­for­calculating­the­standard­score,­or­Z,­is­as­follows:

Z X X

SD =

Applicant­S­in­Exhibit­7.2­had­a­raw­score­of­23­on­the­test;­the­mean­is­16.9­ and­the­standard­deviation­is­3.52.­Plugging­the­data­into­the­above­formula,­appli­ cant­S­has­a­Z­score­of­1.7.­Thus,­applicant­S­scored­about­1.7­standard­deviations­ above­the­mean.

Standard­scores­are­also­useful­for­determining­how­a­person­performed,­in­a­ relative­sense,­on­two­or­more­tests.­For­example,­assume­the­following­data­for­a­ par­tic­u­lar­applicant:

Test 1 Test 2 Raw­score 50 48 Mean 48 46 SD 2.5 .80

On­which­test­did­the­applicant­do­better?­To­answer­this­question,­simply­calcu­ late­the­applicant’s­standard­scores­on­the­two­tests.­The­Z­score­on­test­1­is­.80,­ and­the­Z­score­on­test­2­is­2.5.­Thus,­while­the­applicant­got­a­higher­raw­score­ on­test­1­than­on­test­2,­the­applicant­got­a­higher­Z­score­on­test­2­than­on­test­1.­ Viewed­in­this­way,­it­is­apparent­that­the­applicant­did­better­on­test­2,­relatively­ speaking.

It­should­now­be­apparent­that­a­person­with­a­Z­score­of­0­scored­at­the­mean.­ But­what­is­a­“high”­Z­score?­What­is­a­“low”­Z­score?­When­scores­are­normally­ distributed­ (with­ the­ mean,­ median,­ and­ mode­ all­ the­ same),­ the­ data­ for­ appli­ cants­resemble­a­bell­curve­(half­the­­people­scored­above­the­mean,­and­half­scored­ below­the­mean).­In­this­case,­a­Z­score­of­+1.0­means­that­the­applicant­scored­in­­ the­84th­percentile­(at­−1.0,­the­applicant­scored­in­the­16th­percentile).­A­Z­score­

099-67811_ch07_4P.indd 321 10/31/17 10:14 PM

322 PART FOUR Staffing­Activities:­Se­lection

of­+2.0­means­that­the­applicant­scored­in­the­98th­percentile­(at­−2.0,­the­applicant­ scored­in­the­2nd­percentile).­Thus,­scoring­even­one­standard­deviation­above­the­ mean­is­a­relatively­high­score.

Correlation Between Scores

Frequently­ in­ staffing­ ­there­ are­ scores­ on­ two­ or­ more­ mea­sures­ for­ a­ group­ of­ individuals.­One­common­occurrence­is­to­have­scores­on­two­(or­often,­more­than­ two)­KSAO­mea­sures.­For­example,­­there­could­be­a­score­on­the­test­of­knowl­ edge­of­programming­languages­and­also­an­overall­rating­of­the­applicant’s­prob­ able­job­success­based­on­the­employment­interview.­In­such­instances,­it­is­logical­ to­ask­­whether­the­two­sets­of­scores­are­related.­Does­an­increase­in­knowledge­ test­scores­tend­to­be­accompanied­by­an­increase­in­interview­ratings?­Put­more­ simply,­is­­there­a­relationship­between­the­two­mea­sures?

As­ another­ example,­ an­ organ­ization­ may­ have­ scores­ on­ a­ par­tic­u­lar­ KSAO­ mea­sure­(e.g.,­the­knowledge­test)­and­on­a­mea­sure­of­job­per­for­mance­(e.g.,­ per­for­mance­appraisal­ratings)­for­a­group­of­individuals.­Is­­there­a­correlation­ between­ ­these­ two­ sets­ of­ scores?­ In­ other­ words,­ does­ knowing­ an­ individual’s­ score­on­the­knowledge­test­tell­you­something­about­his­or­her­likely­job­per­for­ mance?­If­it­does,­this­would­provide­some­evidence­about­the­probable­validity­ of­the­knowledge­test­as­a­predictor­of­job­per­for­mance.­This­evidence­would­help­ the­organ­ization­decide­­whether­to­incorporate­the­use­of­the­test­into­the­se­lection­ pro­cess­for­job­applicants.

Investigation­of­the­relationship­between­two­sets­of­scores­proceeds­through­the­ plotting­of­scatter­diagrams­and­through­calculation­of­the­correlation­coefficient.

Scatter Diagrams Assume­two­sets­of­scores­for­a­group­of­­people—­scores­on­a­test­and­scores­on­a­ mea­sure­of­job­per­for­mance.­A­scatter­diagram­is­simply­the­plot­of­the­joint­distribu­ tion­of­the­two­sets­of­scores.­Inspection­of­the­plot­provides­a­visual­repre­sen­ta­tion­ of­the­type­of­relationship­that­exists­between­the­two­sets­of­scores.­Exhibit­7.3­ provides­three­dif­fer­ent­scatter­diagrams­for­the­two­sets­of­scores.­Each­X­represents­ a­test­score­(predictor)­and­job­per­for­mance­(criterion,­or­outcome)­score­combina­ tion­for­an­individual.

Example­A­in­Exhibit­7.3­suggests­very­­little­relationship­between­the­two­sets­ of­scores.­Example­B­shows­a­modest­relationship­between­the­scores,­and­exam­ ple­C­shows­a­somewhat­strong­relationship­between­the­two­sets­of­scores.

Correlation Coefficient The­relationship­between­two­sets­of­scores­may­also­be­represented­numerically­ through­calculation­of­the­correlation­coefficient.­The­symbol­for­the­correlation­ coefficient­is­r.­Numerically,­r­values­can­range­from­r­=­−1.0­to­r­=­1.0.­An­r­value­ of­0­indicates­­there­is­no­relationship­between­the­two­sets­of­scores.­The­larger­the­

099-67811_ch07_4P.indd 322 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 323

EXHIBIT 7.3 Scatter Diagrams and Corresponding Correlations

High

Criterion scores

Low

Low Predictor scores High

r 0.10

X X

X

XXX X X X

XX X X X X X X X X X X X X X X X

X X

X X X X X

High

Criterion scores

Low

Low Predictor scores High

r 0.25

X XX XX

X

X X

X XX X

X X X

X X X X X X

X X

High

Criterion scores

Low

Low Predictor scores High

r 0.60

X X

X X

X X X X

X X X

X X

X X

X X

A.

B.

C.

099-67811_ch07_4P.indd 323 10/31/17 10:14 PM

324 PART FOUR Staffing­Activities:­Se­lection

absolute­value­of­r,­the­stronger­the­relationship.­So,­r­=­−.55­is­stronger­in­mag­ nitude­than­r­=­.30.­When­an­r­value­is­shown­without­a­sign­(plus­or­minus),­the­ value­is­assumed­to­be­positive.

The­sign­of­the­correlation­coefficient­is­arbitrary.­One­could­say­that­job­sat­ isfaction­is­positively­related­to­job­per­for­mance­(a­positive­r),­just­as­one­could­ say­that­job­dissatisfaction­is­negatively­related­to­job­per­for­mance­(a­negative­r).­ Thus,­­whether­r­is­positive­or­negative­simply­depends­on­how­the­relationship­is­ worded­or­considered­(and­how­the­mea­sures­are­scored).

Naturally,­the­value­of­r­bears­a­close­resemblance­to­the­relationship­shown­in­ the­scatter­diagram.­To­demonstrate­this,­Exhibit­7.3­also­shows­the­approximate­ r­value­for­each­of­the­three­scatter­diagrams.­The­r­in­example­A­is­low­(r­=­.10),­ the­r­in­example­B­is­moderate­(r­=­.25),­and­the­r­in­example­C­is­high­(r­=­.60).

Calculation­ of­ the­ correlation­ coefficient­ is­ straightforward,­ even­ by­ hand.­ An­ example­of­this­calculation­and­the­formula­for­r­are­shown­in­Exhibit­7.4.­In­the­ exhibit­­there­are­two­sets­of­scores­for­20­­people.­The­first­set­is­the­test­scores­for­ the­20­individuals­in­Exhibit­7.2.­The­second­set­of­scores­is­an­overall­job­per­for­ mance­rating­(on­a­1–5­rating­scale)­for­­these­­people.­As­can­be­seen­from­the­calcu­ lation,­­there­is­a­correlation­of­r­=­.58­between­the­two­sets­of­scores.­The­resultant­ value­of­r­succinctly­summarizes­both­the­strength­of­the­relationship­between­the­ two­sets­of­scores­and­the­direction­of­the­relationship.

While­the­formula­for­the­correlation­is­good­to­know,­correlations­are­easily­ calculated­ by­ a­ variety­ of­ computer­ programs,­ including­ Microsoft­ Excel.­ With­ Excel,­ scores­ on­ each­ variable­ are­ placed­ in­ adjacent­ columns,­ and­ Excel’s­ cor­ relate­function­“(=Correl)”­calculates­r.

Despite­ the­ simplicity­ of­ its­ calculation,­ ­there­ are­ several­ notes­ of­ caution­ regarding­the­correlation.­First,­the­correlation­does­not­connote­a­proportion­or­ percentage.­An­r­=­.50­between­variables­X­and­Y­does­not­mean­that­X­is­50%­of­ Y­or­that­Y­can­be­predicted­from­X­with­50%­accuracy.­However,­if­the­value­of­r­ is­squared­(r­×­r,­or­r2),­then­that­squared­value­represents­the­percentage­of­com­ mon­variation­in­the­X­and­Y­scores.­Thus,­one­could­interpret­r­=­.50­as­indicating­ that­the­two­variables­share­25%­(.52­×­100)­common­variation­in­their­scores.­As­an­ example,­if­X­was­a­test­of­intelligence­and­Y­was­a­mea­sure­of­job­per­for­mance,­then­ one­could­say­that,­of­all­the­reasons­why­individuals’­job­per­for­mance­scores­differ,­ intelligence­explains­25%­of­­those­differences­(hence­leaving­75%­unexplained­and­ due­to­other­­factors).

Second,­the­value­of­r­is­affected­by­the­amount­of­variation­in­each­set­of­scores.­ Other­­things­being­equal,­the­less­variation­­there­is­in­one­or­both­sets­of­scores,­the­ smaller­the­calculated­value­of­r­­will­be.­At­the­extreme,­if­one­set­of­scores­has­no­ variation,­the­correlation­­will­be­r­=­.00­(technically,­it­is­undefined).­That­is,­for­ ­there­to­be­a­correlation,­­there­must­be­variation­in­both­sets­of­scores.­The­lack­of­ variation­in­scores­is­called­the­prob­lem­of­restriction­of­range.

099-67811_ch07_4P.indd 324 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 325

Third,­the­formula­used­to­calculate­the­correlation­in­Exhibit­7.4­is­based­on­the­ assumption­that­­there­is­a­linear­relationship­between­the­two­sets­of­scores.­This­ may­ not­ always­ be­ a­ good­ assumption;­ something­ other­ than­ a­ straight­ line­ may­ best­capture­the­true­nature­of­the­relationship­between­scores.­For­example,­a­new­ training­program­may­initially­ be­associated­with­ a­rapid­increase­in­ trainee­per­ for­mance,­but­repeated­exposure­to­that­program­may­begin­to­provide­diminished­ returns.­To­the­extent­that­two­sets­of­scores­are­not­related­in­a­linear­fashion,­use­ of­the­formula­for­calculating­the­correlation­­will­yield­a­value­of­r­that­understates­ the­­actual­strength­of­the­relationship.

Fi­nally,­the­correlation­between­two­variables­does­not­imply­causation­between­ them.­A­correlation­simply­states­how­two­variables­covary­or­relate­to­each­other;­ it­says­nothing­about­one­variable­necessarily­causing­the­other­one.

EXHIBIT 7.4 Calculation of Product- Moment Correlation Coefficient

n

Person

A B C D E F G H I J K L M N O P Q R S T

Test Score (X) Performance

Rating (Y) (X2) (Y2) (XY)

1 0 1 2 1 4 1 4 1 5 1 5 1 5 1 5 1 5 1 7 1 7 1 7 1 8 1 8 1 9 1 9 1 9 22 23 24

2 1 2 1 3 4 3 4 4 3 4 3 2 4 3 3 5 3 4 5

100 144 196 196 225 225 225 225 225 289 289 289 324 324 361 361 361 484 529 576

4 1 4 1 9

16 9

16 16 9

16 9 4

16 9 9

25 9

16 25

20 12 28 14 45 60 45 60 60 51 68 51 36 72 57 57 95 66 92

120 ΣX = 338 ΣY = 63 ΣX2 = 5948 ΣY2 = 223 ΣXY = 1 1 09

n ΣXY – (ΣX)(ΣY) == =

20 (1 1 09) – (338) (63)

[n ΣX2 – (ΣX)2] [n ΣY2 – (ΣY)2] [20(5948) – (338)2] [20(223) – (63)2] r .58

099-67811_ch07_4P.indd 325 10/31/17 10:14 PM

326 PART FOUR Staffing­Activities:­Se­lection

Significance of the Correlation Coefficient The­ statistical­ significance­ refers­ to­ the­ likelihood­ that­ a­ correlation­ exists­ in­ a­ population,­based­on­knowledge­of­the­­actual­value­of­r­in­a­sample­from­that­pop­ ulation.­Concluding­that­a­correlation­is­indeed­statistically­significant­means­that­ ­there­is­most­likely­a­correlation­in­the­population.­That­means­if­the­organ­ization­ ­were­to­use­a­se­lection­mea­sure­based­on­a­statistically­significant­correlation,­the­ correlation­ is­ likely­ to­ be­ significant­when­ used­ again­ to­ select­ another­ sample­ (e.g.,­­future­job­applicants).

More­formally,­r­is­calculated­in­an­initial­group,­called­a­sample.­From­this­piece­ of­information,­the­question­arises­­whether­to­infer­that­­there­is­also­a­correlation­ in­the­population.­For­example,­one­might­want­to­know­­whether­a­correlation­cal­ culated­in­a­sample­of­200­information­technology­analysts­would­also­be­found­in­ the­population­(all­information­technology­analysts).­To­answer­this,­compute­the­ t­value­of­our­correlation­using­the­following­formula:

t r

r n =

− −( )/1 22

where­r­is­the­value­of­the­correlation,­and­n­is­the­size­of­the­sample. A­ t­ distribution­ ­table,­ which­ can­ be­ found­ in­ any­ elementary­ statistics­ book­

as­ well­ as­ online,­ shows­ the­ significance­ level­ of­ r.12­ The­ significance­ level­ is­ expressed­as­p­<­some­value,­for­example,­p­<­.05.­The­p­level­tells­the­probability­ of­concluding­that­­there­is­a­correlation­in­the­population­when­in­fact­­there­is­not­a­ relationship.­Thus,­a­correlation­with­p­<­.05­means­­there­are­fewer­than­5­chances­ in­100­of­concluding­that­­there­is­a­relationship­in­the­population­when­in­fact­­there­ is­not.­This­is­a­relatively­small­probability­and­usually­leads­to­the­conclusion­that­ a­correlation­is­indeed­statistically­significant.

An­ example­ might­ help­ clarify­ this­ idea.­ Taking­ our­ previous­ example­ of­ 200­ information­ technology­ analysts,­ let’s­ say­ that­ we­ found­ a­ correlation­ of­ r­ =­ .20­ between­ a­ mea­sure­ of­ programming­ language­ knowledge­ and­ job­ per­for­mance.­ How­likely­is­it­that­we­would­obtain­a­correlation­of­.20­if­the­“true”­correlation­ between­ ­those­ variables­ in­ the­ population­ was­ actually­ r­=­ 0?­ The­ t­ value­ of­ our­ correlation­would­be­2.87,­with­a­p­<­.05­(actually­the­p­value­would­be­.005).­This­ means­that­if­we­took­100­additional­dif­fer­ent­samples­of­200­information­technol­ ogy­analysts­and­computed­the­correlation­in­each­sample,­and­the­true­correlation­ in­the­population­was­actually­r­=­0,­we­would­expect­to­find­a­correlation­of­.20­in­ only­half­a­­percent­(.005)­of­­those­samples.­In­other­words,­a­correlation­of­.20­would­ be­extremely­rare­when­the­true­correlation­was­actually­0,­and­so­we­conclude­that­ the­true­correlation­is­not­r­=­0.­The­correlation­of­r­=­.20­is­thus­deemed­“statisti­ cally­significant.”

It­is­impor­tant­to­avoid­concluding­that­­there­is­a­relationship­in­the­population­ when­in­fact­­there­is­not­one­(consider­the­ramifications­of­concluding­that­a­new­ drug­with­harmful­side­effects­drastically­reduces­the­risk­of­cancer,­yet­in­fact­the­

099-67811_ch07_4P.indd 326 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 327

drug­does­nothing­to­reduce­that­risk).­Therefore,­one­usually­chooses­a­fairly­con­ servative­or­stringent­level­of­significance­that­the­correlation­must­attain­before­ concluding­that­it­is­significant.­Typically,­a­standard­of­p­<­.05­or­less­(another­ common­standard­is­p­<­.01)­is­chosen.­The­­actual­significance­level­(based­on­the­ t­value­for­the­correlation)­is­then­compared­with­the­desired­significance­level,­and­ a­decision­is­reached­as­to­­whether­the­correlation­is­statistically­significant.­­Here­ are­some­examples:

Desired Level Actual Level Conclusion About Correlation p­<­.05 p­<­.23 Not­significant

p­<­.05 p­<­.02 Significant

p­<­.01 p­<­.07 Not­significant

p­<­.01 p­<­.009 Significant

Although­ statistical­ significance­ is­ impor­tant­ in­ judging­ the­ usefulness­ of­ a­ se­lection­ mea­sure,­ caution­ should­ be­ exercised­ in­ placing­ too­ much­ weight­ on­ this­significance.­With­very­large­sample­sizes,­even­very­small­correlations­­will­be­ significant,­and­with­very­small­sample­sizes,­even­strong­correlations­­will­fail­to­ be­significant.­The­absolute­size­of­the­correlation­­matters­as­well.

QUALITY OF MEA SURES

Mea­sures­ are­ developed­ and­ used­ to­ gauge­ attributes­ of­ objects.­ Results­ of­ mea­ sures­are­expressed­in­the­form­of­scores,­and­vari­ous­manipulations­may­be­done­ to­them.­Such­manipulations­lead­to­better­understanding­and­interpretation­of­the­ scores,­and­thus­the­attribute­represented­by­the­scores.

In­staffing,­for­practical­reasons,­the­scores­of­individuals­are­treated­as­if­they­ ­were­the­attribute­itself­rather­than­merely­indicators­of­the­attribute.­For­example,­ scores­on­a­­mental­ability­test­(e.g.,­IQ­scores)­are­interpreted­as­being­synonymous­ with­ how­ intelligent­ individuals­ are.­ Alternatively,­ individuals’­ job­ per­for­mance­ ratings­from­their­supervisors­are­viewed­as­indicators­of­their­true­per­for­mance.

Treated­ in­ this­ way,­ scores­ become­ a­ major­ input­ to­ decision­ making­ about­ individuals.­For­example,­scores­on­the­­mental­ability­test­are­used­and­weighted­ heavi­ly­ to­ decide­ which­ job­ applicants­ ­will­ receive­ a­ job­ offer.­ Alternatively,­ per­ for­mance­ ratings­ may­ serve­ as­ a­ key­ ­factor­ in­ deciding­ which­ individuals­ ­will­ be­ eligible­for­an­internal­staffing­move,­such­as­a­promotion.­In­­these­and­numerous­ other­ways,­management­uses­­these­scores­to­guide­the­conduct­of­staffing­activi­ ties­in­the­organ­ization.

The­quality­of­the­decisions­made­and­the­actions­taken­is­unlikely­to­be­any­ better­than­the­quality­of­the­mea­sures­on­which­they­are­based.­Thus,­a­lot­is­at­ stake­in­the­quality­of­the­mea­sures­used­in­staffing.­Such­concerns­are­best­viewed­ in­terms­of­reliability­and­validity­of­mea­sures.13

099-67811_ch07_4P.indd 327 10/31/17 10:14 PM

328 PART FOUR Staffing­Activities:­Se­lection

Reliability of Mea sures

Reliability­of­mea­sure­ment­refers­to­the­consistency­of­mea­sure­ment­of­an­attribute.14­ A­mea­sure­is­reliable­to­the­extent­that­it­provides­a­consistent­set­of­scores­to­rep­ resent­an­attribute.­Rarely­is­perfect­reliability­achieved,­­because­of­the­occurrence­ of­mea­sure­ment­error.­Reliability­is­thus­a­­matter­of­degree.

Reliability­ of­ mea­sure­ment­ is­ of­ concern­ both­ within­ a­ single­ time­ period­ in­ which­the­attribute­is­being­mea­sured­and­between­time­periods.­Moreover,­reli­ ability­ is­ of­ concern­ for­ both­ objective­ and­ subjective­ mea­sures.­ ­These­ two­ con­ cerns­help­create­a­general­framework­for­better­understanding­reliability.

The­key­concepts­for­the­framework­are­shown­in­Exhibit­7.5.­In­the­exhibit,­a­ single­ attribute,­ “A”­ (e.g.,­ knowledge­ of­ programming­ languages),­ is­ being­ mea­ sured.­Scores­(ranging­from­1­to­5)­are­available­for­15­individuals.­Attribute­A­is­ being­mea­sured­in­time­period­1­(T1)­and­time­period­2­(T2).­In­each­time­period,­ attribute­A­may­be­mea­sured­objectively,­with­two­test­items,­or­subjectively,­with­ two­raters.­The­same­two­items­or­raters­are­used­in­each­time­period­(in­real­ity,­ more­than­two­items­or­raters­would­prob­ably­be­used­to­mea­sure­attribute­A,­but­

EXHIBIT 7.5 Framework for Reliability of Measures

Scores on Attribute A

Person

Objective (Test Items)

Time 1

X1 Y1

Time 2

X2 Y2

Subjective (Raters)

Time 1

X1 Y1

Time 2

X2 Y2 A B C D E F G H I J K L M N O

5 5 5 5 4 4 4 4 3 3 3 3 2 2 1

5 4 5 4 5 4 4 3 4 3 3 2 3 2 2

4 4 5 5 3 4 3 4 3 5 2 4 4 1 3

5 3 4 5 4 3 4 3 4 3 3 2 3 2 2

5 5 5 5 4 4 4 4 3 3 3 3 2 2 1

5 4 5 4 5 4 4 3 4 3 3 2 3 2 2

4 4 5 5 3 4 3 4 3 5 2 4 4 1 3

5 3 4 5 4 3 4 3 4 3 3 2 3 2 2

Note: X1 and X2 are the same test item or rater; Y1 and Y2 are the same test item or rater. The subscript “1” refers to T1, and the subscript “2” refers to T2.

099-67811_ch07_4P.indd 328 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 329

for­simplicity­only­two­are­used­­here).­Each­test­item­or­rater­in­each­time­period­ is­a­sub­­measure­of­attribute­A.­­There­are­thus­four­sub­­measures­of­A—­designated­ X1,­X2,­Y1,­and­Y2—as­well­as­a­score­for­each.­In­terms­of­reliability­of­mea­sure­ ment,­the­concern­is­with­the­consistency­or­similarity­in­the­sets­of­scores.­This­ requires­vari­ous­comparisons­of­the­scores.

As­ mentioned­ earlier,­ the­ subjective­ rater­­based­ form­ of­ mea­sure­ment­ comes­ with­its­own­assumptions­concerning­the­raters­themselves.­It­is­worth­mentioning­ that­miscellaneous,­contextual­ele­ments­might­impact­the­degree­of­agreement­and­ reliability­between­raters.­Research­within­the­last­two­de­cades­suggests­that­agree­ ment­is­enhanced­when­raters­share­the­same­goals,­have­common­perceptions­of­ the­purposes­of­the­appraisal­system,­have­the­same­frame­of­reference­in­evaluat­ ing­candidates,­and­have­similar­relationships­with­the­ratees.­On­the­other­hand,­ differences­ are­ likely­ to­ arise­ when­ ­there­ are­ systematic­ differences­ in­ what­ was­ observed­ (e.g.,­ when­ raters­ observe­ dif­fer­ent­ aspects­ of­ a­ ratee’s­ be­hav­ior,­ have­ differential­access­to­information­about­who­is­being­rated,­vary­in­their­expertise­ in­what­is­being­observed,­and­use­dif­fer­ent­evaluation­pro­cesses).15­Special­care­ should­be­taken­to­account­for­­these­issues­while­designing­mea­sure­ment­systems­ and­evaluating­interrater­agreement­or­reliability.

Comparisons Within T1 or T2 Consider­the­four­sets­of­scores­as­coming­from­the­objective­mea­sure,­which­used­ test­items.­Comparing­sets­of­scores­from­­these­items­in­­either­T1­or­T2­is­called­ internal­ consistency­ reliability.­ The­ relevant­ comparisons­ are­ X1­ and­ Y1,­ and­ X2­ and­Y2.­It­is­hoped­that­the­comparisons­­will­show­high­similarity,­­because­both­ items­are­intended­to­mea­sure­attribute­A­within­the­same­time­period.

Now­treat­the­four­sets­of­scores­as­coming­from­the­subjective­mea­sure,­which­ relied­ on­ raters.­ Comparisons­ of­ ­these­ scores­ involve­ what­ is­ called­ interrater­ reliability.­ The­ relevant­ comparisons­ are­ the­ same­ as­ with­ the­ objective­ mea­sure­ scores,­namely,­X1­and­Y1,­and­X2­and­Y2.­Again,­it­is­hoped­that­­there­­will­be­high­ agreement­between­the­raters,­­because­they­are­focusing­on­a­single­attribute­at­a­ single­moment­in­time.

Comparisons Between T1 and T2 Comparisons­of­scores­between­time­periods­involve­assessment­of­mea­sure­ment­ stability.­ When­ scores­ from­ an­ objective­ mea­sure­ are­ used,­ this­ is­ referred­ to­ as­ test–­retest­reliability.­The­relevant­comparisons­are­X1­and­X2,­and­Y1­and­Y2.­To­ the­extent­that­attribute­A­is­not­expected­to­change­between­T1­and­T2,­­there­should­ be­high­test–­retest­reliability.

When­ subjective­ scores­ are­ compared­ between­ T1­ and­ T2,­ the­ concern­ is­ with­ intrarater­reliability.­­Here,­the­same­rater­evaluates­individuals­in­terms­of­attribute­ A­in­two­dif­fer­ent­time­periods.­To­the­extent­that­attribute­A­is­not­expected­to­ change,­­there­should­be­high­intrarater­reliability.

099-67811_ch07_4P.indd 329 10/31/17 10:14 PM

330 PART FOUR Staffing­Activities:­Se­lection

In­summary,­reliability­is­concerned­with­consistency­of­mea­sure­ment.­­There­are­ multiple­ways­of­treating­reliability,­depending­on­­whether­scores­from­a­mea­sure­ are­being­compared­for­consistency­within­or­between­time­periods­and­­whether­ the­ scores­ are­ from­ objective­ or­ subjective­ mea­sures.­ ­These­ points­ are­ summa­ rized­in­Exhibit­7.6.­Ways­of­computing­agreement­between­scores­­will­be­covered­ shortly,­­after­the­concept­of­mea­sure­ment­error­is­explored.

Mea sure ment Error Rarely­­will­any­of­the­comparisons­among­scores­discussed­previously­yield­per­ fect­similarity­or­reliability.­Indeed,­none­of­the­comparisons­in­Exhibit­7.6­visu­ ally­shows­complete­agreement­among­the­scores.­The­lack­of­agreement­among­ the­scores­may­be­due­to­the­occurrence­of­mea­sure­ment­error.­This­type­of­error­ represents­“noise”­in­the­mea­sure­and­mea­sure­ment­pro­cess.­Its­occurrence­means­ that­the­mea­sure­did­not­yield­perfectly­consistent­scores,­or­so­­called­true­scores,­for­ the­attribute.

The­scores­actually­obtained­from­the­mea­sure­thus­have­two­components­to­them,­ a­true­score­and­mea­sure­ment­error.­That­is,

­actual­score­=­true­score­+­error

The­error­component­of­any­­actual­score,­or­set­of­scores,­represents­unreli­ ability­of­mea­sure­ment.­Unfortunately,­unreliability­is­a­fact­of­life­for­the­types­ of­mea­sures­used­in­staffing.­To­help­understand­why­this­is­the­case,­the­vari­ous­ types­ or­ sources­ of­ error­ that­ can­ occur­ in­ a­ staffing­ context­ must­ be­ explored.­

EXHIBIT 7.6 Summary of Types of Reliability

Compare scores within T1 or T2

Compare scores between T1 and T2

Internal consistency

Test–retest Objective measure

(test items)

Subjective measure (raters)

Interrater Intrarater

099-67811_ch07_4P.indd 330 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 331

­These­errors­may­be­grouped­­under­the­categories­of­deficiency­error­and­contami­ nation­error.16

Deficiency Error. Deficiency­error­occurs­when­­there­is­failure­to­mea­sure­some­ portion­or­aspect­of­the­attribute­assessed.­For­example,­if­knowledge­of­program­ ming­ languages­ should­ involve­ Java­ and­ our­ test­ does­ not­ have­ any­ items­ (or­ an­ insufficient­number­of­items)­covering­this­aspect,­the­test­is­deficient.­As­another­ example,­if­an­attribute­of­job­ per­for­mance­is­“planning­ and­setting­work­ priori­ ties”­and­the­raters­fail­to­rate­­people­on­that­dimension­during­their­per­for­mance­ appraisal,­the­per­for­mance­mea­sure­is­deficient.

Deficiency­error­can­occur­in­several­related­ways.­First,­the­attribute­may­have­ been­ inadequately­ defined­ in­ the­ first­ place.­ Thus,­ the­ test­ of­ knowledge­ of­ pro­ gramming­ languages­ may­ fail­ to­ address­ Java­ ­because­ multi­­paradigm­ languages­ ­were­never­included­in­the­initial­definition­of­programming­knowledge.­Alterna­ tively,­the­per­for­mance­mea­sure­may­fail­to­require­raters­to­rate­their­employees­ on­“planning­and­setting­work­priorities”­­because­this­attribute­was­never­consid­ ered­an­impor­tant­dimension­of­their­work.

A­ second­ way­ that­ deficiency­ error­ occurs­ is­ in­ the­ construction­ of­ mea­sures­ used­to­assess­the­attribute.­­Here,­the­attribute­may­be­well­defined­and­understood,­ but­­there­is­a­failure­to­construct­a­mea­sure­that­adequately­gets­at­the­totality­of­ the­attribute.­This­is­akin­to­poor­mea­sure­ment­by­oversight,­which­happens­when­ mea­sures­are­constructed­in­a­hurried,­ad­hoc­fashion.

Fi­nally,­deficiency­error­occurs­when­the­organ­ization­opts­to­use­what­ever­mea­ sures­are­available­­because­of­ease,­cost­considerations,­sales­pitches­and­promo­ tional­claims,­and­so­forth.­The­mea­sures­so­chosen­may­turn­out­to­be­deficient.

Contamination Error. Contamination­error­represents­the­occurrence­of­unwanted­ or­ undesirable­ influence­ on­ the­ mea­sure­ and­ on­ individuals­ for­ whom­ the­ mea­ sure­is­being­used.­­These­influences­muddy­the­scores­and­make­them­difficult­to­ interpret.

Sources­ of­ contamination­ abound,­ as­ do­ examples­ of­ them.­ Several­ of­ ­these­ sources­ and­ examples­ are­ shown­ in­ Exhibit­ 7.7,­ along­ with­ some­ suggestions­ for­ how­ they­ might­ be­ controlled.­ ­These­ examples­ show­ that­ contamination­ error­ is­ multifaceted,­making­it­difficult­to­minimize­and­control.

Calculation of Reliability Estimates Numerous­procedures­are­available­for­calculating­­actual­estimates­of­the­degree­ of­ reliability­ of­ mea­sure­ment.17­ The­ first­ two­ of­ ­these—­coefficient­ alpha­ and­ interrater­agreement—­assess­reliability­within­a­single­time­period.­The­other­two­ procedures—­test–­retest­ and­ intrarater­ agreement—­assess­ reliability­ between­ time­ periods.­Reliability­scores­range­from­0­(indicating­that­­there­is­nothing­but­error­ in­the­­actual­scores)­to­1.0­(indicating­that­the­­actual­scores­are­the­“true”­scores).­

099-67811_ch07_4P.indd 331 10/31/17 10:14 PM

332 PART FOUR Staffing­Activities:­Se­lection

As­with­the­squared­correlation­(r2),­you­can­think­of­reliability­estimates­as­the­ percentage­of­variation­in­a­given­mea­sure­that­is­“true”­as­opposed­to­“error.”

Coefficient Alpha. Coefficient­ alpha­ may­ be­ calculated­ in­ instances­ in­ which­ ­there­are­two­or­more­items­(or­raters)­for­a­par­tic­u­lar­attribute.­Its­formula­is

= + −

n (r ) r n1 1( )

where­r _ ­is­the­average­intercorrelation­among­the­items­(raters)­and­n­is­the­number­

of­items­(raters).­For­example,­if­­there­are­five­items­(n­=­5)­and­the­average­cor­ relation­among­­those­five­items­is­r

_ ­=­.80,­coefficient­alpha­is­.95.

It­can­be­seen­from­the­formula­and­the­example­that­coefficient­alpha­depends­ on­ just­ two­ ­things—­the­ number­ of­ items­ and­ the­ amount­ of­ correlation­ between­ them.­ This­ suggests­ two­ basic­ strategies­ for­ increasing­ the­ internal­ consistency­ reliability­of­a­measure—­increase­the­number­of­items­and­increase­the­amount­of­ agreement­between­the­items­(raters).­It­is­generally­recommended­that­coefficient­ alpha­be­at­least­.80­for­a­mea­sure­to­have­an­acceptable­degree­of­reliability.­That­ means­that­80%­of­the­variation­in­scores­is­“true”­variation­and­20%­is­“error.”

Interrater Agreement. When­raters­serve­as­the­mea­sure,­it­is­often­con­ve­nient­ to­talk­about­interrater­agreement,­or­the­amount­of­agreement­among­them.­For­ example,­ if­ members­ of­ a­ group­ or­ panel­ interview­ in­de­pen­dently­ rate­ a­ set­ of­ job­applicants­on­a­1–5­scale,­it­is­logical­to­ask­how­much­they­agreed­with­one­ another.

Source of Contamination Example Suggestion for Control

Content domain Irrelevant material on test Define domain of test material to be covered

Standardization Different time limits for same test

Have same time limits for everyone

Chance response tendencies

Guessing by test taker Impossible to control in advance

Rater Rater gives inflated ratings to people

Train rater in rating accuracy

Rating situation Interviewees are asked different questions

Ask all interviewees the same questions

EXHIBIT 7.7 Sources of Contamination Error and Suggestions for Control

099-67811_ch07_4P.indd 332 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 333

A­ ­simple­ way­ to­ determine­ this­ is­ to­ calculate­ the­ percentage­ of­ agreement­ among­the­raters.­An­example­of­this­is­shown­in­Exhibit­7.8.

­There­ is­ no­ commonly­ accepted­ minimum­ level­ of­ interrater­ agreement­ that­ must­be­met­in­order­to­consider­the­raters­sufficiently­reliable.­Normally,­a­fairly­ high­ level­ should­ be­ set—75%­ or­ higher.­ The­ more­ impor­tant­ the­ end­ use­ of­ the­ ratings,­the­greater­the­agreement­required­should­be.­Critical­uses,­such­as­hiring­ decisions,­demand­very­high­levels­of­reliability,­well­in­excess­of­75%­agreement.

Interrater Agreement Versus Coefficient Alpha. It­is­impor­tant­to­note­that­ reliability­(as­assessed­by­coefficient­alpha)­and­interrater­agreement­can­be­quite­ dif­fer­ent.­Specifically,­one­can­have­a­high­coefficient­alpha­but­low­agreement,­and­ vice­versa.­To­understand­this,­consider­the­data­shown­in­Exhibit­7.9,­which,­like­ Exhibit­ 7.8,­ has­ three­ raters.­ However,­ instead­ of­ rating­ five­ dif­fer­ent­ applicants,­ the­three­raters­are­rating­one­applicant­on­five­dif­fer­ent­skills.­­Here,­­there­are­five­ items­(skills),­and­the­average­correlation­among­­those­five­items­(e.g.,­the­correla­ tion­between­ratings­on­skill­A­and­skill­B;­the­correlation­between­ratings­on­skill­A­ and­skill­C)­is­1.0.­This­is­the­case­­because­the­ratings­are­proportionally­consistent­ (although­rater­1’s­ratings­are­always­lower­than­rater­2’s,­they­differ­by­the­same­ magnitude­each­time).­Consequently,­coefficient­alpha­is­1.0.­However,­the­raters­do­ not­agree­at­all­on­how­much­skill­the­applicant­possesses.­Rater­1’s­average­across­ the­five­skills­is­1.6,­rater­2’s­average­is­3.6,­and­rater­3’s­average­is­4.6.

Now­consider­Exhibit­7.10.­The­raters­exhibit­perfect­agreement­in­their­assess­ ment­of­the­candidate.­However,­coefficient­alpha­is­0­(technically,­it­is­undefined).­ Why?­Remember­that­the­strength­of­the­correlation­coefficient­depends­on­how­

EXHIBIT 7.8 Calculation of Percentage Agreement Among Raters

Person (ratee) Rater 1 Rater 2 Rater 3

A 5 5 2 B 3 3 5 C 5 4 4 D 1 1 5 E 2 2 4

# agreements 001tnemeergA%

# agreements # disagreements

% Agreement Rater 1 and Rater 2 4/5 80% Rater 1 and Rater 3 0/5 0% Rater 2 and Rater 3 1/5 20%

099-67811_ch07_4P.indd 333 10/31/17 10:14 PM

334 PART FOUR Staffing­Activities:­Se­lection

much­variation­­there­is­in­the­items­(in­this­case,­skills).­Since­­there­is­no­variation­ in­the­items­(e.g.,­skill­A­is­rated­2­by­all­three­raters,­as­is­skill­B),­the­average­ correlation­among­the­items­is­0­and­coefficient­alpha­is­0.

When­assessing­the­reliability­of­scores­where­multiple­raters­are­assessing­can­ didates­on­multiple­items,­keep­in­mind­that­coefficient­alpha­and­interrater­agree­ ment­are­tapping­into­dif­fer­ent­aspects­of­reliability.­Therefore,­it­is­impor­tant­to­ consider­both.

Test– Retest Reliability. To­assess­test–­retest­reliability,­the­test­scores­from­two­ dif­fer­ent­time­periods­are­correlated­through­calculation­of­the­correlation­coeffi­ cient.­The­r­may­be­calculated­on­total­test­scores,­or­a­separate­r­may­be­calculated­ for­scores­on­each­item.­The­resultant­r­indicates­the­stability­of­measurement—­the­ higher­the­r,­the­more­stable­the­mea­sure.

Interpretation­of­the­r­value­is­made­difficult­by­the­fact­that­the­scores­are­gath­ ered­at­two­dif­fer­ent­points­in­time.­Between­­those­two­time­points,­the­attribute­ being­mea­sured­has­an­opportunity­to­change.­Interpretation­of­test–­retest­reliability­

Skill Rater 1 Rater 2 Rater 3

Skill A 1 3 4

Skill B 2 4 5

Skill C 2 4 5

Skill D 1 3 4

Skill E 2 4 5

EXHIBIT 7.9 High Coefficient Alpha but Low Agreement

Skill Rater 1 Rater 2 Rater 3

Skill A 2 2 2

Skill B 2 2 2

Skill C 3 3 3

Skill D 2 2 2

Skill E 2 2 2

EXHIBIT 7.10 Low Coefficient Alpha but High Agreement

099-67811_ch07_4P.indd 334 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 335

thus­requires­some­sense­of­how­much­the­attribute­may­be­expected­to­change,­ and­what­the­appropriate­time­interval­between­tests­is.­Usually,­for­very­short­time­ intervals­(hours­or­days),­most­attributes­are­quite­stable,­and­a­large­test–­retest­r­ (r­=­.90­or­higher)­should­be­expected.­Over­longer­time­intervals,­it­is­common­ to­expect­much­lower­r’s,­depending­on­the­attribute­being­mea­sured.­For­exam­ ple,­over­six­months­or­a­year,­individuals’­knowledge­of­programming­languages­ might­change.­If­so,­­there­­will­be­lower­test–­retest­reliabilities­(e.g.,­r­=­.50).

Intrarater Agreement. To­calculate­intrarater­agreement,­scores­that­the­rater­ assigns­to­the­same­­people­in­two­dif­fer­ent­time­periods­are­compared.­The­cal­ culation­ could­ involve­ ­either­ computing­ the­ correlation­ between­ the­ two­ sets­ of­ scores­or­using­the­same­formula­as­for­interrater­agreement­(see­Exhibit­7.8).

Interpretation­of­intrarater­agreement­is­made­difficult­by­the­time­­factor.­For­ short­time­intervals­between­mea­sures,­a­fairly­high­relationship­is­expected­(e.g.,­ r­=­.80,­or­percentage­agreement­=­90%).­For­longer­time­intervals,­the­level­of­reli­ ability­may­reasonably­be­expected­to­be­lower.

Implications of Reliability The­degree­of­reliability­of­a­mea­sure­has­two­implications.­The­first­of­­these­per­ tains­to­interpreting­individuals’­scores­on­the­mea­sure­and­the­standard­error­of­ mea­sure­ment.­The­second­implication­pertains­to­the­effect­that­reliability­has­on­ the­mea­sure’s­validity.

Standard Error of Mea sure ment. Mea­sures­ yield­ scores,­ which­ in­ turn­ are­ used­as­critical­inputs­for­decision­making­in­staffing­activities.­For­example,­in­ Exhibit­ 7.1­ a­ test­ of­ knowledge­ of­ programming­ languages­ was­ developed­ and­ administered­to­job­applicants.­The­applicants’­scores­­were­used­as­a­basis­for­ making­hiring­decisions.

The­discussion­of­reliability­suggests­that­mea­sures­and­scores­­will­usually­have­ some­amount­of­error­in­them.­Hence,­scores­on­the­test­of­knowledge­of­program­ ming­ languages­ most­ likely­ reflect­ both­ true­ knowledge­ and­ error.­ Since­ only­ a­ single­ score­ is­ obtained­ from­ each­ applicant,­ the­ critical­ issue­ is­ how­ accurately­ that­par­tic­u­lar­score­indicates­the­applicant’s­true­level­of­knowledge­of­program­ ming­languages­alone.

The­ standard­ error­ of­ mea­sure­ment­ (SEM)­ addresses­ this­ issue.­ It­ provides­ a­ way­to­state,­within­limits,­a­person’s­likely­score­on­a­mea­sure.­The­formula­for­ the­SEM­is

SEM SD r x xx

= −1

where­SDx­is­the­standard­deviation­of­scores­on­the­mea­sure­and­rxx­is­an­estimate­ of­the­mea­sure’s­reliability.­For­example,­if­SDx­=­10­and­rxx­=­.75­(based­on­coef­ ficient­alpha),­SEM­=­5.

099-67811_ch07_4P.indd 335 10/31/17 10:14 PM

336 PART FOUR Staffing­Activities:­Se­lection

With­ the­ SEM­ known,­ the­ range­ within­ which­ any­ individual’s­ true­ score­ is­ likely­to­fall­can­be­estimated.­This­range­is­known­as­a­confidence­interval­or­limit.­ ­There­is­a­95%­chance­that­a­person’s­true­score­lies­within­±2­SEM­of­his­or­her­ ­actual­score.­Thus,­if­an­applicant­received­a­score­of­22­on­the­test­of­knowledge­ of­programming­languages,­the­applicant’s­true­score­is­most­likely­to­be­within­the­ range­of­22­±­2(5),­or­12–32.

Recognition­and­use­of­the­SEM­allow­for­care­in­interpreting­­people’s­scores,­ as­ well­ as­ differences­ between­ individuals­ in­ terms­ of­ their­ scores.­ For­ example,­ using­the­preceding­data,­if­the­test­score­for­applicant­1­is­22­and­the­score­for­ applicant­ 2­ is­ 19,­ what­ should­ be­ made­ of­ the­ difference­ between­ the­ two­ appli­ cants?­ Is­ applicant­ 1­ truly­ more­ knowledgeable­ of­ programming­ languages­ than­ applicant­2?­The­answer­is­prob­ably­not.­This­is­­because­of­the­SEM­and­the­large­ amount­of­overlap­between­the­two­applicants’­intervals­(12–32­for­applicant­1,­and­ 9–29­for­applicant­2).

In­ short,­ ­there­ is­ not­ a­ one­­to­­one­ correspondence­ between­ ­actual­ scores­ and­ true­scores.­Most­mea­sures­used­in­staffing­are­unreliable­to­some­degree,­mean­ ing­that­small­differences­in­scores­are­prob­ably­due­to­error­of­mea­sure­ment­and­ should­be­ignored.

Relationship to Validity. The­validity­of­a­mea­sure­is­defined­as­the­degree­to­ which­it­mea­sures­the­attribute­it­is­supposed­to­be­mea­sur­ing.­For­example,­the­ validity­of­the­test­of­knowledge­of­programming­languages­is­the­degree­to­which­ it­ mea­sures­ that­ knowledge.­ ­There­ are­ specific­ ways­ to­ investigate­ validity,­ and­ ­these­are­discussed­in­the­next­section.­­Here,­it­simply­needs­to­be­recognized­that­ the­reliability­with­which­an­attribute­is­mea­sured­has­direct­implications­for­the­ validity­of­the­mea­sure.

The­relationship­between­the­reliability­and­the­validity­of­a­mea­sure­is

r r xy xx ≤

where­rxy­is­the­validity­of­the­mea­sure­and­rxx­is­the­reliability­of­the­mea­sure.­For­ example,­it­had­been­assumed­previously­that­the­reliability­of­the­test­of­knowledge­ of­programming­languages­was­r­=­.75.­The­validity­of­that­test­thus­cannot­exceed­

.75 86= . Thus,­the­reliability­of­a­mea­sure­places­an­upper­limit­on­the­pos­si­ble­validity­

of­ a­ mea­sure.­ It­ should­ be­ emphasized­ that­ this­ is­ only­ an­ upper­ limit.­ A­ highly­ reliable­mea­sure­is­not­necessarily­valid.­Reliability­does­not­guarantee­validity;­it­ only­makes­validity­pos­si­ble.

Validity of Mea sures

The­validity­of­a­mea­sure­is­defined­as­the­degree­to­which­it­mea­sures­the­attribute­ it­ is­ intended­ to­ mea­sure.18­ Refer­ to­ Exhibit­ 7.1,­ which­ involves­ the­ development­ of­a­test­of­knowledge­of­programming­languages­that­was­to­be­used­in­selecting­

099-67811_ch07_4P.indd 336 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 337

job­applicants.­The­validity­of­this­test­is­the­degree­to­which­it­truly­mea­sures­the­ attribute­or­construct­“knowledge­of­programming­languages.”

Judgments­about­the­validity­of­a­mea­sure­occur­through­the­pro­cess­of­gath­ ering­ data­ and­ evidence­ about­ the­ mea­sure­ to­ assess­ how­ it­ was­ developed­ and­ ­whether­accurate­inferences­can­be­made­from­scores­on­the­mea­sure.­This­pro­cess­ can­be­illustrated­in­terms­of­concepts­pertaining­to­accuracy­of­mea­sure­ment­and­ accuracy­of­prediction.­­These­concepts­may­then­be­used­to­demonstrate­how­vali­ dation­of­mea­sures­occurs­in­staffing.

Accuracy of Mea sure ment How­ accurate­ is­ the­ test­ of­ knowledge­ of­ programming­ languages?­ This­ ques­ tion­asks­for­evidence­about­the­accuracy­with­which­the­test­portrays­individuals’­ true­ levels­ of­ that­ knowledge.­ This­ is­ akin­ to­ asking­ about­ the­ degree­ of­ overlap­ between­the­attribute­being­mea­sured­and­the­­actual­mea­sure­of­the­attribute.

Exhibit­ 7.11­ shows­ the­ concept­ of­ accuracy­ of­ mea­sure­ment­ in­ Venn­ diagram­ form.­The­circle­on­the­left­represents­the­construct­“knowledge­of­programming­ languages,”­and­the­circle­on­the­right­represents­the­­actual­test­of­knowledge­of­ programming­languages.­The­overlap­between­the­two­circles­represents­the­degree­

EXHIBIT 7.11 Accuracy of Measurement

Attribute (knowledge of

programming languages)

Measure (objective test of knowledge of

programming languages)

Accuracy of measurement

Contamination in measurement

Deficiency in measurement

099-67811_ch07_4P.indd 337 10/31/17 10:14 PM

338 PART FOUR Staffing­Activities:­Se­lection

of­accuracy­of­mea­sure­ment­for­the­test.­The­greater­the­overlap,­the­greater­the­ accuracy­of­mea­sure­ment.

Notice­that­perfect­overlap­is­not­shown­in­Exhibit­7.11.­This­signifies­the­occur­ rence­of­mea­sure­ment­error­with­the­use­of­the­test.­­These­errors,­as­indicated­in­ the­exhibit,­are­the­errors­of­deficiency­and­contamination­previously­discussed.

So­ how­ does­ accuracy­ of­ mea­sure­ment­ differ­ from­ reliability­ of­ mea­sure­ment­ since­ both­ are­ concerned­ with­ deficiency­ and­ contamination?­ ­There­ is­ disagree­ ment­among­­people­on­the­answer­to­this­question.­Generally,­the­difference­may­be­ thought­of­as­follows.­Reliability­refers­to­consistency­among­the­scores­on­the­test,­as­ determined­by­comparing­scores­as­previously­described.­Accuracy­of­mea­sure­ment­ goes­beyond­this­to­assess­the­extent­to­which­the­scores­truly­reflect­the­attribute­ being­measured—­the­overlap­shown­in­Exhibit­7.11.­Accuracy­requires­ reliability,­ but­ it­ also­ requires­ more­ by­ way­ of­ evidence.­ For­ example,­ accuracy­ requires­ knowing­ something­ about­ how­ the­ test­ was­ developed.­ Accuracy­ also­ requires­ some­ evidence­ concerning­ how­ test­ scores­ are­ influenced­ by­ other­ ­factors—­for­ example,­how­do­test­scores­change­as­a­result­of­employees­attending­a­training­ program­devoted­to­providing­instruction­on­programming­languages?­Accuracy­ thus­demands­greater­evidence­than­reliability.

Accuracy of Prediction Mea­sures­are­often­developed­­because­they­provide­information­about­­people­that­ can­be­used­to­make­predictions­about­them.­In­Exhibit­7.1,­the­knowledge­test­was­ to­be­used­to­help­make­hiring­decisions,­which­are­actually­predictions­about­ which­­people­­will­be­successful­at­a­job.­Knowing­something­about­the­accuracy­ with­which­a­test­predicts­ ­future­job­success­requires­examining­ the­relationship­ between­scores­on­the­test­and­scores­on­some­mea­sure­of­job­success­for­a­group­ of­­people.

Accuracy­of­prediction­is­illustrated­in­the­top­half­of­Exhibit­7.12.­Where­­there­ is­an­­actual­job­success­outcome­(criterion)­to­predict,­the­test­(predictor)­­will­be­ used­to­predict­the­criterion.­Each­person­is­classified­as­high­or­low­on­the­predictor­ and­high­or­low­on­the­criterion,­based­on­predictor­and­criterion­scores.­Individuals­ falling­into­cells­A­and­C­represent­correct­predictions,­and­individuals­falling­into­ cells­B­and­D­represent­errors­in­prediction.­Accuracy­of­prediction­is­the­percent­ age­of­total­correct­predictions­and­can­range­from­0%­to­100%.

The­ bottom­ half­ of­ Exhibit­ 7.12­ shows­ an­ example­ of­ the­ determination­ of­ accuracy­ of­ prediction­ using­ a­ se­lection­ example.­ The­ predictor­ is­ the­ test­ of­ knowledge­of­programming­languages,­and­the­criterion­is­an­overall­mea­sure­ of­job­per­for­mance.­Scores­on­the­predictor­and­criterion­mea­sures­are­gathered­ for­100­job­applicants­and­are­dichotomized­into­high­or­low­scores­on­each.­Each­ individual­is­placed­into­one­of­the­four­cells.­The­accuracy­of­prediction­for­the­ test­is­70%.

099-67811_ch07_4P.indd 338 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 339

Validation of Mea sures in Staffing

In­staffing,­­there­is­concern­with­the­validity­of­predictors­in­terms­of­both­accuracy­ of­mea­sure­ment­and­accuracy­of­prediction.­It­is­impor­tant­to­have­and­use­predic­ tors­that­accurately­represent­the­KSAOs­to­be­mea­sured,­and­­those­predictors­ need­to­be­accurate­in­their­predictions­of­job­success.­The­validity­of­predictors­is­ explored­by­conducting­validation­studies.

EXHIBIT 7.12 Accuracy of Prediction

A. General Illustration

Accuracy A+C A+B+C+D

100

High

Accuracy 100 70% 45+25

45+10+25+20

High

High

Low

Low

Low

Low

High

A

25

20 45

10

BC

D

A ct

u al

c ri

te ri

o n

A ct

u al

p e

rf o

rm an

ce

Predicted criterion

Predicted performance (based on test scores)

B. Selection Example (n=100 job applicants)

Errors in predictions

Correct predictions

Errors in predictions

Correct predictions

099-67811_ch07_4P.indd 339 10/31/17 10:14 PM

340 PART FOUR Staffing­Activities:­Se­lection

Three­types­of­validation­studies­are­typically­conducted:­(1)­construct­validation,­ (2)­criterion­­related­validation,­and­(3)­content­validation.­Together,­construct,­ criterion­­related,­ and­ content­ validation­ evidence­ should­ be­ amassed­ to­ provide­ vari­ous­forms­of­evidence­to­support­the­se­lection­and­use­of­predictors­and­their­ mea­sures.19

We­­will­discuss­construct­validation­briefly­­here­(given­that­it­primarily­draws­ on­ correlation­ and­ reliability­ evidence,­ as­ discussed­ earlier),­ followed­ by­ discus­ sions­of­criterion­­related­validation­and­content­validation.

Construct Validation Construct­validation­involves­collecting­information­that­shows­a­test­or­assess­ ment­mea­sures­what­it­was­intended­to­mea­sure.­First,­reliability­evidence­assesses­ the­ stability­ and­ consistency­ of­ a­ mea­sure­ of­ a­ psychological­ construct­ (thus,­ a­ mea­sure­cannot­be­valid­without­first­being­reliable).­Second,­patterns­of­corre­ lations­between­what­the­mea­sure­should­be­related­to­and­what­it­should­not­be­ related­to­help­provide­evidence­that­the­assessment­is­mea­sur­ing­what­it­should­ be­mea­sur­ing.­For­example,­the­personality­trait­of­extraversion­should­be­related­to­ sociable­be­hav­ior,­but­should­not­be­related­to­problem­­solving­be­hav­ior.­Third,­ patterns­of­correlations­between­dif­fer­ent­kinds­of­assessments­targeted­­toward­ dif­fer­ent­ constructs­ should­ provide­ evidence­ for­ construct­ validity.­ For­ example,­ a­survey,­structured­interview­question,­and­situational­judgment­test­that­are­all­ intended­to­assess­the­personality­trait­of­conscientiousness­should­be­correlated­ with­one­another.­

Criterion- Related Validation Criterion­­related­validity­evidence,­which­also­involves­correlational­evidence­for­ a­similar­function,­also­provides­support­for­the­validity­of­a­predictor.­Exhibit­7.13­ shows­the­components­of­criterion­­related­validation­and­their­usual­sequencing.20­ The­pro­cess­begins­with­job­analy­sis.­Results­of­job­analy­sis­are­fed­into­criterion­ and­ predictor­ mea­sures.­ Scores­ on­ the­ predictor­ and­ criterion­ are­ obtained­ for­ a­ sample­ of­ individuals;­ the­ relationship­ between­ the­ scores­ is­ then­ examined­ to­ make­a­judgment­about­the­predictor’s­validity.

Job Analy sis. Job­analy­sis­is­undertaken­to­identify­and­define­impor­tant­tasks­ (and­broader­task­dimensions)­of­the­job.­The­KSAOs­and­motivation­thought­to­ be­necessary­for­per­for­mance­of­­these­tasks­are­then­inferred.­Results­of­the­pro­ cess­of­identifying­tasks­and­under­lying­KSAOs­are­expressed­in­the­form­of­the­ job­requirements­matrix.­The­matrix­is­a­task­×­KSAO­matrix;­it­shows­the­tasks­ required­and­the­relevant­KSAOs­for­each­task.

Criterion Mea sures. Mea­sures­of­per­for­mance­on­tasks­and­task­dimensions­ are­needed.­­These­may­already­be­available­as­part­of­an­ongoing­per­for­mance­

099-67811_ch07_4P.indd 340 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 341

appraisal­ system,­ or­ they­ may­ have­ to­ be­ developed.­ In­ what­ever­ manner­ ­these­ mea­sures­are­gathered,­it­is­critical­that­they­be­as­­free­from­mea­sure­ment­error­as­ pos­si­ble.

Criterion­mea­sures­need­not­be­restricted­to­per­for­mance­mea­sures.­­Others­may­ be­used,­such­as­mea­sures­of­attendance,­retention,­safety,­and­customer­ser­vice.­ As­ with­ performance­­based­ criterion­ mea­sures,­ ­these­ alternative­ criterion­ mea­ sures­should­also­be­as­error­­free­as­pos­si­ble.

EXHIBIT 7.13 Criterion- Related Validation

Job analysis

Job performance Other outcomes

Assessment methods

Concurrent validation Predictive validation

Calculation Significance

Tasks and dimensions KSAOs and motivation

Predictor–criterion relationship

Predictor–criterion scores

Predictor measures

Criterion measures

099-67811_ch07_4P.indd 341 10/31/17 10:14 PM

342 PART FOUR Staffing­Activities:­Se­lection

Predictor Mea sure. The­predictor­mea­sure­is­the­mea­sure­whose­criterion­­related­ validity­is­being­investigated.­Ideally,­it­taps­into­one­or­more­of­the­KSAOs­identi­ fied­in­job­analy­sis.­Also,­it­should­be­the­type­of­mea­sure­most­suitable­to­assess­ the­KSAOs.­Knowledge­of­programming­languages,­for­example,­is­prob­ably­best­ assessed­with­some­form­of­written,­objective­test.

Predictor– Criterion Scores. Predictor­and­criterion­scores­must­be­gathered­from­ a­ sample­ of­ current­ employees­ or­ job­ applicants.­ If­ current­ employees­ are­ used,­ a­concurrent­validation­design­is­used.­Alternatively,­if­job­applicants­are­used,­a­ predictive­validation­design­is­used.­The­nature­of­­these­two­designs­is­shown­in­ Exhibit­7.14.

EXHIBIT 7.14 Concurrent and Predictive Validation Designs

Time period 1

Concurrent Validation Design

Current employees

Obtain predictor scores Obtain criterion scores

Predictive Validation Design

Time period 1

Job applicants

Obtain predictor scores

Time period 2

Current employees

Obtain criterion scores

Hire?

099-67811_ch07_4P.indd 342 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 343

Concurrent­validation­definitely­has­some­appeal.­Administratively,­it­is­con­ve­ nient­and­can­often­be­done­quickly.­Moreover,­results­of­the­validation­study­­will­ be­available­soon­­after­the­predictor­and­criterion­scores­have­been­gathered.

Unfortunately,­some­serious­prob­lems­can­arise­with­use­of­a­concurrent­valida­ tion­design.­One­prob­lem­is­that­if­the­predictor­is­a­test,­current­employees­may­ not­ be­ motivated­ in­ the­ same­ way­ that­ job­ applicants­ would­ be­ in­ terms­ of­ the­ desire­to­perform­well.­Yet,­it­is­­future­applicants­for­whom­the­test­is­intended­to­ be­used.

In­ a­ related­ vein,­ current­ employees­ may­ not­ be­ similar­ to,­ or­ representative­ of,­­future­job­applicants.­Current­employees­may­differ­in­terms­of­demographics­ such­ as­ age,­ race,­ sex,­ disability­ status,­ education­ level,­ and­ previous­ job­ experi­ ence.­Hence,­it­is­by­no­means­certain­that­the­results­of­the­study­­will­generalize­ to­­future­job­applicants.­In­addition,­some­unsatisfactory­employees­­will­have­been­ terminated,­ and­ some­ high­ performers­ may­ have­ been­ promoted.­ This­ leads­ to­ restriction­of­range­on­the­criterion­scores­(i.e.,­most­employees­are­high­perform­ ers),­which­in­turn­­will­lower­the­correlation­between­the­predictor­and­criterion­ scores.

Fi­nally,­current­employees’­predictor­scores­may­be­influenced­by­the­amount­ of­ experience­ and/or­ success­ they­ have­ had­ in­ their­ current­ job.­ For­ example,­ scores­ on­ the­ test­ of­ knowledge­ of­ programming­ languages­ may­ reflect­ not­ only­ that­knowledge­but­also­how­long­­people­have­been­on­the­job­and­how­well­they­ have­ performed­ it.­ This­ is­ undesirable­ ­because­ one­ wants­ predictor­ scores­ to­ be­ predictive­of­the­criterion­rather­than­a­result­of­it.

Predictive­validation­overcomes­the­potential­limitations­of­concurrent­valida­ tion­since­the­predictor­scores­are­obtained­from­job­applicants.­Applicants­­will­be­ motivated­to­do­well­on­the­predictor,­and­they­are­more­likely­to­be­representative­ of­­future­job­applicants.­Applicants’­scores­on­the­predictor­cannot­be­influenced­ by­success­and/or­experience­on­the­job,­­because­the­scores­are­gathered­prior­to­ their­ being­ on­ the­ job.­ Predictive­ validation­ also­ is­ subject­ to­ its­ own­ limitations.­ It­ is­ neither­ administratively­ easy­ nor­ quick.­ Therefore,­ results­ ­will­ not­ be­ avail­ able­immediately,­as­some­time­must­lapse­before­criterion­scores­can­be­obtained.­ Despite­­these­limitations,­predictive­validation­is­considered­the­sounder­of­the­two­ designs.

Altogether,­ however,­ the­ use­ of­ concurrent­ or­ predictive­ designs­ should­ also­ be­ based­ on­ the­ goals­ of­ the­ validation­ efforts.­ For­ example,­ research­ suggests­ that­­there­are­degrees­of­susceptibility­to­threats­to­validity­based­on­each­type­of­ design,­and­taking­into­account­the­validation­goals,­the­se­lection­of­a­predictive­ or­concurrent­validation­study­may­be­more­or­less­appropriate­given­the­situation.­ Thus,­­there­are­certain­times­when­concurrent­designs­­will­be­more­preferable­than­ predictive­ designs.­For­ example,­ concurrent­designs­are­best­used­when­ the­goal­ is­to­assess­a­current­skill­or­when­time­­related­changes­may­be­a­severe­threat­to­ the­validation­efforts.­Predictive­designs,­on­the­other­hand,­should­be­used­to­test­ aptitudes­and­validity­stability.21

099-67811_ch07_4P.indd 343 10/31/17 10:14 PM

344 PART FOUR Staffing­Activities:­Se­lection

Predictor– Criterion Relationship. Once­predictor­and­criterion­scores­have­ been­obtained,­the­correlation­r,­or­some­variation­of­it,­must­be­calculated.­The­ value­of­r­is­then­referred­to­as­the­validity­of­the­scores­on­the­predictor.­For­exam­ ple,­if­an­r­=­.35­was­found,­the­predictor­would­be­referred­to­as­having­a­validity­­ of­.35.­Then,­the­practical­and­statistical­significance­of­the­r­should­be­determined.­ Only­if­the­r­meets­desired­levels­of­practical­and­statistical­significance­should­the­ predictor­be­considered­valid­and­thus­potentially­usable­in­the­se­lection­system.

Illustrative Study. A­ state­ university­ civil­ ser­vice­ system­ covering­ 20­ institu­ tions­sought­to­identify­predictors­of­job­per­for­mance­for­clerical­employees.­The­ clerical­ job­ existed­ within­ dif­fer­ent­ schools­ (e.g.,­ engineering,­ humanities)­ and­ nonacademic­ departments­ (e.g.,­ payroll,­ data­ pro­cessing).­ The­ goal­ of­ the­ study­ was­to­have­a­valid­clerical­test­in­two­parallel­forms­that­could­be­administered­to­ job­applicants­in­one­hour.

The­starting­point­was­to­conduct­a­job­analy­sis,­the­results­of­which­would­be­ used­as­the­basis­for­constructing­the­clerical­tests­(predictors)­and­the­job­per­for­ mance­ratings­(criteria).­Subject­­matter­experts­(SMEs)­used­job­observation­and­ previous­job­descriptions­to­construct­a­task­­based­questionnaire­that­was­admin­ istered­ to­ clerical­ incumbents­ and­ their­ supervisors­ throughout­ the­ system.­ Task­ statements­­were­rated­in­terms­of­importance,­frequency,­and­essentialness­(if­it­was­ essential­for­a­newly­hired­employee­to­know­how­to­do­this­task).­From­a­statistical­ analy­sis­of­the­ratings’­means­and­standard­deviations,­25­of­the­188­task­statements­ ­were­retained­as­critical­task­statements.­­These­critical­task­statements­­were­the­key­ input­to­the­identification­of­key­KSAOs­and­the­dimension­of­job­per­for­mance.

Analy­sis­of­the­25­critical­task­statements­indicated­­there­­were­five­KSAO­com­ ponents­of­the­job:­knowledge­of­computer­hardware­and­software,­ability­to­follow­ instructions­and­prioritize­tasks,­knowledge­and­skill­in­responding­to­telephone­ and­reception­scenarios,­knowledge­of­En­glish­language,­and­ability­to­file­items­ in­alphabetical­order.­A­test­was­constructed­to­mea­sure­­these­KSAOs­as­follows:

•­Computer­hardware­and­software—17­questions •­Prioritize­tasks—18­questions •­Route­and­transfer­calls—14­questions •­Rec­ord­messages—20­questions •­Give­information­on­the­phone—20­questions •­Correct­sentences­with­errors—22­questions •­Identify­errors­in­sentences—71­questions •­File­documents—44­questions •­Type­documents—­number­of­questions­not­reported

To­develop­the­job­per­for­mance­(criterion)­mea­sure,­a­behavioral­per­for­mance­ rating­scale­(1–7­rating)­was­constructed­for­each­of­the­nine­areas,­ensuring­a­high­

099-67811_ch07_4P.indd 344 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 345

content­correspondence­between­the­tests­and­the­per­for­mance­criteria­they­sought­ to­ predict.­ Scores­ on­ ­these­ nine­ scales­ ­were­ summed­ to­ yield­ an­ overall­ per­for­ mance­score.

The­ nine­ tests­ ­were­ administered­ to­ 108­ current­ clerical­ employees­ to­ obtain­ predictor­scores.­A­separate­score­on­each­of­the­nine­tests­was­computed,­along­ with­a­total­score­for­all­tests.­In­addition,­total­scores­on­two­short­(50­­question)­ forms­of­the­total­test­­were­created­(Form­A­and­Form­B).

Per­for­mance­ratings­of­­these­108­employees­­were­obtained­from­their­supervi­ sors,­who­­were­unaware­of­their­employees’­test­scores.­The­per­for­mance­ratings­ ­were­summed­to­form­an­overall­per­for­mance­rating.­Scores­on­each­of­the­nine­ tests,­on­the­total­test,­and­on­Forms­A­and­B­of­the­test­­were­correlated­with­the­ overall­per­for­mance­ratings.

Results­of­the­concurrent­validation­study­are­shown­in­Exhibit­7.15.­It­can­be­ seen­ that­seven­of­the­nine­ specific­tests­had­statistically­significant­ correlations­ with­overall­per­for­mance­(filing­and­typing­did­not).­Total­test­scores­­were­signifi­ cantly­correlated­with­overall­per­for­mance,­as­­were­scores­on­the­two­short­forms­ of­the­total­test.­The­sizes­of­the­statistically­significant­correlations­suggest­favor­ able­practical­significance­of­the­correlations­as­well.

EXHIBIT 7.15 Clerical Test Concurrent Validation Results

Test Correlation With

Overall Performance

Computer software and hardware Prioritize tasks Route and transfer calls Record messages Give information on phone Correct sentences with errors Identify errors in sentences File documents Type documents

Total test Form A Form B

.37**

.29*

.19*

.31**

.35**

.32**

.44**

.22

.10

.45**

.55**

.49**

NOTE : *p < .05, **p < .01

Source: Adapted from J. E. Pynes, E. J. Harrick, and D. Schaefer, “A Concurrent Validation Study Applied to a Secretarial Position in a State University Civil Service System,” Journal of Business and Psychology, 1997, 12, pp. 3–18.

099-67811_ch07_4P.indd 345 10/31/17 10:14 PM

346 PART FOUR Staffing­Activities:­Se­lection

Content Validation Content­validity­primarily­focuses­on­the­extent­to­which­the­content­of­the­mea­sures­ represents­the­attribute­of­interest­and­the­content­of­the­job.­Content­validation­is­ most­likely­to­be­found­in­two­circumstances:­(1)­when­­there­are­too­few­­people­ to­form­a­sample­for­purposes­of­criterion­­related­validation,­and­(2)­when­crite­ rion­mea­sures­are­not­available,­or­they­are­available­but­are­of­highly­question­ able­quality.­At­an­absolute­minimum,­an­n­=­30­is­necessary­for­criterion­­related­ validation.

Exhibit­7.16­shows­the­two­basic­steps­in­content­validation:­conducting­a­job­ analy­sis­and­developing­a­predictor.­­These­steps­are­commented­on­next.­Compar­ ing­ the­ steps­ in­ content­ validation­ with­ ­those­ in­ criterion­­related­ validation­ (see­ Exhibit­7.13)­shows­that­they­are­similar.­­Because­of­this,­the­two­types­of­validation­ should­be­thought­of­as­complementary,­with­content­validation­being­a­subset­of­ criterion­­related­validation.­Content­validation­can­be­examined­along­with­criterion­­ related­validation­to­provide­separate­pieces­of­the­puzzle­of­validity­in­staffing.

Job Analy sis. Like­ criterion­­related­ validation,­ content­ validation­ begins­ with­ job­analy­sis,­which,­in­both­cases,­is­undertaken­to­identify­and­define­tasks­and­ task­dimensions­and­to­infer­the­necessary­KSAOs­and­motivation­for­­those­tasks.­ Results­are­expressed­in­the­job­requirements­matrix.

Predictor Mea sures. Sometimes­the­predictor­­will­be­one­that­has­already­been­ developed­ and­ is­ in­ use.­ An­ example­ ­here­ is­ a­ commercially­ available­ test,­ inter­ viewing­ pro­cess,­ or­ biographical­ information­ questionnaire.­ Other­ times,­ such­ a­ mea­sure­­will­not­be­available.­This­occurs­frequently­in­the­case­of­job­knowledge,­ which­is­usually­very­specific­to­the­par­tic­u­lar­job­involved­in­the­validation.

EXHIBIT 7.16 Content Validation

Job analysis

Tasks and dimensions KSAOs and motivation

Predictor measures

Assessment methods

099-67811_ch07_4P.indd 346 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 347

Lacking­a­readily­available­or­modifiable­predictor­means­that­the­organ­ization­ ­will­have­to­construct­its­own­predictors.­At­this­point,­the­organ­ization­has­built­ predictor­construction­into­the­predictor­validation­pro­cess.­Now,­content­valida­ tion­ and­ the­ predictor­ development­ pro­cesses­ occur­ si­mul­ta­neously.­ The­ organ­ ization­ becomes­ engaged­ in­ test­ construction,­ a­ topic­ beyond­ the­ scope­ of­ this­ book.22

With­content­validation,­it­is­impor­tant­to­continually­pay­attention­to­the­over­ lap­between­the­attribute­and­the­mea­sure­ment­of­that­attribute­as­in­Exhibit­7.11.­ If­the­mea­sure­does­not­adequately­tap­into­the­content­domain­(deficiency),­or­if­it­ taps­into­extraneous,­irrelevant­content,­the­mea­sure­ment­­will­be­limited­in­degree­ of­content­validity.­Furthermore,­content­validity­plays­into­issues­of­judgments­of­ face validity­on­the­part­of­orga­nizational­stakeholders.­Both­applicants­and­staff­ ing­professionals­alike­judge­the­content­of­the­mea­sure­and­make­a­connection­to­ eventual­job­per­for­mance.­If­the­content­does­not­contain­what­it­is­supposed­to­or­ contains­attributes­that­are­irrelevant,­it­­will­not­seem­valid,­prima­facie.

Though­ content­ validation­ has­ its­ benefits,­ including­ ease­ of­ administration,­ favorable­applicant­reactions­to­mea­sures,­and­­legal­defensibility,­it­is­not­without­ drawbacks.­Critics­of­content­validation­argue­that,­despite­the­transparent­match­ between­ job­ content­ and­ mea­sure­ment­ content,­ ­there­ is­ ­little­ empirical­ evidence­ that­ content­­validated­ mea­sures­ correlate­ with­ the­ criteria­ they­ are­ supposed­ to­ predict­(e.g.,­job­per­for­mance)­and­thus­they­are­not­as­valid­as­they­are­made­out­ to­be.23

Illustrative Study. The­ Mary­land­ Department­ of­ Transportation­ sought­ to­ develop­a­series­of­assessment­methods­for­identifying­supervisory­potential­among­ candidates­for­promotion­to­a­first­­level­supervising­position­anywhere­within­the­ department.­The­content­validation­pro­cess­and­outputs­are­shown­in­Exhibit­7.17.­ As­shown­in­the­exhibit,­job­analy­sis­was­first­conducted­to­identify­and­define­ a­ set­ of­ per­for­mance­ dimensions­ and­ then­ infer­ the­ KSAOs­ necessary­ for­ suc­ cessful­ per­for­mance­ in­ ­those­ dimensions.­ Several­ SMEs­ met­ to­ develop­ a­ tenta­ tive­set­of­task­dimensions­and­under­lying­KSAOs.­The­under­lying­KSAOs­­were­ in­ essence­ general­ competencies­ required­ of­ all­ first­­level­ supervisors,­ regardless­ of­ work­ unit­ within­ the­ department.­ Their­ results­ ­were­ sent­ to­ a­ panel­ of­ expe­ rienced­ ­human­ resource­ (HR)­ man­ag­ers­ within­ the­ department­ for­ revision­ and­ finalization.­Three­assessment­method­specialists­then­set­about­developing­a­set­ of­assessments­that­would­(1)­be­efficiently­administered­at­locations­throughout­ the­state,­(2)­be­reliably­scored­by­­people­at­­those­locations,­(3)­emphasize­the­ interpersonal­ skills­ impor­tant­ for­ this­ job,­ and­ most­ importantly,­ (4)­ maximize­ the­correspondence­between­the­selected­assessments,­the­KSAOs­needed­to­perform­ the­job­successfully,­and­the­content­of­the­job­itself.­As­shown­in­Exhibit­7.17,­five­ assessment­methods­­were­developed:­multiple­­choice­in­­basket­exercise,­structured­ panel­interview,­pre­sen­ta­tion­exercise,­writing­sample,­and­training­and­experience­

099-67811_ch07_4P.indd 347 10/31/17 10:14 PM

348 PART FOUR Staffing­Activities:­Se­lection

evaluation­exercise.­­These­assessment­methods­matched­the­content­of­the­per­for­ mance­dimensions,­tasks,­and­KSAOs.

Candidates’­per­for­mance­on­the­exercises­was­to­be­evaluated­by­specially­cho­ sen­ assessors­ at­ the­ location­ where­ the­ exercises­ ­were­ administered.­ To­ ensure­ that­candidates’­per­for­mance­was­skillfully­observed­and­reliably­evaluated­by­the­ assessors,­ an­ intensive­ training­ program­ was­ developed.­ The­ program­ provided­ both­a­written­user’s­manual­and­specific­skill­training.

Validity Generalization

In­the­preceding­discussions­of­validity­and­validation,­an­implicit­premise­is­being­ made­ that­ validity­ is­ situation­ specific,­ and­ therefore­ validation­ of­ predictors­ must­occur­in­each­specific­situation.­All­of­the­examples­involve­specific­types­

Job Analysis: First- Level Supervisor—Maryland Department of Transportation

Seven performance dimensions and task statements: Organizing work; assigning work; monitoring work; managing consequences; counseling, efficiency reviews, and discipline; setting an example; employee development

Fourteen KSAOs and definitions: Organizing; analysis and decision making; planning; communication (oral and written); delegation; work habits; carefulness; interpersonal skill; job knowledge; organizational knowledge; toughness; integrity; development of others; listening

Predictor Measures: Five Assessment Methods

Multiple-choice in- basket exercise (assume role of new supervisor and work through in- basket on desk)

Structured panel interview (predetermined questions about past experiences relevant to the KSAOs)

Presentation exercise (make presentation to a simulated work group about change in their work hours)

Writing sample (prepare a written reprimand for a fictitious employee)

Training and experience evaluation exercise (give examples of training and work achievements relevant to certain KSAOs)

EXHIBIT 7.17 Content Validation Study

Source: Adapted from M. A. Cooper, G. Kaufman, and W. Hughes, “Measuring Supervisory Potential,” IPMA News, December 1996, pp. 8–18. Reprinted with permission of IPMA News, published by the International Personnel Management Association (IPMA; www.ipma-hr.org).

099-67811_ch07_4P.indd 348 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 349

of­mea­sures,­jobs,­individuals,­and­so­forth.­Nothing­is­said­about­generalizing­ validity­across­­those­jobs­and­individuals.­For­example,­if­a­predictor­is­valid­for­a­ par­tic­u­lar­job­in­organ­ization­A,­would­it­be­valid­for­the­same­type­of­job­in­organ­ ization­B?­Or­is­validity­specific­to­the­par­tic­u­lar­job­and­organ­ization?

The­situation­­specific­premise­is­based­on­the­following­scenario,­which­has­its­ origins­ in­ findings­ from­ de­cades­ of­ previous­ research.­ Assume­ that­ 10­ criterion­­ related­validation­studies­have­been­conducted.­Each­study­involves­vari­ous­predic­ tor­mea­sures­of­a­common­KSAO­attribute­(e.g.,­general­­mental­ability)­and­vari­ous­ criterion­ mea­sures­ of­ a­ common­ outcome­ attribute­ (e.g.,­ job­ per­for­mance).­ The­ predictor­­will­be­designated­x,­and­the­criterion­­will­be­designated­y.­The­studies­ are­conducted­in­dif­fer­ent­situations­(types­of­jobs,­types­of­organ­izations),­and­they­ involve­dif­fer­ent­samples­(with­dif­fer­ent­sample­sizes­[n]).­In­each­study,­the­reli­ ability­of­the­predictor­(rxx)­and­the­criterion­(ryy),­as­well­as­the­validity­coefficient­ (rxy),­ is­ calculated.­ ­These­ results­ are­ provided­ in­ Exhibit­ 7.18.­ At­ first­ blush,­ the­ results,­­because­of­the­wide­range­of­rxy­values,­would­seem­to­support­situational­ specificity.­ ­These­ results­ suggest­ that­ while,­ on­ average,­ ­there­ seems­ to­ be­ some­ validity­to­x,­the­validity­varies­substantially­from­situation­to­situation.

The­concept­of­validity­generalization­questions­this­premise.24­It­says­that­much­ of­ the­ variation­ in­ the­ rxy­ values­ is­ due­ to­ the­ occurrence­ of­ several­ “artifacts”—­ methodological­ and­ statistical­ differences­ across­ the­ studies­ (e.g.,­ differences­ in­ reliability­of­x­and­y).­If­­these­differences­­were­controlled­statistically,­the­variation­

EXHIBIT 7.18 Hypothetical Validity Generalization Example

Study Sample Size

n Validity

rxy

Reliability Predictor (x)

rxx

Reliability Criterion (y)

ryy

Corrected Validity

rc

Birch, 2013 454 .41 .94 .94 .44

Cherry, 1990 120 .19 .66 .76 .27

Elm, 1978 212 .34 .91 .88 .38

Hickory, 2009 37 –.21 .96 .90 –.23

Locust, 2000 92 .12 .52 .70 .20

Maple, 1961 163 .32 .90 .84 .37

Oak, 1948 34 .09 .63 .18 .27

Palm, 2007 202 .49 .86 .92 .55

Pine, 1984 278 .27 .80 .82 .33

Walnut, 1971 199 .18 .72 .71 .25

099-67811_ch07_4P.indd 349 10/31/17 10:14 PM

350 PART FOUR Staffing­Activities:­Se­lection

in­values­would­shrink­and­converge­­toward­an­estimate­of­the­true­validity­of­x.­ If­that­true­r­is­significant­(practically­and­statistically),­one­can­indeed­generalize­ validity­of­x­across­situations.­Validity­thus­is­not­viewed­as­situation­specific.

Indeed,­the­results­in­the­exhibit­reveal­that­the­average­(weighted­by­sample­size)­ uncorrected­validity­is­r

_ xy­=­.30,­and­the­average­(weighted­by­sample­size)­validity­

corrected­for­unreliability­in­the­predictor­and­criterion­is­r _

xy­=­.36.­In­this­example,­ fully­two­­thirds­(66.62%)­of­the­variance­in­the­correlations­was­due­to­study­arti­ facts­(differences­in­sample­size­and­differences­in­reliability­of­the­predictor­or­the­ criterion).­Put­another­way,­the­variability­in­the­correlations­is­lower­once­they­are­ corrected­for­artifacts,­and­the­validities­do­generalize.

An­enormous­amount­of­evidence­supporting­the­validity­generalization­premise­ has­accumulated.­Some­experts­argue­that­validity­generalization­reduces­or­even­ eliminates­the­need­for­an­organ­ization­to­conduct­its­own­validation­study.­If­valid­ ity­generalization­shows­that­a­se­lection­mea­sure­has­a­statistically­significant­and­ practically­meaningful­correlation­with­job­per­for­mance,­the­reasoning­goes,­why­ go­to­the­considerable­time­and­expense­to­reinvent­the­wheel­(to­conduct­a­valida­ tion­ study­ when­ evidence­ clearly­ supports­ use­ of­ the­ mea­sure­ in­ the­ first­ place)?­ ­There­are­two­caveats­to­keep­in­mind­in­accepting­this­logic.­First,­organ­izations­ or­specific­jobs­(for­which­the­se­lection­mea­sure­in­question­is­intended)­can­some­ times­be­unusual.­To­the­extent­that­the­organ­ization­or­job­was­not­reflected­in­the­ validity­generalization­effort,­the­results­may­be­inapplicable­to­the­specific­organ­ ization­ or­ job.­ Second,­ validity­ generalization­ efforts,­ while­ undoubtedly­ offering­ more­evidence­than­a­single­study,­are­not­perfect.­For­example,­validity­generaliza­ tion­results­can­be­susceptible­to­“publication­bias,”­where­test­vendors­may­report­ only­statistically­significant­correlations.­Although­procedures­exist­for­correcting­ this­ bias,­ they­ assume­ evidence­ and­ expertise­ usually­ not­ readily­ available­ to­ an­ organ­ization.25­ Thus,­ as­ promising­ as­ validity­ generalization­ is,­ we­ think­ organ­ izations,­especially­if­they­think­the­job­in­question­differs­from­that­in­comparable­ organ­izations,­may­still­wish­to­conduct­validation­studies­of­their­own.

A­ par­tic­u­lar­ form­ of­ validity­ generalization­ that­ has­ proved­ useful­ is­ meta­­ analysis.­ Returning­ to­ Exhibit­ 7.18,­ meta­­analysis­ reveals­ that­ the­ average­ corre­ lation­ between­ x­ and­ y­ (i.e.,­ r

_ xy)­ is­ r

_ xy­ =­ .36,­ that­ most­ of­ the­ variability­ in­ the­

correlations­is­due­to­statistical­artifacts­(and­not­due­to­true­substantive­differences­in­ validity­across­studies),­and­that­the­validity­appears­to­generalize.­Meta­­analysis­is­ very­useful­in­comparing­the­relative­validity­of­se­lection­mea­sures,­which­is­precisely­ what­we­do­in­Chapters­8­and­9.

However,­ ­future­ validity­ generalization­ work­ using­ meta­­analysis­ should­ pay­ critical­attention­to­the­studies­that­comprise­the­meta­­analytic­databases.­Notably,­a­ review­of­14­meta­­analyses­on­the­validities­of­cognitive­ability­and­personality­traits­ found­that­a­sizable­portion­of­the­meta­­analyses­did­not­account­for­between­­study­ differences­ in­ predictive­ versus­ concurrent­ validation,­ the­ period­ of­ time­ between­ mea­sur­ing­the­predictor­and­the­criterion,­the­age­of­the­studies­included­(most­of­the­ studies­­were­conducted­in­the­1960s­or­earlier),­sample­demographics,­the­culture­

099-67811_ch07_4P.indd 350 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 351

of­the­samples,­information­about­the­organ­izations­or­industries­providing­the­sam­ ples,­ relationships­ at­ dif­fer­ent­ levels­ of­ analy­sis­ (e.g.,­ team­­level,­ department­­level­ relationships),­ or­ even­ reliability­ information­ from­ the­ primary­ studies­ and­ resul­ tant­construction­of­mea­sure­ment­artifact­distributions.26­Clearly,­this­information­ would­ greatly­ improve­ validity­ generalization­ efforts­ and­ help­ prac­ti­tion­ers­ deter­ mine­­whether­they­might­expect­the­validities­to­be­replicated­in­their­own­contexts.

Staffing Metrics and Benchmarks

For­some­time­now,­HR­as­a­business­area­has­sought­to­prove­its­value­through­ the­use­of­metrics,­or­quantifiable­mea­sures­that­demonstrate­the­effectiveness­(or­ in­effec­tive­ness)­of­a­par­tic­u­lar­practice­or­procedure.­Staffing­is­no­exception.­For­ tunately,­ many­ of­ the­ mea­sure­ment­ pro­cesses­ described­ in­ this­ chapter­ represent­ excellent­ metrics.­ Unfortunately,­ most­ HR­ man­ag­ers,­ including­ many­ in­ staffing,­ may­have­limited­(or­no)­knowledge­of­job­analy­sis,­validation,­and­mea­sure­ment.­ The­reader­of­this­book­can­“show­his­or­her­stuff ”­by­educating­other­orga­nizational­ members­about­­these­metrics­in­an­accessible­and­nonthreatening­way.­The­result­ may­ be­ a­ more­ rigorous­ staffing­ pro­cess­ that­ produces­ higher­ levels­ of­ validity,­ higher­­performing­employees,­and­kudos­for­you.

Many­who­work­in­staffing­are­likely­more­familiar­with­another­type­of­metric,­ namely,­ benchmarking.­ Benchmarking­ is­ a­ pro­cess­ where­ organ­izations­ evaluate­ their­practices­(in­this­case,­staffing­practices)­against­­those­used­by­industry­lead­ ers.­Some­commonly­used­benchmarks­include­cost­per­hire,­forecasted­hiring,­and­ vacancies­filled.­Traditionally,­most­benchmarking­efforts­have­focused­on­quantity­ of­employees­hired­and­cost.­That­situation­is­beginning­to­change.­For­example,­ ­Reuters­and­Dell­are­tracking­“quality­of­hire,”­or­the­per­for­mance­levels­of­­those­ hired.­Eventually,­if­enough­organ­izations­track­such­information,­they­can­form­a­ consortium­so­they­can­benchmark­off­one­another’s­metrics­for­both­quantity­and­ quality.27­More­generally,­the­Society­for­­Human­Resource­Management­(SHRM)­ regularly­offers­conferences­and­mini­­conferences­on­staffing­as­well­as­customiz­ able­reports­that­provide­benchmarks­of­current­orga­nizational­practices.

Such­ benchmarks­ can­ be­ a­ useful­ means­ of­ mea­sur­ing­ impor­tant­ aspects­ of­ staffing­ methods­ or­ the­ entire­ staffing­ pro­cess.­ However,­ they­ are­ no­ substitute­ for­the­other­mea­sure­ment­princi­ples­described­in­this­chapter,­including­reliabil­ ity­and­validity.­Reliability,­validity,­utility,­and­mea­sure­ment­princi­ples­are­more­ enduring,­and­more­fundamental,­metrics­of­staffing­effectiveness.

COLLECTION OF ASSESSMENT DATA

In­staffing­decisions,­the­pro­cess­of­mea­sure­ment­is­put­into­practice­by­collecting­ assessment­ data­ on­ external­ or­ internal­ applicants.­ To­ this­ point­ in­ this­ chapter,­ we­have­discussed­how­se­lection­mea­sures­can­be­evaluated.­To­be­sure,­thorough­

099-67811_ch07_4P.indd 351 10/31/17 10:14 PM

352 PART FOUR Staffing­Activities:­Se­lection

evaluation­of­se­lection­mea­sures­is­impor­tant.­Se­lection­decision­makers­must­be­ knowledgeable­ about­ how­ to­ use­ the­ assessment­ data­ that­ have­ been­ collected;­ other­wise,­the­potential­value­of­the­data­­will­lie­dormant.­On­the­other­hand,­to­put­ ­these­somewhat­theoretical­concepts­to­use­in­practice,­se­lection­decision­makers­ must­know­how­to­collect­the­assessment­data.­Other­wise,­the­decision­maker­may­ find­ himself­ or­ herself­ in­ the­ unenviable­ “big­ hat,­ no­ ­cattle”­ situation—­knowing­ how­to­ analyze­and­evaluate­assessment­data­but­not­knowing­where­to­find­the­ data­in­the­first­place.

In­collecting­assessment­data,­if­a­predictor­is­purchased,­support­ser­vices­are­ needed.­Consulting­firms­and­test­publishers­can­provide­support­for­scoring­of­ tests.­Also­necessary­is­­legal­support­to­ensure­compliance­with­laws­and­regulations.­ Validity­studies­are­impor­tant­to­ensure­the­effectiveness­of­the­mea­sures.­Training­ on­how­to­administer­the­predictor­is­also­needed.

Furthermore,­ practical­ considerations­ in­ staffing­ should­ also­ be­ taken­ into­ account.­ For­ example,­ recent­ research­ from­ Glassdoor­ suggests­ that­ employers­ are­taking­longer­to­hire­new­workers.28­Andrew­Chamberlain,­chief­economist­at­ Glassdoor,­recognizes­that­although­this­careful­evaluation­can­lead­to­better­hires,­ “employers­ could­ be­ losing­ out­ on­ top­ talent­ ­because­.­.­.­­their­ pro­cess­ is­ longer­ than­other­companies.”­Therefore,­it­is­impor­tant­to­recognize­both­mechanical­and­ practical­issues­when­developing­a­staffing­mea­sure­ment­and­evaluation­system.

Beyond­­these­general­princi­ples,­which­apply­no­­matter­what­assessment­data­ are­ collected,­ ­there­ is­ other­ information­ that­ the­ se­lection­ decision­ maker­ must­ know­about­the­tangible­pro­cess­of­collecting­assessment­data.­Collection­of­data­ with­ re­spect­ to­ testing­ procedures,­ tests­ and­ test­ manuals,­ and­ professional­ stan­ dards­is­discussed.

Testing Procedures

Regardless­ of­ ­whether­ paper­­and­­pencil­ or­ computerized­ tests­ are­ given,­ certain­ guidelines­need­to­be­kept­in­mind.

Qualification Predictors­cannot­always­be­purchased­by­any­firm­that­wants­to­use­them;­many­ test­publishers­require­the­purchaser­to­have­certain­expertise,­to­ensure­that­the­ test­is­used­properly.­For­example,­test­publishers­may­want­the­user­to­hold­a­PhD­ in­ a­ field­ of­ study­ related­ to­ the­ test­ and­ its­ use.­ For­ smaller­ organ­izations,­ this­ means­hiring­the­consulting­ser­vices­of­a­specialist­in­order­to­use­a­par­tic­u­lar­test.

Security Care­must­be­taken­to­ensure­that­correct­answers­for­predictors­are­not­shared­ with­job­applicants­in­advance­of­administration­of­the­predictor.­Any­person­who­ has­access­to­the­predictor­answers­should­be­fully­trained­and­should­sign­a­predic­ tor­security­agreement.­In­addition,­applicants­should­be­instructed­not­to­share­

099-67811_ch07_4P.indd 352 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 353

information­about­the­test­with­fellow­applicants.­Alternative­forms­of­the­test­ should­be­considered­if­the­security­of­the­test­is­in­question.

Not­only­should­the­predictor­itself­be­kept­secure,­but­also­the­results­of­the­pre­ dictor­in­order­to­ensure­the­privacy­of­the­individual.­The­results­of­the­predictor­ should­be­used­only­for­the­intended­purposes­and­by­persons­qualified­to­interpret­ them.­Though­feedback­can­be­given­to­the­candidate­concerning­the­results,­the­ individual­should­not­be­given­a­copy­of­the­predictor­or­the­scoring­key.

Standardization Fi­nally,­it­is­imperative­that­all­applicants­be­assessed­with­standardized­procedures.­ This­means­that­not­only­should­the­same­or­a­psychometrically­equivalent­predic­ tor­be­used,­but­individuals­should­take­the­test­­under­the­same­circumstances.­The­ purpose­of­the­predictor­should­be­explained­to­applicants,­and­they­should­be­put­ at­ease,­be­held­to­the­same­time­requirements­to­complete­the­predictor,­and­take­ the­predictor­in­the­same­location.

Internet- Based Test Administration Increasingly,­se­lection­mea­sures­are­being­administered­on­the­Internet.­For­exam­ ple,­job­applicants­for­hourly­positions­at­Kmart,­Albertson’s,­and­Best­Buy­take­an­ electronic­assessment­at­in­­store­kiosks.­The­test­vendor,­Unicru,­forwards­the­test­ scores­ to­ se­lection­ decision­ makers.­ Some­ organ­izations­ may­ develop­ their­ own­ tests­and­administer­them­online.

In­ general,­ research­ suggests­ that­ web­­based­ tests­ work­ as­ well­ as­ paper­­and­­ pencil­tests,­as­long­as­special­care­is­taken­to­ensure­that­the­­actual­applicant­is­ the­test­taker­and­that­the­tests­are­validated­in­the­same­manner­as­other­se­lection­ mea­sures.­Test­security­becomes­even­more­of­a­concern­when­using­Internet­test­ ing,­ but­ can­ be­ ameliorated­ with­ the­ previously­ mentioned­ best­ practices,­ along­ with­developing­a­security­plan,­preventing­and­detecting­cheating,­and­engaging­ in­punitive­actions.29­More­modern­approaches­to­assessment­have­utilized­mobile­ assessment­ modalities.­ Research­ ­here­ also­ suggests­ equivalence­ between­ mobile­ and­ non­­mobile­ devices­ for­ assessment­ in­ staffing,­ although­ effects­ may­ differ­ depending­ on­ applicant­ anxiety­ with­ mobile­ devices.30­ Some­ new­ advancements­ in­technology­are­also­vastly­automating­scoring­procedures­that­would­take­much­ longer­and­many­more­resources­to­accomplish­effectively­using­paper­­and­­pencil­ testing­formats.31

Some­ organ­izations,­ in­ their­ rush­ to­ use­ such­ tests,­ fail­ to­ validate­ them.­ The­ results­can­be­disastrous.­The­Transportation­Security­Administration­(TSA)­was­ criticized­ for­ an­ “inane”­ online­ test.­ The­ answers­ to­ many­ questions­ on­ the­ test­ ­were­obvious­to­a­grade­­school­student.­For­example,­one­question­read­as­follows:

Why­is­it­impor­tant­to­screen­bags­for­improvised­explosive­devices­(IEDs)? a.­ The­IED­batteries­could­leak and damage­other­passenger­bags. b.­ The­wires­in­the­IED­could­cause a short­to­the­aircraft­wires.

099-67811_ch07_4P.indd 353 10/31/17 10:14 PM

354 PART FOUR Staffing­Activities:­Se­lection

c.­ IEDs­can­cause­loss of lives,­property­and­aircraft. d.­ The­ticking timer­could­worry­other­passengers.

Obviously,­the­correct­answer­is­“c.”­The­TSA­farmed­out­the­test­to­a­vendor­with­ out­asking­for­validation­evidence.­The­TSA’s­justification­was,­“We­administered­ the­test­the­way­we­­were­told­to­[by­the­vendor].”­Thus,­Internet­­based­testing­can­ work­well­and­has­many­advantages,­but­organ­izations­need­to­ensure­that­the­tests­ are­rigorously­developed­and­validated.32

Acquisition of Tests and Test Manuals

The­pro­cess­of­acquiring­tests­and­test­manuals,­­whether­digital­versions­or­print­ versions,­requires­some­start­up­costs­in­terms­of­the­time­and­effort­needed­to­con­ tact­test­publishers.­Once­the­se­lection­decision­maker­is­on­an­e­­mail­or­mailing­ list,­however,­he­or­she­can­stay­up­to­date­on­the­latest­developments.

Publishers­ of­ se­lection­ tests­ include­ Wonderlic,­ Consulting­ Psychologists­ Press,­ Institute­ for­ Personality­ and­ Ability­ Testing,­ Psychological­ Assessment­ Resources,­Hogan­Assessment­Systems,­and­Psychological­Ser­vices,­Inc.­All­­these­ organ­izations­have­information­on­their­websites­that­describes­the­products­available­ for­purchase.

Most­ publishers­ provide­ sample­ copies­ of­ the­ tests­ and­ a­ user’s­ manual­ that­ se­lection­decision­makers­may­consult­before­purchasing­the­test.­Test­costs­vary­ widely­depending­on­the­test­and­the­number­of­times­the­test­is­given.­Discounts­ are­thus­available­for­testing­larger­numbers­of­applicants.

Any­ test­ worth­ using­ ­will­ be­ accompanied­ by­ a­ professional­ user’s­ manual­ (­whether­in­print­or­online).­This­manual­should­describe­the­development­and­ validation­of­the­test,­including­validity­evidence­in­se­lection­contexts.­A­test­man­ ual­should­also­include­administration­instructions,­scoring­instructions­or­infor­ mation,­interpretation­information,­and­normative­data.­All­of­this­information­is­ crucial­to­make­sure­that­the­test­is­appropriate­and­that­it­is­used­in­an­appropriate­ (valid,­­legal)­manner.­Avoid­using­a­test­that­has­no­professional­manual,­as­it­is­ unlikely­to­have­been­validated.­Using­a­test­without­a­proven­track­rec­ord­is­akin­ to­hiring­an­applicant­sight­unseen.­The­Wonderlic Personnel Test User’s Manual­is­ an­excellent­example­of­a­professional­user’s­manual.­It­contains­information­about­ vari­ous­forms­of­the­Wonderlic Personnel Test­(see­Chapter­9),­how­to­administer­ the­test­and­interpret­and­use­the­scores,­validity­and­fairness­of­the­test,­and­vari­ous­ norms­by­age,­race,­gender,­and­so­on.­The­SHRM­has­launched­the­SHRM­Testing­ Center,­whereby­SHRM­members­can­review­and­receive­discounts­on­more­than­ 200­web­­based­tests.33

Professional Standards

Revised­ in­ 2003­ by­ the­ Society­ for­ Industrial­ and­ Orga­nizational­ Psy­chol­ogy­ (SIOP)­ and­approved­by­the­American­Psychological­Association­(APA),­Princi­

099-67811_ch07_4P.indd 354 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 355

ples for the Validation and Use of Personnel Se lection Procedures­is­a­guidebook­that­ provides­ testing­ standards­ for­ use­ in­ se­lection­ decisions.­ It­ covers­ test­ choice,­ development,­ evaluation,­ and­ use­ of­ personnel­ se­lection­ procedures­ in­ employ­ ment­ settings.­ Specific­ topics­ covered­ include­ the­ vari­ous­ ways­ se­lection­ mea­ sures­should­be­validated,­how­to­conduct­validation­studies,­which­sources­can­ be­ used­ to­ determine­ validity,­ generalizing­ validation­ evidence­ from­ one­ source­ to­another,­test­fairness­and­bias,­how­to­understand­worker­requirements,­data­ collection­ for­ validity­ studies,­ ways­ in­ which­ validity­ information­ can­ be­ ana­ lyzed,­ and­ the­ appropriate­ uses­ of­ se­lection­ mea­sures;­ an­ administration­ guide­ is­included.

Princi ples­ was­ developed­ by­ many­ of­ the­ world’s­ leading­ experts­ on­ se­lection,­ and­therefore­any­se­lection­decision­maker­would­be­well­advised­to­consult­this­ impor­tant­ document,­ which­ is­ written­ in­ practical,­ nontechnical­ language.­ This­ guidebook­is­­free­and­can­be­ordered­from­SIOP­by­visiting­its­website.

A­ related­ set­ of­ standards­ has­ been­ promulgated­ by­ the­ APA.­ Formulated­ by­ the­Joint­Committee­on­Testing­Practices,­The Rights and Responsibilities of Test Takers: Guidelines and Expectations­enumerates­10­rights­and­10­responsibilities­of­ test­takers.­One­of­the­rights­is­for­the­applicant­to­be­treated­with­courtesy,­re­spect,­ and­impartiality.­Another­right­is­to­receive­prior­explanation­for­the­purpose(s)­of­ the­testing.­One­responsibility­is­to­follow­the­test­instructions­as­given.­In­addition­ to­ enumerating­ test­­taker­ rights­ and­ responsibilities,­ the­ document­ also­ provides­ guidelines­ for­ organ­izations­ administering­ the­ tests.­ For­ example,­ the­ standards­ stipulate­that­organ­izations­should­inform­test­takers­about­the­purpose­of­the­test.­ Organ­izations­testing­applicants­should­consult­­these­guidelines­to­ensure­that­­these­ rights­are­provided­wherever­pos­si­ble.

LEGAL ISSUES

Staffing­ laws­ and­ regulations,­ particularly­ EEO/AA­ laws­ and­ regulations,­ place­ ­great­reliance­on­the­use­of­mea­sure­ment­concepts­and­pro­cesses.­Three­key­topics­ are­ determining­ adverse­ impact,­ standardization­ of­ mea­sure­ment,­ and­ best­ prac­ tices­suggested­by­the­EEOC.

Determining Adverse Impact

In­Chapter­2,­adverse­(disparate)­impact­was­introduced­as­a­way­of­determining­ ­whether­staffing­practices­have­potentially­illegal­impacts­on­individuals­­because­ of­race,­sex,­and­so­forth.­Such­a­determination­requires­the­compilation­and­analy­ sis­of­statistical­evidence,­primarily­applicant­flow­and­applicant­stock­statistics.

099-67811_ch07_4P.indd 355 10/31/17 10:14 PM

356 PART FOUR Staffing­Activities:­Se­lection

Applicant Flow Statistics Applicant­flow­statistical­analy­sis­requires­the­calculation­of­se­lection­rates­(pro­ portions­or­percentages­of­applicants­hired)­for­groups­and­the­subsequent­com­ parison­ of­ ­those­ rates­ to­ determine­ ­whether­ they­ are­ significantly­ dif­fer­ent­ from­ one­another.­This­may­be­illustrated­by­taking­the­example­from­Exhibit­2.5:

Applicants Hires Selection Rate Men 50 25 .50­or­50% Women 45  5 .11­or­11%

This­ example­ shows­ a­ sizable­ difference­ in­ se­lection­ rates­ between­ men­ and­ ­women­(.50­as­opposed­to­.11).­Does­this­difference­indicate­adverse­impact?­The­ Uniform­Guidelines­on­Employee­Se­lection­Procedures­(UGESP)­speak­directly­ to­ this­ question.­ Several­ points­ need­ to­ be­ made­ regarding­ the­ determination­ of­ disparate­impact­analy­sis.

First,­the­UGESP­require­the­organ­ization­to­keep­rec­ords­that­­will­permit­cal­ culation­of­such­se­lection­rates,­also­referred­to­as­applicant­flow­statistics.­­These­ statistics­are­the­primary­vehicle­by­which­compliance­with­the­law­(Civil­Rights­ Act)­is­judged.

Second,­the­UGESP­require­calculation­of­se­lection­rates­(1)­for­each­job­cat­ egory,­(2)­for­both­external­and­internal­se­lection­decisions,­(3)­for­each­step­in­the­ se­lection­pro­cess,­and­(4)­by­race­and­sex­of­applicants.­To­meet­this­requirement,­ the­organ­ization­must­keep­detailed­rec­ords­of­its­staffing­activities­and­decisions.­ Such­rec­ord­keeping­should­be­built­directly­into­the­organ­ization’s­staffing­system­ routines.

Third,­comparisons­of­se­lection­rates­among­groups­in­a­job­category­for­pur­ poses­of­compliance­determination­should­be­based­on­the­80%­rule­in­the­UGESP,­ which­states­that­“a­se­lection­rate­for­any­race,­sex­or­ethnic­group­which­is­less­ than­four­­fifths­(4/5)­(or­eighty­­percent)­of­the­rate­for­the­group­with­the­high­ est­rate­­will­generally­be­regarded­by­federal­enforcement­agencies­as­evidence­of­ adverse­impact,­while­a­greater­than­four­­fifths­rate­­will­generally­not­be­regarded­ by­federal­enforcement­agencies­as­evidence­of­adverse­impact.”

If­this­rule­is­applied­to­the­previous­example,­the­group­with­the­highest­se­lection­ rate­is­men­(.50).­The­rate­for­­women­should­be­within­80%­of­this­rate,­or­.40­ (.50­×­.80­=­.40).­Since­the­­actual­rate­for­­women­is­.11,­this­suggests­the­occurrence­ of­adverse­impact.

Fourth,­the­80%­rule­is­truly­only­a­guideline.­Note­the­use­of­the­word­“gener­ ally”­ in­ the­ rule­ with­ regard­ to­ differences­ in­ se­lection­ rates.­ Also,­ the­ 80%­ rule­ provides­ for­ other­ exceptions,­ based­ on­ sample­ size­ considerations­ and­ issues­ surrounding­ statistical­ and­ practical­ significance­ of­ difference­ in­ se­lection­ rates.­ Moreover,­­there­are­many­other­technical­mea­sure­ment­and­­legal­issues­in­determin­ ing­­whether­adverse­impact­is­occurring.­Examples­include­deciding­exactly­who­ is­considered­an­applicant­and­­whether­it­is­meaningful­to­pool­applicant­counts­for­

099-67811_ch07_4P.indd 356 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 357

dif­fer­ent­minority­groups­into­a­“total­minority”­group.­Best­­practice­recommen­ dations­for­­handling­such­issues­are­available.34

Applicant Stock Statistics Applicant­stock­statistics­require­the­calculation­of­the­percentages­of­­women­and­ minorities­ in­ two­ areas:­ (1)­ employed­ and­ (2)­ available­ for­ employment­ in­ the­ population.­­These­percentages­are­compared­in­order­to­identify­disparities.­This­is­ referred­to­as­utilization­analy­sis.

To­illustrate,­the­example­from­Exhibit­2.5­is­shown­­here:

Employed Availability Nonminority 90% 70% Minority 10% 30%

It­can­be­seen­that­10%­of­employees­are­minorities,­whereas­their­availability­ is­ 30%.­ A­ comparison­ of­ ­these­ two­ percentages­ suggests­ an­ underutilization­ of­ minorities.

Utilization­analy­sis­of­this­sort­is­an­integral­part­of­not­only­compliance­assess­ ment­but­also­affirmative­action­plans­(AAPs).­Indeed,­utilization­analy­sis­is­the­ starting­point­for­the­development­of­AAPs.­This­may­be­illustrated­by­reference­to­ the­Affirmative­Action­Programs­Regulations.

The­ regulations­ require­ the­ organ­ization­ to­ conduct­ a­ formal­ utilization­ analy­sis­ of­ its­ workforce.­ That­ analy­sis­ must­ be­ (1)­ conducted­ by­ job­ group­ and­ (2)­ done­ separately­for­­women­and­minorities.­Though­calculation­of­the­numbers­and­per­ centages­of­persons­employed­is­relatively­straightforward,­determination­of­their­ availability­is­not.­The­regulations­require­that­the­availabilities­take­into­account­ at­least­the­following­­factors:­(1)­the­percentage­of­­women­or­minorities­with­req­ uisite­skills­in­the­recruitment­area,­and­(2)­the­percentage­of­­women­or­minorities­ among­­those­promotable,­transferable,­and­trainable­within­the­organ­ization.­Accu­ rate­mea­sure­ment­and/or­estimation­of­availabilities­that­consider­­these­­factors­is­ difficult.

Despite­ ­these­ mea­sure­ment­ prob­lems,­ the­ regulations­ require­ comparison­ of­ the­percentages­of­­women­and­minorities­employed­with­their­availability.­When­the­ percentage­of­minorities­or­­women­in­a­job­group­is­less­than­would­reasonably­ be­expected­given­their­availability,­underutilization­exists­and­placement­(hiring­ and­promotion)­goals­must­be­set.­Thus,­the­organ­ization­must­exercise­consider­ able­discretion­in­the­determination­of­adverse­impact­through­the­use­of­applicant­ stock­statistics.­It­would­be­wise­to­seek­technical­and/or­­legal­assistance­for­con­ ducting­utilization­analy­sis­(see­also­“Affirmative­Action­Plans”­in­Chapter­3).

Differential Prediction of Se lection Mea sures The­use­of­se­lection­mea­sures­themselves­may­also­lead­employers­to­discriminate­ in­se­lection­decisions.­Specific­types­of­se­lection­tests­and­assessments­have­been­

099-67811_ch07_4P.indd 357 10/31/17 10:14 PM

358 PART FOUR Staffing­Activities:­Se­lection

shown­ to­ exhibit­ “differential­ prediction,”­ in­ which­ the­ mea­sure­ is­ predictive­ for­ one­group­when­compared­with­another,­resulting­in­se­lection­decisions­exhibiting­ adverse­impact.35­This­differential­prediction­has­resulted­in­the­“diversity­­validity”­ dilemma,­in­which­the­best­predictors­of­individual­per­for­mance­and­effectiveness­ (e.g.,­cognitive­ability)­are­often­the­ones­that­are­associated­with­the­most­adverse­ impact.36­Indeed,­a­review­of­the­meta­­analytic­lit­er­a­ture­suggests­that­many­predic­ tors­exhibit­moderate­to­large­amounts­of­adverse­impact­(with­the­least­amount­of­ adverse­ impact­ observed­ for­ personality­ tests).37­ One­ solution­ has­ been­ to­ design­ “Pareto­­optimal­ se­lection­ systems,”­ in­ which­ the­ se­lection­ mea­sures,­ rules,­ stag­ ing,­ mea­sure­ment­ sequencing,­ predictor­ weighting,­ and­ f low­ statistics­ are­ all­ optimized­to­reduce­adverse­impact.38­Furthermore,­some­research­suggests­that­ a­combination­of­low­adverse­impact­predictors­(e.g.,­personality­test,­structured­ interview,­ and­ biodata)­ can­ meet­ or­ exceed­ the­ validity­ of­ a­ cognitive­ ability­ test.39

Standardization

A­lack­of­consistency­in­treatment­of­applicants­is­one­of­the­major­­factors­contrib­ uting­to­the­occurrence­of­discrimination­in­staffing.­This­is­partly­due­to­a­lack­of­ standardization­in­mea­sure­ment,­in­terms­of­both­what­is­mea­sured­and­how­it­is­ evaluated­or­scored.

An­example­of­inconsistency­in­what­is­mea­sured­is­that­the­type­of­background­ information­required­of­minority­applicants­may­differ­from­that­required­of­non­ minority­applicants.­Minority­applicants­may­be­asked­about­credit­ratings­and­ criminal­conviction­rec­ords,­while­nonminority­applicants­are­not.­Alternatively,­ the­ type­ of­ interview­ questions­ asked­ of­ male­ applicants­ may­ be­ dif­fer­ent­ from­ ­those­asked­of­female­applicants.

Even­if­information­is­consistently­gathered­from­all­applicants,­it­may­not­be­ evaluated­the­same­for­all­applicants.­A­male­applicant­who­has­a­history­of­hold­ ing­ several­ dif­fer­ent­ jobs­ may­ be­ viewed­ as­ a­ ­career­ builder,­ while­ a­ female­ with­ the­same­history­may­be­evaluated­as­an­unstable­job­­hopper.­In­essence,­dif­fer­ent­ scoring­keys­are­being­used­for­men­and­­women­applicants.

Reducing,­and­hopefully­eliminating,­such­inconsistency­requires­a­straightfor­ ward­application­of­the­three­properties­of­standardized­mea­sures­discussed­pre­ viously.­ Through­ standardization­ of­ mea­sure­ment­ comes­ consistent­ treatment­ of­ applicants­and,­with­it,­the­possibility­of­lessened­adverse­impact.

Best Practices

Based­ on­ its­ long­ and­ in­­depth­ involvement­ in­ mea­sure­ment­ and­ se­lection­ proce­ dures,­the­EEOC­provides­guidance­to­employers­in­the­form­of­several­best­prac­ tices­for­testing­and­se­lection.40­­These­practices­apply­to­a­wide­range­of­tests­ and­ se­lection­ procedures,­ including­ cognitive­ and­ physical­ ability­ tests,­ sample­

099-67811_ch07_4P.indd 358 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 359

job­ tasks,­ medical­ inquiries­ and­ physical­ exams,­ personality­ and­ integrity­ tests,­ criminal­and­credit­background­checks,­per­for­mance­appraisals,­and­En­glish­pro­ ficiency­tests.­The­best­practices­are­the­following:

•­Employers­should­administer­tests­and­other­se­lection­procedures­without­regard­ to­race,­color,­national­origin,­sex,­religion,­age­(40­or­older),­or­disability.

•­Employers­ should­ ensure­ that­ employment­ tests­ and­ other­ se­lection­ proce­ dures­ are­ properly­ validated­ for­ the­ positions­ and­ purposes­ for­ which­ they­ are­used.­The­test­or­se­lection­procedure­must­be­job­related­and­its­results­ appropriate­for­the­employer’s­purpose.­While­a­test­vendor’s­documenta­ tion­ supporting­ the­ validity­ of­ a­ test­ may­ be­ helpful,­ the­ employer­ is­ still­ responsible­for­ensuring­that­its­tests­are­valid­­under­the­UGESP­(discussed­ in­Chapter­9).

•­If­a­se­lection­procedure­screens­out­a­protected­group,­the­employer­should­ determine­­whether­­there­is­an­equally­effective­alternative­se­lection­procedure­ that­has­less­adverse­impact­and,­if­so,­adopt­the­alternative­procedure.­For­ example,­if­the­se­lection­procedure­is­a­test,­the­employer­should­determine­ ­whether­ another­ test­ would­ predict­ job­ per­for­mance­ but­ not­ disproportion­ ately­exclude­the­protected­group.

•­To­ensure­that­a­test­or­se­lection­procedure­remains­predictive­of­success­in­a­ job,­employers­should­keep­abreast­of­changes­in­job­requirements­and­should­ update­the­test­specifications­or­se­lection­procedures­accordingly.

•­Employers­should­ensure­that­tests­and­se­lection­procedures­are­not­­adopted­ casually­by­man­ag­ers­who­know­­little­about­­these­pro­cesses.­A­test­or­se­lection­ procedure­can­be­an­effective­management­tool,­but­no­test­or­se­lection­pro­ cedure­should­be­implemented­without­an­understanding­of­its­effectiveness­ and­limitations­for­the­organ­ization,­its­appropriateness­for­a­specific­job,­and­ ­whether­it­can­be­appropriately­administered­and­scored.

Note­that­­these­best­practices­apply­to­virtually­all­se­lection­procedures­or­tools,­ not­just­tests.­They­emphasize­the­need­for­fair­administration­of­­these­tools,­the­ importance­of­the­procedures­being­job­related,­usage­of­alternative­valid­se­lection­ procedures­ that­ have­ less­ adverse­ impact,­ and­ the­ updating­ of­ job­ requirements­ (KSAOs)­and­se­lection­tools.­In­addition,­casual­usage­of­se­lection­tools­by­unin­ formed­man­ag­ers­is­to­be­avoided.

SUMMARY

Mea­sure­ment,­defined­as­the­pro­cess­of­using­rules­to­assign­numbers­to­objects­ to­ represent­ quantities­ of­ an­ attribute­ of­ the­ objects,­ is­ an­ integral­ part­ of­ the­ foundation­ of­ staffing­ activities.­ Standardization­ of­ the­ mea­sure­ment­ pro­cess­ is­ sought.­This­applies­to­each­of­the­four­levels­of­mea­sure­ment:­nominal,­ordinal,­

099-67811_ch07_4P.indd 359 10/31/17 10:14 PM

360 PART FOUR Staffing­Activities:­Se­lection

interval,­and­ratio.­Standardization­is­also­sought­for­both­objective­and­subjective­ mea­sures.

Mea­sures­ yield­ scores­ that­ represent­ the­ amount­ of­ the­ attribute­ being­ mea­ sured.­Scores­are­manipulated­in­vari­ous­ways­to­aid­in­their­interpretation.­Typical­ manipulations­ involve­ central­ tendency­ and­ variability,­ percentiles,­ and­ standard­ scores.­Scores­are­also­correlated­to­learn­about­the­strength­and­direction­of­the­ relationship­between­ two­attributes.­The­significance­ of­the­resultant­correlation­ coefficient­is­then­assessed.

The­ quality­ of­ mea­sures­ involves­ issues­ of­ reliability­ and­ validity.­ Reliability­ refers­to­consistency­of­mea­sure­ment,­both­at­a­moment­in­time­and­between­time­ periods.­Vari­ous­procedures­are­used­to­estimate­reliability,­including­coefficient­ alpha,­ interrater­ and­ intrarater­ agreement,­ and­ test–­retest.­ Reliability­ places­ an­ upper­limit­on­the­validity­of­a­mea­sure.

Validity­ refers­ to­ accuracy­ of­ mea­sure­ment­ and­ accuracy­ of­ prediction,­ as­ reflected­by­the­scores­obtained­from­a­mea­sure.­Criterion­­related­and­content­ validation­studies­are­conducted­to­help­learn­about­the­validity­of­a­mea­sure.­In­ criterion­­related­validation,­scores­on­a­predictor­(KSAO)­mea­sure­are­correlated­ with­ scores­ on­ a­ criterion­ (HR­ outcome)­ mea­sure.­ In­ content­ validation,­ ­there­ is­no­criterion­mea­sure,­so­judgments­are­made­about­the­content­of­a­predictor­ relative­to­the­attribute­that­is­intended­to­be­mea­sured­as­well­as­the­content­of­ the­ job­ itself.­ Traditionally,­ results­ of­ validation­ studies­ ­were­ treated­ as­ situation­ specific,­meaning­that­the­organ­ization­ideally­should­conduct­a­new­and­separate­ validation­study­for­any­predictor­in­any­situation­in­which­the­predictor­is­to­be­ used.­Recently,­however,­studies­have­suggested­that­the­validity­of­predictors­may­ generalize­ across­ situations,­ meaning­ that­ the­ requirement­ of­ conducting­ costly­ and­time­­consuming­validation­studies­in­each­specific­situation­could­be­relaxed.­ Staffing­metrics­such­as­cost­per­hire­and­benchmarks,­representing­how­leading­ organ­izations­staff­positions,­can­be­useful­mea­sures,­but­they­are­not­substitutes­ for­reliability­and­validity.

Vari­ous­ practical­ aspects­ of­ the­ collection­ of­ assessment­ data­ ­were­ described.­ Decisions­ about­ testing­ procedures­ and­ the­ acquisition­ of­ tests­ and­ test­ manuals­ require­the­attention­of­orga­nizational­decision­makers.­The­collection­of­assessment­ data­and­the­acquisition­of­tests­and­test­manuals­vary­depending­on­­whether­paper­­ and­­pencil­ or­ computerized­ se­lection­ mea­sures­ are­ used.­ Fi­nally,­ organ­izations­ need­to­attend­to­professional­standards­that­govern­the­proper­use­of­the­collection­ of­assessment­data.

Mea­sure­ment­is­also­said­to­be­an­integral­part­of­an­organ­ization’s­EEO/AA­ compliance­ activities.­ When­ adverse­ impact­ is­ found,­ changes­ in­ mea­sure­ment­ practices­ may­be­legally­necessary.­­These­changes­ ­will­ involve­ movement­­toward­ standardization­of­mea­sure­ment­and­the­methods­for­determining­adverse­impact.

099-67811_ch07_4P.indd 360 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 361

DISCUSSION QUESTIONS

1.­ Imagine­ and­ describe­ a­ staffing­ system­ for­ a­ job­ in­ which­ no­ mea­sures­ are­ used.

2.­ Describe­how­you­might­go­about­determining­scores­for­applicants’­responses­ to­(a)­interview­questions,­(b)­letters­of­recommendation,­and­(c)­questions­ about­previous­work­experience.

3.­ Give­ examples­ of­ when­ you­ would­ want­ the­ following­ for­ a­ written­ job­ knowledge­test:­(a)­a­low­coefficient­alpha­(e.g.,­α­=­.35)­and­(b)­a­low­test–­ retest­reliability.

4.­ Assume­ you­ gave­ a­ general­ ability­ test,­ mea­sur­ing­ both­ verbal­ and­ compu­ tational­ skills,­ to­ a­ group­ of­ applicants­ for­ a­ specific­ job.­ Also­ assume­ that­ ­because­of­severe­hiring­pressures,­you­hired­all­of­the­applicants,­regardless­ of­their­test­scores.­How­would­you­investigate­the­criterion­­related­validity­ of­the­test?

5.­ Using­the­same­example­as­in­question­four,­how­would­you­go­about­inves­ tigating­the­content­validity­of­the­test?

6.­ What­ information­ does­ a­ se­lection­ decision­ maker­ need­ to­ collect­ in­ mak­ ing­staffing­decisions?­What­are­the­ways­in­which­this­information­can­be­ collected?

ETHICAL ISSUES

1.­ Do­ individuals­ making­ staffing­ decisions­ have­ an­ ethical­ responsibility­ to­ know­mea­sure­ment­issues?­Why­or­why­not?

2.­ Is­it­unethical­for­an­employer­to­use­a­se­lection­mea­sure­that­has­high­empiri­ cal­validity­but­lacks­content­validity?­Explain.

APPLICATIONS

Evaluation of Two New Assessment Methods for Selecting Telephone Customer Ser vice Representatives

The­Phonemin­Com­pany­is­a­distributor­of­men’s­and­­women’s­casual­clothing.­It­ sells­ exclusively­ through­ its­ merchandise­ cata­log,­ which­ is­ published­ four­ times­ per­year­to­coincide­with­seasonal­changes­in­customers’­apparel­tastes.­Custom­ ers­may­order­merchandise­from­the­cata­log­via­mail­or­over­the­phone.­Currently,­ 70%­of­­orders­are­phone­­orders,­and­the­organ­ization­expects­this­to­increase­to­ 85%­within­the­next­few­years.

099-67811_ch07_4P.indd 361 10/31/17 10:14 PM

362 PART FOUR Staffing­Activities:­Se­lection

The­success­of­the­organ­ization­is­obviously­very­dependent­on­the­success­ of­the­telephone­ordering­system­and­the­customer­ser­vice­representatives­(CSRs)­ who­staff­the­system.­­There­are­currently­185­CSRs;­that­number­should­increase­ to­about­225­CSRs­to­­handle­the­anticipated­growth­in­phone­order­sales.­Though­ the­ CSRs­ are­ trained­ to­ use­ standardized­ methods­ and­ procedures­ for­ ­handling­ phone­­orders,­­there­are­still­seemingly­large­differences­among­them­in­their­job­ per­for­mance.­CSR­per­for­mance­is­routinely­mea­sured­in­terms­of­error­rate,­speed­ of­order­taking,­and­customer­complaints.­The­top­25%­and­lowest­25%­of­per­ formers­ on­ each­ of­ ­these­ mea­sures­ differ­ by­ a­ ­factor­ of­ at­ least­ three­ (i.e.,­ the­ error­rate­of­the­bottom­group­is­three­times­as­high­as­that­of­the­top­group).­ Strategically,­ the­ organ­ization­ knows­ that­ it­ could­ substantially­ enhance­ CSR­ per­for­mance­(and­ultimately­sales)­if­it­could­improve­its­staffing­“batting­aver­ age”­ by­ more­ accurately­ identifying­ and­ hiring­ new­ CSRs­ who­ are­ likely­ to­ be­ top­performers.

The­current­staffing­system­for­CSRs­is­straightforward.­Applicants­are­recruited­ through­a­combination­of­employee­referrals­and­newspaper­ads.­­Because­turnover­ among­ CSRs­ is­ so­ high­ (50%­ annually),­ recruitment­ is­ a­ continuous­ pro­cess­ at­ the­ organ­ization.­ Applicants­ complete­ a­ standard­ application­ blank,­ which­ asks­ for­ information­ about­ education­ and­ previous­ work­ experience.­ The­ information­ is­reviewed­by­the­staffing­specialist­in­the­HR­department.­Only­obvious­misfits­ are­rejected­at­this­point;­the­­others­(95%)­are­asked­to­have­an­interview­with­the­ specialist.­The­interview­lasts­20–30­minutes,­and­at­the­conclusion­the­applicant­ is­­either­rejected­or­offered­a­job.­Due­to­the­tightness­of­the­­labor­market­and­the­ constant­ presence­ of­ vacancies­ to­ be­ filled,­ 90%­ of­ the­ interviewees­ receive­ job­ offers.­Most­of­­those­offers­(95%)­are­accepted,­and­the­new­hires­attend­a­one­­ week­training­program­before­being­placed­on­the­job.

The­organ­ization­has­deci­ded­to­investigate­the­possibilities­of­increasing­CSR­ effectiveness­ through­ sounder­ staffing­ practices.­ In­ par­tic­u­lar,­ it­ is­ not­ pleased­ with­its­current­methods­of­assessing­job­applicants;­it­feels­that­neither­the­appli­ cation­ blank­ nor­ the­ interview­ provides­ an­ accurate­ and­ in­­depth­ assessment­ of­ the­applicant­KSAOs­that­are­truly­needed­to­be­an­effective­CSR.­Consequently,­ it­engaged­the­ser­vices­of­a­consulting­firm­that­offers­vari­ous­methods­of­KSAO­ assessment,­ along­ with­ validation­ and­ installation­ ser­vices.­ In­ cooperation­ with­ the­HR­staffing­specialist,­the­consulting­firm­conducted­the­following­study­for­ the­organ­ization.

A­special­job­analy­sis­led­to­the­identification­of­several­specific­KSAOs­likely­ to­ be­ necessary­ for­ successful­ per­for­mance­ as­ a­ CSR.­ Three­ of­ ­these­ (clerical­ speed,­clerical­accuracy,­and­interpersonal­skills)­­were­singled­out­for­further­con­ sideration­­because­of­their­seemingly­high­impact­on­job­per­for­mance.­Two­new­ methods­ of­ assessment­ provided­ by­ the­ consulting­ firm­ ­were­ chosen­ for­ experi­ mentation.­The­first­is­a­paper­­and­­pencil­clerical­test­assessing­clerical­speed­and­ accuracy.­It­contains­50­items­and­has­a­30­­minute­time­limit.­The­second­is­a­brief­ work­sample­that­could­be­administered­as­part­of­the­interview­pro­cess.­In­the­work­

099-67811_ch07_4P.indd 362 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 363

sample,­the­applicant­must­respond­to­four­dif­fer­ent­phone­calls:­a­customer­who­is­ irate­about­an­out­­of­­stock­item,­a­customer­who­wants­more­product­information­ about­an­item­than­was­provided­in­the­cata­log,­a­customer­who­wants­to­change­ an­order­placed­yesterday,­and­a­customer­who­has­a­routine­order­to­place.­Using­a­ 1–5­rating­scale,­the­interviewer­rates­the­applicant­on­tactfulness­(T)­and­concern­ for­ customers­ (C).­ The­ interviewer­ is­ provided­ with­ a­ rating­ manual­ containing­ examples­ of­ exceptional­ (5),­ average­ (3),­ and­ unacceptable­ (1)­ responses­ by­ the­ applicant.

A­random­sample­of­50­current­CSRs­­were­chosen­to­participate­in­the­study.­At­ Time­1­they­­were­administered­the­clerical­test­and­the­work­sample;­per­for­mance­ data­­were­also­gathered­from­com­pany­rec­ords­for­error­rate­(number­of­errors­per­ 100­ ­orders),­ speed­ (number­of­­orders­filled­per­hour),­and­customer­complaints­ (number­of­complaints­per­week).­At­Time­2,­one­week­­later,­the­clerical­test­and­ the­work­sample­­were­re­­administered­to­the­CSRs.­A­member­of­the­consulting­ firm­sat­in­on­all­the­interviews­and­served­as­a­second­rater­of­per­for­mance­on­the­ work­sample­at­Time­1­and­Time­2.­It­is­expected­that­the­clerical­test­and­work­ sample­ ­will­ have­ positive­ correlations­ with­ speed­ and­ negative­ correlations­ with­ error­rate­and­customer­complaints.

Results for Clerical Test

Time 1 Time 2 Mean­score 31.61 31.22 Standard­deviation 4.70 5.11 Coefficient­alpha .85 .86 Test–retest­r .92* r­with­error­rate –.31* –.37* r­with­speed .41* .39* r­with­complaints –.11 –.08 r­with­work­sample­(T) .21 .17 r­with­work­sample­(C) .07 .15

Results for Work Sample (T)

Time 1 Time 2 Mean­score 3.15 3.11 Standard­deviation .93 1.01 %­agreement­(raters) 88% 79% r­with­work­sample­(C) .81* .77* r­with­error­rate –.13 –.12 r­with­speed .11 .15 r­with­complaints –.37* –.35*

099-67811_ch07_4P.indd 363 10/31/17 10:14 PM

364 PART FOUR Staffing­Activities:­Se­lection

­After­reading­the­description­of­the­study­and­observing­the­results­above,

1.­ How­do­you­interpret­the­reliability­results­for­the­clerical­test­and­work­sam­ ple?­ Are­ they­ favorable­ enough­ for­ Phonemin­ to­ consider­ using­ them­ “for­ keeps”­in­selecting­new­job­applicants?

2.­ How­do­you­interpret­the­validity­results­for­the­clerical­test­and­work­sam­ ple?­ Are­ they­ favorable­ enough­ for­ Phonemin­ to­ consider­ using­ them­ “for­ keeps”­in­selecting­new­job­applicants?

3.­ What­limitations­in­the­above­study­should­be­kept­in­mind­when­interpreting­ the­results­and­deciding­­whether­to­use­the­clerical­test­and­work­sample?

Conducting Empirical Validation and Adverse Impact Analy sis

Yellow­Blaze­Candle­Shops­provides­a­full­line­of­vari­ous­types­of­candles­and­ accessories­such­as­candleholders.­Yellow­Blaze­has­150­shops­in­shopping­malls­ and­strip­malls­throughout­the­country.­Over­600­salespeople­staff­­these­stores,­ each­of­which­has­a­full­­time­man­ag­er.­Staffing­the­man­ag­er’s­position,­by­policy,­ must­occur­by­promotion­from­within­the­sales­ranks.­The­organ­ization­is­interested­ in­ improving­ its­ identification­ of­ salespeople­ most­ likely­ to­ be­ successful­ store­ man­ag­ers.­It­has­developed­a­special­technique­for­assessing­and­rating­the­suit­ ability­of­salespeople­for­the­man­ag­er’s­job.

To­experiment­with­this­technique,­the­regional­HR­department­representative­ reviewed­ and­ rated­ the­ promotion­ suitability­ of­ each­ store’s­ salespeople.­ They­ reviewed­sales­results,­customer­ser­vice­orientation,­and­knowledge­of­store­opera­ tions­for­each­salesperson­and­then­assigned­a­1–3­promotion­suitability­rating­(1­=­ not­ suitable,­ 2­ =­ may­ be­ suitable,­ 3­ =­ definitely­ suitable)­ on­ each­ of­ ­these­ three­ ­factors.­Customer­ser­vice­orientation­was­rated­based­on­supervisor­and­coworker­ observations­ of­ work­ be­hav­ior.­ ­These­ ratings­ incorporated­ evaluations­ of­ how­ often­ salespeople­ asked­ customers­ how­ they­ could­ help,­ how­ effectively­ sales­ people­ ­were­ able­ to­ suggest­ products­ that­ matched­ customer­ requests,­ and­ how­ well­salespeople­ensured­that­customers­­were­happy­with­their­intended­purchases­

Results for Work Sample (C)

Time 1 Time 2 Mean­score 2.91 3.07 Standard­deviation .99 1.10 %­agreement­(raters) 80% 82% r­with­work­sample­(T) .81* .77* r­with­error­rate –.04 –.11 r­with­speed .15 .14 r­with­complaints –.40* –.31* (Note:­*­means­that­r­was­significant­at­p­<­.05)

099-67811_ch07_4P.indd 364 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 365

at­the­end­of­the­encounter.­In­most­cases,­ratings­of­customer­ser­vice­orientation­ ­were­similar­across­man­ag­ers­and­assistant­man­ag­ers,­but­­there­­were­some­discrep­ ancies.­Knowledge­of­store­operations­was­evaluated­based­on­a­standardized­exam­ consisting­of­a­variety­of­questions­on­managerial­practices­and­procedures,­refund­ and­ exchange­ policies,­ and­ record­­keeping­ requirements.­ A­ total­ promotion­ suit­ ability­(PS)­score,­ranging­from­3­to­9,­was­then­computed­for­each­salesperson.

The­PS­scores­­were­gathered­for­all­salespeople­but­­were­not­formally­used­in­ promotion­ decisions.­ Over­ the­ past­ year,­ 30­ salespeople­ ­were­ promoted­ to­ store­ man­ag­er.­Now­it­is­time­for­the­organ­ization­to­preliminarily­investigate­the­validity­ of­the­PS­scores­and­see­­whether­their­use­results­in­adverse­impact­against­­women­ or­ minorities.­ Each­ store­ man­ag­er’s­ annual­ overall­ per­for­mance­ appraisal­ rating,­ ranging­from­1­(low­per­for­mance)­to­5­(high­per­for­mance),­was­used­as­the­criterion­ mea­sure­in­the­validation­study.­The­following­data­­were­available­for­analy­sis:

Employee ID PS Score Performance

Rating Sex M/F

Minority Status (M = Minority,

NM = Nonminority) 11 9 5 M NM 12 9 5 F NM 13 9 1 F NM 14 9 5 M M 15 8 4 F M 16 8 5 F M 17 8 4 M NM 18 8 5 M NM 19 8 3 F NM 20 8 4 M NM 21 7 5 F M 22 7 3 M M 23 7 4 M NM 24 7 3 F NM 25 7 3 F NM 26 7 4 M NM 27 7 5 M M 28 6 4 F NM 29 6 4 M NM 30 6 2 F M 31 6 3 F NM 32 6 3 M NM 33 6 5 M NM

099-67811_ch07_4P.indd 365 10/31/17 10:14 PM

366 PART FOUR Staffing­Activities:­Se­lection

Using­the­data­above,­calculate­the­following:

1.­ Average­PS­scores­for­the­­whole­sample,­males,­females,­non­­minorities,­and­ minorities.

2.­ The­correlation­between­PS­scores­and­per­for­mance­ratings,­and­its­statistical­ significance­(r­=­.37­or­higher­is­needed­for­significance­at­p­<­.05).

3.­ Adverse­impact­(se­lection­rate)­statistics­for­males­and­females,­and­non­­ minorities­and­minorities.­Use­a­PS­score­of­7­or­higher­as­a­hy­po­thet­i­cal­ passing­score­(the­score­that­might­be­used­to­determine­who­­will­or­­will­not­ be­promoted).

4.­ Average­ per­for­mance­ rating­ scores­ for­ the­ ­whole­ sample,­ males,­ females,­ non­­minorities,­and­minorities.­For­each­group,­evaluate­­whether­the­per­for­ mance­rating­scores­are­dif­fer­ent­for­subgroups­of­employees.­Also­evaluate­ ­whether­the­magnitude­of­­these­differences­is­sizable­enough­to­warrant­con­ cern­for­Yellow­Blaze.

Using­the­data,­results,­and­description­of­the­study,­answer­the­following­questions:

1.­ Is­the­PS­score­a­valid­predictor­of­per­for­mance­as­a­store­man­ag­er?­Do­you­ see­any­potential­reasons­why­­either­the­customer­ser­vice­orientation­mea­sure­ or­knowledge­of­store­operations­mea­sure­might­be­problematic?­In­answer­ ing,­consider­issues­related­to­reliability­and­validity.

2.­ With­a­cut­score­of­7­on­the­PS,­would­its­use­lead­to­adverse­impact­against­ ­women?­Against­minorities?­If­­there­is­adverse­impact,­does­the­validity­evi­ dence­justify­use­of­the­PS­anyway?

3.­ What­limitations­do­you­see­in­the­current­study­design?­Do­you­think­that­ the­ conclusions­ you­ would­ reach­ based­ on­ this­ sample­ of­ individuals­ who­ ­were­ promoted­ to­ store­ man­ag­er­ would­ generalize­ to­ the­ population­ of­ all­ salespeople­who­are­being­evaluated­for­promotion­potential?­Do­you­think­ that­the­method­of­rating­per­for­mance­is­sufficient­as­a­criterion,­and­if­so,­ why?­If­not,­what­additional­steps­would­you­take­to­ensure­that­per­for­mance­ is­mea­sured­adequately?

Employee ID PS Score Performance

Rating Sex M/F

Minority Status (M = Minority,

NM = Nonminority)

34 6 5 F NM 35 5 3 M NM 36 5 3 F M 37 5 2 M M 38 4 2 F NM 39 4 1 M NM 40 3 4 F NM

099-67811_ch07_4P.indd 366 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 367

4.­ Would­you­recommend­that­Yellow­Blaze­use­the­PS­score­in­making­­future­ promotion­decisions?­Why­or­why­not?­If­you­said­yes,­can­you­think­of­any­ thing­ the­ com­pany­ could­ do­ to­ make­ ­these­ mea­sures­ even­ better­ than­ they­ are­already?­If­you­said­no,­can­you­think­of­any­ways­that­this­system­might­ be­improved?

5.­One­ employee­ has­ raised­ questions­ regarding­ ­whether­ the­ per­for­mance­ ratings­ themselves­ are­ biased.­ This­ employee­ has­ not­ made­ a­ formal­ ­legal­ complaint­ against­ Yellow­ Blaze­ yet,­ but­ the­ organ­ization­ wants­ to­ evaluate­ ­whether­ ­there­ is­ reason­ for­ concern.­ Based­ on­ the­ calculations­ you­ made­ regarding­the­differences­for­per­for­mance­evaluation­ratings­for­­women­rela­ tive­to­men,­and­for­minorities­relative­to­non­­minorities,­do­you­believe­that­ ­there­is­reason­for­the­organ­ization­to­be­concerned­regarding­this­issue?­In­ other­words,­do­the­data­suggest­that­­there­is,­in­fact,­a­substantial­difference­ in­ per­for­mance­ evaluation­ ratings­ for­ dif­fer­ent­ groups­ of­ employees?­ How­ should­the­organ­ization­respond­to­this­individual­employee’s­concerns?

ENDNOTES

­ 1.­ E.­ E.­ Chen­ and­ S.­ P.­ Wojcik,­ “A­ Practical­ Guide­ to­ Big­ Data­ Research­ in­ Psy­chol­ogy,”­ Psycho­ logical Methods,­2016,­21(4),­pp.­458–474;­J.­Hugg,­“Fast­Data:­The­Next­Step­­After­Big­Data,”­ InfoWorld,­June­11,­2014­(www . infoworld . com);­A.­Lorentz,­“Big­Data,­Fast­Data,­Smart­Data,”­ Wired,­ Apr.­ 17,­ 2013­ (www . wired . com / );­ J.­ Spencer,­ “Which­ Do­ We­ Need­ More:­ Big­ Data­ or­ Fast­ Data?”­ Entrepreneur,­ Mar.­ 12,­ 2015­ (www . entrepreneur . com);­ S.­ Tonidandel,­ E.­ B.­ King,­ and­J.­M.­Cortina,­“Big­Data­Methods:­Leveraging­Modern­Data­Analytic­Techniques­to­Build­ Orga­nizational­Science,”­Orga nizational Research Methods,­in­press,­pp.­1–23.

­ 2.­ Chen­ and­ Wojcik,­ “A­ Practical­ Guide­ to­ Big­ Data­ Research­ in­ Psy­chol­ogy”;­ R.­ N.­ Landers,­ R.­ C.­ Brusso,­K.­J.­Cavanaugh,­and­A.­B.­Collmus,­“A­Primer­on­Theory­­Driven­Web­Scraping:­ Automatic­Extraction­of­Big­Data­From­the­Internet­for­Use­in­Psychological­Research,”­Psycho­ logical Methods,­2016,­21(4),­pp.­475–492;­Tonidandel,­King,­and­Cortina,­“Big­Data­Methods:­ Leveraging­Modern­Data­Analytic­Techniques­to­Build­Orga­nizational­Science.”

­ 3.­ D.­Angrave,­A.­Charlwood,­I.­Kirkpatrick,­M.­Lawrence,­and­M.­Stuart,­“HR­and­Analytics:­Why­ HR­ Is­ Set­ to­ Fail­ the­ Big­ Data­ Challenge,”­ Human Resource Management Journal­ [Provoca­ tion­Series­Paper],­2016,­26(1),­pp.­1–11;­J.­D.­Morrison,­Jr.,­and­J.­D.­Abraham,­“Reasons­for­ Enthusiasm­ and­ Caution­ Regarding­ Big­ Data­ in­ Applied­ Se­lection­ Research,”­ The Industrial­ Organizational Psychologist,­2015,­52(3),­pp.­134–139;­T.­Rasmussen­and­D.­Ulrich,­“Learning­ From­Practice:­How­HR­Analytics­Avoids­Being­a­Management­Fad,”­Orga nizational Dynamics,­ 2015,­44,­pp.­236–242.

­ 4.­ E.­ F.­ Stone,­ Research Methods in Orga nizational Be hav ior­ (Santa­ Monica,­ CA:­ Goodyear,­ 1978),­pp.­35–36.

­ 5.­ F.­G.­Brown,­Princi ples of Educational and Psychological Testing­(Hinsdale,­IL:­Dryden,­1970),­ pp.­38–45.

­ 6.­ Stone,­Research Methods in Orga nizational Be hav ior,­pp.­36–40. ­ 7.­ F.­P.­Morgeson­and­J.­D.­Nahrgang,­“Same­as­It­Ever­Was:­Recognizing­Stability­in­the­Business­

Week­Rankings,”­Acad emy of Management Learning & Education,­2005,­7,­pp.­26–41.

099-67811_ch07_4P.indd 367 10/31/17 10:14 PM

368 PART FOUR Staffing­Activities:­Se­lection

­ 8.­ W.­ H.­ Bommer,­ J.­ L.­ Johnson,­ G.­ A.­ Rich,­ P.­ M.­ Podsakoff,­ and­ S.­ B.­ Mc­Ken­zie,­ “On­ the­ Interchangeability­ of­ Objective­ and­ Subjective­ Mea­sures­ of­ Employee­ Per­for­mance:­ A­ Meta­­ Analysis,”­ Personnel Psy chol ogy,­ 1995,­ 48,­ pp.­ 587–606;­ R.­ L.­ Heneman,­ “The­ Relationship­ Between­Supervisory­Ratings­and­Results­­Oriented­Mea­sures­of­Per­for­mance:­A­Meta­­Analysis,”­ Personnel Psy chol ogy,­1986,­39,­pp.­811–826.

­ 9.­ S.­Adler,­M.­Campion,­A.­Colquitt,­A.­Grubb,­K.­Murphy,­R.­Ollander­­Krane,­and­E.­D.­Pulakos,­ “Getting­Rid­of­Per­for­mance­Ratings:­Genius­or­Folly?­A­Debate,”­Industrial and Orga nizational Psy chol ogy: Perspectives on Science and Practice,­2016,­9,­pp.­219–252;­J.­P.­Campbell­and­B.­M.­ Wiernik,­“The­Modeling­and­Assessment­of­Work­Per­for­mance,”­Annual Review of Orga nizational Psy chol ogy and Orga nizational Be hav ior,­2015,­2,­47–74;­T.­A.­O’Neill,­M.­J.­W.­McLarnon,­and­ J.­J.­Carswell,­“Variance­Components­of­Job­Per­for­mance­Ratings,”­ Human Per for mance,­2015,­ 28,­pp.­66–91;­A.­W.­Sutton,­S.­P.­Baldwin,­L.­Wood,­and­B.­J.­Hoffman,­“A­Meta­­Analysis­of­the­ Relationship­ Between­ Rater­ Liking­ and­ Per­for­mance­ Ratings,”­ Human Per for mance,­ 2013,­ 26,­ pp.­409–429.

­10.­ E.­ C.­ Dierdorff,­ E.­ A.­ Surface,­ and­ K.­ G.­ Brown,­ “Frame­­of­­Reference­ Training­ Effectiveness:­ Effects­ of­ Goal­ Orientation­ and­ Self­­Efficacy­ on­ Affective,­ Cognitive,­ Skill­­Based,­ and­ Transfer­ Outcomes,”­Journal of Applied Psy chol ogy,­2010,­95,­pp.­1181–1191;­S.­G.­Roch,­D.­J.­Woehr,­ V.­Mishra,­and­U.­Kieszczynska,­“Rater­Training­Revisited:­An­Updated­Meta­­Analytic­Review­ of­Frame­­of­­Reference­Training,”­Journal of Occupational and Orga nizational Psy chol ogy,­2012,­ 85,­pp.­370–395;­D.­J.­Woehr­and­A.­I.­Huffcutt,­“Rater­Training­for­Per­for­mance­Appraisal:­ A­ Quantitative­ Review,”­ Journal of Occupational and Orga nizational Psy chol ogy,­ 1994,­ 67,­ pp.­189–205.

­11.­ This­ section­ draws­ on­ Brown,­ Princi ples of Educational and Psychological Testing,­ pp.­ 158–197;­ L.­J.­Cronbach,­Essentials of Psychological Testing,­4th­ed.­(New­York:­Harper­and­Row,­1984),­ pp.­81–120;­N.­W.­Schmitt­and­R.­J.­Klimoski,­Research Methods in Human Resources Manage­ ment­(Cincinnati,­OH:­South­­Western,­1991),­pp.­41–87.

­12.­ J.­T.­McClave­and­P.­G.­Benson,­Statistics for Business and Economics,­3rd­ed.­(San­Francisco:­ Dellan,­1985);­see­“t­­Table”­(www . sjsu . edu / faculty / gerstman / StatPrimer / t ­ table . pdf ).

­13­.­­ For­an­excellent­review,­see­Schmitt­and­Klimoski,­Research Methods in Human Resources Man­ agement,­pp.­88–114.

­14.­ This­section­draws­on­E.­G.­Carmines­and­R.­A.­Zeller,­Reliability and Validity Assessment­(Bev­ erly­Hills,­CA:­Sage,­1979).

­15.­ K.­R.­Murphy­and­R.­De­Shon,­“Interrater­Correlations­Do­Not­Estimate­the­Reliability­of­Job­ Per­for­mance­Ratings,”­Personnel Psy chol ogy,­2000,­53,­pp.­873–900.

­16.­ D.­P.­Schwab,­Research Methods for Orga nizational Studies­(New­York:­Routledge,­2011). ­17.­ Carmines­and­Zeller,­Reliability and Validity Assessment;­J.­M.­Cortina,­“What­Is­Coefficient­

Alpha?­ An­ Examination­ of­ Theory­ and­ Application,”­ Journal of Applied Psy chol ogy,­ 1993,­ 78,­pp.­98–104;­Schmitt­and­Klimoski,­Research Methods in Human Resources Management,­ pp.­89–100.

­18.­ This­ section­ draws­ on­ R.­ D.­ Arvey,­ “Constructs­ and­ Construct­ Validation,”­ Human Per for­ mance,­1992,­5,­pp.­59–69;­W.­F.­Cascio,­Applied Psy chol ogy in Personnel Management,­4th­ed.­ (Englewood­Cliffs,­NJ:­Prentice­­Hall,­1991),­pp.­149–170;­H.­G.­Heneman­III,­D.­P.­Schwab,­ J.­ A.­ Fossum,­ and­ L.­ Dyer,­ Personnel/Human Resource Management,­ 4th­ ed.­ (Homewood,­ IL:­ Irwin,­1989),­pp.­300–329;­N.­Schmitt­and­F.­J.­Landy,­“The­Concept­of­Validity,”­in­N.­Schmitt,­­ W.­ C.­ Borman,­ and­ Associates­ (eds.),­ Personnel Se lection in Organ izations­ (San­ Francisco:­ Jossey­­Bass,­1993),­pp.­275–309;­D.­P.­Schwab,­“Construct­Validity­in­Organizational­Behavior,”­in­­ B.­ M.­ Staw­ and­ L.­ L.­ Cummings­ (eds.),­ Research in Organizational Behavior,­ Vol.­ 2­ (Green­ wich,­ CT:­ JAI,­ 1980),­ pp.­ 3–43;­ S.­ Messick,­ “Validity­ of­ Psychological­ Assessment,”­ American Psychologist,­Sept.­1995,­pp.­741–749.

099-67811_ch07_4P.indd 368 10/31/17 10:14 PM

CHAPTER SEVEN Mea­sure­ment 369

­19.­ J.­F.­Binning­and­G.­V.­Barrett,­“Validity­of­Personnel­Decisions:­A­Conceptual­Analy­sis­of­the­ Inferential­and­Evidential­Bases,”­Journal of Applied Psy chol ogy,­1989,­74,­pp.­478–494;­R.­P.­ Bagozzi,­ Y.­ Yi,­ and­ L.­ W.­ Phillips,­ “Assessing­ Construct­ Validity­ in­ Orga­nizational­ Research,”­ Administrative Science Quarterly,­1991,­36,­pp.­421–458;­J.­R.­Edwards,­“Construct­Validation­ in­Orga­nizational­Be­hav­ior­Research,”­in­J.­Greenberg­(ed.),­Orga nizational Be hav ior: The State of the Science,­2nd­ed.­(Mahwah,­NJ:­Lawrence­Erlbaum,­2003),­pp.­311–354.

­20.­ Heneman,­Schwab,­Fossum,­and­Dyer,­Personnel/Human Resource Management,­pp.­300–310. ­21.­ M.­Sussmann­and­D.­U.­Robertson,­“The­Validity­of­Validity:­An­Analy­sis­of­Validation­Study­

Designs,”­Journal of Applied Psy chol ogy,­1986,­71,­pp.­461–468. ­22.­ R.­S.­Barrett,­“Content­Validation­Form,”­Public Personnel Management,­1992,­21,­pp.­41–52;­

E.­E.­Ghiselli,­J.­P.­Campbell,­and­S.­Zedeck,­Mea sure ment Theory for the Behavioral Sciences­ (San­Francisco:­W.­H.­Freeman,­1981).

­23.­ K.­R.­Murphy,­“Content­Validation­Is­Useful­for­Many­­Things,­but­Validity­­Isn’t­One­of­Them,”­ Industrial and Orga nizational Psy chol ogy,­2009,­2,­pp.­453–464.

­24.­ F.­Schmidt­and­J.­Hunter,­“History,­Development,­Evolution,­and­Impact­of­Validity­General­ ization­and­Meta­­Analysis­Methods,­1975–2001,”­in­K.­R.­Murphy­(ed.),­Validity Generaliza­ tion: A Critical Review­(Mahwah,­NJ:­Erlbaum,­2003),­pp.­31–65;­K.­R.­Murphy,­“Synthetic­ Validity:­A­­Great­Idea­Whose­Time­Never­Came,”­Industrial and Orga nizational Psy chol ogy,­ 2010,­3(3),­pp.­356–359;­K.­R.­Murphy,­“Validity,­Validation­and­Values,”­Acad emy of Man­ agement Annals,­2009,­3,­pp.­421–461.

­25.­ S.­Kepes,­G.­C.­Banks,­M.­McDaniel,­and­D.­L.­Whetzel,­“Publication­Bias­in­the­Orga­nizational­ Sciences,”­Orga nizational Research Methods,­2012,­15,­pp.­624–662.

­26.­ C.­Winkler,­“Quality­Check:­Better­Metrics­Improve­HR’s­Ability­to­Measure—­and­Manage—­ the­Quality­of­Hires,”­HR Magazine,­May­2007,­pp.­93–98;­Society­for­­Human­Resource­Man­ agement,­SHRM Human Capital Benchmarking Study­(Alexandria,­VA:­author,­2005).

­27.­ A.­Whyte,­“Hiring­Goes­From­‘Stat’­to­Analyzing­Stats,”­Workforce Magazine,­Oct.­2015,­p.­10. ­28.­ N.­Schmitt­and­R.­Sinha,­“Validation­Support­for­Se­lection­Procedures,”­in­S.­Zedeck­(ed.),­APA

Handbook of Industrial and Orga nizational Psy chol ogy: Selecting and Developing Members for the Organ ization,­Vol.­2­(Washington,­DC:­APA,­2011),­pp.­399–420.

­29.­ N.­Blacksmith­and­T.­Poeppelman,­“The­Realities­of­Internet­Testing:­Security­Considerations­ and­Best­Practices,”­The Industrial and Orga nizational Psychologist (The Modern App: Applica­ tion of Modern Technology and Social Media in the Workplace),­2015,­53,­pp.­54–59.

­30.­ A.­J.­Illingworth,­N.­A.­Morelli,­J.­C.­Scott,­and­S.­L.­Boyd,­“Internet­­Based,­Un­­proctored­Assess­ ments­ on­ Mobile­ and­ Non­­Mobile­ Devices:­ Usage,­ Mea­sure­ment­ Equivalence,­ and­ Outcomes,”­ Journal of Business Psy chol ogy,­2015,­30,­pp.­325–343;­D.­D.­King,­A.­M.­Ryan,­T.­Kantrowitz,­ D.­Grelle,­and­A.­Dainis,­“Mobile­Internet­Testing:­An­Analy­sis­of­Equivalence,­Individual­Differ­ ences,­and­Reactions,”­International Journal of Se lection and Assessment,­2015,­23,­pp.­382–394.

­31.­ M.­ Barney­ and­ W.­ P.­ Fisher,­ Jr.,­ “Adaptive­ Mea­sure­ment­ and­ Assessment,”­ Annual Review of Orga nizational Psy chol ogy and Orga nizational Be hav ior,­2016,­3,­pp.­469–490;­M.­C.­Campion,­ M.­A.­Campion,­E.­D.­Campion,­and­M.­H.­Reider,­“Initial­Investigation­Into­Computer­Scoring­of­ Candidate­Essays­for­Personnel­Se­lection,”­Journal of Applied Psy chol ogy,­2016,­101,­pp.­958–975;­ L.­Yao,­M.­Pommerich,­and­D.­O.­Segall,­“Using­Multidimensional­CAT­to­Administer­a­Short,­ Yet­Precise,­Screening­Test,”­Applied Psychological Mea sure ment,­2014,­38,­pp.­614–631.

­32.­ J.­A.­Naglieri,­F.­Drasgow,­M.­Schmit,­L.­Handler,­A.­Prifitera,­A.­Margolis,­and­R.­Velasquez,­ “Psychological­ Testing­ on­ the­ Internet,”­ American Psychologist,­ Apr.­ 2004,­ 59,­ pp.­ 150–162;­ R.­E.­Ployhart,­J.­A.­Weekley,­B.­C.­Holtz,­and­C.­Kemp,­“Web­­Based­and­Paper­­and­­Pencil­Testing­ of­Applicants­in­a­Proctored­Setting:­Are­Personality,­Biodata,­and­Situational­Judgment­Tests­ Comparable?”­Personnel Psy chol ogy,­2003,­56,­pp.­733–752;­S.­Power,­“Federal­Official­Faults­ TSA­Screener­Testing­as­‘Inane,’­”­Wall Street Journal,­Oct.­9,­2003,­pp.­B1–­B2.

099-67811_ch07_4P.indd 369 10/31/17 10:14 PM

370 PART FOUR Staffing­Activities:­Se­lection

­33.­ See­the­Society­for­­Human­Resource­Management­Talent­Assessment­Center­(https://tac .shrm .org .

­34­.­­ D.­B.­Cohen,­M.­G.­Aamodt,­and­E.­M.­Dunleavy,­“Technical­Advisory­Committee­Report­on­ Best­Practices­in­Adverse­Impact­Analy­sis,”­Center for Corporate Equality,­2010­(www .cceq .org),­ accessed­Oct.­5,­2010.

­35.­ H.­Aguinis,­S.­A.­Culpepper,­and­C.­A.­Pierce,­“Revival­of­Test­Bias­Research­in­Preemployment­ Testing,”­ Journal of Applied Psy chol ogy,­ 2010,­ 95(4),­ pp.­ 648–680;­ C.­ M.­ Berry,­ “Differential­ Validity­ and­ Differential­ Prediction­ of­ Cognitive­ Ability­ Tests:­ Understanding­ Test­ Bias­ in­ the­ Employment­Context,”­Annual Review of Orga nizational Psy chol ogy and Orga nizational Be hav­ ior,­2015,­2,­pp.­35–63;­P.­Bobko­and­P.­L.­Roth,­“Reviewing,­Categorizing,­and­Analyzing­the­ Lit­er­a­ture­on­Black­­White­Mean­Differences­for­Predictors­of­Job­Per­for­mance:­Verifying­Some­ Perceptions­and­Updating/Correcting­­Others,”­Personnel Psy chol ogy,­2013,­66,­pp.­91–126.

­36.­ R.­E.­Ployhart­and­B.­C.­Holtz,­“The­Diversity­­Validity­Dilemma:­Strategies­for­Reducing­Racio­ ethnic­and­Sex­Subgroup­Differences­and­Adverse­Impact­in­Se­lection,”­Personnel Psy chol ogy,­ 2008,­61,­pp.­153–172.

­37.­ Bobko­and­Roth,­“Reviewing,­Categorizing,­and­Analyzing­the­Lit­er­a­ture­on­Black­­White­Mean­ Differences­ for­ Predictors­ of­ job­ Per­for­mance:­ Verifying­ Some­ Perceptions­ and­ Updating/­ Correcting­­Others.”

­38.­ W.­De­Corte,­F.­Lievens,­and­P.­R.­Sackett,­“Combining­Predictors­to­Achieve­Optimal­Trade­­ Offs­ Between­ Se­lection­ Quality­ and­ Adverse­ Impact,”­ Journal of Applied Psy chol ogy,­ 2007,­ 92(5),­ pp.­ 1380–1393;­ W.­ De­ Corte,­ P.­ R.­ Sackett,­ and­ F.­ Lievens,­ “Designing­ Pareto­­Optimal­ Se­lection­ Systems:­ Formalizing­ the­ Decisions­ Required­ for­ Se­lection­ System­ Development,”­ Journal of Applied Psy chol ogy,­2011,­96(5),­pp.­907–926.

­39.­ P.­Bobko,­P.­L.­Roth,­and­D.­Potosky,­“Derivation­and­Implications­of­a­Meta­­Analytic­Matrix­ Incorporating­ Cognitive­ Ability,­ Alternative­ Predictors,­ and­ Job­ Per­for­mance,”­ Personnel Psy­ chol ogy,­1999,­52,­pp.­561–589;­N.­Schmitt,­W.­Rogers,­D.­Chan,­L.­Sheppard,­and­D.­Jennings,­ “Adverse­ Impact­ and­ Predictive­ Efficiency­ of­ Vari­ous­ Predictor­ Combinations,”­ Journal of Applied Psy chol ogy,­1997,­82(5),­pp.­719–730.

­40.­ Equal­ Employment­ Opportunity­ Commission,­ “Employment­ Tests­ and­ Se­lection­ Procedures,”­ 2010­(www . eeoc . gov / policy / docs / factemployment _ procedures . html),­accessed­July­26,­2013.

099-67811_ch07_4P.indd 370 10/31/17 10:14 PM

C H A P T E R E I G H T

External Se lection I

Learning Objectives and Introduction Learning Objectives Introduction

Preliminary Issues The Logic of Prediction The Nature of Predictors Development of the Se lection Plan Se lection Sequence

Initial Assessment Methods Résumés and Cover Letters Application Blanks Biographical Information Reference and Background Checks Initial Interview Choice of Initial Assessment Methods

Legal Issues Disclaimers Reference Checks Social Media Screening Background Checks: Credit and Criminal Preemployment Inquiries Bona Fide Occupational Qualifications

Summary

Discussion Questions

Ethical Issues

Applications Reference Reports and Initial Assessment in a Start- Up Com pany Developing a Lawful Application Blank

Endnotes

099-67811_ch08_4P.indd 371 11/17/17 1:30 PM

372 PART FOUR Staffing Activities: Selection

LEARNING OBJECTIVES AND INTRODUCTION

Learning Objectives

• Understand how the logic of prediction guides the se lection pro cess • Review the nature of predictors— how se lection mea sures differ • Understand the pro cess involved in developing a se lection plan, along with

the se lection sequence • Learn about initial assessment methods and understand how these methods

are optimally used in organ izations • Evaluate the relative effectiveness of initial assessment methods to determine

which work best, and why • Review the legal issues involved in the use of initial assessment methods, and

understand how legal prob lems can be avoided

Introduction

External se lection— one of the more practically impor tant and heavi ly researched areas of staffing— refers to the assessment and evaluation of external job appli- cants. A variety of assessment methods are used. Preliminary issues that guide the use of these assessment methods will be discussed. These issues include the logic of prediction, the nature of predictors, development of the se lection plan, and the se lection sequence.

Initial assessment methods are used to select candidates from among the initial job applicants. Those methods that will be reviewed are résumés and cover letters, application blanks, biographical information, letters of recommendation, reference and background checks, and initial interviews. The factors that should guide the choice of initial assessment methods will be reviewed. These include frequency of use, cost, reliability, validity, utility, applicant reactions, and adverse impact.

The use of assessment methods requires a firm understanding of legal issues— including the use of disclaimers and the legal complexities surrounding reference and background checks. The most impor tant of these details will be reviewed. Fi nally, bona fide occupational qualifications (BFOQs) are particularly relevant to initial assessment because such qualifications are usually assessed during the initial stages of se lection. The legal issues involved in establishing such qualifica- tions will be reviewed.

PRELIMINARY ISSUES

Se lection is often equated with one event, namely, the interview. Nothing could be further from the truth if the best pos si ble person/job match is to be made. For this optimal match to be achieved, a series of well- thought- out activities need to take

099-67811_ch08_4P.indd 372 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 373

place. Hence, se lection is a pro cess rather than an event. It is guided by a logic that determines the steps that need to be taken. The logic applies to all predictors that might be used, even though they differ in terms of several characteristics. Actual implementation of the logic of prediction requires that predictors be chosen through development of a se lection plan. Implementation also requires creation of a se lection sequence, which is an orderly flow of people through the stages of being an applicant, candidate, finalist, and offer receiver.

The Logic of Prediction

In Chapter 1, the se lection component of staffing was defined as the pro cess of assessing and evaluating people for purposes of determining the likely fit between the person and the job. This pro cess is based on the logic of prediction, which holds that indicators of a person’s degree of success in past situations should be predictive of how successful he or she will likely be in new situations. Application of this logic to se lection is illustrated in Exhibit 8.1.

A person’s knowledge, skills, abilities, and other characteristics (KSAOs) and motivation are the product of his or her past job, current job, and nonjob experi- ences and situations. During se lection, the organ ization identifies, assesses, and evaluates samples of these KSAOs (presumably) most relevant to the new situation or job, as well as motivation. The results constitute the person’s overall qualifica- tions for the new situation or job. These qualifications are then used to predict human resource (HR) outcomes, indicating how successful the person is likely to be in that new situation or job. The logic of prediction works in practice if the organ ization accurately identifies and mea sures qualifications relative to job requirements, and if those qualifications remain stable over time so that the person carries them over to the new job.

The logic of prediction shown in Exhibit 8.1 demonstrates how critical it is to carefully scrutinize the applicant’s past situation when making se lection decisions. For example, in selecting someone for a police officer position, the success of

EXHIBIT 8.1 The Logic of Prediction

Sample Predict

Previous job(s)

Current job

Nonjob

KSAOs

Motivation

HR outcomes Attraction Performance Satisfaction Retention Attendance

Past Situations New Situation (Job)

099-67811_ch08_4P.indd 373 11/17/17 1:30 PM

374 PART FOUR Staffing Activities: Selection

the applicant in a previous security guard position might be considered a rel- evant predictor of the likelihood that the applicant will succeed in the police officer position. Alternatively, the fact that the person was previously successful as a homemaker might be viewed as totally irrelevant. Surprisingly, considering the homemaker role to be irrelevant in this instance might well be an incorrect assessment. Prior research has demonstrated that there is a close correspondence between the role of homemaker and the police officer position.1 Specifically, a thorough job analy sis revealed that both jobs rely heavi ly on troubleshooting and emergency handling skills. Hence, in the absence of a sound job analy sis, many qualified applicants may inadvertently be overlooked even though they have some of the characteristics needed to perform the job. Nonjob experience in the home, in the community, and in other institutions may be as valuable as or more valuable than previous employment experiences.

Job titles such as homemaker are not nearly specific enough for making se lection decisions. Similarly, the fact that someone has a certain number of years of experi- ence usually does not provide sufficient detail to make se lection decisions. What counts, and what is revealed through job analy sis, are the specific types of experi- ences required and the level of success achieved from each. Similarly, whether or not someone was paid for employment is not relevant. What counts is the quality of the experience as it relates to success in the new job.2 In short, the logic of predic- tion indicates that a point- to- point comparison needs to be made between require- ments of the job to be filled and the qualifications applicants have acquired from a variety of past situations.

The logic of prediction is impor tant not only to se lection but also to recruit- ment. One study showed that applicant reactions to se lection procedures were determined in part by the job relatedness of the se lection procedure. If applicants see the se lection pro cess as job related, which should occur if the logic of predic- tion is used, they are more likely to view the se lection pro cess as fair.3 Applicants who view the se lection procedure as fair are more likely to accept a job offer and/ or encourage others to apply for a job in the organ ization.

Fi nally, the logic of prediction means separating recruitment from se lection. For example, many organ izations use employee referrals to identify prospective hires (recruitment), to select among those who have applied (se lection), or both. Though there is nothing wrong with using referrals, how they are evaluated as a recruitment device will differ from how they are evaluated as a se lection mea sure (often in the form of references).

The Nature of Predictors

As will be seen shortly, many types of predictors are used in external se lection, ranging from interviews to reference checks. They can be differentiated from one another in terms of their content and form.

099-67811_ch08_4P.indd 374 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 375

Content The substance or content of what is being assessed with a predictor varies consider- ably and may range from a sign to a sample to a criterion.4 A sign is a predisposi- tion of the person that is thought to relate to per for mance on the job. Personality as a predictor is a good example here. If personality is used as a predictor, the predic- tion is that someone with a certain personality (e.g., abrasive) will demonstrate certain be hav iors (e.g., rude to customers) leading to certain results on the job (e.g., failure to make a sale). As can be seen, a sign is very distant from actual on- the- job results. A sample is closer than a sign to actual on- the- job results. Observing a set of inter actions between a sales applicant and a customer to see if a sale is made is an example of a sample. The criterion is very close to the actual job per for mance, such as sales during a probationary period for a new employee.

Form The form or design of the predictor may vary along several dif fer ent lines.

Speed Versus Power. A person’s score on some predictors is based on the num- ber of responses completed within a certain time frame, for example, the number of bench presses an individual completes in a given period of time. This is known as a speed test. A power test, on the other hand, pres ents individuals with items of increasing difficulty. For example, a power test of numerical ability may begin with addition and subtraction, move on to multiplication and division, and con- clude with complex problem- solving questions. A speed test is used when speed of work is an impor tant part of the job, and a power test is used when the correctness of the response is essential to the job. Of course, some tests (see the Wonderlic Personnel Test in Chapter 9) can be both speed and power tests, in which case few individuals would finish.

Paper and Pencil Versus Per for mance. Many predictors are of the paper- and- pencil variety; applicants are required to fill out a form, write an answer, or com- plete multiple- choice items (the term “paper- and- pencil” is used loosely here given that many predictors are assessed electronically). Other predictors are per for mance tests, where the applicant is asked to manipulate an object or equipment. Paper- and- pencil tests are frequently used when psychological abilities are required to perform the job; per for mance tests are used when physical and social skills are required to perform the job. Although many organ izations may use one or the other, some use both, as when the NFL recruits are timed in the 40- yard dash (a per for mance test) and also given an intelligence test (a paper- and- pencil test). Interestingly, some research suggests that the form of the predictor may influence both applicant reac- tions and validity. Behavioral responses to a situational judgment test were found to be better predictors of police officer per for mance one year later as well as rated more positively by applicants on some dimensions.5

099-67811_ch08_4P.indd 375 11/17/17 1:30 PM

376 PART FOUR Staffing Activities: Selection

Objective Versus Essay. An objective paper- and- pencil predictor uses either multiple- choice questions or true/false questions. These tests should be used to mea sure knowledge in specific areas. Another form of a predictor is an essay, where the respondent provides a written answer. Essays are best used to assess written communication, problem- solving, and analytical skills.6

Oral Versus Written Versus Computer. Responses to predictor questions can be spoken, written, or entered into a computer or other electronic communication device. When conducting interviews, some organ izations listen to oral responses ( either in person or through videoconferencing), read written responses, or read computer printouts of typed-in responses to assess applicants. As with all predictors, the appropriate form depends on the nature of the job. If the job requires a high level of verbal skill, oral responses should be solicited. If the job requires a large amount of writing, written responses should be required. If the job requires constant interaction with the computer, applicants should use a computer to enter their responses.7

Development of the Se lection Plan

To translate the results of a job analy sis into the actual predictors to be used for se lection, a se lection plan must be developed. A se lection plan describes which predictor(s) will be used to assess the KSAOs required to perform the job. The rec- ommended format for a se lection plan, and an example of such a plan for the job of administrative assistant, is shown in Exhibit 8.2. A se lection plan can be estab- lished in three steps. First, the KSAOs are written in the left- hand column. This list comes directly from the job requirements matrix. Second, for each KSAO, a “yes” or “no” is written to show whether it needs to be assessed in the se lection pro cess. Sometimes the answer is no because the applicant will acquire the KSAO once on the job (e.g., knowledge of com pany policies and procedures). Third, pos si ble methods of assessment are listed for the required KSAOs, and the specific method to be used for each is indicated.

Se lection Sequence

Usually, a series of decisions are made about job applicants before they are selected. These decisions are depicted in Exhibit 8.3. The first decision is whether initial applicants who have applied for the job become candidates or are rejected. A candidate is someone who possesses the minimum qualifications to be considered for further assessment but has not yet received an offer.

Initial assessment methods are used to choose candidates ( these will be discussed later in this chapter). The second decision is to determine which candidates become finalists. A finalist is someone who meets all the minimum qualifications and whom the organ ization considers fully qualified for the job. Substantive assessment

099-67811_ch08_4P.indd 376 11/17/17 1:30 PM

Chapter eight External Se lection I 377

e X

h iB

it 8

.2

S e

le ct

io n

p la

n F

o rm

a t

a n

d e

xa m

p le

f o

r a

d m

in is

tr a

ti ve

a ss

is ta

n t

p o

si ti

o n

M a jo r K S A O

C a te g o ry

N e ce

ss a ry

fo r

S e le ct io n ?

(Y /N

)

M e th o d o f A ss e ss m e n t

W P

C T

D B

LT R

T E F

M L

E M

T M

IR V

1. A

b ili

ty to

fo llo

w o

ra ld

ir e

ct io

n s/

lis te

n in

g sk

ill s

X X X X

X

Y

2 .

A b

ili ty

to re

ad an

d u

n d

e rs

ta n

d m

an u

al s

an d

g u

id e

lin e

s Y

X X

X X

X X

X

3 .

A b

ili ty

to p

e rf

o rm

b as

ic ar

ith m

e tic

o p

e ra

tio n

s Y

X X

X

X X

X X

Y A

b ili

ty t

o o

rg an

iz e

. 4 5

. Ju

d g

m e

n ts

/p ri

o ri

ty -s

e tt

in g

/d e

ci si

o n

- m

ak in

g ab

ili ty

Y

X Y Y

O ra

l c o

m m

u n

ic at

io n

s ki

lls .

6 7 .

W ri

tt e

n co

m m

u n

ic at

io n

sk ill

s X

Y In

te rp

e rs

o n

al s

ki lls

. 8

X X

X Y Y

T yp

in g

s ki

lls .

9 10 .

K n

o w

le d

g e

o f

co m

p an

y p

o lic

ie s

an d

p ro

ce d

u re

s N

11 .

K n

o w

le d

g e

o f

b as

ic p

e rs

o n

al co

m p

u te

r o

p e

ra tio

n s

Y X

X X

X X

X

12 .

K n

o w

le d

g e

o f

h o

w to

u se

b as

ic o

ffi ce

m ac

h in

e s

N

13 .

F le

xi b

ili ty

in d

e al

in g

w ith

ch an

g in

g jo

b d

e m

an d

s X

X X

Y

14 .

K n

o w

le d

g e

o f

co m

p u

te r

so ft

w ar

e X

X X

X X

X 15

. A

b ili

ty to

at te

n d

to d

e ta

il an

d ac

cu ra

cy Y

X X

X X

X X

X X

W P

= W

o rd

p ro

ce ss

in g

t e

st , C

T =

C o

rr e

ct io

n t

e st

, D B

= D

at ab

as e

e xa

m , L

T R

= L

e tt

e r,

T E

F =

T ra

ve l e

xp e

n se

f o

rm , M

L =

M ai

l l o

g ,

E M

= E

le ct

ro n

ic m

ai l m

e ss

ag e

s, T

M =

T e

le p

h o

n e

m e

ss ag

e s,

a n

d IR

V =

In te

rv ie

w .

S o

u r

c e:

A d

ap te

d f

ro m

N . S

ch m

itt , S

. G ill

ila n

d , R

. S . L

an d

is , a

n d

D . D

e vi

n e

, “ C

o m

p u

te r-

B as

e d

T e

st in

g A

p p

lie d

t o

S e

le ct

io n

o f

S e

cr e

ta ri

al P

o si

tio n

s, ”

P e

rs o

n n

e l P

sy ch

o lo

g y,

1 9

9 3

, 4 6

, p p

. 1 4

9 –

16 5

.

9781259756559_ch08_p371_430.indd 377 12/17/17 6:45 PM

378 PART FOUR Staffing Activities: Selection

methods, discussed in Chapter 9, are used to select finalists. The third decision is to determine which of the finalists receives a job offer. An offer receiver is a finalist to whom the organ ization extends an offer of employment. Discretionary methods, also discussed in Chapter 9, are used to select these individuals. Contingent meth- ods are sometimes used, meaning the job offer is subject to certain qualifications, such as the offer receiver passing a medical exam or drug test. Use of contingent methods, in par tic u lar drug testing and medical exams, will be reviewed in Chap- ter 9. Fi nally, some offer receivers become new hires when they decide to join the organ ization.

EXHIBIT 8.3 Assessment Methods by Applicant Flow Stage

Assessment Method Applicant Flow Stage

Applicants

Candidates

Initial

Substantive

Finalists

Discretionary

O�er receivers

Contingent

New hires

099-67811_ch08_4P.indd 378 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 379

INITIAL ASSESSMENT METHODS

Initial assessment methods, also referred to as preemployment inquiries, are used to minimize the costs associated with substantive assessment methods by reduc- ing the number of people assessed. Predictors typically used to screen candidates from applicants include résumés and cover letters, application blanks, biographi- cal information, reference and background checks, and initial interviews. Each of these initial assessment methods will be described in turn. Using meta- analysis results, the average validity (i.e., r

_ ) of each method is also provided if pos si ble.

Then, a general evaluation is presented to help guide decisions about which initial assessment methods to use.

Résumés and Cover Letters

The first introduction of the applicant to the organ ization is often a cover letter and résumé. The applicant controls the introduction concerning the amount, type, and accuracy of information provided. As a result, résumés and cover letters always need to be verified with other predictors, such as background checks, to ensure that there are accurate and complete data across all job applicants with which to make informed se lection decisions.

One major issue with résumés as a se lection tool is the volume that organ izations must pro cess. Some organ izations make few provisions for how to file and or ga- nize résumés as they filter in, and for how to store them once a hiring decision is made. Most organ izations are well advised to produce and maintain an electronic copy of résumés received, both to ease sharing of information among se lection decision makers and to track applicants should any questions ( legal or other wise) arise once the applicant is hired.

The vast majority of large employers, and even many medium- size employers, encourage submission of résumés via e- mail or through online forms on the organ- ization’s website. For example, on the Toys “R” Us website, applicants can search an online database for openings and then apply either by completing an online form or, for managerial positions, by attaching their résumé to an e- mail message.

Employers can outsource résumé collection to résumé- tracking ser vices. Many ser vices not only scan résumés but also score them by placing a percentage next to the applicant’s name reflecting the number of criteria his or her résumé meets. Though such methods have power ful time- and cost- saving advantages, there are disadvantages, such as the rejection of résumés that the software could not read (e.g., those on colored paper or that use special formatting like bullets) and appli- cants who try to beat the system by “fluffing” their résumés with every conceivable skill that appears in the advertisement. Despite these drawbacks, the efficiencies of such ser vices make them particularly attractive for organ izations facing large volumes of résumés.

099-67811_ch08_4P.indd 379 11/17/17 1:30 PM

380 PART FOUR Staffing Activities: Selection

Video Résumés Video résumés are getting considerable attention in the business press. Sites like SparkHire . com help applicants put together video résumés where the applicants talk about their qualifications directly to the camera or in a simulated interview. Jared McKinney, a gradu ate of Brigham Young University, used the program Screenr to create a video résumé in which he discusses his experience and gives employers an idea of his personality. He eventually landed a job at a social media firm in Utah, which mentioned the quality of his résumé during his face- to- face interview.8

While the topic of video résumés is fash ion able, few employers have any experi- ence with them, and there is very little research on their effectiveness. Although one preliminary study revealed that there were no differences between paper and video résumés on outcomes such as the likelihood of requesting more information from the candidate, inviting the candidate for an interview, or ratings of the applicant’s success, applicants who submitted video résumés were rated as less extroverted, less socially adept, and less mentally capable than those who submitted paper résu- més. Additionally, a follow-up study suggested that self- promotion can be observed more easily in video- based résumés, leading to diminished hiring outcomes.9 Some employers refuse to view video résumés for fear of introducing subjective biasing factors (appearance, race, or a disability) into their decisions. Despite this fear of bias, some initial research suggested that ethnic minority applicants actually react positively to being given the opportunity to submit a video résumé, considering it to be a fairer and more personalized experience.10 Some job applicants have submitted video résumés only to be the subject of ridicule by their potential employers. Alek- sey Vayner, a finance major at Yale, sent a video résumé to bank giant UBS, only to have it posted on blogs and be mocked by others.11 One survey indicated that while many hiring man ag ers would view a video résumé, a majority (58%) of those admit- ted they would do so out of “sheer curiosity.” As one career advisor noted, “Most employers don’t have much direct familiarity with them yet. Folks are still trying to figure out where the video résumé falls in the calculus in applicant se lection.”

While video résumés could be considered to fall on the more elaborate end of the résumé spectrum, on the more simplistic end of that spectrum is the tweet. Some technology and marketing firms are avoiding the traditional résumé and instead asking applicants to tweet their qualifications via the social networking site Twitter. Because they are more concerned with how the applicant communicates electroni- cally rather than on paper or face- to- face, these employers argue that tweets reveal the applicant’s technological savvy.12

Thus, while these alternative résumé formats are receiving a lot of attention in the press, it remains to be seen whether they will be a fad or the wave of the future.

Résumé Issues Résumés have the advantage of allowing the applicant to control information pre- sented to employers. In evaluating résumés, employers should be aware of fabrica-

099-67811_ch08_4P.indd 380 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 381

tions and distortions. Applicants, meanwhile, will want to know how to get their résumés noticed. We consider each of these issues and how to address them below.

Résumé Fabrications and Distortions. Because résumés are prepared by applicants and follow no set- in- stone form, and because applicants want to pres- ent themselves in a favorable light, distortions are a significant prob lem. David J. Edmondson, CEO of RadioShack, was fired after a newspaper investigation revealed that he padded his résumé with two degrees he never earned, from a uni- versity he never attended. In addition, MIT dean Marilee Jones resigned after it was discovered that she never received the undergraduate and master’s degrees she claimed on her résumé. Edmondson and Jones are not alone. In any given year, it seems the careers of some CEOs, athletic coaches, or public officials are derailed by a false statement made on a résumé— often made years ago. Résumé- Doctor, an online com pany that assists applicants in preparing résumés, checked the accuracy of applicants’ résumés posted on its website and found that nearly half (42.7%) had “significant inaccuracies.” A background checking agency found that 56% of résumés contained a falsehood of some kind.13

Like the truth, résumés come in vari ous degrees of accuracy, ranging from small, unintentional mistakes to outright fabrications. Minor embellishments may matter more for applicants who are less desirable, as opposed to applicants who are favored.14 Furthermore, the degree of what we might call “fudging” is common- place. For example, Ellie Strauss’s two more recent full- time jobs lasted less than six months. Ellie represented these as freelance jobs, under the heading “Se nior Proj ect Man ag er,” to make them look like contract positions. Some might call this deception. Others might call it creative marketing or tailoring. What ever you call it, résumé padding happens a lot. According to one survey, the three biggest areas of distortion or misinformation are the following:15

1. Inflated titles 2. Inaccurate dates to cover up job- hopping or employment gaps 3. Half- finished degrees, inflated education, or “purchased” degrees

The best way to combat résumé fraud or fudging is to conduct careful back- ground checks. In addition, applying a “smell” test to any suspicious information is a wise policy. For example, in light of the false information submitted by coaches, colleges are scrutinizing résumés much more closely. The University of Louisville added the following warning to its athletic department application forms: “If a discrepancy is found after the background check, the employee is subject to dis- missal.” In short, the best protection against résumé fraud is for the hiring organ- ization to do its homework.16

Getting a Résumé Noticed. The conscientious job seeker may won der how to best prepare a résumé. Although there are as many theories on the ingredients

099-67811_ch08_4P.indd 381 11/17/17 1:30 PM

382 PART FOUR Staffing Activities: Selection

of a perfect résumé as there are résumé readers, a few general guidelines may be helpful. First, realize that typos and other minor mistakes can kill your chances. A survey revealed that 84% of hiring man ag ers exclude from further consideration applicants with two typographical errors on their résumé; 47% of these man ag ers exclude applicants with just a single error. Second, customize your résumé to the position if at all pos si ble (try to address how your background, skills, and accom- plishments fit the specific job requirements). Third, although résumés are getting somewhat longer, recognize that brevity is highly valued among hiring man ag ers— many will not read résumés that are longer than two pages, and some will not read those that are longer than a page. Fourth, as we noted above, be factual and truth- ful. Where judgment is required, err on the side of accuracy. As one expert put it, “ People are lying when they don’t have to.” Most hiring man ag ers understand that no résumé is perfect. Even if being truthful hurts you in the short run, it is better to pay the price now rather than later, when you might have an entire career at stake. Fi nally, although one should take care to be truthful, a résumé is no time to underplay your accomplishments. Do not just list your job duties; identify your accomplishments as well. Consider your impact on your division or group: What would not have happened had you not been there? What are you proudest of? Can you identify your own strengths from your per for mance review? Did you demon- strate skills during college that you might describe? The global head of recruiting for Accenture says he looks for evidence of teamwork skills in hiring: “I’d have to put the ability to work in a team environment toward the very top of what we look for,” he says. Since most college students do some of their work in teams, why not list that as a skill acquired.17

Given the widespread use of electronic résumé submissions, there are also several special considerations for submitting your résumé electronically. When submitting a résumé electronically, make sure it is scan ready. This means avoiding unusual fonts and formatting. With today’s résumés, form should follow function. In addi- tion, stick to the relevant information and traditional résumé formats. When law school gradu ate Brian Zulbert e- mailed his résumé to potential firms, he attached a picture of himself wearing a T- shirt and showing off his defined biceps. He also posted a shirtless picture of himself on Facebook with the joke to hire him as a lawyer rather than as an escort. Needless to say, the story went viral, with Zulbert drawing laughs from some but scorn from others.18 Fi nally, use nouns to describe noteworthy aspects of your background (“nonprofit,” “3.75 GPA,” “environmental science experience,” etc.), as opposed to the traditional emphasis on action verbs (“managed,” “guided,” etc.), because nouns are more likely to be identified as key- words in scanning software. If the résumé is likely to be scanned, it should be built around such keywords that will be the focus of the scan.

Evaluation. Although some reliability and validity evidence has been provided for résumés, almost no research exists on the reliability and validity of cover letters. The research that has been conducted on cover letters suggests that how they are

099-67811_ch08_4P.indd 382 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 383

written might matter— unfortunately, cover letters that are written in an ingratiating tone and that use impression management tactics might result in higher ratings of applicants in some cases and lower ratings in others due to low likability and per- ceived truthfulness.19 Furthermore, the reliability evidence that exists for résumés suggests that they are, in general, very poor: although some ele ments of the résumé can be assessed consistently, multiple raters of the same résumé are not usually in agreement.20 Regarding their validity, a review indicated relatively low validity for applicant self- reports of grades, class standing, and test scores, but this does not address other information— such as self- reported work experience— often provided in applications and résumés. Additional research suggests that ratings and assess- ments of work experience, extracurricular activities, educational background, and personality inference (e.g., extroversion and conscientiousness) as rated on résumés positively predicts employability ratings and hiring recommendations, but none of this research suggests that they actually predict on- the- job per for mance.21

There has been a great amount of interest in the adverse impact of résumés in the past de cade. One study conducted in the Netherlands found that résumés with the common Arabic name “Mohammed” were four times as likely to be rejected as résumés with the common Dutch name “Henk.” Of additional concern, appli- cants that belong to more than one minority class (e.g., Arabic women) may be more likely to be rejected when a high- status job is at stake than if they were a woman or a person of Arabic descent alone, a phenomenon known as the “double- jeopardy effect.” Other recent research has suggested that disclosure of certain types of information on a résumé, such as a history of cancer, may be negatively interpreted by se lection decision makers. These situations are unfortunate given the pervasive use of résumés and cover letters in certain types of jobs, especially entry- level management, professional, and technical positions. Thus, organ izations using résumés and cover letters in se lection should carefully evaluate their effec- tiveness and make sure to in de pen dently verify information they are using in hiring decisions.22

Application Blanks

Most application blanks request in written form the applicant’s background con- cerning educational experiences, training, and job experiences. This information is often on the applicant’s résumé as well and may seem unnecessarily duplicated, but this is not the case. An application can be used to both verify the data pre- sented on the résumé and obtain data omitted from the résumé, such as employ- ment dates. The major advantage of application blanks over résumés is that the organ ization, rather than the applicant, dictates what information is presented. As a result, information critical to success on the job is less likely to be omitted by the applicant or overlooked by the reviewer of the résumé. The major issue with appli- cation blanks is to make sure that information requested is critical to job success, following the logic of prediction discussed earlier.

099-67811_ch08_4P.indd 383 11/17/17 1:30 PM

384 PART FOUR Staffing Activities: Selection

A sample application blank is provided in Exhibit 8.4. As with most application blanks, the major sections are personal information, employment desired, educa- tional background, special interests and abilities, work experience, and suggested references. The only information sought from the application blank should be KSAOs that can be demonstrated as relevant to the job. This not only avoids wast- ing the organ ization’s and the applicant’s time but also protects the employer from charges of unfair discrimination (see “ Legal Issues” at the end of this chapter). Note the disclaimer statement at the bottom of the application blank. It provides certain legal protections to the organ ization, which are discussed in “ Legal Issues.” Asking applicants to sign a disclaimer may also decrease the incentive to distort or falsify information.

Educational Requirements When soliciting information about educational experiences and per for mance, spe- cial care needs to be taken in wording items on an application blank.23 Follow- ing are several particularly impor tant areas pertaining to educational requirement information on application blanks.

Level of Education. Level of education or degree is one ele ment of educational per for mance used to predict job per for mance. Often, level of education is mea- sured by the attainment of a degree. Despite its pervasive use, it is not clear that level of education is a truly useful se lection mea sure. Some economists and soci- ologists question its importance, and a meta- analysis suggested that the correlation between education and task per for mance was relatively small (across all mea sures of task per for mance, r

_ xy = .10).

24

According to the College Board, the average cost of attending a four- year univer- sity has doubled over the last 25 years for public institutions and has qua dru pled over the last 15 years for private institutions, a rapid ascent that has left many questioning the value of a college degree. Not to mention that the labor market following the Great Recession has led to many recent college gradu ates struggling to compete with experienced workers for a slowly growing pool of available jobs. “Is college worth it?” asks author and former US secretary of education Warren Bennett. Critics argue that the traditional path of going to a “brick and mortar” col- lege or university and earning a degree is no longer as useful. Instead, they argue that massive open online courses can educate people at a much cheaper cost, and that education is more about a mind- set rather than a four- year program. They also point to famous billionaires such as Mark Zuckerberg and Bill Gates, both of whom dropped out of college. As Mike Hagen, who dropped out of Prince- ton in 2006 and started a mobile app, noted, in Silicon Valley, eschewing college is “almost a badge of honor” because individuals are more freethinking and risk- taking. Proponents of degrees counter with data that the educated earn far more in their lifetime than those without degrees, and thus the Zuckerbergs and the Gateses

099-67811_ch08_4P.indd 384 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 385

EXHIBIT 8.4 Application for Employment

DATE PERSONAL INFORMATION

SOCIAL SECURITY NUMBERNAME

Yes

Yes

No

No

PRESENT ADDRESS

PERMANENT ADDRESS

PHONE NO. ARE YOU 18 YEARS OR OLDER?

POSITION DATE YOU CAN START

SALARY DESIRED

EMPLOYMENT DESIRED

EDUCATION

ARE YOU EMPLOYED NOW? IF SO MAY WE INQUIRE OR YOUR PRESENT EMPLOYER?

APPLIED TO THIS COMPANY BEFORE? WHERE? WHEN?

REFERRED BY

GRAMMAR SCHOOL

COLLEGE

HIGH SCHOOL (GED)

NAME AND LOCATION NO. OF YEARS ATTENDED

DID YOU GRADUATE?

SUBJECTS STUDIED

OTHER

ARE YOU PREVENTED FROM LAWFULLY BECOMING EMPLOYED IN THIS COUNTRY BECAUSE OF VISA OR IMMIGRATION STATUS?

(continued)

099-67811_ch08_4P.indd 385 11/17/17 1:30 PM

386 PART FOUR Staffing Activities: Selection

EXHIBIT 8.4 Continued

FORMER EMPLOYERS

SUBJECTS OF SPECIAL STUDY

SPECIAL SKILLS

ACTIVITIES (CIVIC, ATHLETIC, ETC.)

U.S. MILITARY SERVICE RANK

DATE

PRESENT MEMBERSHIP IN NATIONAL GUARD OR RESERVES

(LIST BELOW LAST 3 EMPLOYERS, STARTING WITH THE MOST RECENT)

GENERAL

NAME & ADDRESS SALARY POSITION

REASON FOR LEAVING

FROM

FROM

TO

FROM

TO

TO

REFERENCES (GIVE THE NAMES OF 3 PERSONS NOT RELATED TO YOU)

NAME ADDRESS BUSINESS YEARS ACQUAINTED

DATE SIGNATURE

1

2

3

“I certify that all the information submitted by me on this applicationis true and complete, and I understand that if any false information, omissions, or misrepresentations are discovered, my application may be rejected and, if I am employed, my employment may be terminated at any time. In consideration of my employment, I agree to conform to the company's rules and regulations, and I agree that my employment and compensation can be terminated, with or without cause, and with or without notice, at any time, at either my or the company’s option. I also understand and agree that the terms and conditions of my employment may be changed, with or without cause, and with or without notice, at any time by the company. I understand that no company representative, other than its president, and only when in writing and signed by the president, has any authority to enter into any agreement for employment for any specific period of time, or to make any agreement contrary to the foregoing.”

099-67811_ch08_4P.indd 386 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 387

of the world are the exception, rather than the norm. They also argue that an edu- cation derived solely from virtual classrooms would be devoid of the interpersonal experiences and critical thinking that take place in more traditional classrooms. Although decrying higher education may simply be the current fashion, it is likely that changes in higher education are on the horizon, and definitions of “level of education” may be altered as a result of those changes.25

Grade Point Average. Classroom grades are mea sured using a grade point aver- age (GPA). Care should be exercised in the interpretation of GPA information. For example, a GPA in one’s major in college may be dif fer ent (usually higher) from one’s GPA for all classes. Grades also vary widely by field (e.g., grades in engineering tend to be lower than in other fields). Further, a GPA of 3.5 may be good at one school but not at another. Research suggests that the validity of GPA in predicting job per for mance may be as high as the mid .30s. College grades are no more valid than high school grades, and grades are most valid in predicting early job per for mance. Although there is variability from employer to employer, evidence indicates that GPA does not play a large role in most recruiters’ evalua- tions. GPAs tend to have moderate adverse impact against minorities, and, as with all se lection mea sures with adverse impact, the validity evidence must be balanced against adverse impact implications.26

Quality of School. Much has been said and written about the quality of vari- ous educational programs. For example, U.S. News and World Report annually publishes the results of a survey showing ratings of school quality (or prestige, depending on the faith you have in such ratings).27

Gradu ates from prestigious universities are commanding wage premiums for MBA degrees in par tic u lar, but also educational degrees in general. In fact, a new report by the Gradu ate Management Admission Council based on a survey of nearly 15,000 MBA alumni from approximately 300 MBA programs suggests that MBAs earn on average $1 million more than non- MBAs over time. Sixty percent of cor- porate recruiters cite the reputation of the school as the top reason for recruiting at a par tic u lar university. As one article concluded, “It’s not necessarily what you learn in an MBA program, but where you learn it.”28

Major Field of Study. The more specialized the knowledge requirements of a par tic u lar position, the more impor tant an applicant’s major field of study is likely to be as a predictor. An En glish major may do very well as an editor but may be unsuccessful as a physician. It should also be noted that choice of major does not guarantee that a certain number or type of classes have been taken. The number and type of classes needed for a major or minor vary from school to school and need to be carefully scrutinized to ensure comparability across majors. The relationship between field of study and job per for mance is very difficult to assess; therefore, no conclusive validity evidence is available.

099-67811_ch08_4P.indd 387 11/17/17 1:30 PM

388 PART FOUR Staffing Activities: Selection

Extracurricular Activities. The usefulness of extracurricular activities as a pre- dictor depends on the job. Being a field hockey player may have little relevance to being a successful man ag er. However, being elected captain of a hockey team may indeed be a sign of leadership qualities needed to be a successful man ag er. Information about extracurricular activities taken from an application blank must be relevant to the job in question. Evidence suggests that participation in extracur- ricular activities demonstrates interpersonal skills, indicating that it may be more valid for jobs with a heavy social component. Furthermore, for jobs in which cul- tural intelligence (CQ) is an impor tant component, studying abroad, along with cultural boundary– expanding experiences, may be a good indicator of a height- ened CQ.29

Training and Experience Requirements Many past experiences predictive of future per for mance do not take place in a classroom. Instead, they come from life experiences in other institutions, which, fortunately, can also be captured on an application blank. A great deal of weight is often put on training and experience requirements on the theory that actions speak louder than words. For example, experienced surgeons tend to make better surgeons. One study found that the mortality rate of procedures was about twice as high for inexperienced surgeons as for experienced surgeons. As with other jobs, though, the benefits of experience tend to plateau after a certain amount. Beyond a certain level, added experience does not help much. Furthermore, experience can be considered at a variety of levels of analy sis (e.g., job, organ ization, occupation) along with characteristics (e.g., amount, time, type).30 The drawback of putting too much emphasis on previous work experience, however, is that the amount of expe- rience and training an applicant has may be overstated. Additionally, applicants with high potential may be overlooked because they have not had the opportunity to gain the training or experience needed.

Vari ous methods can be used to mea sure training and experience. Since training and experience information is not directly equivalent across applicants, all methods require the judgment of se lection decision makers. These decision makers ren- der judgments about how to classify and weight dif fer ent levels of experience. An approach termed the “behavioral consistency method” has shown the highest degree of validity because it focuses on determining the quality of an applicant’s previous training and experience. One of the means by which the behavioral con- sistency method determines quality is by asking applicants to complete a supple- mental application wherein they describe their most significant accomplishments relative to a list of key job be hav iors. Due to their involved nature, however, behav- ioral consistency ratings are time- consuming and expensive to administer, and they require the applicant to possess some degree of analytical ability and writing skills. Thus, the choice of weighting methods rests on a trade- off between accuracy and ease and cost of administration.31

099-67811_ch08_4P.indd 388 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 389

Licensing, Certification, and Job Knowledge Many professions and occupations require or encourage people to demonstrate mastery of a certain body of knowledge. Such mastery is commonly mea sured by two distinct methods: licensure and certification. A license is required of people by law to perform an activity, whereas a certification is voluntary in the sense that it is not mandated by law (though an individual employer may require it). The purpose of a license is to protect the public interest, whereas the purpose of a certification is to identify an individual who has met a minimum standard of proficiency. Licens- ing exams and certification exams are usually developed by SMEs in conjunction with testing specialists. Licensure and certification are to be distinguished from job knowledge tests. While licensure and certification demonstrate mastery of a general body of knowledge applicable to many organ izations, job knowledge tests assess a specific body of knowledge within a par tic u lar organ ization. Job knowledge tests are usually used in the public sector as an initial screening device. In the pri- vate sector, they are used primarily for promotion purposes. Although mentioned here, job knowledge tests will be covered in detail in Chapter 9.

The actual use of licensing and certification requirements depends on whether they are used as an initial or a contingent assessment method. As an initial method, licensing and certification requirements are used to eliminate applicants who fail to possess these credentials. For example, a car repair shop electing to hire only certi- fied mechanics might initially screen out individuals who fail to have the proper certification. When licensing and certification requirements are used as a contin- gent method, the se lection pro cess proceeds on the assumption that the applicant has the requisite credentials (or will have them by the time of hire). This is then verified after an initial offer decision has been made. For example, rather than verifying that each applicant for a nursing position possesses a valid state license, a hospital may assess applicants on the assumption that they have a valid license and then verify this assumption after a contingent job offer has been made. Thus, the difference between using licensing and certification requirements as an initial assessment method and using them as a contingent assessment method depends on when the information is considered in the se lection pro cess.

Increasingly, organ izations are using voluntary professional certification as a method of verifying competence in vari ous occupations. There are more than 1,000 professional certifications. Most of these voluntary certifications are issued on the basis of experience and education. The vast majority of certifications also require examinations.

There are several practical prob lems or limitations in using licensing and cer- tification requirements in se lection. First, one cannot assume that an applicant is qualified for the position simply because he or she has a license or certification. That assumption places full confidence in the licensing and certification standards of the professional organ ization. Licensing and certification requirements vary greatly in their rigor, and one should not accept on faith that the fulfillment of those

099-67811_ch08_4P.indd 389 11/17/17 1:30 PM

390 PART FOUR Staffing Activities: Selection

requirements ensures professional competency. Moreover, even if the requirements did perfectly mea sure professional competence, because licenses and certifications are issued to those passing some minimum threshold, they do not discriminate between the minimally qualified and the exceptionally well qualified. In other words, licenses and certifications are like considering an applicant’s college degree without looking at the applicant’s GPA.

A second difficulty with licensing and certification requirements is that, as with job titles, there has been significant proliferation. This is particularly true with cer- tifications. For example, among financial advisors are certified financial planners (CFPs), certified financial analysts (CFAs), certified investment management ana- lysts (CIMAs), chartered financial con sul tants (ChFCs), chartered retirement plan- ning counselors (CRPCs), and so forth. Indeed, more than 100 such titles are used by financial professionals. No central regulator monitors these titles, and the growth in financial ser vices certifications seems to have done little to prevent the myriad mistakes and malfeasances that plague Wall Street and Main Street alike. If se lection decision makers wish to require certification, they need to research the types and meanings of certifications that may exist for a job.

Fi nally, there are practice effects with repeated tries at a licensing or certification exam, and these effects may be quite strong. One study of medical professionals found that for one certification exam, second- time examinees improved their scores by .79 standard deviations. For another exam, the average gain was .48 standard deviations. Translating the gain from the first exam (.79SD) into a standard normal distribution, this would mean that someone who scored at the 34th percentile the first time out would be expected to score at the 66th percentile on the second try. For the other exam (.48SD), the improvement would be from the 34th percentile to the 53rd percentile. Unlike some standardized tests, where scores may be reported for each time the test is taken, there is generally no way for a se lection decision maker to know how many times an applicant has taken a licensing or certification exam (nor can one determine a test taker’s exact score).

We are not arguing that se lection decision makers should ignore licensing and certification requirements. They are impor tant— even necessary— for many jobs. However, se lection decision makers need to be informed consumers for those areas where they require licensure and certification, and supplement licensure and certi- fication with other information to ascertain knowledge and competency.32

Weighted Application Blanks Not all of the information contained on an application blank is of equal value to the organ ization in making se lection decisions. Depending on the organ ization and job, some information predicts success on the job better than other information. Procedures have been developed that help weight application blank information by the degree to which the information differentiates between high- and low- performing individuals.33 This scoring methodology is referred to as a weighted application blank and is useful not only in making se lection decisions but also in

099-67811_ch08_4P.indd 390 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 391

developing application blanks. The statistical procedures involved help the organ- ization discern which items should be retained for use in the application blank and which should be excluded, depending on how well they predict per for mance.

Evaluation of Application Blanks Evidence suggests that scored evaluations of the unweighted application blank are not particularly valid predictors of job per for mance (average validity ranges from r

_ = .10 to r

_ = .20).34 This is not surprising given the rudimentary information

collected in application blanks. Another factor that may undermine the validity of application blanks is distortion. Evidence suggests that about one- third of the investigations into the backgrounds of applicants suggested that misrepre sen ta tion occurred on the application blank. Subsequent studies have suggested that the most common information that is misrepresented includes previous salary, education, tenure on previous job, and reasons for leaving previous job. Some individuals even go beyond misrepre sen ta tion to outright invention. One study revealed that 15% of supposedly previous employers of applicants indicated that the individual had never worked for them.35 Thus, as with résumés, application information that is weighted heavi ly in se lection decisions should be verified.

The validity evidence for weighted application blanks is much more positive.36 In a sense, this would almost have to be true since items in the weighted applica- tion blank are scored and weighted according to their ability to predict job per for- mance. Thus, as long as some of the items are predictive, the scoring and weighting schemes embedded in the weighted application blank will ensure that the overall score is predictive. Because the pro cess used to develop the weighted application blank is time- consuming and expensive, more cost- benefit studies need to be con- ducted. Is the validity worth the cost? Unfortunately, there is little recent research on the weighted application blank, so answering this question is difficult.

The relatively poor validity of unweighted application blanks also should not be taken as an indication that they are useless in se lection decisions. Unweighted appli- cation blanks are a very inexpensive means of collecting basic information on job applicants. Most organ izations use unweighted application blanks only for initial screening decisions (to rule out applicants who are obviously unqualified for the job). As long as application blanks are used in this context (and not relied on to a significant degree in making substantive hiring decisions), they can be useful for making initial decisions about applicants. Thus, it is not necessarily appropriate to condemn unweighted application blanks based on a criterion for which they are rarely used.

Biographical Information

Biographical information, often called biodata, is personal history information on an applicant’s background and interests. Results from a biodata survey provide a general description of a person’s life history. The principal assumption behind the

099-67811_ch08_4P.indd 391 11/17/17 1:30 PM

392 PART FOUR Staffing Activities: Selection

use of biodata is the axiom “The best predictor of future be hav ior is past be hav ior.” These past be hav iors may reflect ability or motivation.

Like application blanks, biographical information blanks ask applicants to report on their background. Responses to both of these questionnaires can provide useful information in making initial se lection decisions about applicants. Unlike applica- tion blanks, however, biographical information can also be fruitfully used for sub- stantive se lection decisions. In fact, if scores on a biodata inventory are predictive of subsequent job per for mance (which, as we will see, is often the case), it may be somewhat limiting to use biodata scores only for initial assessment decisions. Thus, although biographical information is as much a substantive assessment method as it is an initial assessment method, because it shares many similarities with application blanks, we have included it in this section. Nevertheless, it should also be consid- ered in deliberations about which substantive assessment methods are to be used.

Biographical information has some similarities to reference and background checks (see the section on reference and background checks). Biodata and back- ground checks are similar in that both look into an applicant’s past. However, the two types of se lection methods differ in their general purpose and mea sure ment. First, whereas a background check is often used to turn up any “buried bones” in an applicant’s background, biodata is used to predict future per for mance. Second, whereas reference checks are conducted through checks of rec ords and conversa- tions with references, biodata information is collected by survey. Thus, biodata inventories and reference and background checks are distinct methods of se lection that must be considered separately.

The type of biographical information collected varies a great deal from inven- tory to inventory and often depends on the job. For example, a biographical survey for executives might focus on career aspirations, accomplishments, and disappoint- ments. A survey for blue- collar workers might focus on training and work experi- ence. A biodata inventory for federal government workers might focus on school and educational experiences, work history, skills, and interpersonal relations. As can be seen from these examples, most biodata surveys consider individual accom- plishments, group accomplishments, disappointing experiences, and stressful situ- ations.37 The domains in which these attributes are studied often vary from job to job but can range from childhood experiences to educational or early work experiences to current hobbies or family relations.

Mea sures Typically, biographical information is collected in a questionnaire that applicants complete. Exhibit 8.5 provides example biodata items. As can be seen, the items are quite diverse. It has been suggested that each biodata item can be classified according to 10 criteria:

• History— Does the item describe an event that occurred in the past or a future or hy po thet i cal event?

099-67811_ch08_4P.indd 392 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 393

• Externality— Does the item address an observable event or an internal event such as values or judgments?

• Objectivity— Does the item focus on reporting factual information or subjec- tive interpretations?

• First- handedness— Does the item seek information that is directly available to the applicant rather than an evaluation of the applicant’s be hav ior by others?

• Discreteness— Does the item pertain to a single, unique be hav ior or a simple count of events as opposed to summary responses?

• Verifiability— Can the accuracy of the response to the item be confirmed? • Controllability—Does the item address an event that the applicant controlled? • Equal accessibility— Are the events or experiences expressed in the item equally

accessible to all applicants? • Job relevance— Does the item solicit information closely tied to the job? • Invasiveness— Is the item sensitive to the applicant’s right to privacy?38

Most se lection tests simply score items in a predetermined manner and add the scores to arrive at a total score. These total scores form the basis of se lection decisions made about applicants. With most biodata inventories, the pro cess of making decisions based on responses to items is considerably more complex. Essentially, the development of a biodata inventory is a bit of a fishing expedition where current employees are given many items to complete and the inventory used for future hiring decisions is based on those items— and the specific responses within items or questions— that seem to discriminate between high performers and low performers.

Google developed its biodata inventory by first asking its employees 300 ques- tions and then correlating employee responses to their job per for mance. Once it isolated items that predicted the job per for mance of current employees, Google asked applicants a smaller set of questions that ranged from the age when an appli- cant first got excited about computers to whether the applicant has ever turned a profit at his or her own side business.39

Evaluation of Biodata Research conducted on the reliability and validity of biodata is quite positive.40 Responses tend to be fairly reliable (test– retest coefficients range from .60 to .90). More impor tant, past research suggests that biodata inventories are valid predic- tors of job per for mance. A number of meta- analyses have been conducted, and the average validity has ranged from r

_ xy = .32 to r

_ xy = .37.

41

In addition to job per for mance, biodata scores appear to predict turnover (indi- viduals with a past history of job changes are more likely to turn over) and student academic per for mance (biodata scores of incoming college freshmen predicted their subsequent college GPAs).42

099-67811_ch08_4P.indd 393 11/17/17 1:30 PM

394 PART FOUR Staffing Activities: Selection

1. In college, my grade point average was: a. I did not go to college or completed less than two years b. Less than 2.50 c. 2.50 to 3.00 d. 3.00 to 3.50 e. 3.50 to 4.00

2. In the past five years, the number of different jobs I have held is: a. More than five b. Three to five c. Two d. One e. None

3. The kind of supervision I like best is: a. Very close supervision b. Fairly close supervision c. Moderate supervision d. Minimal supervision e. No supervision

4. When you are angry, which of the following behaviors most often describes your reaction: a. Reflect on the situation for a bit b. Talk to a friend or spouse c. Exercise or take a walk d. Physically release the anger on something e. Just try to forget about it

5. Over the past three years, how much have you enjoyed each of the following (use the scale at right): a. ____ Reading 1 = Very much b. ____ Watching TV 2 = Some c. ____ Home improvements 3 = Very little d. ____ Music 4 = Not at all e. ____ Outdoor recreation

6. In most ways is your life close to ideal? a. Yes b. No c. Undecided or neutral

EXHIBIT 8.5 Examples of Biodata Items

099-67811_ch08_4P.indd 394 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 395

Despite the quite positive validity evidence, biodata does have some impor tant limitations. First, because biodata inventories are developed and scored on the basis of a par tic u lar job and sample, it has commonly been argued that the validity of a par tic u lar inventory in one organ ization is unlikely to generalize to another organ ization. Although this issue has not been conclusively resolved in the lit er- a ture, prudent practice would suggest that organ izations regularly validate their biodata inventory.43

Second, there is some concern about faking. Not only might applicants be motivated to fake their responses to biodata questions, but also responses to many questions are impossible to verify (e.g., “Did you collect coins or stamps as a child?”). Research also suggests, though, that faking can be reduced through sev- eral strategies: (1) use items that are more objective and verifiable, (2) simply warn applicants against faking, and (3) ask applicants to elaborate on and justify their responses; for example, if applicants are asked, “In the past year, how often have you read about new marketing strategies?” (1 = never, 5 = very often), they would receive a follow-up question to elaborate on their response: “If you answered 2, 3, 4, or 5, briefly list the strategies and the sources that you read.” Although this elaboration technique has been shown to correlate with applicants’ verbal ability, the correlation appears to be small enough such that the biodata questions do not become a test of cognitive ability.44

Third, applicants and man ag ers do not react positively to biodata. The inventories often comprise more than 100 items, and most research suggests that applicants do not see the questions as job related. Neither, apparently, do HR man ag ers. A survey of 255 HR professionals revealed that, among vari ous se lection mea sures, biodata beat only a “personal hunch” in terms of its perceived validity. Those hunches may also spill over into how the biodata inventory is scored. In some cases, employ- ers may use a rational scoring scheme, whereby they give more weight to items they believe correlate more strongly with job per for mance and less weight to items they believe correlate less strongly with job per for mance. In other cases, employers may use an empirical scoring scheme, whereby weighting of items is determined by estimated validities found in previous research. A purely rational scoring scheme is likely to generate the lowest validity for a biodata inventory, while a blend of rational and empirical scoring is likely to generate the highest validity.45

Fi nally, some evidence suggests that biodata can have moderately high adverse impact, with whites often scoring more than a third of a standard deviation higher than blacks.46

Despite these limitations, it is impor tant to keep in mind that biodata can have impressive validity and that its use is appropriate when it is carefully validated and when the aforementioned limitations are addressed.

099-67811_ch08_4P.indd 395 11/17/17 1:30 PM

396 PART FOUR Staffing Activities: Selection

Reference and Background Checks

Background information about job applicants can come not only from the appli- cant but also from people familiar with the applicant (e.g., employers, creditors, and neighbors). Organ izations often solicit this information on their own or use the ser vices of agencies that specialize in investigating applicants. Background information solicited from others consists of letters of recommendation, reference checks, and background checks.

Letters of Recommendation A very common reference check in some settings (e.g., academic institutions) is to ask applicants to have letters of recommendation written for them. A recent meta- analysis, however, showed that letters of recommendation were rather weakly cor- related to per for mance in gradu ate school and medical school. There are two major prob lems with using letters of recommendation.47 First, these letters may do little to help the organ ization discern the more qualified applicants from the less quali- fied applicants. The reason for this is that only very poor applicants are unable to arrange for positive letters about their accomplishments. Second, most letters are not structured or standardized, meaning the data the organ ization receives from the letter writers are not consistent across organ izations. For example, a letter about one applicant may concern the applicant’s educational qualifications, whereas a letter about another applicant may focus on work experience. Comparing the quali- fications of applicants A and B under these circumstances is like comparing apples and oranges.

The prob lem with letters of recommendation is demonstrated dramatically in one study that showed there was a stronger correlation between two letters written by one person for two applicants than between two people writing letters for the same applicant.48 This finding indicates that letters of recommendation have more to do with the letter writer than with the person being written about. In fact, one study revealed that letter writers who had a dispositional tendency to be positive wrote consistently more favorable letters than letter writers with a tendency to be critical or negative. Furthermore, the writer’s own implicit biases may emerge when writ- ing a letter for a minority or female applicant.49

In addition, a surprising number of letters of recommendation are written by the applicants themselves. Regarding gradu ate school admissions, the Association of International Gradu ate Admissions Con sul tants discovered that a whopping 38% of applicants were asked by their recommenders to write their own letters, which the recommenders would then later sign. And some applicants have confessed to bypassing their recommender altogether, especially if the recommender was not fluent in En glish.50

Such prob lems indicate that organ izations should downplay the weight given to letters unless a great deal of credibility and accountability can be attached to the

099-67811_ch08_4P.indd 396 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 397

letter writer’s comments. In addition, a structured form should be provided so that each writer provides the same information about each applicant.

Another way to improve on letters of recommendation is to use a standardized scoring key, as shown in Exhibit 8.6. With this method, categories of KSAOs (in this case, individual differences such as cognitive ability and personality) are established and become the scoring key (shown at the bottom of the exhibit). The adjectives in the letter are underlined and classified into the appropriate category. The number of adjectives used in each category constitutes the applicant’s score. A total score could be derived from summing the category scores.

Dear Human Resource Manager:

I am pleased to write this letter of recommendation for Jordan Jones for the position of general sales manager. Jordan has worked for five years as an assistant manager in our sales department. Jordan has been a valuable employee. He stands out as one of our brightest on the sales team. His detail-oriented, analytical approach to problem solving is one of his greatest strengths. He has a friendly and outgoing nature and is always helpful to others. He has been a reliable and trustworthy employee and I highly recommend Jordan for this position. Please do not hesitate to contact me if you have further questions.

GMA 2 C 3 E 2 A 1 O 0 ES 0

Dear Human Resource Manager:

I am pleased to write this letter of recommendation for Jordan Jones for the position of general sales manager. Jordan has worked for five years as an assistant manager in our sales department. Jordan is one of our most likable employees. He is outgoing by nature, but more importantly is kind and always willing to help others. His ability to take charge and adapt to various work situations demonstrates he has the leadership skills to excel in the position he is applying for. He is dependable and his work is generally flawless. I highly recommend Jordan for this position. Please do not hesitate to contact me if you have further questions.

GMA 0 C 2 E 3 A 3 O 1 ES 0

Key GMA = general mental ability C = conscientiousness E = extroversion A = agreeableness O = openness ES = emotional stability

EXHIBIT 8.6 Scoring Letters of Recommendation

099-67811_ch08_4P.indd 397 11/17/17 1:30 PM

398 PART FOUR Staffing Activities: Selection

Reference Checks With reference checking, a spot check is made on the applicant’s background. Usually the person contacted is the immediate supervisor of the applicant or is in the HR department of current or previous organ izations with which the applicant has had contact. Surveys reveal that 96% of organ izations conduct reference checks. A roughly equal number conduct the checks in- house (by HR) versus a third- party vendor. The most common information sought is on criminal background and veri- fication of employment eligibility, former employers, dates of previous employment, and former job titles.51 Exhibit 8.7 provides a sample reference request. Although this reference request was developed for checking references by mail, the questions contained in the request could easily be adapted for use in checking references via telephone.

Both of the prob lems that occur with letters of recommendation occur with reference checks as well. An even more significant concern, however, is the reluc- tance of organ izations to give out the requested information because they fear a lawsuit on the grounds of invasion of privacy or defamation of character. Recall that the survey results reported above indicated that 96% of employers always check references. The same survey indicated that 93% of employers refuse to pro- vide reference information for fear of being sued. As one executive stated, “ There’s a dire need for better reference information but fear of litigation keeps employers from providing much more than name, rank, and serial number.”52 As a result of employers’ reluctance to provide reference information, reference checkers claim to receive inadequate information roughly half of the time. To a large degree, this concern over providing even rudimentary reference information is excessive— less than 3% of employers have had legal prob lems with reference checks (see “ Legal Issues” at the end of this chapter). If every organ ization refused to provide use- ful reference information, a potentially impor tant source of applicant information could lose its value.

Most reference checking is still done over the telephone, but there is evidence that this situation is changing. Increasingly, employers are mining networking websites such as Facebook, MySpace, and LinkedIn not only to find out more about an applicant but also to locate references to contact. T- Mobile, for example, regularly mines “public” information on applicants’ profile pages. These network- ing websites have “changed every thing” about how T- Mobile conducts reference checks, according to one hiring man ag er.53 No matter the source or method used to gather the information, it is critical that the questions be job related and that the same information is asked about all applicants. When properly structured and job relevant, references can have moderate levels of validity.54

Background Checks How would you feel if you found out that the organ ization you are hoping to join was investigating your traffic rec ord and moral character? How would you feel if

099-67811_ch08_4P.indd 398 11/17/17 1:30 PM

EXHIBIT 8.7 Sample Reference Request

TO BE COMPLETED BY APPLICANT

SOCIAL SEC. NUMBERNAME (PRINT):

DATESIGNATURE

SCHOOL REFERENCE

YESGRADUATED?:OTFROM: NO DEGREE AWARDED:

EMPLOYMENT REFERENCE

EMPLOYMENT DATES:POSITION HELD:

IMMEDIATE SUPER VISOR’S NAME

REASON FOR LEAVING DISCHARGED RESIGNED LAID OFF

FORMER EMPLOYER OR SCHOOL—Please complete the following. Thank you.

IS THE ABOVE INFORMA TION CORRECT? YES NO

If not, give correct information:

PLEASE CHECK EXCEL. GOOD FAIR POOR COMMENTS:

ATTITUDE QUALITY OF WORK COOPERATION ATTENDANCE

WOULD YOU RECOMMEND FOR EMPLOYMENT? YES NO

ADDITIONAL COMMENTS

SIGNATURE OF EMPLOYER OR SCHOOL REPRESENTATIVE TITLE

I have made application for employment at this company. I request and authorize you to release all information requested below concerning my employment record, reason for leaving your employ, or my education. I hereby release my personal references, my former employers and schools, and all individuals connected therewith from all liability for any damage whatsoever for furnishing this information.

DATES ATTENDED

9781259756559_ch08_p371_430.indd 399 12/17/17 6:51 PM

400 PART FOUR Staffing Activities: Selection

an organ ization did not investigate the backgrounds of guards to be selected for the gun storage depot of the US military base near your home? More and more organ- izations are thoroughly checking applicants’ backgrounds even when security is not a par tic u lar issue.

Although background checking may seem to be a very invasive procedure, such checks have increased dramatically in the past 10 years. A recent survey indicated that nearly three in four organ izations now perform background checks, a per- centage that has steadily increased over time.55 There are several reasons for this. First, after the September 11, 2001, terrorist attacks, more organ izations became concerned about security issues. Second, some ethical lapses, and many instances of workplace vio lence, might be avoided by background checks. For example, con- sider the case of Wal- Mart. In two separate incidents in South Carolina, Wal- Mart employees were accused of sexually assaulting young girls. Both of the accused employees had past criminal convictions for sexually related offenses. In response, Wal- Mart instituted criminal background checks on all of its employees.56 A third reason behind the growing use of background checks is legal protection against responsibility for malfeasance, and defense against claims of negligent hiring (which we review under “Reference Checks” in “ Legal Issues” at the end of the chapter).

A fourth, and perhaps the most impor tant, reason under lying the increasing use of background checks is easier access to technology. As public rec ords have become more accessible, both legally (with so- called Sunshine laws) and practically (many local and state governments post criminal rec ords online), and as credit checking has increased, it has become far easier to perform background checks. Moreover, scores of organ izations now provide background checks, with the fee determined by the scope of information desired. Bed Bath & Beyond uses Sterling to conduct its background checks, FedEx uses Infomart, and Jackson Hewitt uses IdentityPi . com. Other large background checking ser vices include USIS, ChoicePoint, ADP, and First Advantage. Background checks cost anywhere from $5 to $1,000 per hire, depending on the type of position and the information sought. Most back- ground checks cost around $25 per applicant.

Background checks identify more prob lems than one might think. Additionally, the consequences of failing to conduct a background check are quite serious. In many cases, subsequent malfeasance could have been prevented by a background check. Take, for example, Nick Leeson, the “rogue trader” responsible for the demise of Barings Bank. When hiring Leeson, Barings’s Singapore branch never checked into his credit history, nor was his history discovered by the Singapore stock exchange. At Barings’s Singapore office, Leeson made unauthorized specu- lative trades and creatively hid his mounting losses. Eventually, Britain’s Secu- rities and Futures Authority discovered that Leeson had lied on his application. The losses eventually accumulated to $1.3 billion, bankrupting the oldest bank in London.57

099-67811_ch08_4P.indd 400 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 401

In many industries, the percentage of applicants identified to have some prob- lem (e.g., a criminal rec ord or a discrepancy in past employment or education) is surprisingly high. According to one source, more than half (51.7%) of the appli- cants in the nonprofit industry had significant discrepancies between their self- reported history and their actual employment history, and nearly half (48.9%) of the applicants in the construction industry had a major motor vehicle violation (involving license suspension).58

Background checks do have limitations. First, the rec ords can be wrong or mis- interpreted. For example, sometimes peoples’ identities can be mixed up. Unless someone has an unusual name, there are prob ably many others in the population with the same name. Sometimes the rec ords contain misleading information. John- nie Ulrigg was denied a job in Missoula, Montana, because his background check turned up a list of probation violations. He later learned that several counties in the state list failure to pay a traffic ticket as a probation violation. It took Ulrigg two years to clear his rec ord. Second, because background checks have become more commonplace, they can place a seemingly permanent bar on the reemployment of reformed criminals. Peter Demain was sentenced to six years for possessing 21 pounds of marijuana. While in prison, he was so adept in the prison kitchen that he quickly rose to head baker. Once out of prison, though, Demain was unable to find a job at bagel shops, coffee houses, grocery stores, and bakeries. Is it fair for reformed criminals, no matter how long ago or the nature of the offense, to be banned from employment?59 Such a question is difficult to answer. In response, however, many states have begun instituting what are called “Ban the Box” laws, in which background information on application blanks or background checking is moved to much later in the hiring pro cess in order to ensure that ex- offenders will not be excluded from consideration on a de facto basis.60

Fi nally, many labor unions have historically resisted background checking. In 2007, Major League Baseball owners clashed with the Umpires Union about back- ground checks. Conversely, in 2010, the Air Line Pi lots Association, which repre- sents UPS pi lots, backed increased use of background checks.61

One way to ameliorate some of these prob lems is to limit background checks to information that is job related (it may be difficult to establish that a spotty credit history is impor tant to jobs that mostly involve manual labor) and to use multiple sources to verify prob lems for exclusionary information (i.e., if an applicant is to be excluded because of what a background check uncovered, it would be prudent to in de pen dently verify the information).

Evaluation of Recommendations, References, and Background Checks The empirical data that exist suggest that the validity of reference checks is low to moderate. A meta- analysis of several studies revealed that the validity coefficients of reference data ranged from r

_ = .16 to r

_ = .26. Another study suggested that when

099-67811_ch08_4P.indd 401 11/17/17 1:30 PM

402 PART FOUR Staffing Activities: Selection

reference reports were structured (the same questions were asked about every applicant), their validity was .25. To some degree, the validity depends on who is providing the information. If it is the personnel officer, a coworker, a relative, or even the applicant himself or herself, the information is not very valid. On the other hand, reference reports from supervisors and acquaintances are somewhat more valid. The information from personnel officers may be less valid because they are less knowledgeable about the applicant (their past employee); the reports of coworkers and relatives are likely less valid because these individuals are posi- tively biased toward the applicant.

Although references do not have high validity, we need to take a cost- benefit approach. In general, the quality of the information may be low, but in the few cases where reference information changes a decision, the payoff can be signifi- cant. An executive with the US Postal Ser vice once told one of the authors that many of the acts of vio lence by Postal Ser vice employees would have been avoided if a thorough background check had been conducted. Thus, since references are a relatively cheap method of collecting information on applicants, screening out the occasional unstable applicants or, in a few cases, learning something new and impor tant about an applicant may make reference checks a good investment. As with unweighted application blanks, using reference checks requires employers to turn elsewhere to obtain suitable information for making final decisions about applicants.

Fi nally, because they are difficult to quantify, we do not have validity evidence for letters of recommendation and background checks. The one exception is the credit score, as a recent study found that those with higher credit scores were more consci- entious and were rated as higher performers (r = .57) and “good orga nizational citizens” (r = .30) by their supervisors. Although these are subjective assessments, they do suggest that credit scores as one form of background check have valid- ity. However, additional recent research suggests that credit checks can lead to substantially more adverse impact in hiring. Overall, despite a general lack of evidence, letters of recommendation and background checks likely possess some utility.62

Initial Interview

The initial interview occurs very early in the initial assessment pro cess and is often the applicant’s first personal contact with the organ ization and its staffing system. At this point, applicants are relatively undifferentiated to the organ ization in terms of KSAOs. The initial interview begins the pro cess of necessary differentiation, a sort of “rough cut.”

The purpose of the initial interview is, and should be, to screen out the most obvious cases of person/job mismatches. To do this, the interview should focus on an assessment of KSAOs that are absolute requirements for the applicant. Exam- ples of such minimum levels of qualifications for the job include certification and

099-67811_ch08_4P.indd 402 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 403

licensure requirements and necessary (not just preferred) training and experience requirements.

These assessments may be made from information gathered from written means (e.g., application blank or résumé) and from the interview. Care should be taken to ensure that the interviewer focuses only on this information as a basis for deci- sion making. Evaluations of personal characteristics of the applicant (e.g., race or sex), as well as judgments about an applicant’s personality (e.g., “She seems very out going and just right for this job”), are to be avoided. However, that may be easier said than done. One study found that applicants with facial stigmas were rated lower by interviewers, who were distracted by the stigma and recalled fewer details about the interview, compared with applicants without a facial stigma.63 Furthermore, there is evidence that supports the power of initial impressions on immediate and future job- related outcomes, including interview callbacks, interview scores, and position offers, although decreasing in effect over time.64 Indeed, to avoid evaluations of personal characteristics, some organ izations (e.g., civil ser vice agen- cies) have eliminated the initial interview altogether and make the initial assessment from the written information provided by the applicant.

One of the limitations of the initial interview is that it is perhaps the most expensive method of initial assessment. One way to reduce costs dramatically is to conduct video or computer interviews, which we cover next.

Video and Computer Interviews With the growth of videoconferencing software, it has become increasingly easy— and inexpensive—to conduct initial screening interviews from any two locations with Internet access. If both parties have their computers connected to the Inter- net, the conversation is free. Skype, which has more than 500 million registered accounts, has become a common platform for conducting computer- based initial interviews.

Larger companies often use a more customized platform to conduct initial interviews. HireVue, a Salt Lake City online video interview com pany, counts DISH Network, CDW, and Oracle among its customers. The advantage of provid- ers such as HireVue, or competitors such as GreenJobInterview . com, is that they allow interviews to be securely stored, shared with others in the organ ization, and accompanied by ratings and comments.65

One of the advantages of video- based interviews is that they can dramatically lower the cost of initial interviews. This is particularly true for employers that wish to interview only a few applicants at a given location. Another advantage is that the interviews can be arranged on short notice (no travel and no schedule rearrangements). Of course, the disadvantages of these interviews are that they do not permit face- to- face contact and that the quality of the video connection can, at times, be poor. The effects of these limitations on validity and applicant reactions are unknown.

099-67811_ch08_4P.indd 403 11/17/17 1:30 PM

404 PART FOUR Staffing Activities: Selection

Another form of video interviews takes the pro cess a step further. Computer- based interviews utilize software that asks applicants questions (e.g., “Have you ever been terminated for stealing?”) or pres ents realistic scenarios (e.g., an irate customer on the screen) while recording applicants’ responses. These responses are forwarded to se lection decision makers for use in initial screening. The software can also be configured to inform applicants about job duties and requirements. It can even track how long it takes an applicant to answer each question. Retailers are beginning to use computerized interviews on- site, where applicants walk into a store, enter a kiosk, and submit information about their work habits and experi- ences. As before, the accuracy of these high- tech interviews as compared with the old standby, the person- to- person variety, is unclear. The same holds true for how applicants will react to these relatively impersonal methods.

Evaluation of Initial Interview Whether high- tech or traditional, the interview has benefits and limitations. Nearly all the research evaluating the interview in se lection has considered it a substan- tive method (see “Structured Interview” in Chapter 9). Thus, there is little evidence about the usefulness of the initial interview. However, organ izations using the initial interview in se lection are likely to find it more useful by following a few guidelines:

1. Ask questions that assess the most basic KSAOs identified by job analy sis. This requires separating what is required from what is preferred.

2. Stick to basic, qualifying questions suitable for making rough cuts (e.g., “Have you completed the minimum certification requirements to qualify for this job?”) rather than subtle, subjective questions more suitable for sub- stantive decisions (e.g., “How would this job fit within your overall career goals?”). Remember, the purpose of the initial interview is closer to cutting with a saw than operating with a scalpel. Ask only the most fundamental questions now, and leave the fine- tuning for later.

3. Keep interviews brief. Most interviewers make up their minds quickly, and given the limited usefulness and the type of information collected, a long interview (45–60 minutes) is unlikely to add much over a shorter one (15–30 minutes).

4. As with all interviews, ask all applicants the same questions and monitor equal employment opportunity (EEO) compliance.

Choice of Initial Assessment Methods

As described, a wide range of initial assessment methods are available to organ- izations to help reduce the applicant pool to bona fide candidates. A range of formats are available as well. Fortunately, with so many choices available to organ- izations, research results are available to help guide choices of methods to use. This research has been reviewed many times and is summarized in Exhibit 8.8. In

099-67811_ch08_4P.indd 404 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 405

E X

H IB

IT 8

.8

E va

lu a

ti o

n o

f In

it ia

l A ss

e ss

m e

n t

M e

th o

d s

P re

d ic

to r

U se

C o

st R

e lia

b ili

ty V

a lid

it y

U ti

lit y

A p

p lic

a n

t R

e a

ct io

n s

A d

ve rs

e

Im p

a ct

R é

su m

é a

n d

c o

ve r

le tt

e r

H ig

h Lo

w Lo

w ?

? P

o si

tiv e

M o

d e

ra te

Le ve

l o f

e d

u ca

tio n

H ig

h Lo

w M

o d

e ra

te Lo

w Lo

w ?

M o

d e

ra te

G ra

d e

p o

in t

a ve

ra g

e M

o d

e ra

te Lo

w M

o d

e ra

te M

o d

e ra

te ?

? M

o d

e ra

te

Q u

a lit

y o

f sc

h o

o l

Lo w

Lo w

M o

d e

ra te

Lo w

? ?

M o

d e

ra te

M a

jo r

fie ld

o f

st u

d y

M o

d e

ra te

Lo w

M o

d e

ra te

M o

d e

ra te

? ?

?

E xt

ra cu

rr ic

u la

r a

ct iv

ity ?

Lo w

M o

d e

ra te

M o

d e

ra te

? ?

?

Tr a

in in

g a

n d

e xp

e ri

e n

ce H

ig h

Lo w

H ig

h M

o d

e ra

te M

o d

e ra

te ?

M o

d e

ra te

Li ce

n si

n g

a n

d c

e rt

ifi ca

tio n

M o

d e

ra te

Lo w

? ?

? ?

?

W e

ig h

te d

a p

p lic

a tio

n b

la n

ks Lo

w M

o d

e ra

te M

o d

e ra

te M

o d

e ra

te M

o d

e ra

te ?

?

B io

g ra

p h

ic a

l d a

ta Lo

w H

ig h

H ig

h H

ig h

H ig

h N

e g

at iv

e M

o d

e ra

te

Le tt

e rs

o f

re co

m m

e n

d a

tio n

M o

d e

ra te

Lo w

Lo w

Lo w

? ?

?

R e

fe re

n ce

c h

e ck

H ig

h M

o d

e ra

te Lo

w Lo

w M

o d

e ra

te M

ix e

d M

o d

e ra

te

B a

ck g

ro u

n d

c h

e ck

M o

d e

ra te

H ig

h ?

? ?

? M

o d

e ra

te

In iti

a l i

n te

rv ie

w H

ig h

H ig

h Lo

w Lo

w ?

P o

si tiv

e M

o d

e ra

te

099-67811_ch08_4P.indd 405 11/17/17 1:30 PM

406 PART FOUR Staffing Activities: Selection

the exhibit, each initial assessment method is rated according to several criteria. Each of these criteria will be discussed in turn.

Use Use refers to how frequently the surveyed organ izations use each predictor. Use is prob ably an overused criterion in deciding which se lection mea sures to adopt. Benchmarking— basing HR decisions on what other companies are doing—is a pre- dominant method of decision making in all areas of HR, including staffing. How- ever, is this a good way to make decisions about se lection methods? Although it is always comforting to do what other organ izations are doing, relying on informa- tion from other organ izations assumes that they know what they are doing. Just because many organ izations use a se lection mea sure does not necessarily make it a good idea for any par tic u lar organ ization. Circumstances differ from organ ization to organ ization. In addition, at a time when many organ izations are trying to dif- ferentiate themselves from their competitors, innovation in se lection, rather than imitation, may be more effective in acquiring a talented workforce.

Perhaps more importantly, many orga nizational decision makers (and HR con- sul tants) either lack knowledge about the latest findings in HR research or have deci ded that such findings are not applicable to their organ ization. It is also diffi- cult to determine whether a successful organ ization that uses a par tic u lar se lection method is successful because it uses this method or because of some other reason. Thus, from a research standpoint, there may be a real strategic advantage in relying on “effectiveness” criteria (e.g., validity, utility, and adverse impact) rather than worrying about the practices of other organ izations.

Another reason to have a healthy degree of skepticism about the use criterion is that there is a severe lack of timely and broad surveys of se lection practices (i.e., coverage of many industries and regions in the United States). The Bureau of National Affairs (BNA) has conducted broad surveys of se lection practices, but the most recent was in 1988. Other surveys of se lection practices are available, but they generally cover only a single se lection practice (e.g., drug testing) or lack ade- quate scope or breadth. In providing conclusions about the use of vari ous se lection methods in organ izations, we are forced to make judgment calls concerning which survey to rely on. In the case of some se lection mea sures (e.g., application blanks), there is little reason to believe the BNA figures have changed much. With other predictors, the use figures have shown a fair degree of volatility and change from year to year. Thus, in classifying the use of assessment methods, we rely on the most recent surveys that achieve some degree of breadth. For purposes of classify- ing the predictors, high use refers to use by more than two- thirds of organ izations, moderate use is use by one- third to two- thirds of organ izations, and low use refers to use by less than one- third of organ izations.

Now that we have issued these caveats about the use criterion, Exhibit 8.8 reveals clear differences in the use of vari ous methods of initial assessment. The

099-67811_ch08_4P.indd 406 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 407

most frequently used methods of initial assessment are education level, training and experience, reference checks, and initial interview. These methods are con- sidered, to some degree, in se lection decisions for most types of positions. Grade point average, licensing and certification requirements, letters of recommenda- tion, background checks, and résumés and cover letters have moderate levels of use. These methods are widely used in filling some types of positions but infrequently used in filling many others. The least widely used initial assessment methods are weighted application blanks and biographical information. It is rela- tively unusual for organ izations to use these methods for initial screening deci- sions. There are no reliable figures on the use of quality of school, major field of study, and extracurricular activity in initial se lection decisions; thus, their use could not be estimated.

Cost Cost refers to expenses incurred in using the predictor. Although most of the ini- tial assessment methods may seem relatively cost- free since the applicant provides the information on his or her own time, this is not entirely accurate. For most initial assessment methods, the major cost associated with each se lection mea sure is administration. Consider an application blank. It is true that applicants com- plete application blanks on their own time, but someone must be pres ent to hand out applications (or guide applicants to relevant websites), answer inquiries in person and over the phone about pos si ble openings, and collect, sort, and forward applica- tions to the appropriate person. Then the se lection decision maker must read each application, perhaps make notes about an applicant, weed out the clearly unac- ceptable applicants, and then make decisions about candidates. Thus, even for the least expensive methods of initial assessment, costs associated with their use are far from trivial.

On the other hand, utility research has suggested that costs do not play a large part in evaluating the financial benefit of using par tic u lar se lection methods. This becomes clear when one considers the costs of hiring a poor performer. For exam- ple, an administrative assistant who performs one standard deviation below average (16th percentile, if per for mance is normally distributed) may cost the organ ization $8,000 in lost productivity per year. This person is likely to remain on the job for more than one year, multiplying the costs. Considered in this light, spending an extra few hundred dollars to accurately identify good administrative assistants is an excellent investment. Thus, although costs need to be considered in evaluating assessment methods, more consideration should be given to the fact that valid se lection mea sures pay off handsomely and will return many times their cost.

As can be seen in Exhibit 8.8, the least costly initial assessment methods include information that can be obtained from application blanks (level of education, grade point average, quality of school, major field of study, extracurricular activity, training and experience, and licensing and certification) and information provided by the

099-67811_ch08_4P.indd 407 11/17/17 1:30 PM

408 PART FOUR Staffing Activities: Selection

applicant (letters of recommendation, résumés, and cover letters). Initial assessment methods of moderate cost include weighted application blanks, reference checks, and initial interviews. Biographical information and background checks are rela- tively expensive assessment methods.

Reliability Reliability refers to consistency of mea sure ment. As was noted in Chapter 7, reli- ability is a requirement for validity, so it would be very difficult for a predictor with low reliability to have high validity. Similarly, it is unlikely that a valid predictor would have low reliability. Unfortunately, the reliability information on many ini- tial assessment methods is lacking in the lit er a ture. However, given the frequency with which individuals distort their résumés, it is prob ably reasonable to infer that applicant- supplied information in application blanks and résumés is of moderate reliability. The reliability of reference checks appears to be relatively low. In terms of training and experience evaluations, while distortion can occur if the applicant supplies training and experience information, interrater agreement in evaluating this information is quite high.66 Biographical information also generally has high reliability. The initial interview, like most unstructured interviews, has a relatively low level of reliability.

Validity Validity refers to the strength of the relationship between the predictor and job per for mance. Low validity ranges from about .00 to .15, moderate validity ranges from about .16 to .30, and high validity is .31 and above. As might be expected, most initial assessment methods have moderate to low validity because they are used only for making rough cuts among applicants rather than for final decisions. Perhaps the two most valid initial assessment methods are biodata and training and experience requirements; their validity can range from moderate to high.

Utility Utility refers to the monetary return associated with using the predictor, relative to its cost. According to researchers and decision makers, when comparing the utility of se lection methods, validity appears to be the most impor tant consideration.67 In short, it would be very unusual for a valid se lection method to have low util- ity. Thus, as can be seen in Exhibit 8.8, high, moderate, and low validities tend to directly correspond to high, moderate, and low utility values, respectively. Question marks predominate this column in the exhibit because relatively few studies have directly investigated the utility of these methods. However, based on the argument that validity should be directly related to utility, it is likely that high validity meth- ods will also realize large financial benefits to organ izations that choose to use

099-67811_ch08_4P.indd 408 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 409

them. Research indicates that training and experience requirements have moderate (or even high) levels of utility, and reference checks have moderate levels of utility.

Applicant Reactions The applicant reactions column refers to how favorably individuals feel about a given se lection practice. Applicant reactions have been suggested as an impor tant criterion because applicants who feel positively about se lection methods and the se lection pro cess might be more inclined to join or recommend an organ ization, and they have more positive attitudes toward the organ ization once hired. Some have argued, however, that evidence suggesting that applicant reactions matter is scarce. One review concluded, “Evidence for a relationship between applicant per- ceptions and actual behavioral outcomes was meager and disappointing.”68

Research suggests that what ever their centrality to the se lection pro cess, se lection mea sures that are perceived as job related, that pres ent applicants with an oppor- tunity to perform, that are administered consistently, and that provide applicants with feedback about their per for mance are likely to generate favorable applicant reactions. Moreover, comprehensive meta- analyses have revealed that explana- tions justifying the use of se lection mea sures shape applicant perceptions of justice and fairness of the se lection pro cess, perceived fit with the job and organ ization, their affective reactions to the organ ization, and job ac cep tance behavioral inten- tions.69 Although research on applicants’ reactions to specific se lection procedures is lacking, evidence has been accumulating and suggests that applicants react more positively to some initial assessment methods, such as interviews, résumés, and reference checks, than to others, such as biodata or background checks.70

Adverse Impact As reviewed previously, adverse impact refers to the possibility that a dispropor- tionate number of protected- class members may be rejected using a given predic- tor. Several initial assessment methods have moderate degrees of adverse impact against women and/or minorities, including the résumé and cover letter, level of education, grade point average, quality of school, training and experience, biodata, reference check, background check, and initial interview.

LEGAL ISSUES

Initial assessment methods are subject to numerous laws, regulations, and other legal considerations. Six major matters of concern pertain to using disclaimers, conducting reference checks, using social media screening, conducting background (credit and criminal) checks, making preemployment inquiries, and making BFOQ claims.

099-67811_ch08_4P.indd 409 11/17/17 1:30 PM

410 PART FOUR Staffing Activities: Selection

Disclaimers

During the initial stages of contact with job applicants, it is impor tant for the organ- ization to protect itself legally by clearly identifying rights it wants to maintain. This involves the use of disclaimers. Disclaimers are statements (usually written) that provide or confer explicit rights to the employer as part of the employment contract and that are shown to job applicants. The organ ization needs to decide (or reevaluate) which rights it wants to retain and how these will be communicated to job applicants.

Three areas of rights are usually suggested for pos si ble inclusion in a disclaimer policy: (1) employment- at- will (right to terminate the employment relationship at any time, for any reason), (2) verification consent (right to verify information provided by the applicant), and (3) false statement warning (right to not hire, terminate, or discipline prospective employee for providing false information to the employer). An example of a disclaimer statement covering these three areas is shown at the bottom of the application blank in Exhibit 8.4. Disclaimer language must be clear, understandable, and con spic u ous to the applicant or employee.71

Reference Checks

Reference checking creates a legal quagmire for organ izations. Current or former employers of the job applicant may be reluctant to provide a reference (especially one with negative information about the applicant) because they fear the applicant may file a defamation suit against them. On the other hand, failure to conduct a reference check opens the organ ization to the possibility of a negligent hiring suit. To deal with such prob lems and obtain thorough, accurate information, the follow- ing suggestions are offered.

First, gather as much information as pos si ble directly from the applicant, along with a verification consent. This will minimize the use of reference providers and the information demands on them.

Second, be sure to obtain written authorization from the applicant to check ref- erences. The applicant should sign a blanket consent form for this purpose. In addi- tion, the organ ization could prepare a request- for- reference form that the applicant would give to the person(s) being asked to provide a reference (see Exhibit 8.7).

Third, specify the type of information being requested and obtain the information in writing. The information should be specific, factual, and job related in content; do not seek health or disability information.

Fourth, be wary of (or even prohibit) information obtained from online social networking websites; information provided about applicants by other individuals on these sites should not be treated as a reference. Questions about accuracy, job- relatedness, and confidentiality abound for such information. Also, develop a policy about whether your own employees can make recommendations about their current or former colleagues on these sites.

099-67811_ch08_4P.indd 410 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 411

Fifth, limit access to reference information to those making se lection decisions. Fi nally, check relevant state laws about permissible and impermissible reference-

check practices. Also, determine whether your organ ization is covered by state refer- ence immunity laws, which provide some degree of immunity from civil liability to organ izations that in good faith provide information about the job per for mance and professional conduct of former or current employees. Organ izations in these states (currently 39) may be more willing to request and provide reference information.72

Social Media Screening

The scope of social media and networks is broad. Social media and networks include social and professional networking sites (e.g., Facebook, LinkedIn, and Twitter), personal Internet accounts, photos, video clips, résumés, blogs, podcasts, text messages, e- mails, and website profiles. They can provide an incredible array of information about job applicants not typically obtained via a carefully constructed se lection pro cess. But use of this information can lead to prob lems, ones that go beyond those that can occur in recruitment via social media (see Chapter 5).

Legally protected characteristics may be readily available and vis i ble, such as demographics, pregnancy, citizenship, and so on. There may be “computer twins”— individuals with identical names— causing obvious confusion. Informa- tion may not be accurate or job related, and it might even be maliciously planted (“cyber slamming”). Information may depict questionable be hav ior. For example, a study found that 60% of medical students had posted online content that included profanity, discriminatory language, sexually suggestive material, and depiction of intoxication.73 Fi nally, there might be depictions of off- duty conduct that is legally protected by state and local statutes from being used in assessing applicants, such as smoking, drinking, medical marijuana use, and po liti cal activity.

So how might the organ ization tread down this new and evolving legal se lection path? While there are no clear- cut laws or regulations yet, certain suggestions are appropriate. To start, the organ ization should decide whether to permit the collec- tion and use of social media information in se lection. Given the prob lems noted above, prohibiting such usage could save a lot of potential trou ble, and many organ izations are taking this option. One study found that only 20% of HR profes- sionals were using social media for screening primarily because of legal risks.74

But there is also the possibility that social media might provide relevant and job- related information, so the organ ization could opt for using it. Behavioral skills such as making pre sen ta tions or providing feedback might be revealed in video clips or podcasts, for example. If social media are to be used for se lection in a food- for- thought sense, what safeguards could be implemented? They include the following:

1. Get applicants’ consent to search for social media information (do not ask for username or password) or give applicants a heads-up that such information will be searched for.

099-67811_ch08_4P.indd 411 11/17/17 1:30 PM

412 PART FOUR Staffing Activities: Selection

2. Decide for which specific positions social media information will be sought and used, and why.

3. Gather and evaluate only job- related, KSAO information for these specific positions.

4. Gather the information late in the pro cess and only for finalists; it could also be gathered post- job offer, as part of a formal background check.

5. Be consistent and standardize the process— get the same information from each applicant at the same stage in the se lection pro cess.

6. Focus only on information posted by the applicant, not by others. 7. Allow only HR professionals or other trained people to gather and evaluate

the information. 8. Document hiring decisions, especially rejections (including the reason(s)).

Be sure to include what information was evaluated in the se lection pro- cess and any social media information used. Keep a written rec ord of all documentation.

9. Follow all laws, including the Fair Credit Reporting Act (discussed below), and ensure that any third- party vendor used to conduct a social media search follows all laws.

The above suggestions seem daunting and constraining on those who just want to do a “quick check” on applicants. But while these checks may be quick, easy, and seemingly revealing, they may also lead to erroneous and possibly illegal se lection decisions. It is thus best to either avoid social media screening altogether or do it appropriately in line with these suggestions.75

Background Checks: Credit and Criminal

Credit Checks Credit checking is coming under heightened legal scrutiny and regulation. Rea- sons for this include (1) credit report errors, (2) blanket usage of hiring bars for applicants with credit prob lems, regardless of type of job and job requirements, (3) lack of evidence supporting credit checks as a valid predictor of job per for- mance or theft and embezzlement, and (4) pos si ble adverse impact, especially against minorities. What should the organ ization do?

The first legal requirement for the organ ization is to comply with the federal Fair Credit Reporting Act (FCRA; see Chapter 2). The FCRA governs the gathering and use of background information on applicants and employees. Its requirements apply to both consumer reports and investigative consumer reports. Consumer reports are prepared from accessible databases by a consumer reporting agency and bear on the person’s creditworthiness and standing, character, general reputa- tion, personal information, and mode of living. Investigative consumer reports are a subset of consumer reports; they obtain information about the applicant’s or

099-67811_ch08_4P.indd 412 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 413

employee’s general reputation, character, personal characteristics, and mode of liv- ing via personal interviews with friends, neighbors, or business associates.

Before obtaining a consumer report, the organ ization must (1) give the applicant clear notice in writing that a report may be obtained and used in hiring or promo- tion procedures, and (2) obtain the applicant’s written authorization to seek the report. Before taking any adverse action, such as denial of employment, based in whole or part on the report received, the organ ization must wait a reasonable amount of time and then provide the applicant with a copy of the report and a writ- ten description of his or her consumer rights put forth by the Consumer Financial Protection Bureau. After taking an adverse action, the organ ization must (1) notify (by written, oral, or electronic means) the applicant of the adverse action, (2) pro- vide the name, address, and phone number of the consumer reporting agency to the applicant, (3) provide notice of the applicant’s right to obtain a free copy of the report from the agency and to dispute the accuracy and completeness of the report, and (4) inform the applicant that the agency had no part in the decision.

Another legal requirement is to comply with the state and local laws that gov- ern background checks. This should include the state/locale in which the indi- vidual being investigated resides, the reporting agency conducts business, and the requesting organ ization is incorporated and conducts business.76

Several other suggestions are offered for navigating these difficult legal waters. Do credit checks only for jobs with financial and legal responsibilities, such as tellers, auditors, se nior executives, and law enforcement. Be able to explain exactly why a credit check is necessary for the job, and allow applicants to explain any unfavorable credit information. Be sure to watch for the development of new credit checking laws and regulations, especially at the state and local levels. At the moment, 11 states limit the use of credit information in employment. The Illi- nois Employer Credit Privacy Act, for example, prohibits employers from inquiring about or using a credit history or report from applicants and employees, except for certain positions, as does New York City.77

Criminal Checks Criminal background checks are generally an attempt to head off potential prob- lems of workplace vio lence, theft, fraud, and negligent hiring. The collection and use of criminal history (arrest and conviction) information is governed by numer- ous laws and regulations. The need for these protections is the result of several factors: (1) disparate treatment and impact against minorities (especially African Americans and Hispanics) in screening decisions based on the information, (2) the questionable relevance and validity of criminal information for many jobs, (3) use of blanket “no felons” hiring practices, and (4) the inaccuracy of criminal history information in databases and elsewhere.78

If the organ ization uses a third- party vendor to conduct criminal background checks, the vendor must comply with the requirements of the FCRA described

099-67811_ch08_4P.indd 413 11/17/17 1:30 PM

414 PART FOUR Staffing Activities: Selection

above. The organ ization should carefully choose vendors whose practices are in compliance, and it should be wary of vendors that promise to provide “instant check” ser vices, since such rapid ser vice might well violate the FCRA.

Arrest. An arrest does not establish that criminal conduct has occurred. Because of this, state and local preemployment inquiry laws and regulations generally pro- hibit collection and use of arrest information, as does the EEOC guidance on pre- employment inquiries (discussed below). Moreover, additional EEOC guidance on arrest and conviction rec ords notes that an exclusion of an applicant with an arrest rec ord likely violates the FCRA because it is not job related and consistent with business necessity ( unless the employer can provide fact- based evidence to the contrary).

Conviction. The EEOC enforcement guidance on arrest and conviction rec ords warns that collection and use of conviction rec ords could result in disparate treat- ment, in which case the organ ization must be prepared to either defend the impact as job related and consistent with business necessity or take steps to eliminate its occurrence.

For disparate impact the guidance says there are two ways to meet this defense requirement. The first defense is providing validation evidence about the crimi- nal history screening procedure, based on the Uniform Guidelines on Employee Se lection Procedures (see Chapter 9). The evidence must show that the screening procedure is predictive of impor tant employment outcomes, such as job per for- mance or theft.

The second defense is for the organ ization to have a targeted screening proce- dure. The procedure must consider three factors in showing how specific criminal conduct may be linked to impor tant employment outcomes for a specific position:

1. The nature and severity of the offense or conduct 2. The time that has passed since the offense, conduct, or sentence completion 3. The nature of the job held or sought

Moreover, in the procedure, the organ ization must conduct an individualized assessment for those who may be rejected for the job. In that assessment, the organ- ization should tell the person a rejection may occur, let the person show reasons why the rejection should not occur, and consider whether a rejection would be job related and consistent with business necessity.

Fi nally, the enforcement guidelines do not preempt federal restrictions on hir- ing persons with convictions for certain jobs (e.g., airport security screener, law enforcement officer, child care worker, bank employee, or port worker) or federal occupation and licensing requirements.

At the state and local levels, there is a wide variety of requirements and prohibi- tions on gathering and using criminal background information. Some states and

099-67811_ch08_4P.indd 414 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 415

localities prohibit asking about criminal history until after an interview or a condi- tional job offer. This is sometimes called “Ban the Box,” referring to eliminating a check box on the initial application asking if the applicant has ever been convicted of a crime. “Ban the Box” prohibitions are increasing. However, states may also provide exceptions that legally require criminal history information right away, much like the federal restrictions, for certain jobs.

Usage of criminal history information is also regulated. In New York, for exam- ple, refusal to hire must take into account job responsibilities, time since the crime was committed, an applicant’s age at the time of the crime, and seriousness of the offense. There may also be exemptions for arrest/conviction usage. Washington, for example, exempts law enforcement agencies, state agencies, school districts, and organ izations that have a direct responsibility for the supervision, care, or treatment of children, mentally ill persons, or other vulnerable adults.79

Preemployment Inquiries

The term “preemployment inquiry” (PI), as used here, pertains to both content and method of assessment. Regarding content, PI refers to applicants’ personal and background data. These data cover such areas as demographics (race, color, religion, sex, national origin, and age), physical characteristics (disability, height, and weight), family and associates, residence, economic status, and education. The information could be gathered by any method; most frequently, it is gathered with an initial assessment method, particularly the application blank, biodata question- naire, or preliminary interview. At times, PIs may also occur as part of an unstruc- tured interview.

PIs have been singled out for par tic u lar legal (equal employment opportunity and affirmative action [EEO/AA]) attention at both the federal and state levels. The reason for this is that PIs have great potential for use in a discriminatory manner early on in the se lection pro cess. Moreover, research continually finds that organ- izations make inappropriate and illegal PIs. One study, for example, found that out of 48 categories of application blank items, employers used an average of 5.4 inadvisable items on their application blanks for customer ser vice jobs.80 It is thus critical to understand the laws and regulations surrounding the use of PIs.

Federal Laws and Regulations The laws and their interpretation indicate that it is illegal to use PI information that has a disparate impact based on a protected characteristic (race, color, etc.), unless such disparate impact can be shown to be job related and consistent with business necessity. The emphasis here is on the potentially illegal use of the information rather than on its collection per se.

EEOC Guide to Preemployment Inquiries. The EEOC guide provides the princi ples given above, along with specific guidance (dos and don’ts) on PIs

099-67811_ch08_4P.indd 415 11/17/17 1:30 PM

416 PART FOUR Staffing Activities: Selection

regarding race, color, religion, sex, national origin, age, height and weight, marital status, number of children, provisions for child care, En glish language skill, edu- cational requirements, friends or relatives working for the employer, arrest rec ords, conviction rec ords, discharge from military ser vice, citizenship, economic status, and availability for work on weekends or holidays.

Americans With Disabilities Act Regulations. There appears to be a fine line between permissible and impermissible information that may be gathered, and between appropriate and inappropriate methods for gathering it, under the Ameri- cans With Disabilities Act (ADA). To help employers, the EEOC has developed specific enforcement guidance on these matters.

The general thrust of the guidance is that the organ ization may not ask disability- related questions and may not conduct medical examinations until after it makes a conditional job offer to a person. Once that offer is made, however, the organ- ization may ask disability- related questions and conduct medical examinations so long as this is done for all entering employees in the job category. When such questions or exams screen out a person with a disability, the reason for rejection must be job related and consistent with business necessity. A person who provides a direct threat of substantial harm to himself, herself, or others may be rejected for safety reasons. We will have more to say about the legality of medical examina- tions in the next chapter.

More specific guidance is provided for the pre- offer stage as follows. Disability- related questions cannot be asked, meaning questions that (1) inquire whether a person has a disability, (2) are likely to elicit information about a disability, or (3) are closely related to asking about a disability. Along with these general pro- hibitions, it is impermissible to ask applicants whether they will need reasonable accommodation to perform the functions of the job or can perform major life activ- ities (e.g., lifting, walking), to ask about lawful use of drugs, to ask about workers’ compensation history, or to ask third parties (e.g., former employers, references) questions that cannot be asked of the applicant.

Alternatively, before the offer is made, it is permissible to ask:

• Whether the applicant can perform the job, with or without reasonable accommodation

• Whether the applicant can meet the organ ization’s attendance requirement • Whether the applicant will need reasonable accommodation for the hiring pro-

cess ( unless there is an obvious disability or the applicant discloses a disability) • The applicant to provide documentation of a disability if requesting reason-

able accommodation for the hiring pro cess • The applicant to describe or demonstrate how he or she would perform the job

(including any needed reasonable accommodation) • The applicant for certifications and licenses

099-67811_ch08_4P.indd 416 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 417

• About the applicant’s current illegal use of drugs (but not past addiction) • About the applicant’s drinking habits (but not alcoholism)

State Laws and Regulations There is a vast cache of state laws and regulations pertaining to PIs. These require- ments vary substantially among the states and are often more stringent and inclu- sive than federal laws and regulations. The organ ization thus must become familiar with and adhere to the laws for each state in which it is located.

An example of Ohio state law regarding PIs is shown in Exhibit 8.9. Notice how the example points out both lawful and unlawful ways of gathering PI information.

Bona Fide Occupational Qualifications

Title VII of the Civil Rights Act explic itly permits discrimination on the basis of sex, religion, or national origin (but not race or color) if it can be shown to be a BFOQ “reasonably necessary to the normal operation” of the business. The Age Discrimination in Employment Act (ADEA) contains a similar provision regarding age. These provisions thus permit outright rejection of applicants because of their sex, religion, national origin, or age, as long as the rejection can be justified under the “reasonably necessary” standard. Exactly how have BFOQ claims by employ- ers fared? When are BFOQ claims upheld as legitimate? Several points are relevant to understanding the BFOQ issue.

The burden of proof is on the employer to justify any BFOQ claim, and it is clear that the BFOQ exception is to be narrowly construed.

To successfully defend a BFOQ claim, the organ ization must show that only (or just about only) people with the protected class characteristic can do the job, and that the job is integral to the essence and operation of the business. The bar for showing this sanctioned discrimination is very high.81 A classic case of usually not meeting the bar is a BFOQ claim based on customer, client, or coworker prefer- ences. Examples include women customers preferring only women salespeople, or a refusal to hire people who wear turbans or hijabs due to a fear that customers or coworkers will not want to interact with them. Such preference claims usually cannot be successfully defended by the employer.

BFOQ claims that might exceed the bar have involved rationale relating to authenticity (e.g., male actors for male roles), public safety (e.g., age requirements for certain transportation employees such as drivers or pi lots), and privacy (e.g., female guards only for female prisoners). But even these examples are not clear cut. The success of a claim for female guards only might depend on how inhos- pitable and dangerous the work environment is (e.g., maximum versus minimum security prison). As another example, BFOQ claims based on privacy concerns may be justified when personal contact is required, such as jobs involving personal hygiene, health care, and rape victims. As a final example involving safety issues,

099-67811_ch08_4P.indd 417 11/17/17 1:30 PM

418 PART FOUR Staffing Activities: Selection

EXHIBIT 8.9 Ohio Employment Guide—Questioning Applicants

Inquiry Lawful Unlawful

Name Name Inquiry into any title that would indicate race, color, religion, sex, national origin, disability, age, or ancestry

Address Inquiry into place and length of time at current address

Inquiry into any foreign addresses that would indicate national origin

Age Any inquiry limited to establishing that applicant meets any minimum age requirement that may be established by law

A. Requirement of birth certificate or baptismal record

B. Any inquiry that would reveal the date of high school graduation

C. Any other inquiry that would reveal whether applicant is at least 40 years of age

Race, color, religion

Any inquiry that would indicate applicant’s race, color, or religion

Sex Any inquiry that would indicate the applicant’s sex

Height and weight

Inquiries as to a person’s ability to perform actual job duties and responsibilities

A requirement of a certain height or weight, unless the employer can show that no employee with the ineligible height or weight could do the work

Birthplace, national origin, ancestry

A. Any inquiry into place of birth B. Any inquiry into place of birth of

parents, grandparents, or spouse C. Any other inquiry into national

origin or ancestry Citizenship A. Whether a US citizen

B. If not, whether applicant intends to become one

C. If US residence is legal D. If spouse is citizen E. A requirement of proof of

citizenship after hire F. Any other requirement

mandated by the Immigration Reform and Control Act of 1986, as amended

A. Any inquiry that would indicate whether the applicant is native- born or naturalized

B. A requirement of proof of citizenship before hire

C. Any inquiry that would indicate whether the applicant’s parents or spouse are native-born or naturalized

(continued)

099-67811_ch08_4P.indd 418 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 419

an employer’s fetal protection policy that excluded women from certain jobs lead- ing to exposure to lead in the manufacture of batteries was held not to be a permis- sible BFOQ.

The discussion and examples here should make clear that BFOQ claims involve complex situations and considerations. The organ ization should remember that the burden of proof is on it to defend BFOQ claims. BFOQ provisions in the law are and continue to be construed very narrowly. The employer thus must have an overwhelming preponderance of argument and evidence on its side in order to make and successfully defend a BFOQ claim.

Inquiry Lawful Unlawful

Disability Inquiries necessary to determine applicant’s ability to substantially perform a specific job without significant hazard

A. Any inquiry into past or current medical conditions

B. Any inquiry into workers’ compensation or similar claims

Work schedule Inquiry into the job applicant’s willingness to work a required schedule

Any inquiry into the job applicant’s willingness to work any particular religious holidays

References General, personal, and work references that do not reveal the race, color, religion, sex, national origin, disability, ancestry, or age of the applicant

Request for references specifically from clergy or any other persons that might reflect the race, color, religion, sex, national origin, disability, ancestry, or age of the applicant

Organizations Inquiry into membership in organizations excluding those that reveal the race, color, religion, sex, national origin, disability, ancestry, or age of its members

Inquiry into every club and organization where membership is held, including those that reveal the race, color, religion, sex, national origin, disability, ancestry, or age of its members

Other Any questions required to reveal qualifications for the job for which the applicant applied

Any non-job-related inquiry that may elicit information concerning race, color, religion, sex, national origin, disability, age, or ancestry of applicant

Source: Ohio Civil Rights Commission, 2013. Note: The above is not a complete definition of what can and cannot be asked of applicants. It attempts to answer the questions most frequently asked concerning the law.

EXHIBIT 8.9 Continued

099-67811_ch08_4P.indd 419 11/17/17 1:30 PM

420 PART FOUR Staffing Activities: Selection

SUMMARY

This chapter reviewed the pro cesses involved in external se lection and focused specifically on methods of initial assessment. Before candidates are assessed, it is impor tant to base assessment methods on the logic of prediction and to use se lection plans. The logic of prediction focuses on the requisite correspondence between ele ments in applicants’ past situations and KSAOs critical to success on the job in question. The se lection plan involves the pro cess of detailing the required KSAOs and indicating which se lection methods will be used to assess each KSAO. The se lection sequence is the means by which the se lection pro cess is used to narrow down the initial applicant pool to candidates, then finalists, and, eventually, job offer receivers.

Initial assessment methods are used during the early stages of the se lection sequence to reduce the applicant pool to candidates for further assessment. The methods of initial assessment were reviewed in some detail; they include résumés and cover letters, application blanks, biographical information, letters of recommen- dation, reference and background checks, and initial interviews. Initial assessment methods differ widely in their usefulness. How these methods can be evaluated for potential use include frequency of use, cost, reliability, validity, utility, applicant reactions, and adverse impact.

Legal issues need to be considered in making initial assessments about appli- cants. The use of disclaimers as a protective mechanism is critical. Also, three areas of initial assessment that require special attention are reference and back- ground checking, PIs, and BFOQs.

DISCUSSION QUESTIONS

1. A se lection plan describes the predictor(s) that will be used to assess the KSAOs required to perform the job. What are the three steps to follow in establishing a se lection plan?

2. In what ways are the following three initial assessment methods similar and in what ways are they dif fer ent: application blanks, biographical information, and reference and background checks?

3. Describe the criteria by which initial assessment methods are evaluated. Are some of these criteria more impor tant than others?

4. Some methods of initial assessment appear to be more useful than others. If you were starting your own business, which initial assessment methods would you use and why?

5. How can organ izations avoid legal difficulties in the use of preemployment inquiries in initial se lection decisions?

099-67811_ch08_4P.indd 420 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 421

ETHICAL ISSUES

1. Is it wrong to pad one’s résumé with information that, while not an outright lie, is an enhancement? For example, would it be wrong to term one’s job “maintenance coordinator” when in fact one simply emptied garbage cans?

2. Do you think employers have a right to check into applicants’ backgrounds? Even if there is no suspicion of misbehavior? Even if the job poses no security or sensitivity risks? Even if the background check includes driving offenses and credit histories?

APPLICATIONS

Reference Reports and Initial Assessment in a Start- Up Com pany

Stanley Jausneister owns a small high- tech start-up com pany called BioServer- Systems (BSS). Stanley’s com pany specializes in selling web server space to clients. The server space that Stanley markets runs from a network of personal comput- ers. This networked configuration allows BSS to manage its server space more effi- ciently and provides greater flexibility to its customers, who often want weekly or even daily updates of their websites. The other innovation Stanley brought to BSS is special security encryption software protocols that make the BSS server space nearly impossible for hackers to access. This flexibility is particularly attractive to organ izations that need to manage large, security- protected databases with multiple points of access. Stanley has even been contacted by the government, which is inter- ested in using BSS’s systems for some of its classified intelligence.

Due to its niche, BSS has experienced rapid growth. In the past year, BSS hired 12 programmers and 2 marketers, as well as a general man ag er, an HR man ag er, and other support personnel. Before starting BSS, Stanley was a man ag er with a large phar ma ceu ti cal firm. Because of his industry connections, most of BSS’s business has been with drug and chemical companies.

Yesterday, Stanley received a phone call from Lee Rogers, head of biotechnology for Mercelle- Poulet, one of BSS’s largest customers. Lee is an old friend, and he was one of BSS’s first customers. Lee had called to express concern about BSS’s secu- rity. One area of Mercelle- Poulet’s biotech division is responsible for research and development on vaccines for vari ous bioterrorist weapons such as anthrax and the plague. Because the research and development on these vaccines require the com- pany to develop cultures of the biological weapons themselves, Lee has used BSS to house information for this area. A great deal of sensitive information is housed on BSS’s servers, including in some cases the formulas used in developing the cultures.

Despite the sensitivity of the information on BSS’s servers, given BSS’s advanced software, Stanley was very surprised to hear Lee’s concern about security. “It’s not your software that worries me,” Lee commented, “it’s the people running it.” Lee

099-67811_ch08_4P.indd 421 11/17/17 1:30 PM

422 PART FOUR Staffing Activities: Selection

explained that last week a Mercelle- Poulet researcher was arrested for attempting to sell certain cultures to an overseas client. This individual had been dismissed from a previous phar ma ceu ti cal com pany for unethical be hav ior, but this information did not surface during the individual’s background check. This incident not only caused Lee to reexamine Mercelle- Poulet’s background checks, but also made him think of BSS, as certain BSS employees have access to Mercelle- Poulet’s information.

Instantly after hearing Lee’s concern, Stanley realized he had a prob lem. Like many small employers, BSS did not do thorough background checks on its employ- ees. It assumed that the information provided on the application was accurate and generally only called the applicant’s previous employer (often with in effec tive results). Stanley realized he needed to do more, not only to keep Lee’s business but also to protect his com pany and customers.

1. What sort of background testing should BSS conduct on its applicants? 2. Is there any information BSS should avoid obtaining for legal or EEO reasons? 3. How can BSS know that its background testing programs are effective? 4. In the past, BSS has used the following initial assessment methods: application

blank, interviews with Stanley and other BSS man ag ers, and a follow-up with the applicant’s former employer. Beyond changes to its background testing program, would you suggest any other alterations to BSS’s initial assessment pro cess?

Developing a Lawful Application Blank

Consolidated Trucking Corporation, Inc. (CTCI) is a rapidly growing short- haul (local) firm within the greater Columbus, Ohio, area. It has grown primarily through the acquisition of numerous small, family- owned trucking companies. Currently it has a fleet of 150 trucks and over 250 full- time drivers. Most of the drivers were hired initially by the firms that CTCI acquired, and they accepted generous offers to become members of the CTCI team. CTCI’s expansion plans are very ambi- tious, but they will be fulfilled primarily from internal growth rather than additional acquisitions. Consequently, CTCI is now faced with the need to develop an external staffing system that will be geared to hire 75 new truckers within the next two years.

Terry Tailgater is a former truck driver for CTCI who was promoted to truck maintenance supervisor, a position he has held for the past five years. Once CTCI’s internal expansion plans were finalized, the firm’s HR director (and sole member of the HR department), Harold Hornblower, deci ded he needed a new person to handle staffing and employment law duties. Harold promoted Terry Tailgater to the job of staffing man ag er. One of Terry’s major assignments was to develop a new staffing system for truck drivers.

One of the first proj ects Terry undertook was to develop a new, standardized appli- cation blank for the job of truck driver. To do this, Terry looked at the many dif fer- ent application blanks the current drivers had completed for their former companies. ( These rec ords were given to CTCI at the time of acquisition.) The application blanks

099-67811_ch08_4P.indd 422 11/17/17 1:30 PM

Chapter eight External Se lection I 423

showed that a large amount of information was requested and that the specific informa- tion sought varied among the application forms. Terry scanned the vari ous forms and made a list of all the questions the forms contained. He then deci ded to evaluate each question in terms of its probable lawfulness under federal and state (Ohio) laws. Terry wanted to identify and use only lawful questions on the new form he is developing.

The following is the list of questions Terry developed, along with columns labeled “prob ably lawful” and “prob ably unlawful.” Assume that you are Terry and are deciding on the lawfulness of each question. Place a check mark in the appropriate column for each question and prepare a justification for its mark as “prob ably lawful” or “prob ably unlawful.”

Questions Terry Is Considering Including on Application Blank

Question About Probably Lawful Probably Unlawful Birthplace _____ _____ Previous arrests _____ _____ Previous felony convictions _____ _____ Distance between work and residence _____ _____ Domestic responsibilities _____ _____ Height _____ _____ Weight _____ _____ Previous work experience _____ _____ Educational attainment _____ _____ Favorite high school subjects _____ _____ Grade point average _____ _____ Received workers’ compensation in past _____ _____ Currently receiving workers’ compensation _____ _____ Child care arrangements _____ _____ Length of time on previous job _____ _____ Reason for leaving previous job _____ _____ Age _____ _____ Sex _____ _____ Home ownership _____ _____ Any current medical problems _____ _____ History of mental illness _____ _____ OK to seek references from previous employer? _____ _____ Have you provided complete/truthful information? _____ _____ Native language _____ _____ Willing to work on Easter and Christmas _____ _____ Get recommendation from pastor/priest _____ _____

1259756556_ch08_p371_430.indd 423 12/8/17 5:03 PM

ENDNOTES

1. R. D. Arvey and M. E. Begalla, “Analyzing the Homemaker Job Using the Position Analy sis Questionnaire (PAQ),” Journal of Applied Psy chol ogy, 1975, 60, pp. 513–517.

2. D. T. Maurath, C. W. Wright, D. E. Wittorp, and D. Hardtke, “Volunteer Experience May Not Bridge Gaps in Employment,” International Journal of Se lection and Assessment, 2015, 23, pp. 284–294; C. L. Wilkin and C. E. Connelly, “Do I Look Like Someone Who Cares? Recruit- ers’ Ratings of Applicants’ Paid and Volunteer Experience,” International Journal of Se lection and Assessment, 2012, 20, pp. 308–318.

3. D. S. Chapman, K. L. Uggerslev, S. A. Carroll, K. A. Piasentin, and D. A. Jones, “Applicant Attrac- tion to Organ izations and Job Choice: A Meta- Analytic Review of the Correlates of Recruiting Outcomes,” Journal of Applied Psy chol ogy, 2005, 90, pp. 928–944; J. W. Smither, R. R. Reilly, R. E. Millsap, K. Pearlman, and R. W. Stoffey, “Applicant Reactions to Se lection Procedures,” Personnel Psy chol ogy, 1993, 46, pp. 49–76; K. L. Uggerslev, N. E. Fassina, and D. Kraichy, “Recruiting Through the Stages: A Meta- analytic Test of Predictors of Applicant Attraction at Dif fer ent Stages of the Recruiting Pro cess,” Personnel Psy chol ogy, 2012, 65, pp. 597–660.

4. P. F. Wernimont and J. P. Campbell, “Signs, Samples, and Criteria,” Journal of Applied Psy chol­ ogy, 1968, 52, pp. 372–376.

5. F. Lievens, W. De Corte, and L. Westerveld, “Understanding the Building Blocks of Se lection Procedures: Effects of Response Fidelity on Per for mance and Validity,” Journal of Management, 2015, 41, pp. 1604–1627.

6. State of Wisconsin, Chapter 134, Evaluating Job Content for Se lection, Undated. 7. State of Wisconsin, Evaluating Job Content for Se lection. 8. V. Luckerson, “Finding a Job in 2012: Real- Life Success Stories,” Time, June 21, 2012 (http://

business . time . com / 2012 / 06 / 21 / finding ­ a ­ job ­ in ­ 2012 ­ real ­ life ­ success ­ stories / ). 9 . M. Waung, R. W. Hymes, and J. E. Beatty, “The Effects of Video and Paper Résumés on Assess-

ments of Personality, Applied Social Skills, Mental Capability, and Résumé Outcomes,” Basic and Applied Social Psy chol ogy, 2014, 36, pp. 238–251; M. Waung, R. W. Hymes, J. E. Beatty, and P. McAuslan, “Self- Promotion Statements in Video Résumés: Frequency, Intensity, and Gender Effects on Job Applicant Evaluation,” International Journal of Se lection and Assessment, 2015, 23, pp. 345–360.

10. A. M. F. Hiemstra, E. Derous, A. W. Serlie, and M. P. Born, “Fairness Perceptions of Video Résu- més Among Ethnically Diverse Applicants,” International Journal of Se lection and Assessment, 2012, 20, pp. 423–433.

11. A. Ellin, “Lights! Camera! It’s Time to Make a Résumé,” New York Times, Apr. 21, 2007, pp. B1, B6; K. Gurchiek, “Video Résumé Use Rises, but So Do Big Questions,” SHRM Online, Apr. 12, 2007, pp. 1–2; M. J. de la Merced, “Student’s Video Résumé Gets Attention (Some of It Unwanted),” New York Times, Oct. 21, 2006, pp. B1, B6.

12. B. Horovitz, “Forget Résumés, Tweet for the Job,” USA Today, Feb. 18, 2013, p. 3A. 13. R. Strauss, “When the Résumé Is Not to Be Believed,” New York Times, Sept. 12, 2006, p. 2; K.

J. Winstein and D. Golden, “MIT Admissions Dean Lies on Résumé in 1979, Quits,” New York Times, Apr. 27, 2007, pp. B1, B2; M. Villano, “Served as King of England, Said the Résumé,” New York Times, Mar. 19, 2006, p. BU9.

14. K. M. Kuhn, T. R. Johnson, and D. Miller, “Applicant Desirability Influences Reactions to Dis- covered Résumé Embellishments,” International Journal of Se lection and Assessment, 2013, 21, pp. 111–120.

15. “Résumé Fraud,” Gainesville Sun, Mar. 5, 2006, pp. 5G, 6G.

424 PART FOUR Staffing Activities: Selection

1259756556_ch08_p371_430.indd 424 12/8/17 5:07 PM

CHAPTER EIGHT External Se lection I 425

16. “Get Jail Time for This Résumé Lie?” Netscape Careers & Jobs, Mar. 18, 2004 (http:// webcenters . netscape . compuser ve . com / whatsnew / package . jsp ? name = fte / resumelie / resumelie&f loc = wn - dx); “Lying on Your Résumé,” Monster, Mar. 18, 2004 (www . monster . com / career - advice / article / lying - on - your - resume); K. Maher, “The Jungle,” Wall Street Journal, May 6, 2003, p. B5; E. Stanton, “If a Résumé Lies, Truth Can Loom Large,” Wall Street Journal, Dec. 29, 2002, p. B48; T. Weir, “Colleges Give Coaches’ Résumés Closer Look,” USA Today, May 28, 2002, p. C1.

17. “Survey Finds a Single Résumé Typo Can Ruin Job Prospects,” IPMA- HR Bulletin, Sept. 15, 2006, p. 1; C. Soltis, “Eagle- Eyed Employers Scour Résumés for Little White Lies,” Wall Street Journal, Mar. 21, 2006, p. B7; D. Mattioli, “Standing Out in a Sea of CVs,” Wall Street Journal, Jan. 16, 2007, p. B8; D. Mattioli, “Hard Sell on ‘Soft’ Skills Can Primp a Résumé,” Wall Street Journal, May 15, 2007, p. B6.

18. J. K. Arnulf, L. Tegner, and Ø. Larssen, “Impression Making by Résumé Layout: Its Impact on the Probability of Being Shortlisted,” Eu ro pean Journal of Work and Orga nizational Psy chol ogy, 2010, 19, pp. 221–230; M. Singletary, “Beefing Up a Résumé,” Washington Post, Aug. 1, 2013 (http:// articles . washingtonpost . com / 2013 - 08 - 01 / business / 40936834 _ 1 _ social - media - careerbuilder - job - market).

19 . S. B. Knouse, R. A. Giacalone, and H. Pollard, “Impression Management in the Résumé and Its Cover Letter,” Journal of Business and Psy chol ogy, 1988, 3(2), pp. 242–249; A. Varma, S. M. Toh, and S. Pichler, “Ingratiation in Job Applicants: Impact on Se lection Decisions,” Journal of Managerial Psy chol ogy, 2006, 21(3), pp. 200–210.

20. M. S. Cole, H. S. Feild, W. F. Giles, and S. G. Harris, “Recruiters’ Inferences of Applicant Per- sonality Based on Résumé Screening: Do Paper People Have a Personality?” Journal of Busi- ness and Psy chol ogy, 2009, 24(1), pp. 5–18; M. S. Cole, R. S. Rubin, H. S. Feild, and W. F. Giles, “Recruiters’ Perceptions and Use of Applicant Résumé Information: Screening the Recent Gradu- ate,” Applied Psy chol ogy: An International Review, 2007, 56(2), pp. 319–343; W.- C. Tsai, N.- W. Chi, T.- C. Huang, and A.- J. Hsu, “The Effects of Applicant Résumé Contents on Recruiters’ Hiring Recommendations: The Mediating Roles of Recruiter Fit Perceptions,” Applied Psy chol ogy: An International Review, 2011, 60(2), pp. 231–254.

21. Cole et al., “Recruiters’ Inferences of Applicant Personality Based on Résumé Screening”; Cole et al., “Recruiters’ Perceptions and Use of Applicant Résumé Information”; and Tsai et al., “The Effects of Applicant Résumé Contents on Recruiters’ Hiring Recommendations.”

22. N. R. Kuncel, M. Credé, and L. L. Thomas, “The Validity of Self- Reported Grade Point Averages, Class Ranks, and Test Scores: A Meta- Analysis and Review of the Lit er a ture,” Review of Edu- cational Research, 2005, 75, pp. 63–82; E. Derous, A. M. Ryan, and H. D. Nguyen, “Multiple Categorization in Résumé Screening: Examining Effects on Hiring Discrimination Against Arab Applicants in Field and Lab Settings,” Journal of Orga nizational Be hav ior, 2012, 33, pp. 544–570; E. Derous, A. M. Ryan, and A. W. Serlie, “Double Jeopardy Upon Résumé Screening: When Achmed Is Less Employable Than Aïsha,” Personnel Psy chol ogy, 2015, 68, pp. 659–696; L. R. Martinez, C. D. White, J. R. Shapiro, and M. R. Hebl, “Se lection BIAS: Ste reo types and Discrimination Related to Having a History of Cancer,” Journal of Applied Psy chol ogy, 2016, 11, pp. 122–128; A. M. F. Hiemstra, E. Derous, A. W. Serlie, and M. P. Born, “Ethnicity Effects in Gradu ates’ Résumé Content,” Applied Psy chol ogy: An International Review, 2013, 62, pp. 427–453.

23. A. Howard, “College Experiences and Managerial Per for mance,” Journal of Applied Psy chol- ogy, 1986, 71, pp. 530–552; R. Merritt- Halston and K. N. Wexley, “Educational Requirements: Legality and Validity,” Personnel Psy chol ogy, 1983, 36, pp. 743–753.

24. C. Murray, Real Education: Four Simple Truths for Bringing Amer i ca’s Schools Back to Real ity (New York: Crown Forum, 2008); T. W. H. Ng and D. C. Feldman, “How Broadly Does Educa- tion Contribute to Job Per for mance?” Personnel Psy chol ogy, 2009, 62, pp. 89–134.

099-67811_ch08_4P.indd 425 11/17/17 1:30 PM

426 PART FOUR Staffing Activities: Selection

25. J. Barrett, “What’s the Value of a College Education? It Depends,” CNBC (Debt by Degree), June 19, 2015 (www . cnbc . com / 2015 / 06 / 19 / is - a - college - degree - overvalued . html); W. J. Bennett and D. Wilezol, Is College Worth It? A Former United States Secretary of Education and a Liberal Arts Gradu ate Expose the Broken Promise of Higher Education (Nashville, TN: Thomas Nelson, 2013); D. Matthews, “ Going to College Is Worth It— Even If You Drop Out,” Washington Post, June 10, 2013 (www . washingtonpost . com / blogs / wonkblog / wp / 2013 / 06 / 10 / going - to - college - is - worth - it - even - if - you - drop - out / ); A. Williams, “Saying No to College,” New York Times, Nov. 30, 2012 (www . nytimes . com / 2012 / 12 / 02 / fashion / saying - no - to - college . html ? pagewanted = all& _ r = 0), accessed Aug. 9, 2013.

26. A. E. McKinney, K. D. Carlson, R. L. Meachum, N. C. D’Angelo, and M. L. Connerley, “Recruiters’ Use of GPA in Initial Screening Decisions: Higher GPAs Don’t Always Make the Cut,” Personnel Psy chol ogy, 2003, 56, pp. 823–845; P. L. Roth, C. A. BeVier, F. S. Switzer, and J. S. Schippman, “Meta- Analyzing the Relationship Between Grades and Job Per for mance,” Journal of Applied Psy chol ogy, 1996, 81, pp. 548–556; P. L. Roth and P. Bobko, “College Grade Point Average as a Personnel Se lection Device: Ethnic Group Differences and Potential Adverse Impact,” Journal of Applied Psy chol ogy, 2000, 85, pp. 399–406.

27. F. P. Morgeson and J. D. Nahrgang, “Same as It Ever Was: Recognizing Stability in the Business- Week Rankings,” Acad emy of Management Learning & Education, 2008, 7, pp. 26–41.

28. S. Jaschik, “The B- School Hierarchy,” New York Times, Apr. 25, 2004, pp. 36–40; J. Merritt, “What’s an MBA Really Worth?” BusinessWeek, Sept. 22, 2003, pp. 90–102; A. Fisher, “Is Business School Worth the Money?” Fortune (Leadership: Business School), Feb. 23, 2016 (http:// fortune . com / 2016 / 02 / 23 / business - school - worth - it - payoff / ); J. Pfeffer and C. T. Fong, “The End of Business Schools? Less Success Than Meets the Eye,” Acad emy of Management Learning & Education, 2002, 1(1), pp. 78–95.

29. R. S. Robin, W. H. Bommer, and T. T. Baldwin, “Using Extracurricular Activity as an Indicator of Interpersonal Skill: Prudent Evaluation or Recruiting Malpractice?” Human Resource Man- agement, 2002, 41(4), pp. 441–454; D. Holtbrügge and F. Engelhard, “Study Abroad Programs: Individual Motivations, Cultural Intelligence, and the Mediating Role of Cultural Boundary Spanning,” Acad emy of Management Learning & Education, 2016, 15, pp. 435–455.

30. P. E. Tesluk and R. R. Jacobs, “ Toward an Integrated Model of Work Experience,” Personnel Psy chol ogy, 1998, 51, pp. 321–355.

31. R. A. Ash, “A Comparative Study of Behavioral Consistency and Holistic Judgment Methods of Job Applicant Training and Work Experience Evaluation,” Public Personnel Management, 1984, 13, pp. 157–172; M. A. McDaniel, F. L. Schmidt, and J. E. Hunter, “A Meta- Analysis of the Validity of Methods for Rating Training and Experience in Personnel Se lection,” Personnel Psy chol ogy, 1988, 41, pp. 283–314; R. Tomsho, “Busy Surgeons Are Good for Patients,” Wall Street Journal, Nov. 28, 2003, p. B3.

32. M. R. Raymond, S. Neustel, and D. Anderson, “Retest Effects on Identical and Parallel Forms in Certification and Licensure Testing,” Personnel Psy chol ogy, 2007, 60, pp. 367–396; J. D. Opdyke, “ ‘Wait, Let Me Call My ChFC,’ ” Wall Street Journal, Jan. 28, 2006, pp. B1, B3; J. McKillip and J. Owens, “Voluntary Professional Certifications: Requirements and Validation Activities,” The Industrial- Organizational Psychologist, July 2000, pp. 50–57.

33. G. W. England, Development and Use of Weighted Application Blanks (Dubuque, IA: William C. Brown, 1961).

34. J. E. Hunter and R. F. Hunter, “Validity and Utility of Alternative Predictors of Job Per for mance,” Psychological Bulletin, 1984, 96, pp. 72–98.

35. I. L. Goldstein, “The Application Blank: How Honest Are the Responses?” Journal of Applied Psy chol ogy, 1974, 59, pp. 491–494.

099-67811_ch08_4P.indd 426 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 427

36. G. W. England, Development and Use of Weighted Application Blanks, rev. ed. (Minneapolis: University of Minnesota Industrial Relations Center, 1971).

37. C. J. Russell, J. Mattson, S. E. Devlin, and D. Atwater, “Predictive Validity of Biodata Items Generated From Retrospective Life Experience Essays,” Journal of Applied Psy chol ogy, 1990, 75, pp. 569–580.

38. F. A. Mael, “A Conceptual Rationale for the Domain and Attributes of Biodata Items,” Personnel Psy chol ogy, 1991, 44, pp. 763–792.

39. S. Hansell, “Google Answer to Filling Jobs Is an Algorithm,” New York Times, Jan. 3, 2007, pp. A1, C9.

40. J. S. Breaugh, “The Use of Biodata for Employee Se lection: Past Research and Future Direc- tions,” Human Resource Management Review, 2009, 19, pp. 219–231; C. M. Harold, L. A. McFarland, and J. A. Weekley, “The Validity of Verifiable and Non- Verifiable Biodata Items: An Examination Across Applicants and Incumbents,” International Journal of Se lection and Assess- ment, 2006, 14, pp. 336–346.

41. Hunter and Hunter, “Validity and Utility of Alternative Predictors of Job Per for mance”; R. R. Reilly and G. T. Chao, “Validity and Fairness of Some Alternative Se lection Procedures,” Per- sonnel Psy chol ogy, 1982, 35, pp. 1–62.

42. J. B. Becton, M. C. Matthews, D. L. Hartley, and D. H. Whitaker, “Using Biodata to Predict Turn- over, Orga nizational Commitment, and Job Per for mance in Healthcare,” International Journal of Se lection and Assessment, 2009, 17, pp. 189–202; N. Schmitt, J. Keeney, F. L. Oswald, T. J. Pleskac, A. Q. Billington, R. Sinha, and M. Zorzie, “Prediction of 4- Year College Student Per- for mance Using Cognitive and Noncognitive Predictors and the Impact on Demographic Status of Admitted Students,” Journal of Applied Psy chol ogy, 2009, 94, pp. 1479–1497.

43. K. D. Carlson, S. Sculten, F. L. Schmidt, H. Rothstein, and F. Erwin, “Generalizable Biographi- cal Data Validity Can Be Achieved Without Multi- Organizational Development and Keying,” Personnel Psy chol ogy, 1999, 52, pp. 731–755; Breaugh, “The Use of Biodata for Employee Se lection: Past Research and Future Directions.”

44. N. Schmitt, F. L. Oswald, B. H. Kim, M. A. Gillespie, L. J. Ramsay, and T. Yoo, “Impact of Elaboration on Socially Desirable Responding and the Validity of Biodata Mea sures,” Journal of Applied Psy chol ogy, 2003, 88, pp. 979–988; J. Levashina, F. P. Morgeson, and M. A. Campion, “Tell Me Some More: Exploring How Verbal Ability and Item Verifiability Influence Responses to Biodata Questions in a High- Stakes Se lection Context,” Personnel Psy chol ogy, 2012, 65, pp. 359–383.

45. N. Anderson, J. F. Salgado, and U. R. Hülsheger, “Applicant Reactions in Se lection: Compre- hensive Meta- Analysis Into Reaction Generalization Versus Situational Specificity,” International Journal of Se lection and Assessment, 2010, 18, pp. 291–304; A. Furnham, “HR Professionals’ Beliefs About, and Knowledge of, Assessment Techniques and Psychometric Tests,” International Journal of Se lection and Assessment, 2008, 16, pp. 300–305; J. M. Cucina, P. M. Caputo, H. F. Thibodeaux, and C. N. Maclane, “Unlocking the Key to Biodata Scoring: A Comparison of Empiri- cal, Rational, and Hybrid Approaches at Dif fer ent Sample Sizes,” Personnel Psy chol ogy, 2012, 65, pp. 385–428.

46. P. Bobko and P. L. Roth, “Reviewing, Categorizing, and Analyzing the Lit er a ture on Black- White Mean Differences for Predictors of Job Per for mance: Verifying Some Perceptions and Updating/Correcting Others,” Personnel Psy chol ogy, 2013, 66, pp. 91–126; P. Bobko, P. L. Roth, and D. Potosky, “Derivation and Implications of a Meta- Analytic Matrix Incorporating Cognitive Ability, Alternative Predictors and Job Per for mance,” Personnel Psy chol ogy, 1999, 52, pp. 561–589; M. A. Dean, “Examination of Ethnic Group Differential Responding on a Biodata Instrument,” Journal of Applied Social Psy chol ogy, 2013, 43, pp. 1905–1917.

099-67811_ch08_4P.indd 427 11/17/17 1:30 PM

428 PART FOUR Staffing Activities: Selection

47. N. R. Kuncel, R. J. Kochevar, and D. S. Ones, “A Meta- Analysis of Letters of Recommendation in College and Gradu ate Admissions: Reasons for Hope,” International Journal of Se lection and Assessment, 2014, 22, pp. 101–107.

48. J. C. Baxter, B. Brock, P. C. Hill, and R. M. Rozelle, “Letters of Recommendation: A Question of Value,” Journal of Applied Psy chol ogy, 1981, 66, pp. 296–301.

49. T. A. Judge and C. A. Higgins, “Affective Disposition and the Letter of Reference,” Orga- nizational Be hav ior and Human Decision Pro cesses, 1998, 75, pp. 207–221; J. M. Madera, M. R. Hebl, and R. C. Martin, “Gender and Letters of Recommendation for Academia: Agentic and Communal Differences,” Journal of Applied Psy chol ogy, 2009, 94(6), pp. 1591–1599.

50. L. Everitt, “Why MBAs Are Writing Their Own Recommendation Letters,” Fortune, July 15, 2013 (http:// fortune . com / 2013 / 07 / 15 / why - mbas - are - writing - their - own - recommendation - letters / ), accessed August 9, 2013.

51. M. E. Burke, 2004 Reference Check and Background Testing Survey Report (Washington, DC: Society for Human Resource Management, 2005); P. J. Taylor, K. Pajo, G. W. Cheung, and P. Stringfield, “Dimensionality and Validity of a Structured Telephone Reference Check Proce- dure,” Personnel Psy chol ogy, 2004, 57, pp. 745–772.

52. J. Click, “SHRM Survey Highlights Dilemmas of Reference Checks,” HR News, July 1995, p. 13.

53. A. Athavaley, “Job References You Can’t Control,” Wall Street Journal, Sept. 27, 2007, pp. D1, D2. 54. Taylor, Pajo, Cheung, and Stringfield, “Dimensionality and Validity of a Structured Telephone

Reference Check Procedure.” 55. S. Hananel, “Some Job- Screening Tactics Challenged as Illegal,” MSNBC, Oct. 12, 2010 (www

. msnbc . msn . com / id / 38664839), accessed Jan. 28, 2011. 56. A. Zimmerman, “Wal- Mart to Probe Job Applicants,” Wall Street Journal, Aug. 12, 2004,

pp. A3, B6. 57. H. Drummond, The Dynamics of Orga nizational Collapse: The Case of Barings Bank (London:

Routledge, 2007). 58. “Employers Increase Use of Background Checks,” USA Today, Apr. 26, 2007, p. 1B; T. Minton-

Eversole, “More Background Screening Yields More ‘Red Tape,’ ” SHRM News, July 2007, pp. 1–5. 59. K. Maher, “The Jungle,” Wall Street Journal, Jan. 20, 2004, p. B8; A. Zimmerman and K. Stringer,

“As Background Checks Proliferate, Ex- Cons Face Jobs Lock,” Wall Street Journal, Aug. 26, 2004, pp. B1, B3.

60. K. M. Kuhn, “What We Overlook: Background Checks and Their Implications for Discrimina- tion,” Industrial and Orga nizational Psy chol ogy: Perspectives on Science and Practice, 2013, 6, pp. 419–423; National Employment Law Proj ect, “Mary land Becomes Latest State to ‘Ban the Box,’ ” Apr. 4, 2013 (www . nelp . org / page / - / Press - Releases / 2013 / PR - Ban - the - Box - Maryland . pdf ? nocdn = 1).

61 . L. Schwarz, “Baseball and Umpires Clash Over Background Checks,” New York Times, Aug. 7, 2007, p. C15; A. Levin, “Unions: Safety Bar Set Lower for Cargo Planes,” USA Today, Nov. 5, 2010, p. 1A.

62. J. B. Bernerth, S. G. Taylor, H. J. Walker, and D. S. Whitman, “An Empirical Investigation of Dispositional Antecedents and Performance- Related Outcomes of Credit Scores,” Journal of Applied Psy chol ogy, 2012, 97, pp. 469–478; S. D. Volpone, S. Tonidandel, D. R. Avery, and S. Castel, “Exploring the Use of Credit Scores in Se lection Pro cesses: Beware of Adverse Impact,” Journal of Business Psy chol ogy, 2015, 30, pp. 357–372.

63. J. M. Madera and M. R. Hebl, “Discrimination Against Facially Stigmatized Applicants in Inter- views: An Eye- Tracking and Face- to- Face Investigation,” Journal of Applied Psy chol ogy, 2012, 97, pp. 317–330.

099-67811_ch08_4P.indd 428 11/17/17 1:30 PM

CHAPTER EIGHT External Se lection I 429

64. M. R. Barrick, B. W. Swider, and G. L. Stewart, “Initial Evaluations in the Interview: Relation- ships With Subsequent Interviewer Evaluations and Employment Offers,” Journal of Applied Psy chol ogy, 2010, 95, pp. 1163–1172; B. W. Swider, M. R. Barrick, and T. B. Harris, “Initial Impressions: What They Are, What They Are Not, and How They Influence Structured Interview Outcomes,” Journal of Applied Psy chol ogy, 2016, 101, pp. 625–638.

65. M. Harding, “Companies Turning to Web Conferencing for Employment Interviews,” Pittsburgh Tribune Review, Apr. 20, 2010, p. 1.

66. R. A. Ash and E. L. Levine, “Job Applicant Training and Work Experience Evaluation: An Empirical Comparison of Four Methods,” Journal of Applied Psy chol ogy, 1985, 70, pp. 572–576.

67. G. P. Latham and G. Whyte, “The Futility of Utility Analy sis,” Personnel Psy chol ogy, 1994, 47, pp. 31–46.

68. P. R. Sackett and F. Lievens, “Personnel Se lection,” Annual Review of Psy chol ogy, 2008, 59, pp. 419–450; U. R. Hülsheger and N. Anderson, “Applicant Perspectives in Se lection: Going Beyond Preference Reactions,” International Journal of Se lection and Assessment, 2009, 17, pp. 335–345; F. P. Morgeson and A. M. Ryan, “Reacting to Applicant Perspectives Research: What’s Next?” International Journal of Se lection and Assessment, 2009, 17, pp. 431–437.

69. J. P. Hausknecht, D. V. Day, and S. C. Thomas, “Applicant Reactions to Se lection Procedures: An Updated Model and Meta- Analysis,” Personnel Psy chol ogy, 2004, 57, pp. 639–683; D. S. Chapman, K. L. Uggerslev, S. A. Carroll, K. A. Piasentin, and D. A. Jones, “Applicant Attrac- tion to Organ izations and Job Choice: A Meta- Analytic Review of the Correlates of Recruiting Outcomes,” Journal of Applied Psy chol ogy, 2005, 90, pp. 928–944; D. M. Truxillo, T. E. Bodner, M. Bertolino, T. N. Bauer, and C. A. Yonce, “Effects of Explanations on Applicant Reactions: A Meta- Analytic Review,” International Journal of Se lection and Assessment, 2009, 17, pp. 346–361; Uggerslev, Fassina, and Kraichy, “Recruiting Through the Stages: A Meta- Analytic Test of Predictors of Applicant Attraction at Dif fer ent Stages of the Recruiting Pro cess.”

70. Anderson, Salgado, and Hülsheger, “Applicant Reactions in Se lection: Comprehensive Meta- Analysis Into Reaction Generalization Versus Situational Specificity.”

71. M. G. Danaher, “Handbook Disclaimer Dissected,” HR Magazine, Feb. 2007, p. 116; D. J. Walsh, Employment Law for Human Resource Practice, 5th ed. (Mason, OH: Cengage Learning, 2016), pp. 674–676.

72. D. D. Bennett- Alexander and C. P. Hartman, Employment Law for Business, 8th ed. (New York: McGraw- Hill Education, 2015), pp. 148–158; M. E. Burke and L. A. Weatherly, Getting to Know the Candidate: Providing Reference Checks (Alexandria, VA: Society for Human Resource Man- agement, 2005); S. Z. Hable, “The Trou ble With Online References,” Workforce Management Online, Feb. 2010 (www . workforce . com / articles / the - trouble - with - online - references), accessed June 22, 2010; L. S. Rosen, The Safe Hiring Manual, 2nd ed. (Tempe, AZ: 13RP Publications, 2012), pp. 173–192.

73. Ohio State Medical Association, Social Networking and the Medical Practice, 2010 (www . osma . org / OSMA / media / OSMA - Media / Education / 2015%20Symposium%20Handouts / 1A - 2010 - OSMA - social - networking - guidelines . pdf ).

74 . A. D. Wright, “More States Prohibit Social Media Snooping,” HR Magazine, Oct. 2014, p. 14. 75. S. Bates, “Use Social Media Smartly When Hiring,” Society for Human Resource Management,

2013 (www . shrm . org / resourcesandtools / hr - topics / technology / pages / be - smart - when - using - social - media - for - hiring . aspx); J. A. Segal, “The Law and Social Media in Hiring,” HR Magazine, Sept. 2014, pp. 70–72; J. A. Segal, “Should Employers Use Social Media to Screen New Applicants?” HR Magazine, Nov. 2014, p. 20; L. Rosen, Ten Potential Dangers When Using Social Media Background Checks (Novato, CA: Employment Screening Resources, 2016; www . esrcheck . com / file / ESR - White - Paper - Social - Media - Background - Checks . pdf ), accessed February 5, 2016.

099-67811_ch08_4P.indd 429 11/17/17 1:30 PM

430 PART FOUR Staffing Activities: Selection

76. T. B. Stivarius, J. Skonberg, R. Fliegel, R. Blumberg, R. Jones, and K. Mones, “Background Checks: Four Steps to Basic Compliance in a Multistate Environment,” Legal Report, Society for Human Resource Management, Mar.– Apr. 2003.

77. K. McNamera, “Bad Credit Derails Job Search,” Wall Street Journal, Mar. 16, 2010, p. D6; R. Maurer, “Federal Lawmakers, Enforcers Set Sights on Background Screening,” Society for Human Resource Management, Mar. 9, 2010 (http:// true - hire . com / industry - news / federal - lawmakers - enforcers - set - sights - on - background - screening / ); Employment Screening Resources, ESR Newsletter and Legal Update, Oct. 2009, pp. 1–2; Employment Screening Resources, ESR Newsletter and Legal Update, Aug. 2010, pp. 1–2; R. Lally, “ Don’t Ask About Credit History in New York City,” HR Magazine, July– Aug. 2015, p. 14.

78. Walsh, Employment Law for Human Resource Practice, pp. 149–166; M. G. Aamodt, Con- ducting Background Checks for Employee Se lection, Nov. 8, 2016 (www . siop . org / SIOP - SHRM / SHRM - SIOP _ Background _ Checks . pdf ).

79 . F. Hansen, “Burden of Proof,” Workforce Management, Feb. 2010, pp. 8–9; J. Greenwald, “Ex- Convicts in Workforce Pose Liability Prob lems,” Workforce Management Online, Sept. 13, 2009 (www . workforce . com / 2009 / 09 / 15 / ex - convicts - in - workforce - pose - liability - problems / ), accessed Mar. 12, 2010.

80. J. C. Wallace and S. J. Vadanovich, “Personal Application Blanks: Per sis tence and Knowledge of Legally Inadvisable Application Blank Items,” Public Personnel Management, 2004, 33, pp. 331–349.

81. Bennett- Alexander and Hartman, Employment Law for Business, pp. 66–68; Walsh, Employment Law for Human Resource Practice, pp. 223–230.

099-67811_ch08_4P.indd 430 11/17/17 1:30 PM

C H A P T E R N I N E

External Se lection II

Learning Objectives and Introduction Learning Objectives Introduction

Substantive Assessment Methods Personality Tests Ability Tests Emotional Intelligence Tests Per for mance Tests and Work Samples Situational Judgment Tests Integrity Tests Interest, Values, and Preference Inventories Structured Interview Se lection for Team Environments Choice of Substantive Assessment Methods

Discretionary Assessment Methods

Contingent Assessment Methods Drug Testing Medical Exams

Legal Issues Uniform Guidelines on Employee Se lection Procedures Se lection Under the Americans With Disabilities Act Marijuana and Other Drug Testing

Summary

Discussion Questions

Ethical Issues

Applications Assessment Methods for the Job of Human Resources Director Choosing Among Finalists for the Job of Human Resources Director

Endnotes

099-67811_ch09_4P.indd 431 11/17/17 1:31 PM

432 PART FOUR Staffing Activities: Selection

LEARNING OBJECTIVES AND INTRODUCTION

Learning Objectives

• Distinguish among initial, substantive, and contingent se lection • Review the advantages and disadvantages of personality and cognitive ability

tests • Compare and contrast work sample and situational judgment tests • Understand the advantages of structured interviews and how interviews can

be structured • Review the logic behind contingent assessment methods and how they are

administrated • Understand the ways in which substantive and contingent assessment meth­

ods are subject to vari ous legal rules and restrictions

Introduction

The previous chapter reviewed preliminary issues surrounding external staffing decisions made in organ izations, including the use of initial assessment methods. This chapter continues the discussion of external se lection by discussing in some detail substantive assessment methods. The use of discretionary and contingent assessment methods, collection of assessment data, and legal issues will also be considered. In a real sense, substantive and contingent assessment are at the heart of staffing decisions. This is because substantive and contingent se lection are the highlight of actual hiring decisions. Done well, the stage is set for effective orga­ nizational staffing. Done poorly, it is difficult, if not impossible, to staff successfully.

Whereas initial assessment methods are used to reduce the job applicant pool to candidates, substantive assessment methods are used to reduce the candidate pool to finalists. Thus, the use of substantive methods is often more involved than the use of initial methods. Numerous substantive assessment methods will be discussed in depth, including vari ous tests (personality, ability, emotional intel­ ligence, per for mance/work samples, situational judgment, and integrity); interest, values, and preference inventories; structured interviews; and assessments for team environments. The average validity (i.e., r

_ xy) of each method and the criteria used

to choose among methods will be reviewed. Discretionary assessment methods are used in some circumstances to separate

those who receive job offers from the finalists. The applicant characteristics that are assessed when using discretionary methods are sometimes very subjective. Several of the characteristics most commonly assessed by discretionary methods will be reviewed.

Contingent assessment methods are used to make sure that tentative offer recipi­ ents meet certain qualifications for the job. Although any assessment method can

099-67811_ch09_4P.indd 432 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 433

be used as a contingent method (e.g., licensing/certification requirements, back­ ground checks), drug tests and medical exams are perhaps the two most common methods. The procedures for these methods will be reviewed.

All forms of assessment decisions require the collection of assessment data. The procedures used to make sure this pro cess is properly conducted will be reviewed. Several issues will be discussed, including support ser vices, training requirements in using vari ous predictors, maintaining security and confidentiality, and the impor­ tance of standardized procedures.

Fi nally, many impor tant legal issues surround the use of substantive, discre­ tionary, and contingent methods of se lection. The most impor tant of these issues will be reviewed. Par tic u lar attention will be given to the Uniform Guidelines on Employee Se lection Procedures (UGESP) and staffing requirements under the Americans With Disabilities Act (ADA).

SUBSTANTIVE ASSESSMENT METHODS

Organ izations use initial assessment methods to make rough cuts among applicants, weeding out those who are obviously unqualified. Conversely, substantive assess­ ment methods are used to make more precise decisions about applicants. Generally speaking, these methods are used to answer the following question: Among those who meet the minimum qualifications for the job, who are the most likely to be high performers if hired? In other words, these methods are used to predict which applicants, if hired, will be the best performers. For that reason, the validity of substantive assessment methods is critical. Moreover, because substantive methods are used to make fine distinctions among applicants, the nature of their use is some­ what more involved than that of initial assessment methods. Like initial assessment methods, substantive assessment methods are developed using the logic of predic­ tion outlined in Exhibit 8.1 and the se lection plan shown in Exhibit 8.2. Predictors typically used to select finalists from the candidate pool include personality tests; ability tests; emotional intelligence tests; per for mance tests and work samples; situational judgment tests; integrity tests; interest, values, and preference invento­ ries; structured interviews; and assessments for team environments. Each of these predictors is described next in some detail.

Personality Tests

At one time, personality tests were not perceived as a valid se lection method.1 Today, however, most researchers have reached much more positive conclusions about the role of personality tests in predicting job per for mance.2 Mainly, this is due to the widespread ac cep tance of a major taxonomy of personality, often called the Big Five. The Big Five are used to describe behavioral (as opposed to emo­ tional or cognitive) traits that may capture most of an individual’s personality.3

099-67811_ch09_4P.indd 433 11/17/17 1:31 PM

434 PART FOUR Staffing Activities: Selection

The Big Five factors are extraversion (tendency to be sociable, assertive, active, upbeat, and talkative), agreeableness (tendency to be altruistic, trusting, sympathetic, and cooperative), conscientiousness (tendency to be purposeful, determined, dependable, and attentive to detail), emotional stability (tendency to be calm, optimistic, and well adjusted), and openness to experience (tendency to be imaginative, attentive to feelings, intellectually curious, and in de pen dent). The Big Five are very stable over time. Controlling for age and the time interval, the population test­ retest correlations for each trait range between .50 and .54.4 Meta­ analytic evidence suggests that roughly 37% of the variance in the Big Five traits appears to be inherited.5

Mea sures of Personality Although personality can be mea sured in many ways, for personnel se lection, the most common mea sures are self­ report surveys. Several survey mea sures of the Big Five traits are used in se lection. The International Personality Item Pool (IPIP), which can be found online and used freely, contains several Big Five mea­ sures. Exhibit 9.1 provides sample items from the IPIP. The Personal Characteris- tics Inventory is a self­ report mea sure of the Big Five that asks applicants to report their agreement or disagreement (using a “strongly disagree” to “strongly agree” scale) with 150 sentences.6 The mea sure takes about 30 minutes to complete and has a fifth­ to sixth­ grade reading level. Another commonly used mea sure of the Big Five is the NEO Personality Inventory, of which there are several versions that have been translated into numerous languages.7 A third alternative is the Hogan Person- ality Inventory (HPI), which is also based on the Big Five typology. Responses to the HPI can be scored to yield mea sures of employee reliability and ser vice orien­ tation.8 Evidence of validity in predicting job per for mance in vari ous occupations for all of these mea sures has been demonstrated.

Traditionally, personality tests were administered to applicants on­ site, with a paper­ and­ pencil survey. Nowadays, many surveys are administered online, which is cheaper for the organ ization and more con ve nient for the applicant. However, because most online testing is unmonitored, there are three potential prob lems: (1) test security might be compromised (e.g., test items posted on a blog), (2) applicants may find it easier to cheat or be more motivated to cheat online, and (3) applicants may not tolerate long online personality tests. There are no silver bullet remedies to these prob lems. Because each of these prob lems is less of an issue with paper­ and­ pencil tests, organ izations may be well advised to use that format where feasible. Even when these prob lems are avoided with a paper­ and­ pencil test, however, online reporting of items can still be an issue. For example, the Internet is rife with posts and blogs about Wal­ Mart’s preemployment test, which includes personality ques­ tions. Some posts include the items themselves, whereas others provide tips on how to game the test. Thus, even when companies attempt to keep their personality inventories as private as pos si ble, word often leaks out.9

099-67811_ch09_4P.indd 434 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 435

Where traditional paper­ and­ pencil personality testing is infeasible, several steps can be taken to ameliorate the prob lems with online testing. First, experts recom­ mend keeping online personality tests as brief as pos si ble. If the test takes more than 20 minutes, applicants may grow impatient. Second, it is impor tant to assign applicants identification codes, to collect basic background data, and to break the test into sections. These steps increase accountability (lessening the odds of faking) and ensure that if the applicant loses the Internet connection while taking the test, the portions completed will not be lost. Third, strategies designed to reduce faking by applicants (which we discuss shortly) should be implemented. This step is espe­ cially impor tant for online testing. Fi nally, many experts recommend the use of

EXHIBIT 9.1 Sample Items Measuring Big Five Personality Dimensions

Source: International Personality Item Pool (ipip.ori.org).

Please rate how accurately each statement describes you on a scale from 1 = “to no extent” to 5 = “to a very great extent.”

Extraversion Am quiet around strangers. (reverse-scored) Take charge. Am skilled in handling social situations.

Agreeableness Have a soft heart. Insult people. (reverse-scored) Have a good word for everyone.

Conscientiousness Am always prepared. Pay attention to details. Am exacting in my work.

Emotional Stability Am relaxed most of the time. Seldom feel blue. Have frequent mood swings. (reverse-scored)

Openness to Experience Have a vivid imagination. Love to think up new ways of doing things. Try to avoid complex people. (reverse-scored)

099-67811_ch09_4P.indd 435 11/17/17 1:31 PM

436 PART FOUR Staffing Activities: Selection

“item banking” (variation in specific items used to mea sure each trait) to enhance test security; to further reduce faking, inform test takers that their online scores will be verified with a paper­ and­ pencil test should they advance in the se lection pro cess.10

Evaluation of Personality Tests Many comprehensive reviews of the validity of personality tests have been published. Nearly all the recent reviews focus on the validity of the Big Five.11 Although there are some inconsistencies across reviews, the results can be sum­ marized in Exhibit 9.2. As the exhibit shows, each of the Big Five traits has advan­ tages and disadvantages. However, the traits differ in the degree to which they are a mixed blessing. Specifically, whereas the disadvantages of agreeableness and openness appear to offset their advantages, the advantages of conscientiousness, emotional stability, and, to some degree, extraversion outweigh the disadvantages. These three traits also happen to have the strongest correlates with overall job

Big Five Trait Advantages Disadvantages

Conscientiousness • Better overall job performers • Higher levels of job satisfaction • More likely to emerge as leaders • Fewer “deviant” work behaviors • Higher retention (lower turnover)

• Lower adaptability

Emotional stability • Better overall job performers • Higher levels of job satisfaction • More effective leaders • Higher retention (lower turnover)

• Less able to identify threats • More likely to engage in high-

risk behaviors

Extraversion • Perform better in sales • More likely to emerge as leaders • Higher levels of job satisfaction

• Higher absenteeism • More accidents

Agreeableness • More valued as team members • More “helping” behaviors • Fewer “deviant” work behaviors

• Lower career success • Less able to cope with conflict • Give more lenient ratings

Openness • Higher creativity • More effective leaders • More adaptable

• Less committed to employer • More “deviant” work behaviors • More accidents

EXHIBIT 9.2 Implications of Big Five Personality Traits at Work

099-67811_ch09_4P.indd 436 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 437

per for mance. Conscientiousness and emotional stability, in par tic u lar, appear to be useful across a wide range of jobs. Thus, in general, the personality traits of conscientiousness, emotional stability, and extraversion—in that order— appear to be the most useful for se lection contexts. Of course, in certain situations— such as where adaptability or creativity may be highly valued, or where cooperative relations are crucial— openness and agreeableness may be impor tant to assess as well.

Although there do not appear to be any direct disadvantages to conscientious­ ness, recent research suggests that when an employee’s level of conscientiousness is “too” high, some disadvantages may arise. For example, drawing on the theory that you can have too much of a good thing, extremely conscientious employees have been found to experience greater negative affect, engage in perfectionist tendencies, react poorly to feedback, react adversely to negative life events, and perform more poorly at work.12

Today there is widespread ac cep tance regarding the validity and utility of per­ sonality tests in personnel se lection. This does not mean that the area is free of its critics, however. Some researchers have argued that personality traits are not useful se lection tools.13 Here we evaluate three of the most impor tant criticisms of the use of personality tests in se lection decisions: the validities are trivial, faking undermines their usefulness, and applicants react negatively to them.

Trivial Validities. One set of critics has argued that the validities of personality traits are so small as to border on the trivial, rendering them of limited usefulness as se lection devices. These researchers noted, “Why are we now suddenly look­ ing at personality as a valid predictor of job per for mance when the validities still haven’t changed and are still close to zero?” While this is an extreme position, it does contain a grain of truth: the validities are far from perfect. For example, our best estimate of the validity of conscientiousness in predicting overall job per for­ mance is r

_ xy = .26. By no means would this be labeled a strong validity (though, in

fairness, we are not aware of any personality researchers who have done so). Does this mean that the validities of personality mea sures, though, are trivial? We do not believe so, for five reasons.14

First, because applicants can complete an entire Big Five inventory in less than 30 minutes in most se lection situations, the entire Big Five framework is used, or at least more than a single trait is assessed. In addition, the Big Five traits do not correlate very highly with each other, so knowing a person’s level of one trait (e.g., conscientiousness) tells you little about their level of another trait (e.g., extraver­ sion). Therefore, it is impor tant to look at the multiple correlations between the set of Big Five traits and criteria such as job per for mance. For example, the multiple correlations between the Big Five and criteria such as overall job per for mance and leadership is roughly r = .50. Recent research suggests that examining the multiple correlations with “general” criteria such as overall withdrawal can be very effective ( r

_ xy = .66 for overall withdrawal, compared with more specific withdrawal

099-67811_ch09_4P.indd 437 11/17/17 1:31 PM

438 PART FOUR Staffing Activities: Selection

constructs: .21 for absenteeism, .41 for counterproductive work be hav iors, and .35 for turnover). This is hardly trivial.15

Second, as with any se lection mea sure, one can find situations in which a personality trait does not predict job per for mance. Even though personality tests generalize across jobs, this does not mean they will work in every case. For example, evidence suggests that conscientiousness and positive self­ concept work well in predicting player success in the NFL but not so well in predicting the per for mance of police officers.16 Organ izations need to perform their own validation studies to ensure that the tests work as hoped. In general, personality is more predictive of per for mance in jobs that have substantial autonomy, meaning that individuals have discretion in deciding how— and how well—to do their work. Job requirement and context factors also can have an impact on the validities, depending on the trait in question (e.g., extraversion is more predictive of per for mance in jobs that require a strong social skill component).17

Third, the Big Five do not exhaust the set of potentially relevant personality traits. Meta­ analytic evidence suggests that a variety of other personality traits can be relevant for workplace outcomes. As a first example, the Big Five Factor model framework has been extended and refined to include an honesty/humility factor as a dimension. Some research suggests that this variable predicts deviant be hav­ ior above and beyond the Big 5, including unethical business decisions and sexual harassment proclivity. Another trait, termed core self­ evaluations (a reflection of an individual’s self­ confidence and self­ worth), has also been linked to job per for mance. Research indicates that core self­ evaluations are predictive of job per for mance, and the Core Self­ Evaluations Scale (shown in Exhibit 9.3) appears to have validity equivalent to that of conscientiousness. A further advantage of this mea sure is that it is nonproprietary (i.e., free). Research also suggests that additional traits are relevant for the work context: proactive personality (degree to which people take action) pre­ dicts per for mance, innovation, and job attitudes even after controlling for the Big 5; hardiness or resilience (the degree to which people bounce back after hardship) reduces the experience of negative mental health outcomes such as depression and job burnout; and the Dark Triad (a complex of narcissistic, Machiavellian, and psychopathic traits) predicts counterproductive work be hav ior.18

However, regardless of the predictive validity of these additional personality traits, meta­ analytic evidence has been emerging that suggests that these additional personality traits share a lot of conceptual and empirical overlap with the Big Five. This does not mean, however, that these personality traits are not useful— especially when the personality traits provide incremental validity above and beyond that of the Big Five or when they are strongly predictive of impor tant narrow criteria.19

Fourth, personality is not intended to be a stand­ alone se lection tool. In nearly all cases, it is part of a se lection battery consisting of other substantive se lection mea sures. No reasonable person would recommend that applicants be hired solely based on scores on a personality test. But by the same token, personality mea sures do appear to add to the validity of other se lection mea sures.20

099-67811_ch09_4P.indd 438 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 439

Recent studies suggest that personality validities may be nonlinear. Multiple studies have shown that the validities of certain personality traits in predicting job per for mance were nonlinear, such that there were diminishing returns to increas­ ing levels of these traits (extremely conscientious employees do not necessarily per­ form better than highly conscientious employees). Thus, correlation coefficients (which assume linearity) may understate the true validity of personality tests. Practically, when choosing between two applicants, it may make sense to consider where they are on the distribution of each trait.21

Fi nally, there is evidence that the validities of the Big Five may be improved by contextualizing the mea sures. Most personality inventories ask about be hav iors in general, ignoring the context in which those be hav iors occur. Researchers argue that tailoring items to ask about be hav iors specific to the workplace, or asking applicants to report on how they behave at work only, will strengthen the validities of the Big Five. A recent meta­ analysis found support for this notion, demonstrat­ ing that the validity of each of the Big Five traits increased when the mea sures

Instructions: Below are several statements about you with which you may agree or disagree. Using the response scale below, indicate your agreement or disagreement with each item by placing the appropriate number on the line preceding that item.

1 2 3 4 5 Strongly Disagree Disagree Neutral Agree Strongly Agree

1. _____ I am confident I get the success I deserve in life. 2. _____ Sometimes I feel depressed. (r) 3. _____ When I try, I generally succeed. 4. _____ Sometimes when I fail, I feel worthless. (r) 5. _____ I complete tasks successfully. 6. _____ Sometimes I do not feel in control of my work. (r) 7. _____ Overall, I am satisfied with myself. 8. _____ I am filled with doubts about my competence. (r) 9. _____ I determine what will happen in my life. 10. _____ I do not feel in control of my success in my career. (r) 11. _____ I am capable of coping with most of my problems. 12. _____ There are times when things look pretty bleak and hopeless to me. (r) Note: r = reverse- scored (for these items, 5 is scored 1, 4 is scored 2, 2 is scored 4, and 1 is scored 5).

EXHIBIT 9.3 The Core Self- Evaluations Scale

Source: T. A. Judge, A. Erez, J. E. Bono, and C. J. Thoresen, “The Core Self- Evaluations Scale: Development of a Measure,” Personnel Psychology, 2003, 56, pp. 303–331.

099-67811_ch09_4P.indd 439 11/17/17 1:31 PM

440 PART FOUR Staffing Activities: Selection

were contextualized. Specifically, for four of the Big Five traits— extraversion, agreeableness, emotional stability, and openness to experience— the validity of contextualized mea sures was twice as high as the validity of more traditional, decontextualized mea sures. Although mea sures of conscientiousness specific to the workplace also improved validities, those improvements were not as strong as the others, presumably because traditional mea sures of conscientiousness already reference people’s work be hav iors.22

Faking. Another frequent criticism of personality mea sures is that they are “fake­ able,” meaning applicants will distort their responses to increase their odds of being hired. This concern is apparent when one considers personality items (see Exhibits 9.1 and 9.3) and the nature of the traits. Few individuals would want to describe themselves as disagreeable, neurotic, unconscientious, and unconfident. Because answers to these questions are nearly impossible to verify (e.g., imagine trying to verify whether an applicant prefers reading a book to watching tele ­ vision), the possibility of “faking good” is quite real. This then leads to the perverse outcome that the applicants most likely to be hired are those who enhanced (faked) their responses the most.

There is a voluminous lit er a ture on faking. The results of this lit er a ture can be summarized as follows. First, there is little doubt that some faking or enhancement does occur. Meta­ analytic research suggests that applicants consistently score higher than current employees on socially desirable personality traits like conscientiousness, emotional stability, and agreeableness (in most situations, there is no reason to believe that applicants should score more favorably on personality tests than employees— if anything, the reverse would be expected). Specifically, some meta­ analytic research suggests that applicants score nearly one­ half of a standard deviation higher than non­ applicants on emotional stability and conscientiousness. Also, when individuals are informed that their scores matter (i.e., the scores might be used in se lection decisions), their scores on personality tests increase. There are cross­ cultural differences in faking as well— applicants in countries with high uncertainty avoidance and a long­ term future orientation (e.g., Italy, Rus sia) may be more likely to fake than applicants in collectivist countries (e.g., China, South Korea, Japan).23

But what is the outcome of this enhancement? Does the fact that some appli­ cants fake their responses destroy the validity of personality mea sures in se lection? Interestingly, the answer to this question is not as clear as it seems. In short, though applicants do try to look good by enhancing their responses to personality tests, this enhancement does not significantly detract from the validity of the tests in all cases. Why might this be the case? Evidence suggests that socially desirable responding, or presenting oneself in a favorable light, does not end once someone takes a job. Therefore, the same tendencies that cause someone to pres ent himself or herself in a somewhat favorable light on a personality test also help him or her do better on the job. As an example, consider the job of customer ser vice repre­

099-67811_ch09_4P.indd 440 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 441

sentative. An individual in that occupation needs to be able to assess a customer’s needs, deal with potential prob lems, and interact with that customer in a way that will result in the customer being satisfied. An employee who can assess a situation and determine the socially desirable response should be more adept at achieving cus­ tomer satisfaction than an employee who is less skilled in this area. Thus, socially desirable responding may very well be desired in many cases.24

However, there are as many cases in which socially desirable be hav ior and responding would not be desirable on the job. For example, overestimation of com­ petence, overclaiming of knowledge, or other socially desirable distortion of one’s personality may lead one to take on tasks for which he or she is not well suited and cause the employee to be resented by his or her coworkers. When it comes to social desirability, not all positive impressions from self­ reports translate to one’s job— the socially desirable responses given in the personality survey are in de pen dent of the actual reputation the employee garners in his or her job. In further support of why social desirability may not always be desirable, a new meta­ analysis utilizing a unique multi­ trait, multi­ method approach found that individuals who craft posi­ tive impressions on personality surveys tend to not perform well on the job and at school (although based on an overall sample of over 1,500 employees).25

Because it is unclear whether faking undermines personality validities across contexts and situations, some of the proposed solutions to faking may be unnecessary or may cause more prob lems than they solve. For example, some have proposed correcting applicant scores for faking. However, the lit er a ture is quite clear that such corrections do not improve the validity of personality mea sures.26 Another pro­ posed solution— using forced­ choice personality mea sures, where applicants must evaluate themselves as either, say, conscientious or emotionally stable— also appears to be fraught with considerable prob lems.27 A third pos si ble method of reducing faking involves warning applicants that their scores will be verified. Typically, this warning is presented to applicants prior to completing a given inventory. However, one recent study tried an approach whereby applicants who were suspected of fak­ ing were given a warning during the testing pro cess. “Fakers” were detected based on whether they endorsed bogus statements and whether their scores on an impres­ sion management scale were well above the norm. Although the warning message reduced subsequent faking, it also increased perceptions of testing unfairness. There is also recent evidence that fakers attend visually more to the extreme ends of response options on personality inventories (e.g., “strongly disagree” and “strongly agree”); however, detection of this requires eye­ tracking software and thus is likely to be impractical for many organ izations. Overall, while warning applicants against faking has both pros and cons, studies have shown that such warnings can reduce faking (by as much as 30%) without undermining validities.28

A final possibility is to use other reports of personality. Individuals who have worked with an applicant could report on the applicant’s personality. The upside of observer reports appears to be noteworthy in that most research suggests that observer ratings of personality outperform self­ reports when predicting job per for mance.29

099-67811_ch09_4P.indd 441 11/17/17 1:31 PM

442 PART FOUR Staffing Activities: Selection

If one is using observer reports of personality, however, it is impor tant to attend to information security concerns. One should ensure that the observer nominated by the applicant actually completes the assessment and that the observer is asked to be objective in the assessment. In addition, to the extent pos si ble, multiple observer ratings should be used, as this greatly improves reliability and, thus, validity.

Negative Applicant Reactions. It is impor tant to evaluate personality tests not only in terms of their validity but also in terms of the applicant’s perspective. From an applicant’s standpoint, the subjective and personal nature of the questions asked in these tests may raise questions about their validity and concerns about invasive­ ness. In fact, the available evidence concerning applicants’ perceptions of person­ ality tests suggests that they are viewed relatively negatively compared with other se lection mea sures (although they are still perceived more favorably than mea sures such as honesty tests, handwriting analy sis, and reaching out to personal contacts). To some degree, applicants who react the most negatively are those who believe they have scored the worst.30 In general, though, applicants do not perceive personal­ ity mea sures to be as face­ valid as other se lection mea sures. Thus, while personality tests— when used properly—do have validity, this validity does not seem to translate into favorable applicant perceptions. More research is needed into the ways that these tests could be made more acceptable to applicants.

Ability Tests

Ability tests are mea sures that assess an individual’s capacity to function in a cer­ tain way. There are two major types of ability tests: aptitude and achievement. Aptitude tests look at a person’s innate capacity to function, whereas achievement tests assess a person’s learned capacity to function. In practice, these types of abili­ ties are often difficult to separate. Thus, it is not clear that this is a productive, practical distinction for ability tests used in se lection.

Surveys reveal that between 15% and 20% of organ izations use some sort of abil­ ity test in se lection decisions, although there is reason to believe that use is increas­ ing.31 Organ izations that use ability tests do so because they assume the tests assess a key determinant of employee per for mance. Without a certain level of ability, innate or learned, per for mance is unlikely to be acceptable, regardless of motivation. Someone may try extremely hard to do well in a very difficult class (e.g., calculus) but will not succeed unless he or she has the ability to do so (e.g., mathematical aptitude).

There are four major classes of ability tests: cognitive, psychomotor, physical, and sensory/perceptual.32 As these ability tests are quite distinct, each will be considered separately below. Because most of the research attention— and public controversy— has focused on cognitive ability tests, they are discussed in consider­ able detail.

099-67811_ch09_4P.indd 442 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 443

Cognitive Ability Tests Cognitive ability tests refer to mea sures that assess abilities involved in thinking (including perception), memory, reasoning, verbal and mathematical abilities, and the expression of ideas. Is cognitive ability a general construct, or does it have many specific aspects? Research shows that mea sures of specific cognitive abili­ ties, such as verbal, quantitative, reasoning, and so on, appear to reflect general intelligence (sometimes referred to as general mental ability, IQ, or “g”).33 One of the facts that best illustrate this finding is the relatively high correlations among scores on mea sures of specific facets of intelligence. Someone who scores well on a mea sure of one specific ability is likely to score well on mea sures of other specific abilities. In other words, general intelligence causes individuals to have similar scores on mea sures of specific abilities.

Mea sures of Cognitive Ability. Many cognitive ability tests mea sure both spe­ cific cognitive abilities and general mental ability. Many test publishers offer an array of tests. The Psychological Corporation sells the Employee Aptitude Survey, which comprises tests of 10 specific cognitive abilities (e.g., verbal comprehen­ sion, numerical ability, numerical and verbal reasoning, and word fluency). Each of these specific tests is sold separately and takes no more than five minutes to administer to applicants. The Psychological Corporation also sells the Wonderlic Personnel Test, perhaps the most widely used test of general mental ability for se lection decisions. The Wonderlic is a 12­ minute, 50­ item test. Items range in type from spatial relations to numerical prob lems to analogies. Exhibit 9.4 pro­ vides examples of items from one of the Wonderlic forms. In addition to being a speed (timed) test, the Wonderlic is also a power test— the items get harder as the test progresses (very few individuals complete all 50 items). The Wonderlic has been administered to more than 2.5 million applicants, and normative data are available from a database of more than 450,000 individuals. One prominent organ ization that has used the Wonderlic for more than 30 years is the NFL. Each year, poten­ tial recruits are given the Wonderlic, and although scores are supposed to be kept confidential, they inevitably are leaked to the press. Much is then made about top prospects who “bomb” the Wonderlic versus those who “ace” it, although it seems that players’ scores often do not play a major role in their eventual draft position.34 Cost of the Wonderlic varies per applicant, depending on whether the organ ization scores the test itself. Costs of other cognitive ability tests are similar. Cognitive abil­ ity tests are among the least expensive of any substantive assessment method.

There are many other tests and test publishers in addition to those reviewed above. Before deciding which test to use, organ izations should seek a reputable testing firm. An association of test publishers has been formed with bylaws to help ensure this pro cess.35 It is also advisable to seek the advice of researchers or testing specialists, many of whom are members of the American Psychological Associa­ tion or the American Psychological Society.

099-67811_ch09_4P.indd 443 11/17/17 1:31 PM

444 PART FOUR Staffing Activities: Selection

Evaluation of Cognitive Ability Tests. The findings regarding general intelli­ gence have had profound implications for personnel se lection. Many meta­ analyses have been conducted on the validity of cognitive ability tests. Although the validi­ ties found in these studies have fluctuated to some extent, the most comprehensive reviews have estimated the “true” validity of mea sures of general cognitive ability to be roughly r

_ xy = .50.

36 The conclusions from these meta­ analyses are dramatic:

1. Cognitive ability tests are among the most valid, if not the most valid, meth­ ods of se lection.

2. Cognitive ability tests appear to generalize across all organ izations, all job types, and all types of applicants; thus, they are likely to be valid in virtually any se lection context.

EXHIBIT 9.4 Sample Cognitive Ability Test Items

Look at the row of numbers below. What number should come next? 8 4 2 1 1/2 1/4 ? Assume the first 2 statements are true. Is the final one: (1) true, (2) false, (3) not certain?

The boy plays baseball. All baseball players wear hats. The boy wears a hat. One of the numbered figures in the following drawing is most di�erent from the others. What is the number in that drawing?

1 2 3 54

A train travels 20 feet in 1/5 second. At this same speed, how many feet will it travel in three seconds? How many of the six pairs of items listed below are exact duplicates?

3421 1243 21212 21212

558956 558956 10120210 10120210

612986896 612986896 35647 1201 35657 1201

The hours of daylight and darkness in SEPTEMBER are nearest equal to the hours of daylight and darkness in

(1) June (2) March (3) May (4) November

Source: Reprinted with permission from C. F. Wonderlic Personnel Test, 1992 Catalog: Employment Tests, Forms, and Procedures (Libertyville, IL: author, 1992).

099-67811_ch09_4P.indd 444 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 445

3. Organ izations using cognitive ability tests in se lection enjoy large economic gains compared with organ izations that do not use them.

4. Cognitive ability tests appear to generalize across cultures, with validities in Eu rope at least as high as those in the United States.

5. Beyond job per for mance, cognitive ability predicts other impor tant criteria, including health­ conscious be hav iors (such as exercise), occupational pres­ tige, income, steeper career success trajectories, citizenship and helping be hav iors, and lower turnover.37

These conclusions are not simply esoteric speculations from the ivory tower. They are based on hundreds of studies of hundreds of organ izations employing hundreds of thousands of workers. Thus, whether an organ ization is selecting engineers, customer ser vice representatives, or meat cutters, general mental ability is likely the single most valid method of selecting among applicants. A large­ scale quantita­ tive review of the lit er a ture suggested relatively high average validities for many occupational groups:38

Man ag er, r _

xy = .53 Clerk, r

_ xy = .54

Salesperson, r _

xy = .61 Protective professional, r

_ xy = .42

Ser vice worker, r _

xy = .48 Trades and crafts, r

_ xy = .46

Elementary industrial worker, r _

xy = .37 Vehicle operator, r

_ xy = .28

Sales clerk, r _

xy = .27

These results show that cognitive ability tests have some degree of validity for all types of jobs. The validity is particularly high for complex jobs (e.g., man ag er, engineer), but even for simple jobs the validity is positive. The same review also revealed that cognitive ability tests have very high degrees of validity in predict­ ing training success—r

_ xy = .37 for vehicle operators to r

_ xy = .87 for protective

professionals. This is due to the substantial learning component of training and the obvious fact that smart people learn more and adapt more readily to changing job conditions.39

Cognitive ability tests are more valid for jobs of medium complexity (e.g., police officers, salespeople) and high complexity (e.g., computer programmers, pi lots), but they are also valid for jobs of relatively low complexity (e.g., bus driver, factory worker). Why are cognitive ability tests predictive even for relatively simple jobs where intelligence would not appear to be an impor tant attribute? The fact is that some degree of intelligence is impor tant for any type of job.

Why do cognitive ability tests work so well in predicting job per for mance? Research has shown that most of the effect of cognitive ability tests is because

099-67811_ch09_4P.indd 445 11/17/17 1:31 PM

446 PART FOUR Staffing Activities: Selection

intelligent employees learn more on the job and thus have greater job knowledge. As we noted earlier, evidence also suggests that intelligent employees adapt better to changing job conditions, an impor tant skill in many workplaces.40

Another impor tant issue in understanding the validity of cognitive ability tests is the nature of specific versus general abilities. Historically, evidence has sug­ gested that specific abilities add little to the prediction of job per for mance beyond the general factor. More recently, however, this conclusion has been challenged. Researchers in one study argued that specific abilities are sometimes more impor­ tant than general mental abilities, and another research study suggested that specific cognitive abilities may matter to certain narrow criteria (e.g., perceptual accuracy may predict the degree to which an editor spots errors).41 Thus, while general mental ability is the most impor tant predictor of job per for mance in nearly every situation, there may be situations in which specific abilities are impor tant.

Potential Limitations. If cognitive ability tests are so valid and cheap, why don’t more organ izations use them? One of the main reasons is concern over the adverse impact and fairness of these tests. In terms of adverse impact, regardless of the type of mea sure used, cognitive ability tests have severe adverse impact against minorities. Specifically, blacks on average have scored .72 standard deviations below whites on cognitive ability tests, and the validities for cognitive ability tests are much lower for blacks ( r

_ xy = .24) and slightly lower for Hispanics ( r

_ xy = .30) than for whites

( r _

xy = .33), with similar findings even after accounting for restriction of range. 42

Historically, these discrepant scores and validities have led to close scrutiny— and sometimes rejection—of cognitive ability tests by the courts. The issue of cognitive ability test fairness has been hotly debated and heavi ly researched. One way to think of fairness is in terms of accuracy of prediction of a test. If a test predicts job per­ for mance with equal accuracy for two groups, such as whites and blacks, then most people would say the test is fair. The prob lem is that even though the test is equally accurate for both groups, the average test scores may be dif fer ent between the two groups. When this happens, use of the test will cause some degree of adverse impact. This causes a dilemma: Should the organ ization use the test because it is an accurate and unbiased predictor, or should it not be used because it would cause adverse impact?

Some research shows that cognitive ability tests are relatively similar as accurate predictors of job per for mance for vari ous racial and ethnic groups.43 But research also shows that blacks and Hispanics score lower on such tests than whites. Thus, the dilemma noted above is a real one for the organ ization. It must decide whether to (1) use the cognitive ability test and experience the positive benefits of using an accurate predictor, (2) not use the cognitive ability test, to avoid adverse impact, and substitute a dif fer ent mea sure that has less adverse impact, or (3) use the cognitive ability test in conjunction with other predictors that do not have adverse impact, thus lessening adverse impact overall. Unfortunately, current research does not offer clear guidance on which approach is best. Research suggests that while

099-67811_ch09_4P.indd 446 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 447

using other se lection mea sures in conjunction with cognitive ability tests reduces the adverse impact of cognitive ability tests, it by no means eliminates it.44

Although the apparent trade­ off between diversity and validity is not likely to dis appear anytime soon, there have been three positive developments in the cogni­ tive ability testing area. First, one study suggests that tests constructed in an open­ ended manner— where the test taker writes in a response— reduce differences in test scores between blacks and whites by 39%, compared with traditional multiple­ choice tests, while producing equivalent levels of validity. Evidence suggests that open­ ended tests reduce group differences because they generate more positive reactions from minority test takers (minority test takers are more likely to see open­ ended tests as fair and are more motivated to do well on them). Second, some research suggests the negative effects of cognitive ability testing on diversity can be miti­ gated by recruiting— targeted recruiting not only for diversity but also for cognitive ability and personality (e.g., announcing in recruiting materials that one is looking for smart, diverse, and conscientious applicants).45

Applicant reactions pres ent another concern over using cognitive ability tests in se lection. Research on how applicants react to cognitive ability tests is scant and somewhat mixed. One study suggested that 88% of applicants for managerial posi­ tions perceived the Wonderlic as job related.46 Another study, however, demon­ strated that applicants thought companies had little need for information obtained from a cognitive ability test.47 Perhaps one explanation for these conflicting find­ ings is the nature of the test. One study characterized eight cognitive ability tests as either concrete (vocabulary, mathematical word prob lems) or abstract (letter sets, quantitative comparisons) and found that concrete cognitive ability test items were viewed as job related while abstract test items were not. Thus, while applicants may have mixed reactions to cognitive ability tests, concrete items are less likely to be objectionable. Fi nally, some research suggests that potential “star employees,” or applicants who are exceptional in quality, may become offended and potentially drop out of the candidate pool if required to take a cognitive ability test. In general, however, applicants perceive cognitive ability tests to be more valid than personal­ ity tests but less valid than interviews or work samples.48

Conclusion. In sum, cognitive ability tests are one of the most valid se lection mea­ sures across jobs; they also predict both learning and training success and retention.49 But they also have some troubling side effects, notably that applicants aren’t wild about the tests and that the tests have substantial adverse impact against minorities.

A survey of 703 members of the main professional association in which cogni­ tive ability tests are used generated some in ter est ing findings. Among the experts, there were several areas of consensus:50

1. Cognitive ability is mea sured reasonably well by standardized tests. 2. General cognitive ability will become increasingly impor tant in se lection as

jobs become more complex.

099-67811_ch09_4P.indd 447 11/17/17 1:31 PM

448 PART FOUR Staffing Activities: Selection

3. The predictive validity of cognitive ability tests depends on how per for mance is defined and mea sured.

4. The complex nature of job per for mance means that cognitive ability tests need to be supplemented with other se lection mea sures.

5. There is more to intelligence than what is mea sured by a standard cognitive ability test.

Given such prominent advantages and disadvantages, cognitive ability tests are here to stay, as is the controversy over their use.

Other Types of Ability Tests Following the earlier classification of abilities into cognitive, psychomotor, physi­ cal, and sensory/perceptual, and having just reviewed cognitive ability tests, we now consider the other types of ability tests.

Psychomotor Ability Tests. Psychomotor ability tests mea sure the correlation of thought with bodily movement. Involved here are pro cesses such as reaction time, arm­ hand steadiness, control precision, and manual and digit dexterity. An example of testing for psychomotor abilities is the test used by the city of Columbus, Ohio, to select firefighters. The test mimics coupling a hose to a fire hydrant, and it requires a certain level of pro cessing with psychomotor abilities to achieve a passing score. Some tests of mechanical ability are psychomotor tests. The MacQuarrie Test for Mechanical Ability is a 30­ minute test that mea sures manual dexterity. Seven sub­ tests require tracing, tapping, dotting, copying, and so on.

Physical Abilities Tests. Physical abilities tests mea sure muscular strength, car­ diovascular endurance, and movement quality.51 An example of a test that requires all three is the test given to firefighters in the city of Milwaukee, Wisconsin. The test mea sures upper­ body strength (bench press, a lateral pulldown, and grip strength pressure), abdominal strength (sit­ ups), aerobic endurance (five­ minute step tests), and physical mobility (roof ladder placement).52

Physical abilities tests are becoming increasingly common to screen out individu­ als susceptible to repetitive stress injuries, such as carpal tunnel syndrome. Physi­ cal abilities tests may also be necessary for equal employment opportunity (EEO) reasons.53 Although meta­ analytic estimates suggest that men and women score equally on movement quality tests, female applicants typically score nearly two standard deviations lower than male applicants on muscular strength and cardio­ vascular endurance tests. However, the distributions of scores for male and female applicants across the physical abilities tests overlap considerably and vary depend­ ing on body region. Therefore, all applicants must be given a chance to pass the requirements and not be judged as a class. Physical fitness training is another way in which the adverse impact of physical abilities tests can be reduced, although modestly. Another reason to use physical abilities tests for appropriate jobs is to

099-67811_ch09_4P.indd 448 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 449

avoid injuries on the job. Well­ designed tests will screen out applicants who have applied for positions that are poorly suited to their physical abilities. Thus, fewer injuries should result. In fact, one study using a concurrent validation approach on a sample of railroad workers found that 57% of all injury costs were due to the 26% of current employees who failed the physical abilities test.54

When carefully conducted for appropriate jobs, physical abilities tests can be highly valid. One comprehensive study reported average validities from r

_ = .39 for

ware house workers to r _ = .87 for enlisted army men.55 Applicant reactions to these

sorts of tests are unknown.

Sensory/Perceptual Abilities Tests. Sensory/perceptual abilities tests assess the ability to detect and recognize environmental stimuli. An example of a sensory/ perceptual ability test is a flight simulation used as part of the assessment pro cess for airline pi lots. Some tests of mechanical and clerical ability can be considered mea sures of sensory/perceptual ability, although they take on characteristics of cognitive ability tests. For example, the most commonly used mechanical ability test is the Bennett Mechanical Comprehension Test, which contains 68 items that mea sure an applicant’s knowledge of the relationship between physical forces and mechanical objects (e.g., how a pulley operates, how gears function). In terms of clerical tests, the Minnesota Clerical Test is the most widely known. This timed test consists of 200 items in which the applicant is asked to compare names or numbers to identify matching ele ments. For example, an applicant might be asked (needing to work under time constraints) to check the pairs of numbers in the fol­ lowing list for the set that is the same:

109485_______________104985 456836_______________456836 356823_______________536823 890940_______________890904 205837_______________205834

These tests of mechanical and clerical ability and others like them have reliability and validity data available that suggest they are valid predictors of per for mance within their specific area.56 The degree to which these tests add validity over gen­ eral intelligence, however, is not known.

Job Knowledge Tests. Job knowledge tests attempt to directly assess an appli­ cant’s ability to comprehend job requirements. Although generally not marketed as cognitive ability tests per se, not surprisingly, job knowledge test scores tend to correlate highly with cognitive ability test scores.

Job knowledge tests can be of two kinds. One type asks questions that directly assess knowledge of the duties involved in a par tic u lar job. For example, an item from a job knowledge test for an oncology nurse might be, “Describe the five

099-67811_ch09_4P.indd 449 11/17/17 1:31 PM

450 PART FOUR Staffing Activities: Selection

oncological emergencies in cancer patients.” The other type of job knowledge test focuses on the level of experience with, and corresponding knowledge about, critical job tasks and tools/pro cesses necessary to perform the job. The state of Wisconsin uses the Objective Inventory Questionnaire to evaluate applicants based on their experience with tasks, duties, tools, technologies, and equipment that are relevant to a par tic u lar job.57

There has been less research on the validity of job knowledge tests than on other ability tests. One study, however, provided relatively strong support for the validity of job knowledge tests. A meta­ analytic review of 502 studies indicated that the “true” validity of job knowledge tests in predicting job per for mance is .45. These validities were found to be higher for complex jobs and when job and test content were similar.58

Emotional Intelligence Tests

Increasingly, researchers argue that mea sures of cognitive intelligence miss an impor tant piece of the abilities puzzle, namely, social or emotional intelligence. More and more, organ izations are using mea sures of emotional intelligence (EI) in se lection decisions. We consider EI by answering four questions: (1) What is EI? (2) How is EI mea sured? (3) How valid is EI? and (4) What are the criticisms of EI?

What Is Emotional Intelligence? One of the most prominent EI researchers defines EI as “the ability to monitor one’s own and others’ feelings, to discriminate among them, and to use this infor­ mation to guide one’s thinking and action.”59 Thus, EI may be broken down into the following components:

• Self- awareness: Good at recognizing and understanding one’s own emotions • Other awareness: Good at recognizing and understanding others’ emotions • Emotion regulation: Good at making use of or managing this awareness

It is easy to see that this concept is impor tant. Wouldn’t nearly every employee be more effective if he or she could readily sense what he or she was feeling (and why), sense what others were feeling, and manage his or her own (and others’) emotions?

How Is Emotional Intelligence Mea sured? Although there are many variants, EI has mainly been mea sured in three ways. First, some EI mea sures are very similar to items contained in a personality test, and, indeed, several reviews found that such EI items are strongly related to personality, especially to emotional stability, agreeableness, and conscientiousness. Second, other EI mea sures are more ability focused. For example, some mea sures involve describing the emotional qualities of certain sounds and images. While these mea sures bear less similarity to personality mea sures, they have been criti­ cized for having poor reliability and for their content validity (one mea sure asks

099-67811_ch09_4P.indd 450 11/17/17 1:31 PM

Chapter NiNe External Se lection II 451

test takers to identify the emotions of colors). Somewhat troubling is that these two types of mea sures do not appear to assess the same construct. One review revealed that personality- like and ability mea sures only correlated r = .14. A third promising ave nue for EI mea sure ment can be found in situational judgment tests or performance- based mea sures. These mea sures, such as the Situational Test of Emotional Understanding and the Situational Test of Emotion Management, pres- ent respondents with common situations and ask them to choose the response that the person in the situation would most likely feel or what they would do in that situ- ation. For example, an item asking which emotion someone is most likely to feel when receiving a gift should most appropriately be answered with happy. These tests have shown some promise in predicting outcomes such as personal success and academic achievement.60

Of the three types of EI mea sures, the personality- like variety is most common. Exhibit 9.5 contains items from a nonproprietary personality- like EI mea sure.

how Valid is emotional intelligence? Evidence suggests that EI is modestly related to job per for mance. A meta- analysis suggested that of the vari ous dimensions of EI, emotion regulation had the highest correlation with job per for mance, r

_ xy = .18. This same study found that once indi-

vidual differences related to EI (cognitive ability, conscientiousness, and emotional stability) were controlled, the relationship between emotion regulation and job per- for mance dropped to .08. Although the “personality- like” mea sures of EI tend to have much higher validities, with a meta- analytic estimate for supervisor- rated job per for mance at .29, when controlling for other personality traits the relationship

eXhiBit 9.5 Sample items Measuring emotional intelligence

Source: A. Cooper and K. V. Petrides, “A Psychometric Analysis of the Trait Emotional Intelligence Questionnaire—Short Form (TEIQue-SF) Using Item Response Theory,” Journal of Personality Assessment, 2010, 92(5), pp. 449–457.

Self-awareness Generally, I find it difficult to know exactly what emotion I’m feeling. I’m generally aware of my emotions as I experience them.

Other awareness I often find it difficult to see things from another person’s viewpoint. I’m normally able to “get into someone’s shoes” and experience their emotions.

emotion regulation I usually find it difficult to regulate my emotions. I’m usually able to influence the way other people feel.

1259756556_ch09_p431_512.indd 451 12/8/17 5:16 PM

452 PART FOUR Staffing Activities: Selection

becomes nil.61 Thus, one could conclude that EI has a relatively small and unique effect on job per for mance, though the effects may be higher with some mea sures of EI and in certain situations (e.g., jobs that are emotionally demanding). Some recent evidence suggests that the emotion regulation aspect of EI may be the most critical, as it showed a stronger unique effect on be hav iors such as job per for mance, “citizenship” be hav iors like helping, and “deviant” be hav iors like harming ( those with greater emotion regulation ability performed fewer deviant be hav iors), even after cognitive ability and personality were controlled. The general EI mea sure, however, exhibited a smaller unique effect. The greater importance of emotion reg­ ulation, compared with emotion awareness, may be due to the increase in customer ser vice occupations and interpersonal interactions in general, as organ izations have moved to more team­ based structures, where it has become more critical to be able to control and influence one’s emotional responses toward others.62

What Are the Criticisms of Emotional Intelligence? It’s safe to say that EI has proved to be a controversial measure— many criticisms have been offered.63 First, many researchers have focused on mea sur ing EI, or seeing how well EI predicts per for mance (often to disappointing effect), without paying sufficient attention to what EI might uniquely predict. To understand this, one must work from the criterion backward. Shouldn’t EI better predict empathetic be hav ior on the part of social workers than predict whether a bank teller’s cash drawer will balance? 64 Second, for many researchers, it is not clear what EI is. Is it really a form of intelligence? Most of us would not think that being self­ aware or sensitive to others’ emotions is a matter of intellect. Beyond this definitional ambiguity, dif fer ent EI researchers have studied a dizzying array of concepts— including emotion recognition, self­ awareness, empathy, self­ control, interper­ sonal skills, stress management, well­ being, and self­ discipline. One reviewer noted, “The concept of EI has now become so broad and the components so var­ iegated that . . . it is no longer even an intelligible concept.”65 Fi nally, some critics argue that because EI is so closely related to intelligence and personality, once you control for these factors, EI has nothing unique to offer. We noted earlier evidence showing that controlling for personality and cognitive ability does indeed detract from the validity of EI.66

Still, among consulting firms and in the popu lar press, EI is wildly popu lar. For example, one organ ization’s promotional materials for an EI mea sure claim, “EI accounts for more than 85 percent of star per for mance in top leaders.”67 To say the least, it is hard to validate this statement with the research lit er a ture.

Summary Although few would deny that emotion awareness and regulation are impor tant for many jobs, EI has proved hard to mea sure in a way that is valid. Weighing the arguments for and against EI, it is still too early to tell whether the concept is

099-67811_ch09_4P.indd 452 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 453

useful. It is clear, though, that more and more organ izations are using EI mea sures in se lection decisions. If an organ ization wishes to use an EI mea sure in se lection decisions, we urge a certain amount of caution. At the very least, it should be restricted to jobs with exceptional emotional demands, and the construct and empirical validity of the EI mea sure should be investigated before it is used in actual se lection decisions.

Per for mance Tests and Work Samples

Per for mance tests are mechanisms to assess actual per for mance rather than under­ lying capacity or disposition. As such, they are more akin to samples rather than signs of work per for mance. For example, Chrysler asks applicants for its assembly­ line jobs to try assembling auto parts, and applicants for executive­ level positions undergo a “day in the life” simulation in which they play the role of plant man­ ag er, a pro cess that has been followed by Hyundai and Mitsubishi.68 Exhibit 9.6 provides examples of per for mance tests and work samples for a variety of jobs. As can be seen in the exhibit, the potential uses of these se lection mea sures are quite broad in terms of job content and skill level.

Types of Tests Per for mance Test Versus Work Sample. A per for mance test mea sures what the person actually does on the job. The best examples of per for mance tests are internships, job tryouts, and probationary periods. Although probationary periods have their uses when one cannot be completely confident in an applicant’s ability to perform a job, they are no substitute for a valid pre­ hire se lection pro cess. Dis­ charging a probationary employee and finding a replacement is expensive and has numerous legal issues.69 A work sample is designed to capture parts of the job, for example, a drill press test for machine operators and a programming test for com­ puter programmers.70 A per for mance test is costlier to develop than a work sample, but it is usually a better predictor of job per for mance.

Motor Versus Verbal Work Samples. A motor work sample test involves the physical manipulation of things. Examples include a driving test and a clothes­ making test. A verbal work sample test involves a prob lem situation requiring lan­ guage skills and interaction with people. Examples include role­ playing tests that simulate contact with customers, and an En glish test for foreign teaching assistants.

High- Versus Low- Fidelity Tests. A high­ fidelity test uses realistic equipment and scenarios to simulate the actual tasks of the job. Therefore, it elicits actual responses encountered in performing the task.71 A good example of a high­ fidelity test is one used in the petroleum industry to select truck drivers. The test is per­ formed on a computer and mimics all the steps taken to load and unload fuel from a tanker to a fuel reservoir at a ser vice station.72 It is not a test of perfect high fidelity,

099-67811_ch09_4P.indd 453 11/17/17 1:31 PM

454 PART FOUR Staffing Activities: Selection

because fuel is not actually unloaded. It is, however, a much safer test because the dangerous pro cess of fuel transfer is simulated rather than performed.

A low­ fidelity test simulates the task in a written or verbal description and elic­ its a written or verbal response rather than an actual response. An example of a low­ fidelity test is describing a work situation to job applicants and asking them what they would do in that situation. In one study, a written low­ fidelity test was given to incumbents for the position of man ag er across seven organ izations in the telecommunications industry. The low­ fidelity test correlated moderately with

Professor Teaching a class while on a campus interview Presenting research while on a campus interview

Mechanic Repairing a particular problem on a car Reading a blueprint

Clerical Worker Typing test Proofreading

Cashier Operating a cash register Counting money and totaling a balance sheet

Manager Performing a group problem- solving exercise Reacting to memos and letters

Airline Pilot Pilot simulator Rudder control test

Taxicab Driver Driving test Street knowledge test

TV Repair Person Repairing a broken television Finger and tweezer dexterity test

Police Officer Check police reports for errors Shooting accuracy test

Computer Programmer Programming and debugging test Hardware replacement test

EXHIBIT 9.6 Examples of Performance Tests and Work Samples

099-67811_ch09_4P.indd 454 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 455

supervisory ratings of per for mance, suggesting that even a low­ fidelity test can be predictive of per for mance, without the expenses required for high­ fidelity tests and work simulations.73 Low­ fidelity work samples bear many similarities to some types of structured interviews, and in some cases, they may be indistinguishable (see “Structured Interview” section).

Work sample tests are becoming more innovative and are increasingly being used for customer ser vice positions. For example, Aon Consulting has developed a web­ based simulation called REPeValuator, in which applicants assume the role of a customer ser vice specialist. In the simulation, the applicant takes phone calls, participates in Internet chat, and responds to e­ mails. The test takes 30 minutes to complete and costs $20 per applicant. The test provides scores on rapport, prob­ lem solving, communication, empathy, and listening skills.74 One in ter est ing work sample test that resembled a job tryout involved a promising applicant who looked perfect on paper but when taken on a sales call revealed troubling aspects of her be hav ior and was therefore not hired.75 Fi nally, some technology organ izations are hosting coding competitions at colleges, where in return for a hefty prize (first­ place awards can be as high as $50,000) and a job offer, students can try to develop software or solve a programming prob lem. The organ ization gets a chance to spread its brand name and a crack at hiring the best applicants, who have just proved themselves.76

Computer Interaction Per for mance Tests Versus Paper- and- Pencil Tests. As with ability testing, the computer has made it pos si ble to mea sure aspects of work that are not pos si ble to mea sure with a paper­ and­ pencil test. The computer can capture the complex and dynamic nature of work. This is especially true in work where perceptual and motor per for mance are required.

An example of how the computer can be used to capture the dynamic nature of ser vice work comes from Suntrust Bank. Suntrust has applicants perform some of the same tasks its tellers perform, such as looking up account information and entering customer data. The candidates’ reactions to the scenarios, both mental (e.g., comprehension, coding, and calculation) and motor (e.g., typing speed and accuracy), are assessed.77

Evaluation Earlier research indicated that per for mance or work sample tests have a high degree of validity in predicting job per for mance. One meta­ analysis of a large number of studies suggested that the average validity was r

_ = .54 in predicting job per for mance.

However, a more recent meta­ analysis suggests that the average validity is much lower but still quite moderate in size ( r

_ = .33), likely because there were method­

ological prob lems with earlier studies and work samples were often conflated with job knowledge tests, situational judgment tests, and the like.78 On a more positive note, because per for mance tests mea sure the entire job and work samples mea sure

099-67811_ch09_4P.indd 455 11/17/17 1:31 PM

456 PART FOUR Staffing Activities: Selection

part of the job, they also have a high degree of content validity. Thus, when one considers the substantial degree of empirical and content validity, work samples are perhaps the most valid method of se lection for many types of jobs.

Per for mance tests and work samples have other advantages as well. Research indicates that these mea sures are widely accepted by applicants as being job related. One study found that no applicants complained about per for mance tests but that 10%–20% complained about other se lection procedures.79 A study of American workers in a Japa nese automotive plant concluded that work sample tests are best able to accommodate cross­ cultural values and therefore are well suited for select­ ing applicants in international joint ventures. Another pos si ble advantage of per­ for mance tests and work samples is that they have low degrees of adverse impact, though some evidence suggests that they may have more adverse impact than is commonly thought, as dependent on the psychological constructs assessed with the work sample.80

Work samples do have several limitations. The costs of the realism embedded in work samples are high. The closer a predictor comes to simulating actual job per­ for mance, the more expensive it becomes to use it. Actually having people perform the job, as with an internship, may require paying a wage. Using videos and com­ puters adds costs as well. Thus, per for mance tests and work samples are among the most expensive means of selecting workers; their costs are amplified when one considers the lack of generalizability of such mea sures. Prob ably more than any other se lection method, per for mance tests and work samples are tied to the specific job at hand. This means that a dif fer ent test, based on a thorough job analy sis, will need to be developed for each job. While their validity may well be worth the cost, in some circumstances the costs of work samples may be prohibitive. One means of mitigating the administrative expense associated with per for mance tests or work samples is to use a two­ stage se lection pro cess whereby the full set of applicants is reduced using relatively inexpensive tests (e.g., cognitive ability tests and personal­ ity inventories). Once the initial cut is made, per for mance tests or work samples can be administered to the smaller group of applicants who demonstrated mini­ mum competency levels on the first­ round tests.81

Fi nally, most per for mance tests and work samples assume that the applicant already possesses the knowledge, skill, ability, and other characteristics (KSAOs) necessary to do the job. If substantial training is involved, applicants will not be able to per­ form the work sample effectively, even though with adequate training they could be high performers. In such situations, work samples simply will not be feasible.

Situational Judgment Tests

A hybrid se lection procedure that takes on some of the characteristics of an abil­ ity test (especially a job knowledge test) and some of the aspects of a work sample is the situational judgment test. These tests place applicants in hy po thet i cal job­ related situations where they are asked to choose a course of action from several alternatives. For example, applicants for a 911 operator position may listen to a

099-67811_ch09_4P.indd 456 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 457

series of phone calls and then are asked to choose the best response from a series of multiple­ choice alternatives. Or, individuals applying to be a member of a proj ect team may be confronted with a scenario in which the team is in conflict and the applicant must choose a method to resolve the conflict. Exhibit 9.7 provides two examples of situational judgment test items.

As one can see, situational judgment tests are very similar to job knowledge tests and work samples, so much so that the main differentiation in the type of

Retail Industry Manager You are the assistant manager of a large department store. One weekend day while you are in charge of the store, a customer seeks to return a pair of tennis shoes. The employee in charge of the customer service department has refused to accept the return. The customer has asked to speak to the manager, and so the employee has paged you. Upon meeting the customer—who is clearly agitated—you learn that the customer does not have a receipt, and, moreover, you see that the shoes are clearly well worn. When you ask the customer why she is returning the shoes, she tells you that she has bought many pairs of shoes from your store, and in the past they have “held up much better over time than these.” You recognize the shoes as a brand that your store has stocked, so you have no reason to believe the customer is lying when she says that she bought them from your store. Still, the shoes have clearly been worn for a long time. Should you:

a. Issue a refund to the customer b. Check with your boss—the store manager—when he is at the store on Monday c. Deny a refund to the customer, explaining that the shoes are simply too worn to be

returned d. Inform the customer of the current sale prices on comparable tennis shoes

Park Ranger You are a park ranger with the National Park Service, stationed in Yellowstone National Park. One of your current duties is to scout some of the park’s more obscure trails to look for signs of lost hikers, to detect any malfeasance, and to inspect the conditions of the trails. It is mid- September, and you’re inspecting one of the more remote trails in the Mount Washburn area to determine whether it should be closed for the season. When you first set out on your hike, the forecast called for only a slight chance of snow, but midway through your hike, an early fall blizzard struck. For a time you persisted on, but later you took refuge under a large lodgepole pine tree. Although the storm is now abating, it is near dark. Which of the following would be your best course of action?

a. Stay put until help comes b. Reverse course and hike back to the ranger station c. Once the clouds clear, locate the North Star, and hike north to the nearest ranger

station d. Use your matches to build a fire, and hike back in the morning

EXHIBIT 9.7 Examples of Situational Judgment Test Items

099-67811_ch09_4P.indd 457 11/17/17 1:31 PM

458 PART FOUR Staffing Activities: Selection

situational judgment test reflects whether the test assesses knowledge (more like job knowledge tests) or behavioral tendency (more like work samples). Situational judgment tests can also be distinguished from job knowledge tests and work samples. A job knowledge test more explic itly taps the content of the job (areas that applicants are expected to know immediately upon hire), whereas situational judgment tests are more likely to deal with future hy po thet i cal job situations. Job knowledge tests are less “holistic” than situational judgment tests in that the latter are more likely to include video clips and other more realistic material. Situational judgment tests differ from work samples in that the former pres ents applicants with multiple­ choice responses to the scenarios, whereas in the latter, applicants engage in be hav ior that is observed by others.

The principal argument in favor of situational judgment tests is to capture the validity of work samples and cognitive ability tests in a way that is cheaper than work samples and that has less adverse impact than cognitive ability tests. How well are these aims achieved? A meta­ analysis of the validity of situational judg­ ment tests indicated that such tests are reasonably valid correlates of job per for mance ( r _

xy = .26). 82 One study of medical students showed that a situational judgment test

on interpersonal skills predicted internship per for mance seven years later and job per for mance nine years later.83 Research also suggests that situational judgment tests have less (but not zero) adverse impact against minorities.84 Video­ based situ­ ational judgment tests appear to generate positive applicant reactions.85

One pos si ble limitation of situational judgment tests is that while they are easier to administer than work sample tests, and have less adverse impact and more positive applicant reactions than cognitive ability tests, they are not as valid as work sam­ ple tests or job knowledge tests. Moreover, because situational judgment tests are generally significantly correlated with cognitive ability ( r

_ xy = .32) and personality

(especially conscientiousness, r _

xy = .27), there is reason to worry about whether they have incremental validity beyond cognitive ability and personality. Some studies have shown that they do.86 However, other studies have shown little or no incremen­ tal validity.87 In the aforementioned meta­ analysis, the average incremental validity contributed by situational judgment tests over cognitive ability and personality tests was only ΔR2 = .02. As the authors note, this is not the last word on the incremental validity of situational judgment tests. However, given the recent attention focused on situational judgment tests, one might well won der, “Where’s the beef?”

Notably, a more recent perspective has been advanced that suggests situational judgment tests mea sure more general, context­ independent domain knowledge. In one study, after removing the situation descriptions from the items for vari ous situ­ ational domains, between 43% and 71% of the items were not significantly dif fer ent across situations that did contain the descriptions. Another group of studies showed that including explicit assessments of the situation itself (rather than a behavioral response of what would be the most appropriate) added incremental validity even above and beyond the traditional response judgment items.88

099-67811_ch09_4P.indd 458 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 459

If situational judgment tests are used, three impor tant decisions must be made. First, there is the issue of format. The two main formats of situational judgment tests are written and video. With video tests, applicants first view a video clip that typically involves a role­ play episode (e.g., an employee whom the applicant is assumed to supervise asks for advice about a personal matter) and then are asked to choose from a list of responses. Some evidence suggests that video­ based situ­ ational judgment tests have less adverse impact than written ones and may have higher levels of incremental validity.89 Response formats of situational judgment tests also matter: a study of over 30,000 job applicants showed that of rating, ranking, and most/least judgments made in a situational judgment test, the rating response format appears to be the best choice given its reduction in adverse impact and stronger construct validity evidence, although it is more subject to response distortions.90

Second, there is the issue of scoring. Although general scoring schemes are often developed so that responses can be quickly recorded and scores computed, care needs to be taken in developing the scoring scheme. Generally, the more knowledge the scorer has about the specific requirements of the job, the more valid the situational judgment test scores will be.91

Fi nally, the third issue is which constructs should be mea sured. Of course, job analy sis should be the guide here: constructs that job analy sis has suggested are impor tant to perform the job should be assessed. More generally, research indi­ cates that some constructs mea sured by situational judgment tests appear to be more valid than others. Specifically, research indicates that situational judgment tests that mea sure leadership, personal initiative, and teamwork tend to predict job per for mance best. That may be because these constructs are not well mea sured by other means (i.e., situational judgment tests mea sure these impor tant aspects distinctly well).92

Integrity Tests

When asked to identify the qualities desired in ideal job applicants, employers rou­ tinely put honesty and integrity at the top of their lists. In one survey, college recruiters were asked to rate the importance of vari ous skills/qualities in job candi­ dates on a scale from 1 to 5, where 1 = not impor tant and 5 = extremely impor tant. The following skills/qualities were the six most highly rated:93

1. Honesty/integrity 4.7 2. Communication skills (oral and written) 4.7 3. Interpersonal skills (relates well to others) 4.5 4. Motivation/initiative 4.5 5. Strong work ethic 4.5 6. Teamwork skills 4.5

099-67811_ch09_4P.indd 459 11/17/17 1:31 PM

460 PART FOUR Staffing Activities: Selection

Clearly, integrity is an impor tant quality in applicants and integrity tests are designed to tap this impor tant attribute.

Integrity tests attempt to assess an applicant’s honesty and moral character. They are alternatives to other methods that attempt to ascertain an applicant’s honesty and morality, such as the polygraph (i.e., a “lie detector”) test or interviewer evaluations. For most employers, polygraph tests are prohibited by law. Even if they were legal, polygraphs are so invasive that negative applicant reactions would weigh against their use in most situations. Polygraph tests have come under scrutiny for poor valid­ ity evidence and relatively high false­ positive rates.94 Of course, interviewer evalua­ tions of applicant integrity are not illegal, but they are unreliable as a method of detecting dishonesty as it is very hard to detect. Even experts such as FBI agents, judges, and psychologists scarcely perform above chance in detecting lying. A review of 108 studies revealed that people detect lies at a rate that is only 4.2% better than chance.95 For these reasons, integrity tests are a superior alternative to polygraph tests and interviews, and indeed the use of integrity tests in se lection decisions has grown dramatically in the past de cade. The tests are especially likely to be used where theft, safety, or malfeasance is an impor tant concern. For exam­ ple, retail organ izations lose an estimated $19 billion per year to employee theft, and it might surprise you to learn that theft due to employees accounts for roughly half (46.8%) of all inventory shrinkage— much greater than that attributed to shop­ lifting (31.6%).96 The promise of integrity testing is that it will weed out those most prone to these counterproductive work be hav iors. Indeed, in one study with a total sample of over 30,000 employees across four industries, when integrity tests were not used, employees made more workers’ compensation claims and claimed a higher dollar value than those who were screened (the under lying assumption is that many who were not screened with integrity tests overclaimed workers’ com­ pensation that they were not entitled to).97

Mea sures There are two major types of integrity tests: clear purpose (sometimes called overt) and general purpose (sometimes called veiled purpose or personality­ oriented). Exhibit 9.8 provides examples of items from both types of mea sures. Clear purpose tests directly assess employee attitudes toward theft. Such tests often consist of two sections: (1) questions of antitheft attitudes (see items 1 and 2 in Exhibit 9.8) and (2) questions about the frequency and degree of involvement in theft or other counterproductive activities (see items 3 and 4 in Exhibit 9.8).98 General or veiled purpose integrity tests assess employee personality with the idea that personality influences dishonest be hav ior (see items 5–8 in Exhibit 9.8). The most commonly used clear purpose or overt integrity tests are the Personnel Se lection Inventory, the Reid Report, and the Stanton Survey. The most commonly used general or veiled purpose tests are the Personnel Reaction Blank, the PDI Employment Survey, and the Reliability Scale of the Hogan Employment Inventory.99

099-67811_ch09_4P.indd 460 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 461

Some have suggested that integrity represents a sixth personality factor, some­ thing unique from the Big Five traits.100 However, most researchers believe that scores on integrity tests reflect a broad or “compound” personality trait that is a combination of several Big Five personality traits. Specifically, integrity test scores appear to ref lect conscientiousness, agreeableness, and emotional stability.101 Regardless of which aspects of personality integrity tests mea sure, it appears that they predict workplace deviance or counterproductive be hav iors better than any of the individual Big Five traits.

Validity of Integrity Tests Over the years, several meta­ analyses have been published attempting to evaluate the validity of integrity tests. One major meta­ analysis of more than 500,000 people and more than 650 individual studies suggests that integrity tests have surprising levels of validity.102 The principal findings from this study are the following:

1. Both clear and general purpose integrity tests are valid predictors of coun­ terproductive be hav iors ( actual and admitted theft, dismissals for theft, ille­ gal activities, absenteeism, tardiness, and workplace vio lence). The average validity for clear purpose mea sures ( r

_ = .55) was higher than for general

purpose ( r _ = .32).

2. Both clear and general purpose tests are valid predictors of job per for mance ( r _ = .33 and r

_ = .35, respectively).

3. Limiting the analy sis to estimates using a predictive validation design and actual detection of theft lowers the validity to r

_ = .13.

Clear Purpose or Overt Test Questions

1. Do you think most people would cheat if they thought they could get away with it? 2. Do you believe a person has a right to steal from an employer if he or she is unfairly

treated? 3. Did you ever write a check knowing there was not enough money in your bank

account? 4. Have you ever stolen anything?

Veiled Purpose or Personality- Based Test Questions

5. Would you rather go to a party than read a newspaper? 6. How often do you blush? 7. Do you almost always make your bed? 8. Do you like to take chances?

EXHIBIT 9.8 Sample Integrity Test Questions

099-67811_ch09_4P.indd 461 11/17/17 1:31 PM

462 PART FOUR Staffing Activities: Selection

4. Integrity tests have no adverse impact against women or minorities and are relatively uncorrelated with intelligence. Thus, integrity tests demonstrate incremental validity over cognitive ability tests and reduce the adverse impact of cognitive ability tests.

However, a more recent meta­ analysis has called into question the validity of integ­ rity tests. Using stringent inclusion criteria resulting in a smaller number of studies (104, to be exact), the study found that the overall average validities of integrity tests in predicting a variety of work­ related outcomes are much lower than the validities in previous meta­ analytic findings. For example, the average validity was r _ = .15 for job per for mance, r

_ = .32 for counterproductive be hav iors, and r

_ = .09

for turnover. Interestingly, the study found that validities were stronger when they came from studies authored by publishers of integrity tests.103

So, you might ask, “Which results should I trust?” On the one hand, the meta­ analysis with the weaker validities drew from more recent studies and used more stringent inclusion criteria, in which case its results should be trusted more. On the other hand, the meta­ analysis with the stronger validities was based on a larger number of studies, in which case its results should be trusted more. In any event, although integrity tests do have some validity, the jury is still out on the strength of that validity. Although organ izations would likely benefit from using integrity tests for a wide array of jobs, given the conflicting findings reviewed above, those that do so should consider conducting their own validation studies.

Criticisms and Concerns

Faking. One of the most significant concerns with the use of integrity tests is the obvious possibility that applicants might fake their responses. Consider answer­ ing the questions in Exhibit 9.8. Now consider answering those questions in the context of applying for a job that you want. It seems more than plausible that appli­ cants might distort their responses in such a context (particularly given that most of the answers would be impossible to verify). This possibility becomes a real concern when one considers the prospect that the individuals most likely to “fake good” ( people behaving dishonestly) are exactly the type of applicants organ izations would want to weed out.

Embedded within the issue of faking are three questions: (1) Can integrity tests be faked? (2) Do applicants fake or enhance their responses to integrity tests? and (3) Does faking harm the validity of the tests, such that a “perverse inversion” occurs where those who get high scores are those who have the least integrity (i.e., fake the most)?

First, applicants can fake their scores when instructed or other wise sufficiently motivated to do so, just as they can with personality tests. Studies that compare indi­ viduals who are asked to respond honestly with those who are told to “fake good”

099-67811_ch09_4P.indd 462 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 463

reveal that, unsurprisingly, integrity test scores in the “fake condition” situation are higher.

Second, a prob lem with interpreting whether applicants can fake is that it does not tell us whether they indeed do fake. After all, job applicants certainly are not told to “fake good” when completing employment tests, and many applicants do not purposely enhance their responses for moral reasons (they feel it would be wrong to enhance) or practical reasons (they believe enhancements would be detected). Unfortunately, there is much less evidence on this second question. As one review noted, “A generally unanswered question is whether job applicants actu­ ally do fake on integrity tests.” Notably, some recent strides have been made in detecting integrity test faking by looking at item­ level response times, which on average detect 26% more cases of faking and have 53% less false positives than traditional faking detection methods ( those instructed to fake an integrity test gen­ erally take half of a standard deviation longer to answer each item).104

Fi nally, in terms of whether faking matters, if faking was pervasive, integrity test scores would either have no validity in predicting per for mance from applicant scores or have negative validity (honest applicants reporting worse scores than dishonest applicants). The fact that validity was positive for applicant samples suggests that if faking does occur, it does not severely impair the predictive validity of integrity tests. It has been suggested that dishonest applicants do not fake more than honest appli­ cants, because they believe that every one is dishonest and therefore they are report­ ing only what every one else already does. Regardless of the reason, it does seem clear that if faking is a prob lem, it is not enough to undermine the validity of the tests.

Misclassification and Stigmatization. Some object to integrity tests because of applicants being misclassified as dishonest.105 In a sense, this is an odd objection in that all se lection procedures involve misclassification to some degree because all se lection methods are imperfect (having validities less than 1.0). We think the larger issue is the pos si ble stigmatization of applicants who are thought to be dis­ honest due to their test scores and the gravity of being labeled as dishonest. These prob lems can be avoided with proper procedures for maintaining the security and confidentiality of test scores (which, of course, should be done in any case).

Negative Applicant Reactions. A meta­ analysis compared applicant reactions to 10 se lection procedures, including interviews, work samples, cognitive abil­ ity tests, and integrity tests. The results revealed that applicants react negatively to integrity tests— indeed, they rated integrity tests lower than all other methods except graphology (handwriting analy sis).106 It is likely that applicants react quite differently to vari ous kinds of integrity test questions, and that applicants’ nega­ tive reactions might be mollified with explanations and administrative instructions. Unfortunately, there is little published research on these issues.

099-67811_ch09_4P.indd 463 11/17/17 1:31 PM

464 PART FOUR Staffing Activities: Selection

Interest, Values, and Preference Inventories

Interest, values, and preference inventories attempt to assess the activities indi­ viduals prefer to do both on and off the job, rather than assess whether the person can do the job. Just because a person can do a job does not guarantee success on the job. If the person does not want to do the job, that individual will fail, regardless of ability. Although interests seem impor tant, they have not been used very much in human resource (HR) se lection.

Standardized tests of interests, values, and preferences are available. Many of these mea sure vocational interests (e.g., the type of career that would motivate and satisfy someone) rather than orga nizational interests (e.g., the type of job or organ ization that would motivate and satisfy someone). The two most widely used interest inventories are the Strong Vocational Interest Blank (SVIB) and the Myers- Briggs Type Inventory (MBTI). Rather than classify individuals along con­ tinuous dimensions (e.g., someone is more or less conscientious than another), both the SVIB and the MBTI classify individuals into distinct categories based on their responses to the survey. With the MBTI, individuals are classified into one of 16 types that have been found to be related to the Big Five personality characteristics discussed earlier.107 Example interest inventory items are provided in Exhibit 9.9. The SVIB characterizes individuals on six dimensions (realistic, investigative, artistic, social, enterprising, and conventional) that match jobs that are characterized in a corresponding manner. Both inventories are used extensively in career counseling in high school, college, and trade schools.

Past research has suggested that interest inventories are not valid predictors of job per for mance. In this research, the average validity of interest inventories in predicting job per for mance was estimated to be roughly r

_ xy = .10. However, a

recent review of more than 400 studies suggested more positive conclusions.108 Specifically, vocational interests or ga nized by Holland’s six occupational types (realistic, investigative, artistic, social, enterprising, and conventional) predicted vari ous criteria (investigative scores were positively related to task per for mance; artistic scores negatively so), though these validities were not strong (less than .20 in all cases).

Even if interest inventories are only modest predictors of per for mance, this does not mean that they are invalid for all purposes. Research clearly suggests that when individuals’ interests match those of their occupation, they are happier with their jobs and are more likely to remain in their chosen occupation.109 Thus, although interest inventories fail to predict job per for mance on their own, they do predict occupational choices and job satisfaction levels. Undoubtedly, one of the reasons why vocational interests are poorly related to job per for mance is because the inter­ ests are tied to the occupation rather than the organ ization or the job.

Research suggests that while interest inventories play an impor tant role in voca­ tional choice, their role in orga nizational se lection decisions is limited. However, a

099-67811_ch09_4P.indd 464 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 465

more promising way of considering the role of interests and values in the staffing pro cess is to focus on person/or ga ni za tion fit.110 As was discussed in Chapter 1, person/or ga ni za tion fit argues that it is not the applicant’s characteristics alone that influence per for mance but rather the interaction between the applicant’s characteristics and those of the organ ization. For example, an individual with a strong interest in social relations at work may perform well in an organ ization that emphasizes cooperation and teamwork but do poorly in an organ ization whose culture is characterized by in de pen dence or rugged individualism. Thus, interest and value inventories may be more valid when they consider the match between applicant values and orga nizational values (person/or ga ni za tion fit).111 Indeed, a recent meta­ analytic review spanning 60 years of research and over 500 correla­ tions found that although the validity of interest inventories was quite low, the

1. Are you usually: (a) A person who loves parties (b) A person who prefers to curl up with a good book?

2. Would you prefer to: (a) Run for president (b) Fix a car?

3. Is it a higher compliment to be called: (a) A compassionate person (b) A responsible person?

4. Would you rather be considered: (a) Someone with much intuition (b) Someone guided by logic and reason?

5. Do you more often: (a) Do things on the spur of the moment (b) Plan out all activities carefully in advance?

6. Do you usually get along better with: (a) Artistic people (b) Realistic people?

7. With which statement do you most agree? (a) Learn what you are, and be such. (b) Ah, but a man’s reach should exceed his grasp, or what’s a heaven for?

8. At parties and social gatherings, do you more often: (a) Introduce others (b) Get introduced?

EXHIBIT 9.9 Sample Items From Interest Inventory

099-67811_ch09_4P.indd 465 11/17/17 1:31 PM

466 PART FOUR Staffing Activities: Selection

validity for per for mance, citizenship be hav iors, and per sis tence increases to above .20 in all cases when considering congruence indices, or the degree to which the employee’s vocational interests match his or her occupation. Recent research sug­ gests that perceptions of attained vocational aspirations display incremental valid­ ity beyond person­ vocation fit, suggesting that beyond a mere interest­ occupation match, fulfilled aspirations matter for per for mance as well.112

Structured Interview

The structured interview is a very standardized, job­ related method of assessment. It requires careful and thorough construction, as described in the sections that fol­ low. Comparing the structured job interview with an unstructured or psychological interview will serve to highlight the differences between the two.

A typical unstructured interview has the following characteristics:

• It is often unplanned, informal, and quick, and the interviewer often spends little time preparing for it.

• Rather than based on the requirements of the job, questions are based on inter­ viewer “hunches” or “pet questions” to psychologically diagnose applicant suitability.

• It consists of casual, open­ ended, or subjective questioning (e.g., “Tell me a little bit about yourself ”).

• It has obtuse questions (e.g., “What type of animal would you most like to be, and why?”).

• It has highly speculative questions (e.g., “Where do you see yourself 10 years from now?”).

• The interviewer makes a quick, and final, evaluation of the candidate (often in the first couple of minutes).

Despite its continued prevalence—it remains the most widely used substantive se lection procedure— research shows that organ izations clearly pay a price for using the unstructured interview, namely, lower reliability and validity.113 Inter­ viewers using the unstructured interview are unable to agree among themselves in their evaluation of job candidates and cannot predict the job success of candidates with any degree of consistent accuracy.

Over the years, research has unraveled the reasons why the unstructured interview does not work well and what factors need to be changed to improve reliability and validity. Sources of error or bias in the unstructured interview include the following:114

• Interviewers base their evaluations on dif fer ent factors, have dif fer ent hiring standards, and differ in the degree to which their actual se lection criteria match their intended criteria. Overall, the average interrater reliability estimates for employment interviews are fair ( r

_ = .68), although the interrater reliability is

moderated by level of structure (the greater the structure in place for both ques­

099-67811_ch09_4P.indd 466 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 467

tions and responses, the higher the reliability) and by format (reliability is higher for panel interviews as opposed to separate interviews with each interviewer).

• Applicant physical attractiveness has consistently been shown to predict inter­ viewer evaluations.

• Negative information receives more weight than positive information in the interview. Research suggests it takes more than twice as much positive infor­ mation as negative information to change an interviewer’s initial impression of an applicant. Thus, the unstructured interview has been labeled a “search for negative evidence.”

• Interviewers tend to make snap decisions— people’s first impressions form after only one­ tenth of one second, and most interviewers make their deci­ sions after the first few minutes of the interview.

• Interviewers place weight on superficial background characteristics such as names and the presence of accents. One study found that when responding to actual employment ads in Boston and Chicago, fictitious applicants with the first names of Allison and Brad were twice as likely to receive interview invi­ tations as individuals with the first names of Kenya and Hakim, even though the résumés were other wise identical.

• Evaluations from unstructured interviews are particularly affected by appli­ cant impression management and nonverbal be hav ior.

• Applicants who are similar to the interviewer with re spect to race, gender, or other characteristics receive higher ratings (i.e., similarity effects).

• Poor recall by interviewers often plagues unstructured interviews. One study demonstrated this by having man ag ers watch a 20­ minute videotaped interview and then take an exam based on factual information from the interview. Some man ag ers got all 20 questions correct, but the average man ag er got only half right.

Thus, the unstructured interview is not very valid, and research has identified the reasons why. So why is it so prevalent? Individuals often believe that they are better at “ people reading” than they actually are, and thus are unaware of the biases that distort evaluations during unstructured interviews. Interviewers also are often not trained. In addition, the unstructured interview requires little advance prepara­ tion or much work afterward— a conversation with an applicant takes place and an evaluation is made. Organ izations can overcome these limitations by using a struc­ tured interview, which attempts to eliminate the biases inherent in unstructured formats by standardizing the pro cess.

Characteristics of Structured Interviews There are numerous hallmarks of structured interviews. Some of the more prom­ inent characteristics are the following: (1) questions are based on job analy sis, (2) the same questions are asked of each candidate, (3) the response to each ques­ tion is numerically evaluated, (4) detailed anchored rating scales are used to score

099-67811_ch09_4P.indd 467 11/17/17 1:31 PM

468 PART FOUR Staffing Activities: Selection

each response, and (5) detailed notes are taken, particularly focusing on interviewees’ be hav iors. These characteristics (along with many others) have been grouped into four dimensions of structure: (1) evaluation standardization, (2) question sophisti­ cation, (3) question consistency, and (4) rapport building.115

There are two principal types of structured interviews: situational and expe­ rience based. Situational interviews assess an applicant’s ability to proj ect what his or her be hav ior would be in future hy po thet i cal situations.116 The assumption behind the use of the situational interview is that the goals or intentions individuals set for themselves are good predictors of what they will do in the future.

Experience­ based or job­ related interviews assess past be hav iors that are linked to the prospective job. The assumption behind the use of experience­ based inter­ views is the same as that for the use of biodata: past be hav ior is a good predictor of future be hav ior. It is assumed that applicants who are likely to succeed have demonstrated success with past job experiences similar to the experiences they would encounter in the prospective job. An example of an experience­ based inter­ view is the Patterned Be hav ior Description Interview, which collects four types of experiential information during the interview: (1) credentials (objective verifiable information about past experiences and accomplishments), (2) experience descrip­ tions (descriptions of applicant’s normal job duties, capabilities, and responsibili­ ties), (3) opinions (applicant’s thoughts about his or her strengths, weaknesses, and self­ perceptions), and (4) be hav ior descriptions (detailed accounts of actual events from the applicant’s job and life experiences).117

Situational and experience­ based interviews have many similarities. Generally, both are based on the critical incidents approach to job analy sis, where job be hav­ iors especially impor tant to (as opposed to typically descriptive of) job per for mance are considered. In addition, both approaches attempt to assess applicant be hav iors rather than feelings, motives, values, or other psychological states. Fi nally, both methods have substantial reliability and validity evidence in their favor.

Situational and experience­ based interviews also have impor tant differences. The most obvious difference is that situational interviews are future oriented (“what would you do if?”), whereas experience­ based interviews are past oriented (“what did you do when?”). Also, situational interviews are more standardized in that they ask the same questions of all applicants, while many experience­ based interviews place an emphasis on discretionary probing based on responses to par tic u lar questions. Presently, there is little basis to guide decisions about which type of structured interview should be adopted. One meta­ analysis suggests that although the validities are similarly strong for both types of structured interviews, when using descriptively anchored answer rating scales, the behavioral questions exhib­ ited higher validity. However, a small meta­ analysis of four studies suggests that interviewees tend to use more self­ promotion tactics with the use of experience­ based questions than with situational questions.118 One factor to consider is that experience­ based interviews may only be relevant for individuals who have signifi­

099-67811_ch09_4P.indd 468 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 469

cant job experience. It does not make much sense to ask applicants what they did in a par tic u lar situation if they have never been in that situation.

Structured Video Interviews. Although structured interviews help reduce some of the biases that occur with unstructured interviews, applicant responses still may be shaped in subtle ways by the manner in which the interviewer behaves (e.g., looking bored or uninterested versus enthusiastic, elaborating on an applicant’s response versus saying nothing at all). Some organ izations are abandoning face­ to­ face interaction altogether by presenting applicants with a scripted set of ques­ tions and recording their responses for later scoring. HireVue, whose clients include Nike, Hasbro, and Starbucks, conducts 12­ minute interviews consisting of one prac­ tice question and four actual questions. Applicants are given 30 seconds to read each question and consider their response, which is limited to about 3 minutes. Hire­ Vue provides a set of stock questions (e.g., “Tell us about a time you had to cope with a high­ pressure or stressful work situation”), or companies can provide their own questions. The recorded interviews are then provided to the hiring employer, who will eventually rate the answers to the interview questions. Although recorded interviews such as these offer several benefits to organ izations, including increased efficiency and greater standardization across interviews, it is unclear how applicants view them. On the one hand, it may be easier for job hunters— especially those who are already employed—to squeeze in interviews after normal work hours. On the other hand, applicants may view the organ ization as impersonal, and the lack of face­ to­ face interaction, as well as an on­ site visit, may make it difficult to assess person/or ga ni za tion fit. Thus, organ izations might be better off using these types of interviews as an initial screen rather than a final screen.119

Evaluation Traditionally, the employment interview was thought to have a low degree of valid­ ity. Recently, however, evidence for the validity of interviews (especially those that are structured) has been much more positive. In fact, one study found that it took three to four unstructured interviews to achieve the same validity as a single struc­ tured interview, which is a huge difference in time and resources.120 In addition, meta­ analyses have suggested the following conclusions:121

1. The average validity of interviews is r _ = .37.

2. Structured interviews are more valid ( r _ = .31) than unstructured interviews

( r _ = .23).

3. The lit er a ture on whether situational or experience­ based interviews are more valid is not consistent. The largest meta­ analysis found that situational inter­ views were more valid ( r

_ = .35) than experience­ based interviews ( r

_ = .28).

However, a more recent meta­ analysis found the opposite. 4. Panel interviews may be less valid ( r

_ = .22) than individual interviews ( r

_ = .31).

099-67811_ch09_4P.indd 469 11/17/17 1:31 PM

470 PART FOUR Staffing Activities: Selection

5. Interviewer training ( r _

= .41), interview standardization ( r _ = .31), note taking

( r _ = .36), and level of structure ( r

_ = .63) all strongly and significantly affect

the validity of the interview (although each makes a modest contribution above and beyond structure).

6. Regardless of the construct being assessed by the interview or interview ques­ tion, the validities are moderate to strong in size, but particularly strong when interviews are used to assess creativity ( r

_ = .58), agreeableness ( r

_ = .51),

emotional stability ( r _ = .47), leadership ( r

_ = .47), and values fit ( r

_ = .49).

Given the advantages of structured interviews, their lack of use is perplexing— whereas 99% of organ izations indicate they use the interview in se lection, only slightly more than half (55%) claim to use a structured interview. As one review concluded, “Structured interviews are infrequently used in practice.” Like all of us, se lection decision makers show considerable inertia and continue to use the unstructured interview because they always have, and because they favor expedi­ ency over quality. Thus, a cycle of past practice generating continued use needs to be broken by changing the climate. The best way to do this is to educate decision makers about the benefits of structured interviews.122

Applicants tend to react very favorably to the interview, whether it is structured or not. Research suggests that most applicants believe the interview is an essential component of the se lection pro cess, and most view the interview as the most suit­ able mea sure of relevant abilities. As a result, applicants have rated the interview as more job related than any other se lection procedure.123

The interview appears to have moderate adverse impact against minorities— more than personality tests but considerably less than cognitive ability tests. However, the extent of adverse impact appears to be moderated by the structure of the interview.124

Structuring an interview requires that organ izations follow a systematic and standardized pro cess. For illustration purposes, we describe development of a situ­ ational interview.

Constructing a Structured Interview The structured interview, by design and conduct, standardizes and controls for sources of influence on the interview pro cess and the interviewer. The goal is to improve interview reliability and validity beyond that of the unstructured interview, a goal that research demonstrates can be achieved. Doing so requires proceeding through each of the following steps: consult the job requirements matrix, develop the se lection plan, develop the structured interview plan, select and train interview­ ers, and evaluate effectiveness. Each of these steps is elaborated next.

The Job Requirements Matrix and Se lection Plan The starting point for the structured interview is the job requirements matrix. It identifies the tasks and KSAOs that define the job requirements around which the structured interview is constructed and conducted.

099-67811_ch09_4P.indd 470 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 471

Because the se lection plan flows from the KSAOs identified in the job require­ ments matrix, it helps identify which KSAOs are necessary to assess during se lection and whether the structured interview is the preferred method of assessing them.

Is the KSAO Necessary? The candidate must bring some KSAOs to the job, although others can be acquired on the job (through training and/or job experience). The bring­ it/acquire­it decision must be made for each KSAO, and it should be guided by the importance indicator(s) for the KSAOs in the job requirements matrix.

Is the Structured Interview the Preferred Method? Several factors should be considered when determining whether the structured interview is the preferred method of assessing each KSAO necessary for se lection. The structured interview is prob ably best suited for assessing face­ to­ face skills and abilities, such as com­ munication and other interpersonal skills.

An example of a se lection plan for the job of sales associate in a retail clothing store is shown in Exhibit 9.10. While there are five task dimensions for the job in the job requirements matrix (customer ser vice, use of machines, use of customer ser­ vice outlets, sales and departmental procedures, and cleaning and maintenance), the se lection plan shows only the dimension of customer ser vice.

Note in the exhibit that the customer ser vice dimension has several required KSAOs. However, not all of the KSAOs will be assessed during se lection, and only some of them will be assessed by the structured interview. The method of assess­ ment is thus carefully targeted to the KSAO to be assessed.

The Structured Interview Plan Development of the structured interview plan proceeds along three sequential steps: construction of interview questions, construction of benchmark responses for the questions, and weighting of the importance of the questions. The output of

Task Dimension: Customer Service

Necessary Method of KSAO for Selection? Assessment

1. Ability to make customer feel welcome ................... Yes Interview 2. Knowledge of merchandise to be sold ..................... Yes Written test 3. Knowledge of location of merchandise in store .... No None 4. Skill in being cordial with customers ......................... Yes Interview 5. Ability to create and convey ideas to customers ... Yes Interview

EXHIBIT 9.10 Partial Selection Plan for Job of Retail Store Sales Associate

099-67811_ch09_4P.indd 471 11/17/17 1:31 PM

472 PART FOUR Staffing Activities: Selection

this pro cess for the sales associate job is shown in Exhibit 9.11 and is referred to in the discussion that follows.

Constructing Questions. One or more questions must be constructed for each KSAO targeted for assessment by the structured interview. Care must be taken to ensure that the questions reflect a sampling of the candidate’s be hav ior, as revealed by past situations (behavioral description) or what the candidate reports would be his or her be hav ior in future situations (situational). The questions ask, in essence, “What did you do in this situation?” and “What would you do if you were in this situation?”

The key to constructing both types of questions is to create a scenario rel­ evant to the KSAO in question and ask the candidate to respond to it by way of answering a question. If one plans to consider applicants with limited prior experience, future­ oriented or situational questions should be favored over behav­ ioral description questions, since not all applicants will have been in the situation previously.

Exhibit 9.11 shows three questions for the KSAOs to be assessed by the inter­ view, as determined by the initial se lection plan for the job of sales associate in a retail store. As can be seen, all three questions pres ent very specific situations that a sales associate is likely to encounter. The content of all three questions is clearly job relevant, a logical outgrowth of the pro cess that began with the development of the job requirements matrix.

Developing Benchmark Responses and Rating Scales. The interviewer must somehow evaluate or judge the quality of the candidate’s responses to the interview questions. Prior development of benchmark responses and corresponding rating scales will provide firm guidance to the interviewer in doing this task. Benchmark responses represent qualitative examples of the types of candidate responses that the interviewer may encounter. They are located on a rating scale (usually 1–5 or 1–7 rating scale points) to represent the level or “goodness” of the response.

Exhibit 9.11 contains benchmark responses, positioned on a 1–5 rating scale, for each of the three interview questions. Note that all the responses are quite specific and that some answers are better than others. These responses represent judgments on the part of the organ ization as to the desirability of be hav iors its employees could engage in.

Weighting Responses. Each candidate will receive a total score for the struc­ tured interview. It thus must be deci ded whether the questions are of equal impor­ tance in contributing to the total score. If so, the candidate’s total interview score is simply the sum of the scores on the individual rating scales. If some questions are more impor tant than others in assessing candidates, those questions receive greater weight. The more impor tant the question, the greater its weight relative to the other questions.

099-67811_ch09_4P.indd 472 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 473

Jo b

: S

a le

s A

ss o

ci a

te T

a sk

D im

e n

si o

n :C

u st

o m

e r

S e

rv ic

e

R a

ti n

g S

ca le

R a

ti n

g ×

W e

ig h

t =

S co

re

1 2

3 4

5 Q

u e

st io

n N

o .

O n

e (K

S A

O 1)

A cu

st o

m e

r w

al ks

in to

th e

st o

re .

N o

o th

e r

sa le

sp e

o p

le ar

e ar

o u

n d

to h

e lp

th e

p e

rs o

n ,a

n d

yo u

ar e

b u

sy ar

ra n

g in

g m

e rc

h an

d is

e .

W h

at w

o u

ld yo

u d

o if

yo u

w e

re in

th is

si tu

at io

n ?

K e

e p

o n

ar ra

n g

in g

m e

rc h

an d

is e

K e

e p

w o

rk in

g ,

b u

t g

re e

t cu

st o

m e

r

S to

p w

o rk

in g

, g

re e

t cu

st o

m e

r, o

� e

r to

p ro

vi d

e as

si st

an ce

5 1

5

Q u

e st

io n

N o

. T

w o

( K

S A

O 4

) A

cu st

o m

e r

is in

th e

fi tt in

g ro

o m

an d

as ks

yo u

to b

ri n

g h

e r

so m

e sh

ir ts

to tr

y o

n .Y

o u

d o

so ,b

u t

b y

ac ci

d e

n t

b ri

n g

th e

w ro

n g

si ze

.T h

e cu

st o

m e

r b

e co

m e

s ir

at e

an d

st ar

ts sh

o u

tin g

at yo

u .W

h at

w o

u ld

yo u

d o

if yo

u w

e re

in th

is si

tu at

io n

?

T e

ll cu

st o

m e

r to

“k e

e p

h e

r co

o l”

G o

g e

t co

rr e

ct si

ze

A p

o lo

g iz

e ,

g o

g e

t co

rr e

ct si

ze 3

1 3

Q u

e st

io n

N o

. T

h re

e (K

S A

O 5

) A

cu st

o m

e r

is sh

o p

p in

g fo

r th

e “r

ig h

t” sh

ir t

fo r

h e

r 17

-y e

ar -o

ld g

ra n

d d

au g

h te

r. S

h e

as ks

yo u

to sh

o w

h e

r sh

ir ts

th at

yo u

th in

k w

o u

ld b

e “r

ig h

t” fo

r h

e r.

Y o

u d

o th

is ,b

u t

th e

cu st

o m

e r

d o

e sn

’t lik

e an

y o

f th

e m

.W h

at w

o u

ld yo

u d

o if

yo u

w e

re in

th is

si tu

at io

n ?

T e

ll cu

st o

m e

r to

g o

lo o

k e

ls e

w h

e re

E xp

la in

w h

y yo

u th

in k

yo u

r ch

o ic

e s

ar e

g o

o d

o n

e s

E xp

la in

yo u

r ch

o ic

e s,

su g

g e

st g

ift ce

rt ifi

ca te

as al

te rn

at iv

e 5

2 10 18

E X

H IB

IT 9

.1 1

S tr

u ct

u re

d In

te rv

ie w

Q u

e st

io n

s, B

e n

ch m

a rk

R e

sp o

n se

s, R

a ti

n g

S ca

le , a

n d

Q u

e st

io n

W e

ig h

ts

099-67811_ch09_4P.indd 473 11/17/17 1:31 PM

474 PART FOUR Staffing Activities: Selection

Exhibit 9.11 shows the weighting deci ded on for the three interview questions. The first two questions receive a weight of 1, and the third question receives a weight of 2. The candidate’s assigned ratings are multiplied by their weights and then summed to determine a total score for this par tic u lar task dimension. In the exhibit, the candidate receives a score of 18 (5 + 3 + 10 = 18) for customer ser­ vice. The candidate’s total interview score would be the sum of the scores on all the dimensions.

Se lection and Training of Interviewers Some interviewers are more accurate in their judgments than others. In fact, sev­ eral studies have found significant differences in interviewer validity and that even in structured interviews many interviewers form lasting early impressions.125 Thus, rather than asking, “How valid is the interview?” it might be more appropriate to ask, “Who is a valid interviewer?” Answering this question requires selecting interviewers with characteristics that will enable them to make accurate decisions about applicants. Little research is available regarding the factors that should guide se lection of interviewers. Perhaps not surprisingly, cognitive ability (and more spe­ cifically, dispositional reasoning) has been linked to accuracy in evaluating others. Interviewer traits like positive and negative affectivity are linked with susceptibil­ ity to impression management effects on interviewer evaluations.126 The applicant’s perception of the interviewer also matters— some research suggests that perceived warmth, job knowledge, general competence, humor, and unfriendliness signifi­ cantly affect interviewee job choice intentions, applicant attraction, and interview anxiety.127 Notably, it would also be pos si ble to design an interview simulation where prospective interviewers are asked to analyze jobs to determine applicant KSAOs, preview applications, conduct hy po thet i cal interviews, and evaluate applicants.

Interviewers will prob ably need training in the structured interview pro cess, as it may be quite dif fer ent from what they have encountered and/or used. Training is a way of introducing them to the pro cess, and it is another means of increasing the validity of structured interviews. Logical program content areas to be covered as part of the training are the following:

• Prob lems with the unstructured interview • Advantages of the structured interview • Development of the structured interview • Use of note taking and elimination of rating errors • Actual practice in conducting the structured interview

Research on whether interviewer training works is inconsistent. One review concluded that the evidence regarding the ability of training programs to reduce rating errors showed that these programs “have achieved at best mixed results.”128 However, a more recent study revealed that an interviewer training program was effective, in no small part because it increased the degree to which a structured

099-67811_ch09_4P.indd 474 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 475

format was followed.129 Given that interviewers tend not to use structured formats, this is a key advantage.

Evaluating Effectiveness As with any assessment device, there is a constant need to learn more about the reliability, validity, and utility of the structured interview. This is particularly so because of the complexity of the interview pro cess. Thus, evaluation of the struc­ tured interview’s effectiveness should be built into the pro cess.

Se lection for Team Environments

De cades ago, when companies such as W. L. Gore and General Foods used work teams, it was unique and innovative. Nowadays, of course, teams are pervasive. One of the main reasons organ izations have turned to teams is that they feel teams are more flexible and responsive to changing events. They may also believe that teams operate more efficiently than individuals working alone. Alternatively, they may wish to make teamwork part of their culture to de moc ra tize themselves and increase employee motivation.130

There are as many types of teams as there are configurations of individuals. However, teams can be clustered into four categories: (1) problem­ solving teams, or teams where members share ideas or offer suggestions on how work pro cesses can be improved (though they rarely have the authority to unilaterally implement any of their suggested actions); (2) self­ managed work teams, where groups of typically 10–15 employees perform highly related or interdependent jobs and take on many of the responsibilities of their former supervisors; (3) cross­ functional teams, or teams made up of employees from roughly the same hierarchical level but dif fer ent work areas or functions; and (4) virtual teams, or teams that use com­ puters to tie together physically dispersed members in order to achieve a common goal or work on a single proj ect.131

No matter the reason for the existence of teams, or the type of team involved, teamwork means revisiting the way work is done in an organ ization, which neces­ sarily affects how positions are staffed.

The first step in understanding the proper steps for se lection in team­ based envi­ ronments is to understand the requirements of the job. This involves determining the knowledge, skills, and abilities (KSAs) required for teamwork. For example, to be effective in a teamwork assignment, an employee may need to demonstrate interpersonal KSAs (consisting of conflict resolution, collaborative prob lem solving, and communication KSAs) and self- management KSAs (consisting of goal setting and per for mance management KSAs, and planning and task coordination KSAs).

One means of incorporating team­ based KSAs into the existing se lection pro­ cess has been developed.132 Exhibit 9.12 provides some sample items from the 35­ item test. This test has been validated against three criteria (teamwork per for­ mance, technical per for mance, and overall per for mance) in two studies.133 The

099-67811_ch09_4P.indd 475 11/17/17 1:31 PM

476 PART FOUR Staffing Activities: Selection

teamwork test showed substantial validity in predicting teamwork and overall per­ for mance in one of the studies, but no validity in predicting any of the criteria in the other study. (It is not clear why the teamwork test worked well in one study but not in the other.) It should be noted that tests are not the only method of mea sur ing teamwork KSAs. Other methods of assessment that some leading companies have used in selecting team members include structured interviews, assessment centers, personality tests, and biographical inventories.134 For example, one research study developed and validated a situational judgment test to assess team role orientation. One scenario from the situational judgment test is paraphrased below:

Assume the role of a sales team member at a bookstore. The bookstore has been experiencing rapidly declining sales, and the team was tasked with finding

1. Suppose that you find yourself in an argument with several coworkers about who should do a very disagreeable but routine task. Which of the following would likely be the most effective way to resolve this situation? A. Have your supervisor decide, because this would avoid any personal bias. B. Arrange for a rotating schedule so everyone shares the chore. C. Let the workers who show up earliest choose on a first- come, first- served basis. D. Randomly assign a person to do the task and don’t change it.

2. Your team wants to improve the quality and flow of the conversations among its members. Your team should: A. Use comments that build on and connect to what others have said. B. Set up a specific order for everyone to speak and then follow it. C. Let team members with more to say determine the direction and topic of conversation. D. Do all of the above.

3. Suppose you are presented with the following types of goals. You are asked to pick one for your team to work on. Which would you choose? A. An easy goal to ensure the team reaches it, thus creating a feeling of success. B. A goal of average difficulty so the team will be somewhat challenged, but successful

without too much effort. C. A difficult and challenging goal that will stretch the team to perform at a high level, but

attainable so that effort will not be seen as futile. D. A very difficult, or even impossible goal so that even if the team falls short, it will at

least have a very high target to aim for.

EXHIBIT 9.12 Example Items Assessing Teamwork KSAs

Source: M. J. Stevens and M. A. Campion, “The Knowledge, Skill, and Ability Requirements for Teamwork: Implications for Human Resource Management,” Journal of Management, 1994, 20, pp. 503–530. With permission from Elsevier Science.

099-67811_ch09_4P.indd 476 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 477

solutions to the prob lem. During the meeting, the discussion became heated when one team member blamed the prob lem on the two new sales representa­ tives. One of the new sales representatives reacted angrily to the accusation and made accusations of his own. The other new sales representative simply stared at the floor. How would you respond?

Applicants choose one of four responses, the best of which is: “Remind the two sales reps that personal attacks are not appropriate and that the team should focus on the future solutions.” This study revealed that scores on the test were correlated r = .30 with team role per for mance in a sample of 82 production and maintenance teams.135

Another impor tant decision in team member se lection is who should make the hiring decisions. In many cases, team assessments are made by members of the self­ directed work team in deciding who becomes a member of the group. An example of an organ ization following this procedure is South Bend, Indiana– based I/N Tek, a billion­ dollar steel­ finishing mill established in a joint venture between the United States’ Inland Steel and Japan’s Nippon Steel. Employees in self­ directed work teams, along with man ag ers and HR professionals, interview candidates as a final step in the se lection pro cess. This approach is felt to lead to greater satisfaction with the results of the hiring pro cess because employees have a say in who is selected to be part of the team.136 Some organ izations also consult external experts when making decisions in selecting team members. However, there can be differences between what is impor tant to “insiders” and what is impor tant to “outsiders” in these instances— for example, a recent study examining prior job per for mance, citizenship, and deviant be hav iors demonstrated that citizenship was valued more by insiders than by outsiders, although it was predictive of per for mance in the NFL.137

Thus, staffing pro cesses and methods in team environments require modifications from the traditional approaches to se lection. Before organ izations go through the trou ble and expense of modifying these procedures, however, it would be wise to examine whether the team initiatives are likely to be successful. Many teams fail because they are implemented as an isolated practice.138 Thus, before overhauling se lection practices to build teams, care must be taken to ensure the proper context for these environments in the first place.

Choice of Substantive Assessment Methods

As with the choice of initial assessment methods, a large amount of research has been conducted on substantive assessment methods that can help guide organ izations in the appropriate methods to use. Reviews of this research, using the same criteria that were used to evaluate initial assessment methods, are shown in Exhibit 9.13. Specifically, the criteria are use, cost, reliability, validity, utility, applicant reactions, and adverse impact.

099-67811_ch09_4P.indd 477 11/17/17 1:31 PM

478 PART FOUR Staffing Activities: Selection

E X

H IB

IT 9

.1 3

E

va lu

a ti

o n

o f

S u

b st

a n

ti ve

A ss

e ss

m e

n t

M e

th o

d s

P re d ic to rs

U se

C o st

R e lia

b ili ty

V a lid

it y

U ti lit y

R e a ct io n s

A p p lic

a n t

Im p a ct

A d ve

rs e

P e

rs o

n al

ity te

st s

A b

ili ty

te st

s

P e

rf o

rm an

ce te

st s

an d

w o

rk sa

m p

le s

In te

re st

,v al

u e

s, an

d p

re fe

re n

ce in

ve n

to ri

e s

S tr

u ct

u re

d in

te rv

ie w

s

T e

am a

ss e

ss m

e n

ts

E m

o tio

n al

in te

lli g

e n

ce

t e

st s

In te

g ri

ty te

st s

S itu

at io

n al

ju

d g

m e

n t

te st

s

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

H ig

h

H ig

h H

ig h

H ig

h H

ig h

H ig

h

H ig

h H

ig h

H ig

h H

ig h

H ig

h

H ig

h H

ig h

H ig

h

H ig

h

H ig

h H

ig h

M o

d e

ra te

M o

d e

ra te

M o

d e

ra te

M o

d e

ra te

M o

d e

ra te

M o

d e

ra te

M o

d e

ra te

M o

d e

ra te

M o

d e

ra te

P o

si tiv

e

P o

si tiv

e

P o

si tiv

e

P o

si tiv

e

N e

g at

iv e

N e

g at

iv e

M ix

e d

N e

g at

iv e

? ?

? ? ?

? ? ?

? ??

099-67811_ch09_4P.indd 478 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 479

Use As can be seen in Exhibit 9.13, there are no widely used substantive assessment methods (i.e., methods that are used by at least two­ thirds of all organ izations). Structured interviews, emotional intelligence tests, and per for mance tests and work samples have moderate degrees of use. The other substantive methods are only occasionally or infrequently used by organ izations.

Cost The costs of substantive assessment methods vary widely. Some methods can be purchased from vendors quite inexpensively (personality tests; ability tests; emotional intelligence tests; interest, values, and preference inventories; integrity tests)— sometimes for less than $2 per applicant. (Of course, the costs of admin­ istering and scoring the tests must be factored in.) Some methods, such as team assessments, can vary in price depending on whether the organ ization develops the mea sure itself or purchases it from a vendor. Other methods, such as structured interviews, per for mance tests and work samples, and situational judgment tests, generally require extensive time and resources to develop; thus, these mea sures are the most expensive of the substantive assessment methods.

Reliability The reliability of all the substantive assessment methods is moderate or high. This is because many of these methods have under gone extensive development efforts by vendors. However, whether an organ ization purchases an assessment tool from a vendor or develops it in de pen dently, the reliability of the method must be investi­ gated. Just because a vendor claims a method is reliable does not necessarily mean it will be so within a par tic u lar organ ization.

Validity Like cost, the validity of substantive assessment methods varies a great deal. Some methods, such as interest, values, and preference inventories, have dem­ onstrated little validity in past research. As was noted when reviewing these mea sures, however, steps can be taken to increase their validity. Emotional intel­ ligence tests also have relatively low validity, though there is reason to believe the tests are improving. Some methods, such as personality tests and structured interviews, have at least moderate levels of validity. Some structured interviews have high levels of validity, but the degree to which they add validity beyond cognitive ability tests remains in question. Ability tests, per for mance tests, and work samples have high levels of validity. Integrity tests appear to range from low to moderately high predictors of job per for mance; their validity in predicting other impor tant job be hav iors (counterproductive work be hav iors) appears to be stronger.

099-67811_ch09_4P.indd 479 11/17/17 1:31 PM

480 PART FOUR Staffing Activities: Selection

Utility As with initial assessment methods, the utility of most substantive assessment methods is unknown. A great deal of research has shown that the utility of ability tests (in par tic u lar, cognitive ability tests) is quite high. Per for mance tests, work samples, and integrity tests also appear to have high levels of utility.

Applicant Reactions Research is just beginning to emerge concerning applicant reactions to substantive assessment methods. From the limited research that has been conducted, applicants’ reactions to substantive assessment methods appear to depend on the method. Rel­ atively abstract methods that require an applicant to answer questions not directly tied to the job (i.e., questions on personality tests, most ability tests, and integrity tests) seem to generate negative reactions from applicants. Thus, research tends to suggest that applicants view personality, ability, and integrity tests unfavorably. Methods that are manifestly related to the job for which applicants are applying appear to generate positive reactions. Research suggests that applicants view per­ for mance tests, work samples, and structured interviews favorably. Little is known for how applicants react to emotional intelligence tests.

Adverse Impact A considerable amount of research has been conducted on adverse impact of some substantive assessment methods. In par tic u lar, research suggests that personality tests, emotional intelligence tests, per for mance tests and work samples, and integ­ rity tests have little adverse impact against women or minorities. In the past, inter­ est, values, and preference inventories had substantial adverse impact against women, but this prob lem has been corrected. Conversely, ability tests have a high degree of adverse impact. Cognitive ability tests have substantial adverse impact against minori­ ties, while physical ability tests have significant adverse impact against women. The adverse impact of structured interviews was denoted as mixed. Since even structured interviews have an ele ment of subjectivity, the potential always exists for inter­ viewer bias to enter the pro cess.

A comparison of Exhibits 8.8 and 9.13 is instructive. In general, both the validity and the cost of substantive assessment procedures are higher than those of initial assessment procedures. As with the initial assessment procedures, the economic and social impacts of substantive assessment procedures are not well understood. Many initial assessment methods are widely used, whereas most substantive assess­ ment methods have moderate or low degrees of use. Thus, many organ izations rely on initial assessment methods to make substantive assessment decisions. This is unfortunate, because, apart from biographical data, the validity of substantive assessment methods is higher. This is especially true of the initial interview rela­ tive to the structured interview. At a minimum, organ izations need to supplement the initial interview with structured interviews. Better yet, organ izations should

099-67811_ch09_4P.indd 480 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 481

strongly consider using ability, per for mance, personality, and work sample tests along with either type of interview.

DISCRETIONARY ASSESSMENT METHODS

Discretionary assessment methods are used to separate those who receive job offers from the list of finalists. Sometimes discretionary methods are not used, because all finalists may receive job offers. When used, discretionary assessment methods are typically highly subjective and rely heavi ly on the intuition of the decision maker. Thus, factors other than KSAOs may be assessed. Organ izations intent on maintaining strong cultures may wish to consider assessing the person/ or ga ni za tion match at this stage of the se lection pro cess.

Another in ter est ing method of discretionary assessment that focuses on person/ or ga ni za tion match is the se lection of people based on their likely orga nizational citi­ zenship be hav ior.139 With this approach, finalists not only must fulfill all the require­ ments of the job but also are expected to fulfill some roles outside the requirements of the job, called orga nizational citizenship be hav iors. These be hav iors include doing extra work, helping others at work, covering for a sick coworker, and being courteous.

Discretionary assessments should follow the organ ization’s staffing philosophy regarding equal employment opportunity and affirmative action (EEO/AA) commit­ ments. Here, the commitment may be to enhance the repre sen ta tion of minorities and women in the organ ization’s workforce, either voluntarily or as part of affirmative action plans and programs (AAPs). At this point in the se lection pro cess, the demo­ graphic characteristics of the finalists may be given weight in determining which applicant will receive the job offer. Regardless of how the organ ization chooses to make its discretionary assessments, they should never be used without being pre­ ceded by initial and substantive methods.

CONTINGENT ASSESSMENT METHODS

As was shown in Exhibit 8.3, contingent methods are not always used, depending on the nature of the job and legal mandates. Virtually any se lection method can be used as a contingent method. For example, a health clinic may verify that an applicant for a nursing position possesses a valid license after a tentative offer has been made. Similarly, a defense contractor may perform a security clearance check on applicants once initial, substantive, and discretionary methods have been exhausted. Depending on the preferences of the organ ization, two se lection methods— drug testing and medical exams— should be used exclusively as contin­ gent assessment methods for legal compliance. When drug testing and medical exams are used, considerable care must be taken in their administration and evaluation.

099-67811_ch09_4P.indd 481 11/17/17 1:31 PM

482 PART FOUR Staffing Activities: Selection

Drug Testing

More than 70% of substance abusers hold jobs, and substance abuse has been identified as a major cause of workplace vio lence, accidents, absenteeism, and increased health care costs. A workplace study revealed that the average drug user was 3.6 times more likely than a nonuser to be involved in an accident, received 3 times the average level of sick benefits, was 5 times more likely than a non­ user to file a workers’ compensation claim, and missed 10 times as many work days as a nonuser.140 One comprehensive study found that over an 11­ year period, approximately 50 train accidents were attributed to workers under the influence of drugs or alcohol. These accidents resulted in 37 people killed, 80 injured, and the destruction of property valued at $34 million. A National Transportation Safety Board study found that 31% of all fatal truck accidents were due to alcohol or drugs.141

As a result of the manifold prob lems caused by drug use, many employers have drug­ testing programs to screen out drug users. A survey of over 600 organ izations by the Society for Human Resource Management found that 57% conducted pre­ employment drug testing on all job candidates. In contrast, only 36% of organ­ izations reported that they conduct drug tests on their current employees. Drug testing was more likely in larger organ izations ( those employing more than 2,500 employees) and in publicly owned, for­ profit organ izations. On average, each drug test cost the com pany between $30 and $40.142 These figures are much less than they were in 1996, when drug testing peaked and 81% of employers screened workers and applicants.143

One of the reasons drug testing has declined is shown in Exhibit 9.14: traditional (urine­ based) drug tests do not catch many people.144 Far and away, the highest positive test rate is for marijuana, and it is only 1.9% in the combined US work­ force (federal/sensitive and non­ federal employees)— meaning that only 1.9% of those tested in the workplace tested positive for marijuana. Worthy of noting, this includes all employees taking drug tests for any reason, including random, periodic, and follow­up tests; post­ accident tests; preemployment tests; return­ to­ duty tests; and even those tested for “just cause.” Overall, only 4.2% of applicants tested posi­ tive for any type of drug (the positive results in the exhibit add up to more than 4.2% because some applicants tested positive for more than one drug). The 4.2% positive rate means that if an organ ization tested 100 applicants, only about 4 would fail the test (i.e., test positive). These numbers are not much higher for preemploy­ ment hair tests (8.8%) or oral fluid tests (9.4%), although they are more sensitive. In terms of trends, the positivity rate within the last de cade dipped slightly, but then began to increase steadily over time in 2014. Although a net change of only 0.4% in 10 years, within the last 5 years the positivity rate has increased by 0.7% (from 3.5% to 4.2%). In general, it appears as if preemployment drug testing posi­ tivity has been increasing steadily, but not by much. This is most likely due to the insensitivity of drug testing mea sure ment to reliably capture the real under lying drug usage within the workforce. It may also reflect applicants gaming the tests (dilut­

099-67811_ch09_4P.indd 482 11/17/17 1:31 PM

Chapter NiNe External Se lection II 483

ing, adulterating, or substituting samples); though, as we note shortly, if properly conducted, drug tests are difficult to fake.

types of tests A variety of tests may be used to ascertain substance abuse. The major categories of tests are the following:145

1. Body fluids. Both urine and blood tests can be used. Urine tests are by far the most frequently used method of detecting substance abuse. There are dif fer ent types of mea sures for each test. For example, urine samples can be mea sured using the enzyme- multiplied immunoassay technique or the gas

eXhiBit 9.14 percentage of applicants testing positive by Drug Category

– – – – – – ––

A m

p h

e ta

m in

e s

B ar

b itu

ra te

s

B e

n zo

d ia

ze p

in e

s

C o

ca in

e

M ar

iju an

a

M e

th ad

o n

e

O p

ia te

s

P ro

p o

xy p

h e

n e

10

9

8

7

6

5

4

3

2

1

0

0.97

0.22 0.68

0.25

1.90

0.18 0.32 0.03

O xy

co d

o n

e s

0.75

% o

f ap

p lic

an ts

Source: Based on 2015 Positivity Rates by Drug Category, Urine Drug Tests—For Combined U.S. Workforce, as a Percentage of all Such Tests, According to Quest Diagnostics’ Drug Testing Index, Quest Diagnostics Incorporated, 2016.

9781259756559_ch09_p431_512.indd 483 12/17/17 6:56 PM

484 PART FOUR Staffing Activities: Selection

chromatography/spectrometry technique. The latest innovation in drug test­ ing uses a strip that is dipped into a urine sample (like a home pregnancy test), allowing organ izations to test applicants and receive results on the spot.

2. Hair analy sis. Samples of hair are analyzed using the same techniques as those used to mea sure urine samples. Chemicals remain in the hair as it grows, so it can provide a longer rec ord of drug use. Hair analy sis is more expensive than urinalysis.

3. Pupillary reaction test. The reaction of the pupil to light is assessed. The pupils will react differently when the applicant is under the influence of drugs than when the applicant is drug­ free.

4. Performance tests. Hand­ eye coordination is assessed to see whether impair­ ment is pres ent. One of the limitations of per for mance tests in a se lection context is that there may be no feasible means of establishing a baseline against which per for mance is compared. Thus, per for mance tests are usually more suitable for testing employees than applicants.

5. Integrity test. Many integrity tests contain a section with 20 or so items that ask applicants about past and pres ent drug use (e.g., “I only drink at work when things get stressful”) as well as attitudes toward drug use (e.g., “How often do you think the average employee smokes marijuana on the job?”). Of course, such tests are susceptible to denial or deliberate falsification.

Administration For the results of drug tests to be accurate, precautions must be taken in their admin­ istration. When collecting samples to be tested, care must be exercised to ensure that the sample is au then tic and not contaminated. The US Department of Health and Human Ser vices has established specific guidelines that must be followed by federal agencies (and are good guidelines to follow in the private sector as well).146

The testing itself must be carefully administered. Large labs pro cess thousands of samples each day. Hence, human error can occur in the detection pro cess. In addition, false­ positive results can be generated due to cross­ reactions. This means that a common compound (e.g., poppy seeds) may interact with the antibodies and mistakenly identify a person as a substance abuser. Prescription medi cations may also affect drug test results. One new complicating factor in evaluating drug test results is the use of adulterants that mask the detection of certain drugs in the sys­ tem. Although most adulterants can be tested, not all are easily detected, and many firms are unaware they can ask drug companies to test for adulterants.

For the testing to be carefully administered, two steps need to be taken. First, care must be taken in the se lection of a reputable drug­ testing firm. Vari ous certification programs, such as those of the College of American Pathologists and the National Institute for Drug Abuse (NIDA), exist to ensure that accurate procedures are fol­ lowed. More than 50 drug­ testing laboratories have been certified by NIDA. Second, positive drug tests should always be verified by a second test to ensure reliability.

099-67811_ch09_4P.indd 484 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 485

What does a well­ conducted drug­ testing program look like?147 Samples are first submitted to screening tests, which are relatively inexpensive ($30– $40 per applicant) but yield many false positives (test indicates drug use when none occurred) due to the cross­ reactions described above. Confirmatory tests are then used, which are extremely accurate but more expensive. Error rates for confirma­ tory tests with reputable labs are very low. To avoid false positives, most organ­ izations have nonzero cutoff levels for most drugs. Thus, if a mistake does occur, it is much more likely to be a false negative (testing negative when in fact drug use did occur) than a false positive. Thus, some applicants who occasionally use drugs may pass a test, but it is very rare for an individual who has never used drugs to fail the test— assuming the two­ step pro cess described above is followed. Exhibit 9.15 outlines the steps involved in a well­ designed drug­ testing program. In this example:

• Applicants are advised in advance of testing. • All applicants are screened by urine testing. • Prescreening is done in­ house; positives are referred to an in de pen dent lab. • A strict chain of custody is followed. • Verified positive applicants are disqualified. • Disqualified applicants cannot reapply for two years.

EXHIBIT 9.15 Example of an Organizational Drug-Testing Program

Personnel makes o�er to applicant

Personnel requests drug test

Applicant’s urine sample

collected

Applicant hired by

personnel

In-house drug

screen

Negative

Screen

Positive Screen

Applicant hired by

personnel

Negative Report

Applicant hired by

personnel

Applicant not hired by personnel

Sample tested by independent

lab

Medical Review O�cer determines use

Illegal Drug

Legal Positive

Report

099-67811_ch09_4P.indd 485 11/17/17 1:31 PM

486 PART FOUR Staffing Activities: Selection

The Other Drugs: Smoking and Alcohol Increasingly, employers are banning smokers from hiring consideration. World­ renowned Cleveland Clinic, for example, now bans hiring of smokers (about half of US states prohibit rejecting applicants based on smoking). Union Pacific, a railroad that operates in 23 states, screens job candidates for smoking not by a nicotine test but by another method. “We will not pro cess applications of people who indicate they are smokers,” commented Kathryn Blackwell, a Union Pacific man ag er. Because smoking has been linked to higher health care costs, increased accident claims, and absenteeism, such policies may be justified. On the other hand, employers need to have arguments and evidence to support such policies: you should “make the business case,” as one expert noted. Thus, regardless of how smokers are screened out, employers that do so need to ensure that their policies comply with federal, state, and local regulations.148

As for alcohol, few employers test applicants for alcohol use for two reasons. First, because alcohol use is legal, and far more socially accepted than use of other mood­ altering drugs, most employers have no desire to test applicants for alcohol; doing so would exclude large numbers of applicants. A second reason alcohol testing is infrequently used is because alcohol remains in the system for only a day. Some organ izations that do test for alcohol use a test called EtG. The advantage of this test is that rather than scanning for the presence of alcohol, EtG scans for a by­ product of the metabolization of alcohol, ethyl glucuronide, which remains in the system for about 80 hours. To date, the only organ izations using the EtG test are those that prohibit or restrict alcohol use in certain jobs (e.g., some health care positions, transportation jobs) and those that have applicants who have had former alcohol prob lems but now claim to be sober.149

Evaluation It is commonly believed that drug testing results in a large number of false posi­ tives. Nevertheless, if the proper procedures are followed, drug test results are extremely accurate and error rates are very low. Accuracy of the test, however, is not the same as its validity in predicting impor tant job criteria. The most accurate drug test in the world will be a poor investment if it cannot be established that substance abuse is related to employee be hav iors such as accidents, absenteeism, tardiness, impaired job per for mance, and so on.

Although more research on the validity of drug­ testing programs is needed, some organ izations are conducting research on the deleterious effects of substance abuse. The US Postal Ser vice conducted an evaluation of its drug­ testing program using applicants who applied for positions in 21 sites over a six­ month period.150 A quality control pro cess revealed that the drug­ testing program was 100% accurate (zero false positives and false negatives). Ten percent of applicants tested positive for drug use (for the purposes of the study, applicants were hired without regard to their test scores). Of those positive tests, 65% were for marijuana, 24% were for

099-67811_ch09_4P.indd 486 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 487

cocaine, and 11% were for other drugs. The evaluation revealed higher absentee­ ism for drug users and higher dismissal rates for cocaine users. Drug use was not related to accidents or injuries. A cost­ benefit analy sis suggested that full imple­ mentation of the program would save the Postal Ser vice several million dollars per year in lower absenteeism and turnover rates.

The validity of per for mance and psychological drug tests is not well estab­ lished. As with integrity tests, a major concern is faking, but an advantage of psychological drug tests is that applicants are likely to perceive them as less intrusive. Of those organ izations that drug test, few rely on physical or psychologi­ cal tests.

In considering the validity of drug tests, one should not assume that the logi­ cal criterion against which the tests are validated is job per for mance. Typically, the criterion of job per for mance is central to evaluating the validity of most se lection mea sures, yet drug tests have not been validated against job per for mance. Thus, it is far from clear that drug tests do a good job of discerning good performers from poor performers. Drug tests do appear to predict other work be hav iors, however, includ­ ing absenteeism, accidents, and other counterproductive be hav ior. For the purposes for which they are suited, then, drug tests can be concluded to have high validity.

Fi nally, as with other assessment methods, two other criteria against which drug testing should be evaluated are adverse impact and applicant reactions. The adverse impact of drug testing is not universally accepted, but the Postal Ser vice study indi­ cated that drug­ testing programs have a moderate to high degree of adverse impact against black and Hispanic applicants. Research on applicant reactions to drug tests shows that if applicants perceive a need for drug testing, they are more likely to find such a program acceptable.151 Thus, organ izations that do a good job of explaining the reasons for the tests to applicants are more likely to find that applicants react favorably to the program.

Recommendations for Effective Drug- Testing Programs Though drug testing may have peaked, it is likely to continue as one of the most commonly used se lection methods, especially among large employers. To make organ izations’ drug­ testing programs as accurate and effective as pos si ble, six rec­ ommendations are outlined as follows:

1. Emphasize drug testing in safety­ sensitive jobs as well as in positions where the link between substance abuse and negative outcomes (e.g., as was the case with the Postal Ser vice study described earlier) has been documented.

2. Use only reputable testing laboratories, and ensure that a strict chain of cus­ tody is maintained.

3. Ask applicants for their consent and inform them of test results; provide rejected applicants an opportunity to appeal.

4. Use retesting to validate positive samples from the initial screening test.

099-67811_ch09_4P.indd 487 11/17/17 1:31 PM

488 PART FOUR Staffing Activities: Selection

5. Ensure that proper procedures are followed to maintain the applicant’s right to privacy.

6. Review the program and validate the results against relevant criteria (acci­ dents, absenteeism, turnover, and job per for mance); conduct a cost­ benefit analy sis of the program, as a very small number of detections may cause the program to have low utility.

Medical Exams

Medical exams are often used to identify potential health risks in job candidates. Care must be taken to ensure that medical exams are used only when there is a compelling reason to do so. This is to ensure that individuals with disabilities unre­ lated to job per for mance are not screened out. Because of these sorts of potential abuses, the use of medical exams is strictly regulated by the Americans With Dis­ abilities Act (ADA; discussed later in this chapter).

Although many organ izations use medical exams, they are not particularly valid, because the procedures performed vary from doctor to doctor.152 Also, medical exams are not always job related.153 Fi nally, the emphasis is usually on short­ term rather than long­ term health. One way to make medical exams more reliable, and therefore more valid, is to ensure that the exam is based on job­ related medical standards (i.e., the exam focuses on the specific diseases and health conditions that prohibit adequate functioning on specific jobs or clusters of tasks). Such an approach should improve not only content validity ( because it is job related) but also reliability because it standardizes the diagnosis across physicians.

LEGAL ISSUES

This section discusses three major legal issues. The first of these is the UGESP, a document that addresses the need to determine whether a se lection procedure is causing adverse impact, and if so, the validation requirements for the procedure. The second issue is se lection in conformance with the ADA as pertains to reason­ able accommodation to job applicants and the use of medical tests. The final issue is that of marijuana and other drug testing for job applicants.

Uniform Guidelines on Employee Se lection Procedures

The UGESP are a comprehensive set of federal regulations specifying requirements for the se lection systems of organ izations covered under the Civil Rights Acts and under E.O. 11246. The regulations apply to virtually all se lection mea sures (includ­ ing those covered in Chapters 8 and 9) used as a se lection procedure. They also apply to all employment decisions— hire, promote, transfer, demote, and retain.154 The general requirements of the UGESP are as follows:

099-67811_ch09_4P.indd 488 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 489

1. Keep applicant flow data (applicant and hire statistics) for each job category and protected group on the EEO­1 form (see Chapter 13).

2. Conduct adverse impact analy sis, using the 80% rule, for each group in each job category (see Chapter 7).

3. Where adverse impact is found, either validate the se lection procedure or take steps to eliminate the adverse impact by using an alternative procedure that causes less adverse impact.

4. Use content, criterion, or construct validation procedures (see Chapter 7). 5. For each job or job category, keep detailed rec ords of adverse impact; where

adverse impact is found, provide evidence of validity. 6. Keep in mind that compliance with the UGESP does not relieve the organ­

ization of any affirmative action obligation it has.

There are two impor tant exceptions to these general requirements. First, a small employer (fewer than 100 employees) does not have to keep separate rec ords for each job category, but only for its total se lection pro cess across all jobs. Second, rec ords for race or national origin do not have to be kept for groups constituting less than 2% of the labor force in the relevant labor area.

The UGESP make substantial demands on an organ ization and its staffing sys­ tems. Those demands exist to ensure orga nizational awareness of the possibility of adverse impact in employment decisions. When adverse impact is found, the UGESP provide mechanisms (requirements) for addressing the issues. The UGESP thus should occupy a prominent place in any covered organ ization’s EEO/AA poli­ cies and practices.

Se lection Under the Americans With Disabilities Act

The ADA, as interpreted by the Equal Employment Opportunity Commission (EEOC), creates substantial requirements and suggestions for compliance pertain­ ing to external se lection.155 The general nature of these is identified and commented on next.

General Princi ples Two major, overarching princi ples pertain to se lection. The first princi ple is that it is unlawful to screen out individuals with disabilities, unless the se lection proce­ dure is job related and consistent with business necessity. The second princi ple is that a se lection procedure must accurately reflect the KSAOs being mea sured, and not impaired sensory, manual, or speaking skills, unless those impaired skills are the ones being mea sured by the procedure.

The first princi ple is obviously very similar to princi ples governing se lection generally under federal laws and regulations. The second princi ple is impor tant because it cautions the organ ization to be sure that its se lection procedures do not inadvertently and unnecessarily screen out applicants with disabilities.

099-67811_ch09_4P.indd 489 11/17/17 1:31 PM

490 PART FOUR Staffing Activities: Selection

Access to Job Application Pro cess The organ ization’s job application pro cess must be accessible to individuals with disabilities. Reasonable accommodation must be provided to enable all persons to apply, and applicants should be provided assistance (if needed) in completing the application pro cess. Applicants should also be told about the nature and content of the se lection pro cess. This allows them to request reasonable accommodation to testing, if needed, in advance.

Reasonable Accommodation to Testing In general, the organ ization may use any kind of test in assessing job applicants. These tests must be administered consistently to all job applicants for any par tic­ u lar job.

A very impor tant provision of testing pertains to the requirement to provide rea­ sonable accommodation if requested by an applicant to take the test. The purpose of this requirement is to ensure that the test accurately reflects the KSAO being mea sured, rather than an impairment of the applicant. Reasonable accommodation, however, is not required for a person with an impaired skill if the purpose of the test is to mea sure that skill. For example, the organ ization does not have to provide reasonable accommodation on a manual dexterity test to a person with arthritis in the fin gers and hands if the purpose of the test is to mea sure manual dexterity.

Numerous types of reasonable accommodation can be made. Examples include substituting an oral test for a written one (or vice versa); providing extra time to complete a test; scheduling rest breaks during a test; administering tests in large print, in Braille, or by reader; and using assistive technologies to adapt computers, such as a special mouse or screen magnifier.

Inquiries About Disabilities Virtually all assessment tools and questions are affected by the ADA. A summary of permissible and impermissible practices is shown in Exhibit 9.16. Note that permissibility depends on the assessment tool, whether the tool is being used for an external applicant or employee, and whether the tool is being used prehire (like most se lection procedures) or after a conditional offer has been made. Also note the many stipulations governing usage.

Medical Examinations: Job Applicants Substantial regulations surround medical exams, both before and after a job offer is made. Prior to the offer, the organ ization may not make medical inquiries or require medical exams of an applicant. The job offer, however, may be conditional, pending the results of a medical exam.

After an offer has been extended, the organ ization may conduct a medical exam. The exam must be given to all applicants for a par tic u lar job, not just individu­ als with a known or suspected disability. Whereas the content of the exam is not

099-67811_ch09_4P.indd 490 11/17/17 1:31 PM

EXHIBIT 9.16 Inquiries About Disabilities

What Inquiries Can Be Made About Disabilities?

Type

External Applicants (Pre-O�er Stage)

External Applicants (Post-Conditional

O�er Stage)

AA data (self-ID and requests) Yes Yes )E,B(Yes,C(seYoNPhysical exam )E,B(seY,C(seYoNPsychological exam )E,B(seY,C(seYoNHealth questionnaire )E,B(seY

)D )D )D )D,C(seYoNWork comp history

Physical agility test Yes (A, C) seY

seY

seY

seY seY

YesseYDrug test )E,B(seYoNAlcohol test

Specific questions (oral and written)

About existence of a disability, its nature About ability to perform job-related functions (essential and nonessential)

Yes Yes

About smoking (but not allergic to it) Yes Yes About history of illegal drug use

Specific requests Describe how you would perform job-related functions (essential and nonessential) with or without reasonable accommodation Provide evidence of not currently using drugs

Yes Yes

A. If given to all similarly situated applicants/employees B. If job related and consistent with business necessity C. If only job-related criteria consistent with business necessity are used afterwards to screen out/

exclude the applicant, at which point reasonable accommodation must be considered D. If all entering employees in the same job category are subjected to it and subjected to same

qualification standard E. But only for the following purposes:

a. To determine fitness for duty (still qualified or still able to perform essential functions) b. To determine reasonable accommodation c. To meet requirements imposed by federal, state, or local law (DOT, OSHA, EPA, etc.) d. To determine direct threat

F. Can be requested of a particular individual if the disability is known and may interfere with or prevent performance of a job-related function

Employees

Yes

Yes (A, C) Yes (A, C)

Yes (A, C) )E,B(seY

)E,B(seY

)E,B(seY

)D,B(seY

)D,C(seY)F,D(seY

)D,B(seY

oN

Source: S. K. Willman, “Tips for Minimizing Abuses Under the Americans With Disabilities Act,” Legal Report, Society for Human Resource Management, Jan.–Feb. 2003, p. 8. Used with permission.

9781259756559_ch09_p431_512.indd 491 12/17/17 7:01 PM

492 PART FOUR Staffing Activities: Selection

restricted to being only job related, the reasons for rejecting an applicant on the basis of the exam must be job related. A person may also be rejected if exam results indicate a direct threat to the health and safety of the applicant or others such as employees or customers. This rejection must be based on reasonable medical judgment, not a simple judgment that the applicant might or could cause harm. Each applicant must be assessed individually in order to determine whether an impairment creates a significant risk of harm and cannot be accommodated through reasonable means. Results of medical exams are to be kept confidential, held separate from the employee’s personnel file, and released only under very specific circumstances.

It may be difficult to determine whether something is a medical examination and thus subject to the above requirements surrounding its use. The EEOC defines a medical examination as “a procedure or test that seeks information about an indi­ vidual’s physical or mental impairments or health.”156 The following factors are sug­ gestive of a se lection procedure that would be considered a medical examination:

• It is administered by a health care professional and/or someone trained by such a professional.

• It is designed to reveal an impairment of physical or mental health. • It is invasive (e.g., requires drawing blood, urine, or breath). • It mea sures the applicant’s physiological responses to performing a task. • It is normally given in a medical setting and/or medical equipment is used. • It tests for alcohol consumption.

Though closely allied with medical examinations, several types of tests fall out­ side the bounds of medical examinations. These tests may be used pre­ offer and include physical agility tests, physical fitness tests, vision tests, drug tests for current illegal use of controlled substances, and tests that mea sure honesty, tastes, and habits.

A gray area involves the use of psychological tests, such as personality tests. They are considered medical if they lead to identifying a medically recognized mental disorder or impairment, such as those in the American Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders. Future regulations and court rulings may help clarify which types of psychological tests are medical exams.

Medical Examinations: Current Employees This enforcement guidance applies to employees generally, not just employees with disabilities.157 An employee who applies for a new (dif fer ent) job with the same employer should be treated as an applicant for a new job and thus subject to the provisions described above for job applicants. An individual is not an appli­ cant where she or he is entitled to another position with the same employer (e.g., because of se niority or satisfactory per for mance in her or his current position) or when returning to a regular job after being on temporary assignment in another job. Instead, these individuals are considered employees.

099-67811_ch09_4P.indd 492 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 493

For employees, the employer may make disability­ related inquiries and require medical examinations only if they are job related and consistent with business necessity. Any information obtained, or voluntarily provided by the employee, is a confidential medical rec ord. The rec ord may only be shared in limited circum­ stances with man ag ers, supervisors, first aid and safety personnel, and government officials investigating ADA compliance. Generally, a disability­ related inquiry or medical examination is job related and consistent with business necessity when the employer has a reasonable belief, based on objective evidence, that (1) an employee’s ability to perform essential job functions will be impaired by a medical condition or (2) an employee will pose a direct threat due to a medical condition.

A medical examination for employees is defined the same way as for job appli­ cants. Examples of disability­ related inquiries include the following:

• Asking an employee whether she or he was disabled (or ever had a disability) or how she or he became disabled, or asking about the nature or severity of an employee’s disability

• Asking an employee to provide medical documentation regarding her or his disability

• Asking an employee’s coworkers, family members, doctor, or another person about the employee’s disability

• Asking about an employee’s ge ne tic information • Asking about an employee’s prior workers’ compensation history • Asking if an employee is taking any medi cation or drugs or has done so in

the past • Asking an employee broad information that is likely to elicit information

about a disability

Drug Testing Drug testing is permitted to detect the use of illegal drugs. The law, however, is neutral as to its encouragement.

UGESP The UGESP do not apply to the ADA or its regulations. This means that the guid­ ance and requirements for employers’ se lection systems under the Civil Rights Act may or may not be the same as those required for compliance with the ADA.

Marijuana and Other Drug Testing

Applicant and employee usage of marijuana and other drugs pres ents special legal challenges. The organ ization not only must comply with a host of laws and regula­ tions, but also must fashion specific policies and practices that will create such compliance within the operation of its staffing systems.158

099-67811_ch09_4P.indd 493 11/17/17 1:31 PM

494 PART FOUR Staffing Activities: Selection

For marijuana compliance there is new and ever­ evolving terrain to navigate. Federal law (the Controlled Substances Act) makes marijuana possession and use illegal. Both medical and recreational use of marijuana are thus prohibited, though the law as it applies to marijuana is rarely enforced. But under the ADA, an appli­ cant or employee with a covered disability that is being treated with medical mari­ juana may require a reasonable accommodation to that use.159

Marijuana laws vary a lot at the state level. A majority of the states have now legalized marijuana usage, primarily for medical purposes, but some states (e.g., Colorado) also permit recreational usage. These laws do not require the organ­ ization to permit or tolerate marijuana use at work, with the sometimes excep­ tion of requiring an accommodation for medical usage (e.g., Ohio). State laws also usually allow the organ ization to have a blanket ban on marijuana use for safety­ sensitive positions or in order to comply with federal or other contract requirements.160

Drug testing for other drugs is also surrounded by an amalgam of laws and regula­ tions at the federal and state levels. Special law for the Department of Transporta­ tion requires alcohol and drug testing for transportation workers in safety­ sensitive jobs.161 The organ ization should seek legal and medical advice to determine whether it should do drug testing and, if so, what the nature of the drug­ testing program should be. Beyond that, the organ ization should require and administer drug tests on a contingency (post­ offer) basis only, to avoid the possibility of obtaining and using medical information illegally. For example, positive drug test results may occur because of the presence of a legal drug, and using these results pre­ offer to reject a person would be a violation of the ADA. The organ ization could also learn about other organ izations’ testing policies and practices to inform its own decisions.162

SUMMARY

This chapter continued the discussion of proper methods and pro cesses to be used in external se lection. Specifically, substantive, discretionary, and contingent assessment methods were discussed, as well as collection of assessment data and pertinent legal issues.

Most of the chapter discussed vari ous substantive methods, which are used to separate finalists from candidates. Like initial assessment methods, substantive assessment methods should always be based on the logic of prediction and the use of se lection plans. The substantive methods that were reviewed include per­ sonality tests; ability tests; emotional intelligence tests; per for mance tests and work samples; situational judgment tests; integrity tests; interest, values, and pref­ erence inventories; structured interviews; and assessment for team environments. As with initial assessment methods, the criteria used to evaluate the effectiveness

099-67811_ch09_4P.indd 494 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 495

of substantive assessment methods are frequency of use, cost, reliability, validity, utility, applicant reactions, and adverse impact. In general, substantive assess­ ment methods show a marked improvement in reliability and validity over initial assessment methods. This is prob ably due to the stronger relationship between the sampling of the applicant’s previous situations and the requirements for suc­ cess on the job.

Discretionary se lection methods are somewhat less formal and more subjective than other se lection methods. When discretionary methods are used, two judg­ ments are impor tant: Will the applicant be a good orga nizational “citizen,” and do the values and goals of the applicant match those of the organ ization?

Though discretionary methods are subjective, contingent assessment meth­ ods typically involve decisions about whether applicants meet certain objective requirements for the job. The two most common contingent methods are drug testing and medical exams. Particularly in the case of drug testing, the use of contingent methods is relatively complex from an administrative and legal standpoint.

Regardless of predictor type, attention must be given to the proper collection and use of predictor information. In par tic u lar, support ser vices need to be estab­ lished, administrators with the appropriate credentials need to be hired, data need to be kept private and confidential, and administration procedures must be standardized.

Along with administrative issues, legal issues need to be considered as well. Attention must be paid to regulations that govern permissible activities by organ­ izations. Regulations include those in the UGESP and the ADA.

DISCUSSION QUESTIONS

1. Describe the similarities and differences between personality tests and integ­ rity tests. When is each warranted in the se lection pro cess?

2. How would you advise an organ ization considering adopting a cognitive abil­ ity test for se lection?

3. Describe the structured interview. What are the characteristics of structured interviews that improve on the shortcomings of unstructured interviews?

4. What are the most common discretionary and contingent assessment meth­ ods? What are the similarities and differences between the use of these two types of methods?

5. What is the best way to collect and use drug­ testing data in se lection decisions? 6. How should organ izations apply the general princi ples of the UGESP to prac­

tical se lection decisions?

099-67811_ch09_4P.indd 495 11/17/17 1:31 PM

496 PART FOUR Staffing Activities: Selection

ETHICAL ISSUES

1. Do you think it’s unethical for employers to select applicants on the basis of mea sures such as “Dislike loud music” and “Enjoy wild flights of fancy” even if the scales that such items mea sure have been shown to predict job per for mance? Explain.

2. Cognitive ability tests are one of the best predictors of job per for mance, yet they have substantial adverse impact against minorities. Do you think it’s fair to use such tests? Why or why not?

APPLICATIONS

Assessment Methods for the Job of Human Resources Director

Nairduwel, Inoalot, and Imslo (NII) is a law firm specializing in business law. Among other areas, it deals in equal employment opportunity law, business litiga­ tion, and workplace torts. The firm has more than 50 partners and approximately 120 employees. It does business in three states and has law offices in two major metropolitan areas. The firm has no federal contracts.

NII plans to expand into two additional states, opening offices in two major metropolitan areas. One of the primary challenges accompanying this ambi­ tious expansion plan is how to staff the new offices. Accordingly, the firm wishes to hire an HR director to oversee employee recruitment, se lection, training, per­ for mance appraisal, and compensation activities accompanying the business expansion, as well as supervise the HR activities in the existing NII offices. The newly created job description for the HR director is listed in the accompanying exhibit.

The firm wishes to design and then use a se lection system for assessing appli­ cants that will achieve two objectives: (1) create a valid and useful system that will do a good job of matching applicant KSAOs to job requirements, and (2) be in compliance with all relevant federal and state employment laws.

The firm is considering numerous se lection techniques for pos si ble use. For each method listed below, decide whether you would or would not use it in the se lection pro cess and state why.

1. A job knowledge test specifically designed for HR professionals that focuses on an applicant’s general knowledge of HR management

2. A medical examination and drug test at the beginning of the se lection pro cess in order to determine whether applicants are able to cope with the high level of stress and frequent travel requirements of the job and are drug­ free

099-67811_ch09_4P.indd 496 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 497

Exhibit

Job Description for Human Resources Director

JOB SUMMARY

Performs responsible administrative work managing personnel activities. Work involves responsibility for the planning and administration of HRM programs, including recruitment, selection, evaluation, appointment, promotion, compensation, and recommended change of status of employees, and a system of communication for disseminating information to workers. Works under general supervision, exercising initiative and independent judgment in the performance of assigned tasks.

TASKS

1. Participates in overall planning and policy making to provide effective and uniform personnel services.

2. Communicates policy through organization levels by bulletin, meetings, and personal contact. 3. Supervises recruitment and screening of job applicants to fill vacancies. Supervises interviewing of

applicants, evaluation of qualifications, and classification of applications. 4. Supervises administration of tests to applicants.

3. A paper­ and­ pencil integrity test 4. A structured behavioral interview that would be specially designed for use in

filling only this job 5. A general cognitive ability test 6. Personal Characteristics Inventory 7. A set of interview questions that the firm typically uses for filling any

position: a. Tell me about a prob lem you solved on a previous job. b. Do you have any physical impairments that would make it difficult for you

to travel on business? c. Have you ever been tested for AIDS? d. Are you currently unemployed, and if so, why? e. This position requires fresh ideas and energy. Do you think you have those

qualities? f. What is your definition of success? g. What kind of sports do you like? h. How well do you work under pressure? Give me some examples.

099-67811_ch09_4P.indd 497 11/17/17 1:31 PM

498 PART FOUR Staffing Activities: Selection

5. Confers with supervisors on personnel matters, including placement problems, retention or release of probationary employees, transfers, demotions, and dismissals of permanent employees.

6. Initiates personnel training activities and coordinates these activities with work of officials and supervisors.

7. Establishes effective service rating system and trains unit supervisors in making employee evaluations. 8. Supervises maintenance of employee personnel files. 9. Supervises a group of employees directly and through subordinates. 10. Performs related work as assigned.

JOB SPECIFICATIONS

1. Experience and Training Should have considerable experience in area of HRM administration. Six years minimum.

2. Education Graduation from a four­ year college or university, with major work in human resources, business

administration, or industrial psychology. Master’s degree in one of these areas is preferable.

3. Knowledge, Skills, and Abilities Considerable knowledge of principles and practices of HRM, including staffing, compensation, train­

ing, and performance evaluation.

4. Responsibility Supervises the human resource activities of six office managers, one clerk, and one assistant.

Choosing Among Finalists for the Job of Human Resources Director

Assume that NII, after weighing its options, deci ded to use the following se lection methods to assess applicants for the HR director job: résumé, cognitive ability test, job knowledge test, structured interview, and questions (f) and (g) from the list of generic interview questions.

NII advertised for the position extensively, and out of a pool of 23 initial appli­ cants, three finalists were chosen. Shown in the accompanying exhibit are the results from the assessment of the three finalists using the vari ous se lection meth­ ods. In addition, information from an earlier résumé screen is included for pos­ si ble consideration. For each finalist, decide whether you would hire the person and why.

099-67811_ch09_4P.indd 498 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 499

ENDNOTES

1. L. M. Hough, “The ‘Big Five’ Personality Variables— Construct Confusion: Description Versus Prediction,” Human Per for mance, 1992, 5, pp. 139–155.

2. D. S. Ones, S. Dilchert, C. Viswesvaran, and T. A. Judge, “In Support of Personality Assessments in Orga nizational Settings,” Personnel Psy chol ogy, 2007, 60, pp. 995–1027; N. Li, M. R. Bar­ rick, R. D. Zimmerman, and D. S. Chiaburu, “Retaining the Productive Employee: The Role of Personality,” The Acad emy of Management Annals, 2014, 8, pp. 347–395.

3. O. P. John, L. P. Naumann, and C. J. Soto, “Paradigm Shift to the Integrative Big Five Trait Taxonomy: History, Mea sure ment, and Conceptual Issues,” in O. P. John, R. W. Robins, and

Exhibit

Results of Assessment of Finalists for Human Resources Director Position

Finalist 1— Lola Vega

Finalist 2— Sam Fein

Finalist 3— Shawanda Jackson

Résumé GPA 3.9/Cornell University

B.S. Human Resource Mgmt.

GPA 2.8/SUNY Binghamton

B.B.A. Finance

GPA 3.2/Auburn University

B.B.A. Business and English

5 years’ experience

• 4 years in recruiting

20 years’ experience

• Numerous HR assignments

• Certified HR professional

8 years’ experience in in HRM in HRM HRM

• 3 years HR generalist

• 4 years compensation analyst

No supervisory 15 years’ supervisory 5 years’ supervisory experience experience experience

Cognitive ability test 90% correct 78% correct 84% correct

Knowledge test 94% correct 98% correct 91% correct

Structured int. 85 68 75 (out of 100 pts.)

Question (f) Ability to influence To do things you others want to do

Promotions and earnings

Question (g) Golf, shuffleboard Spectator sports Basketball, tennis

099-67811_ch09_4P.indd 499 11/17/17 1:31 PM

500 PART FOUR Staffing Activities: Selection

L. A. Pervin (eds.), Handbook of Personality: Theory and Research, 3rd ed. (New York: Guil­ ford, 2008), pp. 114–158.

4. B. W. Roberts and W. F. DelVecchio, “The Rank­ Order Consistency of Personality Traits From Childhood to Old Age: A Quantitative Review of Longitudinal Studies,” Psychological Bulletin, 2000, 126, pp. 3–25.

5. T. Vukasović and D. Bratko, “Heritability of Personality: A Meta­ Analysis of Be hav ior Ge ne tic Studies,” Psychological Bulletin, 2015, 141, pp. 769–785.

6. M. K. Mount and M. R. Barrick, Manual for the Personal Characteristics Inventory (Iowa City, IA: authors, 1995), obtainable from www . wonderlic . com / assessments / personality / five - factor - personality - profile.

7 . P. T. Costa, Jr., and R. R. McCrae, Revised NEO Personality Inventory (NEO- PI- R) and NEO Five- Factor Inventory (NEO- FFI) Professional Manual (Odessa, FL: Psychological Assessment Resources, 1992), obtainable from www4 . parinc . com / Products / Product . aspx ? ProductID = NEO - PI - R .

8 . J. Hogan and R. Hogan, “How to Mea sure Employee Reliability,” Journal of Applied Psy chol- ogy, 1989, 74, pp. 273–279, obtainable from www . hoganassessments . com / assessment / hogan - personality - inventory / .

9 . See, for example, A. Doyle, “Walmart Job Application and Pre­ Employment Assessment Test” (www . thebalance . com / walmart - job - application - tips - 2061582), accessed Dec. 2, 2016.

10. N. T. Tippins, J. Beaty, F. Drasgow, W. M. Gibson, K. Pearlman, D. O. Segall, and W. Shepherd, “Unproctored Internet Testing in Employment Settings,” Personnel Psy chol ogy, 2006, 59, pp. 189–225; S. Overman, “Online Screening Saves Time and Money,” Staffing Management, July– Sept. 2005, pp. 18–22.

11. Exhibit 9.2 and the review here are based on C. M. Berry, D. S. Ones, and P. R. Sackett, “Inter­ personal Deviance, Orga nizational Deviance, and Their Common Correlates: A Review and Meta­ Analysis,” Journal of Applied Psy chol ogy, 2007, 92, pp. 410–424; C. Viswesvaran, J. Deller, and D. S. Ones, “Personality Mea sures in Personnel Se lection: Some New Contributions,” International Journal of Se lection and Assessment, 2007, 15, pp. 354–358; N. M. Dudley, K. A. Orvis, J. E. Leb­ iecki, and J. M. Cortina, “A Meta­ Analytic Investigation of Conscientiousness in the Prediction of Job Per for mance: Examining the Intercorrelations and the Incremental Validity of Narrow Traits,” Journal of Applied Psy chol ogy, 2006, 91, pp. 40–57; D. S. Ones, C. Viswesvaran, and S. Dilchert, “Personality at Work: Raising Awareness and Correcting Misconceptions,” Human Per for mance, 2005, 18, pp. 389–404; M. G. Rothstein and R. D. Goffin, “The Use of Personality Mea sures in Personnel Se lection: What Does Current Research Support?” Human Resource Management Review, 2006, 16, pp. 155–180; J. A. Shaffer and B. E. Postlethwaite, “A Matter of Context: A Meta­ Analytic Investigation of the Relative Validity of Contextualized and Noncontextualized Personality Mea sures,” Personnel Psy chol ogy, 2012, 65, pp. 445–494; D. Choi, I.­ S. Oh, and A. E. Colbert, “Understanding Orga nizational Commitment: A Meta­ Analytic Examination of the Roles of the Five­ Factor Model of Personality and Culture,” Journal of Applied Psy chol ogy, 2015, 100, pp. 1542–1567; D. S. Chiaburu, I.­ S. Oh, C. M. Berry, N. Li, and R. G. Gardner, “The Five­ Factor Model of Personality Traits and Orga nizational Citizenship Be hav iors: A Meta­ Analysis,” Journal of Applied Psy chol ogy, 2011, 96, pp. 1140–1166; T. A. Judge and R. Ilies, “Relationship of Personality to Per for mance Motivation: A Meta­ Analytic Review,” Journal of Applied Psy chol- ogy, 2002, 87, pp. 797–807; M. M. Hammond, N. L. Neff, J. L. Farr, A. R. Schwall, and X. Zhao, “Predictors of Individual­ Level Innovation at Work: A Meta­ Analysis,” Psy chol ogy of Aesthetics, Creativity, and the Arts, 2011, 5, pp. 90–105.

12. J. R. Pierce and H. Aguinis, “The Too­ Much­ of­ a­ Good­ Thing Effect in Management,” Journal of Management, 2013, 39, pp. 313–338; N. T. Car ter, D. K. Dalal, A. S. Boyce, M. S. O’Connell, M.­ C. Kung, and K. M. Delgado, “Uncovering Curvilinear Relationships Between Conscientious­

099-67811_ch09_4P.indd 500 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 501

ness and Job Per for mance: How Theoretically Appropriate Mea sure ment Makes an Empirical Difference,” Journal of Applied Psy chol ogy, 2014, 99, pp. 564–586; N. T. Car ter, L. Guan, J. L. Maples, R. L. Williamson, and J. D. Miller, “The Downsides of Extreme Conscientiousness for Psychological Well­ Being: The Role of Obsessive Compulsive Tendencies,” Journal of Personality, 2016, 84, pp. 510–522.

13. For a review of these criticisms and responses to them, see F. P. Morgeson, M. A. Campion, R. L. Dipboye, J. R. Hollenbeck, K. Murphy, and N. Schmitt, “Reconsidering the Use of Personality Tests in Personnel Se lection Contexts,” Personnel Psy chol ogy, 2007, 60, pp. 683–729; Ones, Dilchert, Viswesvaran, and Judge, “In Support of Personality Assessment in Orga nizational Settings”; R. P. Tett and N. D. Christiansen, “Personality Tests at the Crossroads: A Response to Morgeson, Campion, Dipboye, Hollenbeck, Murphy, and Schmitt (2007),” Personnel Psy chol ogy, 2007, 60, pp. 967–993.

14. Morgeson et al., “Reconsidering the Use of Personality Tests in Personnel Se lection Contexts,” p. 694; Validity estimate from T. A. Judge, J. B. Rodell, R. L. Klinger, L. S. Simon, and E. R. Crawford, “Hierarchical Repre sen ta tions of the Five­ Factor Model of Personality in Predicting Job Per for mance: Integrating Three Organ izing Frameworks With Two Theoretical Perspec­ tives,” Journal of Applied Psy chol ogy, 2013, 98, pp. 875–925.

15. Ones, Dilchert, Viswesvaran, and Judge, “In Support of Personality Assessment in Orga nizational Settings”; M. R. Barrick, M. K. Mount, and T. A. Judge, “Personality and Per for mance at the Beginning of the New Millennium: What Do We Know and Where Do We Go Next?” Inter- national Journal of Se lection & Assessment, 2001, 9, pp. 9–30; Li, Barrick, Zimmerman, and Chiaburu, “Retaining the Productive Employee: The Role of Personality.”

16. G. V. Barrett, R. F. Miguel, J. M. Hurd, S. B. Lueke, and J. A. Tan, “Practical Issues in the Use of Personality Tests in Police Se lection,” Public Personnel Management, 2003, 32, pp. 497–517; V. M. Mallozzi, “This Expert in Scouting Athletes Doesn’t Need to See Them Play,” New York Times, Apr. 25, 2004, pp. SP3, SP7.

17. M. R. Barrick and M. K. Mount, “Autonomy as a Moderator of the Relationships Between the Big Five Personality Dimensions and Job Per for mance,” Journal of Applied Psy chol ogy, 1993, 78, pp. 111–118; T. A. Judge and C. P. Zapata, “The Person­ Situation Debate Revisited: Effect of Situation Strength and Trait Activation on the Validity of the Big Five Personality Traits in Predicting Job Per for mance,” Acad emy of Management Journal, 2015, 58, pp. 1149–1179.

18. L. M. Hough, F. L. Oswald, and J. Ock, “Beyond the Big Five: New Directions for Personality Research and Practice in Organ izations,” Annual Review of Orga nizational Psy chol ogy and Orga- nizational Be hav ior, 2015, 2, pp. 183–209; M. C. Ashton and K. Lee, “The Prediction of Honesty­ Humility­ Related Criteria by the HEXACO and Five­ Factor Models of Personality,” Journal of Research in Personality, 2008, 42, pp. 1216–1228; M. C. Ashton, K. Lee, and R. E. de Vries, “The HEXACO Honesty­ Humility, Agreeableness, and Emotionality Factors: A Review of Research and Theory,” Personality and Social Psy chol ogy Review, 2014, 18, pp. 139–152; T. A. Judge and J. E. Bono, “Relationship of Core Self­ Evaluations Traits— Self­ Esteem, Generalized Self­ Efficacy, Locus of Control, and Emotional Stability— With Job Satisfaction and Job Per for­ mance: A Meta­ Analysis,” Journal of Applied Psy chol ogy, 2001, 86, pp. 80–92; T. A. Judge, A. Erez, J. E. Bono, and C. J. Thoresen, “The Core Self­ Evaluations Scale: Development of a Mea sure,” Personnel Psy chol ogy, 2003, 56, pp. 303–331; J. P. Thomas, D. S. Whitman, and C. Viswesvaran, “Employee Proactivity in Organ izations: A Comparative Meta­ Analysis of Emergent Proactive Constructs,” Journal of Occupational and Orga nizational Psy chol ogy, 2010, 83, pp. 275–300; K. J. Eschleman, N. A. Bowling, and G. M. Alarcon, “A Meta­ Analytic Examination of Hardiness,” Inter- national Journal of Stress Management, 2010, 17, pp. 277–307; E. H. O’Boyle, Jr., D. R. Forsyth, G. C. Banks, and M. A. McDaniel, “A Meta­ Analysis of the Dark Triad and Work Be hav ior: A Social Exchange Perspective,” Journal of Applied Psy chol ogy, 2012, 97, pp. 557–579.

099-67811_ch09_4P.indd 501 11/17/17 1:31 PM

502 PART FOUR Staffing Activities: Selection

19. C.­ H. D. Chang, D. L. Ferris, R. E. Johnson, C. C. Rosen, and J. A. Tan, “Core Self­ Evaluations: A Review and Evaluation of the Lit er a ture,” Journal of Management, 2012, 38, pp. 81–128; K. Tornau and M. Frese, “Construct Clean­ Up in Proactivity Research: A Meta­ Analysis on the Nomological Net of Work­ Related Proactivity Concepts and Their Incremental Validities,” Applied Psy chol ogy: An International Review, 2013, 62, pp. 44–96; Eschleman, Bowling, and Alarcon, “A Meta­ Analytic Examination of Hardiness”; E. H. O’Boyle, D. R. Forsyth, G. C. Banks, P. A. Story, and C. D. White, “A Meta­ Analytic Test of Redundancy and Relative Importance of the Dark Triad and Five­ Factor Model of Personality,” Journal of Personality, 2015, 83, pp. 644–664.

20. S. A. Birkeland, T. M. Manson, J. L. Kisamore, M. T. Brannick, and M. A. Smith, “A Meta­ Analytic Investigation of Job Applicant Faking on Personality Mea sures,” International Journal of Se lection and Assessment, 2006, 14, pp. 317–335; S. Stark, O. S. Chernyshenko, and F. Dras­ gow, “Examining Assumptions About Item Responding in Personality Assessment: Should Ideal Point Methods Be Considered for Scale Development and Scoring?” Journal of Applied Psy chol- ogy, 2006, 91, pp. 25–39.

21. H. Le, I. Oh, S. B. Robbins, R. Ilies, E. Holland, and P. Westrick, “Too Much of a Good Thing: Curvilinear Relationships Between Personality Traits and Job Per for mance,” Journal of Applied Psy chol ogy, 2011, 96, pp. 113–133; D. L. Whetzel, M. A. McDaniel, A. P. Yost, and N. Kim, “Linearity of Personality­ Performance Relationships: A Large­ Scale Examination,” International Journal of Se lection and Assessment, 2010, 18(3), pp. 310–320; Car ter et al., “Uncovering Cur­ vilinear Relationships Between Conscientiousness and Job Per for mance: How Theoretically Appropriate Mea sure ment Makes an Empirical Difference.”

22. Shaffer and Postlethwaite, “A Matter of Context: A Meta­ Analytic Investigation of the Relative Validity of Contextualized and Noncontextualized Personality Mea sures.”

23. Rothstein and Goffin, “The Use of Personality Mea sures in Personnel Se lection: What Does Current Research Support?”; S. A. Birkeland, T. M. Manson, J. L. Kisamore, M. T. Brannick, and M. A. Smith, “A Meta­ Analytic Investigation of Job Applicant Faking on Personality Mea­ sures,” International Journal of Se lection and Assessment, 2006, 14, pp. 317–335; C. B. Fell and C. J. König, “Cross­ Cultural Differences in Applicant Faking on Personality Tests: A 43 Nation Study,” Applied Psy chol ogy: An International Review, 2016, 65, pp. 671–717.

24. J. E. Ellingson, D. B. Smith, and P. R. Sackett, “Investigating the Influence of Social Desirability on Personality Factor Structure,” Journal of Applied Psy chol ogy, 2001, 86, pp. 122–133; D. B. Smith and J. E. Ellingson, “Substance Versus Style: A New Look at Social Desirability in Moti­ vating Contexts,” Journal of Applied Psy chol ogy, 2002, 87, pp. 211–219.

25. M. N. Bing, D. Kluemper, H. Kristl Davison, S. Taylor, and M. Novicevic, “Overclaiming as a Mea sure of Faking,” Orga nizational Be hav ior and Human Decision Pro cesses, 2011, 116, pp. 148–162; L. Chang, B. S. Connelly, and A. A. Geeza, “Separating Method Factors and Higher­ Order Traits of the Big Five: A Meta­ Analytic Multi­ Trait Multi­ Method Approach,” Journal of Personality and Social Psy chol ogy, 2012, 102, pp. 408–426; B. S. Connelly and U. R. Hülsheger, “A Narrower Scope or a Clearer Lens? Examining the Validity of Personality Ratings From Observers Outside the Workplace,” Journal of Personality, 2012, 80, pp. 603–631; B. S. Connelly and L. Chang, “A Meta­ Analytic Multitrait Multirater Separation of Substance and Style in Social Desirability Scales,” Journal of Personality, 2016, 84, pp. 319–334.

26. N. Schmitt and F. L. Oswald, “The Impact of Corrections for Faking on the Validity of Noncogni­ tive Mea sures in Se lection Settings,” Journal of Applied Psy chol ogy, 2006, 91, pp. 613–621.

27. E. D. Heggestad, M. Morrison, C. L. Reeve, and R. A. McCloy, “Forced­ Choice Assessments of Personality for Se lection: Evaluating Issues of Normative Assessment and Faking Re sis tance,” Journal of Applied Psy chol ogy, 2006, 91, pp. 9–24; S. Dilchert, D. S. Ones, C. Viswesvaran, and J. Deller, “Response Distortion in Personality Mea sure ment: Born to Deceive, yet Capable of Providing Valid Self­ Assessments?” Psy chol ogy Science, 2006, 48, pp. 209–225.

099-67811_ch09_4P.indd 502 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 503

28. S. A. Dwight and J. J. Donovan, “Do Warnings Not to Fake Reduce Faking?” Human Per- for mance, 2003, 16, pp. 1–23; J. Hogan, P. Barrett, and R. Hogan, “Personality Mea sure ment, Faking, and Employment Se lection,” Journal of Applied Psy chol ogy, 2007, 92, pp. 1270–1285; J. E. Ellingson, P. R. Sackett, and B. S. Connelly, “Personality Assessment Across Se lection and Development Contexts: Insights Into Response Distortion,” Journal of Applied Psy chol ogy, 2007, 92, pp. 386–395; E. A. J. van Hooft and M. P. Born, “Intentional Response Distortion on Per­ sonality Tests: Using Eye­ Tracking to Understand Response Pro cesses When Faking,” Journal of Applied Psy chol ogy, 97, 2, pp. 301–316; J. Fan, D. Gao, S. A. Carroll, F. J. Lopez, T. S. Tian, and H. Meng, “Testing the Efficacy of a New Procedure for Reducing Faking on Personality Tests Within Se lection Contexts,” Journal of Applied Psy chol ogy, 97, pp. 866–880.

29. R. D. Zimmerman, M. Triana, and M. R. Barrick, “Predictive Criterion­ Related Validity of Observer Ratings of Personality and Job­ Related Competencies Using Multiple Raters and Mul­ tiple Per for mance Criteria,” Human Per for mance, 2010, 23(4), pp. 361–378; C. M. Berry, P. R. Sackett, and V. Tobares, “A Meta­ Analysis of Conditional Reasoning Tests of Aggression,” Per- sonnel Psy chol ogy, 2010, 63(2), pp. 361–384; R. E. Johnson, A. L. Tolentino, O. B. Rodopman, and E. Cho, “We (Sometimes) Know Not How We Feel: Predicting Job Per for mance With an Implicit Mea sure of Trait Affectivity,” Personnel Psy chol ogy, 2010, 63(1), pp. 197–219; I. Oh and C. M. Berry, “The Five­ Factor Model of Personality and Managerial Per for mance: Validity Gains Through the Use of 360 Degree Per for mance Ratings,” Journal of Applied Psy chol ogy, 2009, 94(6), pp. 1498–1513.

30. J. P. Hausknecht, D. V. Day, and S. C. Thomas, “Applicant Reactions to Se lection Procedures: An Updated Model and Meta­ Analysis,” Personnel Psy chol ogy, 2004, 57(3), pp. 639–683; “Workers Question Validity of Personality Tests,” Staffing Management, Jan.– Mar. 2007, p. 11; N. Ander­ son, J. F. Salgado, U. R. Hülsheger, “Applicant Reactions in Se lection: Comprehensive Meta­ Analysis Into Reaction Generalization Versus Situational Specificity,” International Journal of Se lection and Assessment, 2010, 18, pp. 291–304.

31. A. Wolf and A. Jenkins, “Explaining Greater Test Use for Se lection: The Role of HR Profession­ als in a World of Expanding Regulation,” Human Resource Management Journal, 2006, 16(2), pp. 193–213.

32. E. A. Fleishman and M. E. Reilly, Handbook of Human Abilities (Palo Alto, CA: Consulting Psychologists Press, 1992).

33. C. L. Reeve and N. Blacksmith, “Identifying g: A Review of Current Factor Analytic Practices in the Science of Mental Abilities,” Intelligence, 2009, 37(5), pp. 487–494.

34. J. Schmidt, “2012 NFL Draft: The 5 Best, 5 Worst Wonderlic Scores in NFL History,” Bleacher Report, Apr. 4, 2012 (http:// bleacherreport . com / articles / 1130834 - nfl - draft - 2012 - the - 5 - best - and - the - 5 - worst - wonderlic - scores - in - nfl - history), accessed Aug. 12, 2013.

35. C. F. Wonderlic, Jr., “Test Publishers Form Association,” Human Resource Mea sure ments (Sup­ plement to the Jan. 1993 Personnel Journal), p. 3.

36. F. L. Schmidt and J. E. Hunter, “The Validity and Utility of Se lection Methods in Personnel Psy chol ogy: Practical and Theoretical Implications of 85 Years of Research Findings,” Psycho- logical Bulletin, 1998, 124, pp. 262–274; J. F. Salgado, N. Anderson, S. Moscoso, C. Bertua, F. de Fruyt, and J. P. Rolland, “A Meta­ Analytic Study of General Mental Ability Validity for Dif fer ent Occupations in the Eu ro pean Community,” Journal of Applied Psy chol ogy, 2003, 88, pp. 1068–1081; F. L. Schmidt and J. Hunter, “General Mental Ability in the World of Work: Occupational Attainment and Job Per for mance,” Journal of Personality and Social Psy chol ogy, 2004, 86, pp. 162–173.

37. T. A. Judge, R. Ilies, and N. Dimotakis, “Are Health and Happiness the Product of Wisdom? The Relationship of General Mental Ability to Educational and Occupational Attainment, Health, and Well­ Being,” Journal of Applied Psy chol ogy, 2010, 95(3), pp. 454–468; M. A. Maltarich,

099-67811_ch09_4P.indd 503 11/17/17 1:31 PM

504 PART FOUR Staffing Activities: Selection

A. J. Nyberg, and G. A. Reilly, “A Conceptual and Empirical Analy sis of the Cognitive Ability– Voluntary Turnover Relationship,” Journal of Applied Psy chol ogy, 2010, 95(6), pp. 1058–1070; E. Gonzalez­ Mulé, M. K. Mount, and I.­ S. Oh, “A Meta­ Analysis of the Relationship Between General Mental Ability and Nontask Per for mance,” Journal of Applied Psy chol ogy, 2014, 99, pp. 1222–1243.

38. J. E. Hunter, “Cognitive Ability, Cognitive Aptitudes, Job Knowledge, and Job Per for mance,” Journal of Vocational Be hav ior, 1986, 29, pp. 340–362.

39. J. W. B. Lang and P. D. Bliese, “General Mental Ability and Two Types of Adaptation to Unfore­ seen Change: Applying Discontinuous Growth Models to the Task­ Change Paradigm,” Journal of Applied Psy chol ogy, 2009, 94(2), pp. 411–428; M. J. Ree and J. A. Earles, “Predicting Training Success: Not Much More Than g,” Personnel Psy chol ogy, 1991, 44, pp. 321–332.

40. Hunter, “Cognitive Ability, Cognitive Aptitudes, Job Knowledge, and Job Per for mance”; F. L. Schmidt and J. E. Hunter, “Development of a Causal Model of Pro cesses Determining Job Per­ for mance,” Current Directions in Psychological Science, 1992, 1, pp. 89–92.

41. J. W. B. Lang, M. Kersting, U. R. Hülsheger, and J. Lang, “General Mental Ability, Narrower Cognitive Abilities, and Job Per for mance: The Perspective of the Nested­ Factors Model of Cognitive Abilities,” Personnel Psy chol ogy, 2010, 63(3), pp. 595–640; M. K. Mount, I. Oh, and M. Burns, “Incremental Validity of Perceptual Speed and Accuracy Over General Mental Abil­ ity,” Personnel Psy chol ogy, 2008, 61(1), pp. 113–139.

42. P. Bobko and P. L. Roth, “Reviewing, Categorizing, and Analyzing the Lit er a ture on Black­ White Mean Differences for Predictors of Job Per for mance: Verifying Some Perceptions and Updating/Correcting Others,” Personnel Psy chol ogy, 2013, 66, pp. 91–126; C. M. Berry, “Differ­ ential Validity and Differential Prediction of Cognitive Ability Tests: Understanding Test Bias in the Employment Context,” Annual Review of Orga nizational Psy chol ogy and Orga nizational Be hav ior, 2015, 2, pp. 435–463; C. M. Berry, M. A. Clark, and T. K. McClure, “Racial/ Ethnic Differences in the Criterion­ Related Validity of Cognitive Ability Tests: A Qualitative and Quantitative Review,” Journal of Applied Psy chol ogy, 2011, 96, pp. 881–906; C. M. Berry, M. J. Cullen, and J. M. Meyer, “Racial/Ethnic Subgroup Differences in Cognitive Ability Test Range Restriction: Implications for Differential Validity,” Journal of Applied Psy chol ogy, 2014, 99, pp. 21–37.

43. See P. R. Sackett and W. Shen, “Subgroup Differences on Cognitive Tests in Contexts Other Than Personnel Se lection,” in J. L. Outtz (ed.), Adverse Impact: Implications for Orga nizational Staff- ing and High Stakes Se lection (New York: Routledge/Taylor & Francis, 2010), pp. 323–346; C. L. Reeve and J. E. Charles, “Survey of Opinions on the Primacy of g and Social Consequences of Ability Testing: A Comparison of Expert and Non­ Expert Views,” Intelligence, 2008, 36(6), pp. 681–688.

44. W. F. Cascio, R. Jacobs, and J. Silva, “Validity, Utility, and Adverse Impact: Practical Implica­ tions From 30 Years of Data,” in Outtz (ed.), Adverse Impact: Implications for Orga nizational Staffing and High Stakes Se lection, pp. 271–288; D. Potosky, P. Bobko, and P. L. Roth, “Form­ ing Composites of Cognitive Ability and Alternative Mea sures to Predict Job Per for mance and Reduce Adverse Impact: Corrected Estimates and Realistic Expectations,” International Jour- nal of Se lection and Assessment, 2005, 13, pp. 304–315; R. E. Ployhart and B. C. Holtz, “The Diversity­ Validity Dilemma: Strategies for Reducing Racioethnic and Sex Subgroup Differences and Adverse Impact in Se lection,” Personnel Psy chol ogy, 2008, 61, pp. 153–172.

45. B. D. Edwards and W. Arthur, Jr., “An Examination of Factors Contributing to a Reduction in Subgroup Differences on a Constructed­ Response Paper­ and­ Pencil Test of Scholastic Achieve­ ment,” Journal of Applied Psy chol ogy, 2007, 92, pp. 794–801; D. A. Newman and J. S. Lyon, “Recruitment Efforts to Reduce Adverse Impact: Targeted Recruiting for Personality, Cognitive Ability, and Diversity,” Journal of Applied Psy chol ogy, 2009, 94(2), pp. 298–317.

099-67811_ch09_4P.indd 504 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 505

46. T. A. Judge, D. Blancero, D. M. Cable, and D. E. Johnson, “Effects of Se lection Systems on Job Search Decisions,” Paper presented at the Tenth Annual Conference of the Society for Industrial and Orga nizational Psy chol ogy, Orlando, FL, 1995.

47. S. L. Rynes and M. L. Connerley, “Applicant Reactions to Alternative Se lection Procedures,” Journal of Business and Psy chol ogy, 1993, 7, pp. 261–277.

48. Hausknecht, Day, and Thomas, “Applicant Reactions to Se lection Procedures: An Updated Model and Meta­ Analysis”; J. W. Smither, R. R. Reilly, R. E. Millsap, K. Pearlman, and R. W. Stoffey, “Applicant Reactions to Se lection Procedures,” Personnel Psy chol ogy, 2004, 46, pp. 49–76; J. J. Sumanth and D. M. Cable, “Status and Orga nizational Entry: How Orga nizational and Individual Status Affect Justice Perceptions of Hiring Systems,” Personnel Psy chol ogy, 2011, 64, pp. 963–1000.

49. S. M. Gully, S. C. Payne, and K. L. K. Koles, “The Impact of Error Training and Individual Differences on Training Outcomes: An Attribute­ Treatment Interaction Perspective,” Journal of Applied Psy chol ogy, 2002, 87, pp. 143–155; J. P. Hausknecht, C. O. Trevor, and J. L. Farr, “Retaking Ability Tests in a Se lection Setting: Implications for Practice Effects, Training Per­ for mance, and Turnover,” Journal of Applied Psy chol ogy, 2002, 87, pp. 243–254; J. F. Salgado, N. Anderson, and S. Moscoso, “International Validity Generalization of GMA and Cognitive Abili­ ties: A Eu ro pean Community Meta­ Analysis,” Personnel Psy chol ogy, 2003, 56, pp. 573–605.

50. K. R. Murphy, B. E. Cronin, and A. P. Tam, “Controversy and Consensus Regarding Use of Cog­ nitive Ability Testing in Organ izations,” Journal of Applied Psy chol ogy, 2003, 88, pp. 660–671.

51. J. Hogan, “Physical Abilities,” in M. D. Dunnette and L. M. Hough (eds.), Handbook of Indus- trial and Orga nizational Psy chol ogy, Vol. 2 (Palo Alto, CA: Consulting Psychologists Press, 1991), pp. 753–831.

52. N. Henderson, M. W. Berry, and T. Malic, “Field Mea sures of Strength and Fitness Predict Firefighter Per for mance on Physically Demanding Tasks,” Personnel Psy chol ogy, 2007, 60, pp. 431–473.

53. M. A. Campion, “Personnel Se lection for Physically Demanding Jobs: Review and Recommenda­ tions,” Personnel Psy chol ogy, 1987, 36, pp. 527–550; S. H. Courtright, B. W. McCormick, B. E. Postlethwaite, C. J. Reeves, and M. K. Mount, “A Meta­ Analysis of Sex Differences in Physical Ability: Revised Estimates and Strategies for Reducing Differences in Se lection Contexts,” Journal of Applied Psy chol ogy, 2013, 98, pp. 623–641.

54. T. A. Baker, “The Utility of a Physical Test in Reducing Injury Costs,” Paper presented at the Ninth Annual Meeting of the Society for Industrial and Orga nizational Psy chol ogy, Nashville, TN, 1995.

55. B. R. Blakley, M. A. Quinones, M. S. Crawford, and I. A. Jago, “The Validity of Isometric Strength Tests,” Personnel Psy chol ogy, 1994, 47, pp. 247–274.

56. E. E. Ghiselli, “The Validity of Aptitude Tests in Personnel Se lection,” Personnel Psy chol ogy, 1973, 61, pp. 461–467.

57. Wisconsin Department of Employment Relations, Developing Wisconsin State Civil Ser vice Examinations and Assessment Procedures (Madison, WI: author, 1994).

58. D. M. Dye, M. Reck, and M. A. McDaniel, “The Validity of Job Knowledge Mea sures,” Interna- tional Journal of Se lection and Assessment, 1993, 1, pp. 153–157.

59. P. Salovey and D. Grewal, “The Science of Emotional Intelligence,” Current Directions in Psy- chological Science, 2005, 14, p. 281; J. D. Mayer, P. Salovey, and D. R. Caruso, “Emotional Intelligence: New Ability or Eclectic Traits?” American Psychologist, 2008, 63(6), pp. 503–517.

60. D. L. Van Rooy, D. S. Whitman, and C. Viswesvaran, “Emotional Intelligence: Additional Ques­ tions Still Unanswered,” Industrial and Orga nizational Psy chol ogy, 2010, 3(2), pp. 149–153; C. MacCann and R. D. Roberts, “New Paradigms for Assessing Emotional Intelligence: Theory and Data,” Emotion, 2008, 8(4), pp. 540–551; N. Libbrecht, F. Lievens, B. Carette, and S. Côté, “Emotional Intelligence Predicts Success in Medical School,” Emotion, 2014, 14(1), pp. 64–73.

099-67811_ch09_4P.indd 505 11/17/17 1:31 PM

506 PART FOUR Staffing Activities: Selection

61. D. L. Joseph and D. A. Newman, “Emotional Intelligence: An Integrative Meta­ Analysis and Cascading Model,” Journal of Applied Psy chol ogy, 2010, 95(1), pp. 54–78; D. L. Joseph, J. Jin, D. A. Newman, and E. H. O’Boyle, “Why Does Self­ Reported Emotional Intelligence Predict Job Per for mance? A Meta­ Analytic Investigation of Mixed EI,” Journal of Applied Psy chol ogy, 2015, 100, pp. 298–342.

62. D. H. Kluemper, T. DeGroot, and S. Choi, “Emotion Management Ability: Predicting Task Per­ for mance, Citizenship, and Deviance,” Journal of Management, 2013, 39, pp. 878–905.

63. M. Zeidner, G. Matthews, and R. D. Roberts, “Emotional Intelligence in the Workplace: A Criti­ cal Review,” Applied Psy chol ogy: An International Review, 2004, 53, pp. 371–399.

64. S. Kaplan, J. Cortina, and G. A. Ruark, “Oops . . . We Did It Again: Industrial­ Organizational’s Focus on Emotional Intelligence Instead of on Its Relationships to Work Outcomes,” Industrial and Orga nizational Psy chol ogy, 2010, 3(2), pp. 171–177.

65. E. A. Locke, “Why Emotional Intelligence Is an Invalid Concept,” Journal of Orga nizational Be hav ior, 2005, 26, p. 426; C. Cherniss, “Emotional Intelligence: Toward Clarification of a Con­ cept,” Industrial and Orga nizational Psy chol ogy, 2010, 3(2), pp. 110–126; S. Côté, “Taking the ‘Intelligence’ in Emotional Intelligence Seriously,” Industrial and Orga nizational Psy chol ogy, 2010, 3(2), pp. 127–130.

66. Joseph and Newman, “Emotional Intelligence: An Integrative Meta­ Analysis and Cascading Model”; Joseph, Jin, Newman, and O’Boyle, “Why Does Self­ Reported Emotional Intelligence Predict Job Per for mance? A Meta­ Analytic Investigation of Mixed EI.”

67. F. J. Landy, “Some Historical and Scientific Issues Related to Research on Emotional Intelli­ gence,” Journal of Orga nizational Be hav ior, 2005, 26, p. 421.

68. E. White, “Walking a Mile in Another’s Shoes,” Wall Street Journal, Jan. 16, 2006, p. B3. 69. R. Miller, “The Legal Minefield of Employment Probation,” Benefits and Compensation Solu-

tions, 1998, 21, pp. 40–43. 70. J. J. Asher and J. A. Sciarrino, “Realistic Work Sample Tests: A Review,” Personnel Psy chol ogy,

1974, 27, pp. 519–533. 71. S. J. Motowidlo, M. D. Dunnette, and G. W. Car ter, “An Alternative Se lection Procedure: The

Low­ Fidelity Simulation,” Journal of Applied Psy chol ogy, 1990, 75, pp. 640–647. 72. W. Arthur, Jr., G. V. Barrett, and D. Doverspike, “Validation of an Information Processing­ Based

Test Battery Among Petroleum­ Product Transport Drivers,” Journal of Applied Psy chol ogy, 1990, 75, pp. 621–628.

73. Motowidlo, Dunnette, and Car ter, “An Alternative Se lection Procedure: The Low­ Fidelity Simulation.”

74. “Making a Difference in Customer Ser vice,” IPMA News, May 2002, pp. 8–9. 75. P. Thomas, “Not Sure of a New Hire? Put Her to a Road Test,” Wall Street Journal, Jan. 2003, p. B7. 76. S. Greengard, “Cracking the Hiring Code,” Workforce Management, June 2004 (www . workforce

. com / 2004 / 06 / 01 / cracking - the - hiring - code / ). 77 . C. Winkler, “Job Tryouts Go Virtual,” HR Magazine, Sept. 2006, pp. 131–134. 78. J. E. Hunter and R. F. Hunter, “Validity and Utility of Alternative Predictors of Job Per for­

mance,” Psychological Bulletin, 1984, 96, pp. 72–98; P. L. Roth, P. Bobko, and L. A. McFarland, “A Meta­ Analysis of Work Sample Test Validity: Updating and Integrating Some Classic Lit er a­ ture,” Personnel Psy chol ogy, 2005, 58, pp. 1009–1037.

79. W. Cascio and W. Phillips, “Per for mance Testing: A Rose Among Thorns?” Personnel Psy chol- ogy, 1979, 32, pp. 751–766.

80. P. Bobko, P. L. Roth, and M. A. Buster, “Work Sample Tests and Expected Reduction in Adverse Impact: A Cautionary Note,” International Journal of Se lection and Assessment, 2005, 13, pp. 1–24; Bobko and Roth, “Reviewing, Categorizing, and Analyzing the Lit er a ture on Black­

099-67811_ch09_4P.indd 506 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 507

White Mean Differences for Predictors of Job Per for mance: Verifying Some Perceptions and Updating/Correcting Others.”

81. K. A. Hanisch and C. L. Hulin, “Two­ Stage Sequential Se lection Procedures Using Ability and Training Per for mance: Incremental Validity of Behavioral Consistency Mea sures,” Personnel Psy chol ogy, 1994, 47, pp. 767–785.

82. M. A. McDaniel, N. S. Hartman, D. L. Whetzel, and W. L. Grubb, “Situational Judgment Tests, Response Instructions, and Validity: A Meta­ Analysis,” Personnel Psy chol ogy, 2007, 60, pp. 63–91.

83. F. Lievens and P. R. Sackett, “The Validity of Interpersonal Skills Assessment via Situational Judgment Tests for Predicting Academic Success and Job Per for mance,” Journal of Applied Psy- chol ogy, 2012, 97, pp. 460–468.

84. D. L. Whetzel, M. A. McDaniel, and N. T. Nguyen, “Subgroup Differences in Situational Judg­ ment Test Per for mance: A Meta­ Analysis,” Human Per for mance, 2008, 21, pp. 291–309.

85. F. Lievens and P. R. Sackett, “Video­ Based Versus Written Situational Judgment Tests: A Com­ parison in Terms of Predictive Validity,” Journal of Applied Psy chol ogy, 2006, 91, pp. 1181–1188.

86. McDaniel, Hartman, Whetzel, and Grubb, “Situational Judgment Tests, Response Instructions, and Validity: A Meta­ Analysis”; D. Chan and N. Schmitt, “Situational Judgment and Job

Per for mance,” Human Per for mance, 2002, 15, pp. 233–254; J. A. Weekley and C. Jones, “Further Studies of Situational Tests,” Personnel Psy chol ogy, 1999, 52, pp. 679–700; J. Clevenger, G. M. Pereira, D. Wiechmann, N. Schmitt, and V. S. Harvey, “Incremental Validity of Situational Judg­ ment Tests,” Journal of Applied Psy chol ogy, 2001, 86, pp. 410–417.

87. M. S. O’Connell, N. S. Hartman, M. A. McDaniel, W. L. Grubb, and A. Lawrence, “Incremental Validity of Situational Judgment Tests for Task and Contextual Job Per for mance,” International Journal of Se lection and Assessment, 2007, 15, pp. 19–29.

88. S. Krumm, F. Lievens, J. Hüffmeier, A. A. Lipnevich, H. Bendels, and G. Hertel, “How ‘Situ­ ational’ Is Judgment in Situational Judgment Tests?” Journal of Applied Psy chol ogy, 2015, 100, pp. 399–416; T. Rockstuhl, S. Ang, K.­ Y. Ng, F. Lievens, and L. Van Dyne, “Putting Judging Situ­ ations Into Situational Judgment Tests: Evidence From Intercultural Multimedia SJTs,” Journal of Applied Psy chol ogy, 2015, 100, pp. 464–480.

89. Lievens and Sackett, “Video­ Based Versus Written Situational Judgment Tests: A Comparison in Terms of Predictive Validity.”

90. W. Arthur, Jr., R. M. Glaze, S. M. Jarrett, C. D. White, I. Schurig, and J. E. Taylor, “Comparative Evaluation of Three Situational Judgment Test Formats in Terms of Construct­ Related Validity, Subgroup D and Susceptibility to Response Distortion,” Journal of Applied Psy chol ogy, 2014, 99, pp. 535–545.

91. S. J. Motowidlo and M. E. Beier, “Differentiating Specific Job Knowledge From Implicit Trait Policies in Procedural Knowledge Mea sured by a Situational Judgment Test,” Journal of Applied Psy chol ogy, 2010, 95(2), pp. 321–333.

92. M. S. Christian, B. D. Edwards, and J. C. Bradley, “Situational Judgment Tests: Constructs Assessed and a Meta­ Analysis of Their Criterion­ Related Validities,” Personnel Psy chol ogy, 2010, 63(1), pp. 83–117; R. Bledow and M. Frese, “A Situational Judgment Test of Personal Initiative and Its Relationship to Per for mance,” Personnel Psy chol ogy, 2009, 62(2), pp. 229–258.

93. “Employers Cite Communication Skills, Honesty/Integrity as Key for Job Candidates,” IPMA- HR Bulletin, Mar. 23, 2007, p. 1.

94. D. Lykken, “Polygraphic Interrogation,” Nature, 1984, 307, pp. 681–684; R. Adelson, “The Polygraph in Doubt,” APA Monitor, 2004, 35, p. 71 (www . apa . org / monitor / julaug04 / polygraph . aspx).

95 . M. G. Aamodt and H. Custer, “Who Can Best Catch a Liar? A Meta­ Analysis of Individual Dif­ ferences in Detecting Deception,” The Forensic Examiner, Spring 2006, pp. 6–11.

099-67811_ch09_4P.indd 507 11/17/17 1:31 PM

508 PART FOUR Staffing Activities: Selection

96. R. C. Hollinger, “2006 National Retail Security Survey Final Report,” Survey Research Proj ect, University of Florida.

97. Berry, Ones, and Sackett, “Interpersonal Deviance, Orga nizational Deviance, and Their Common Correlates: A Review and Meta­ Analysis”; C. Oliver, M. Shafiro, P. Bullard, and J. C. Thomas, “Use of Integrity Tests May Reduce Workers’ Compensation Losses,” Journal of Business Psy- chol ogy, 2012, 27, pp. 115–122.

98. P. R. Sackett and J. E. Wanek, “New Developments in the Use of Mea sures of Honesty, Integrity, Conscientiousness, Dependability, Trustworthiness, and Reliability for Personnel Se lection,” Personnel Psy chol ogy, 1996, 49, pp. 787–829.

99. C. M. Berry, P. R. Sackett, and S. Wiemann, “A Review of Recent Developments in Integrity Test Research,” Personnel Psy chol ogy, 2007, 60, pp. 271–301.

100. B. Marcus, K. Lee, and M. C. Ashton, “Personality Dimensions Explaining Relations Between Integrity Tests and Counterproductive Be hav ior: Big Five, or One in Addition?” Personnel Psy- chol ogy, 2007, 60, pp. 1–34.

101. Ones, Viswesvaran, and Dilchert, “Personality at Work: Raising Awareness and Correcting Misconceptions.”

102. D. S. Ones, C. Viswesvaran, and F. L. Schmidt, “Comprehensive Meta­ Analysis of Integrity Test Validities: Findings and Implications for Personnel Se lection and Theories of Job Per for­ mance,” Journal of Applied Psy chol ogy (monograph), 1993, 78, pp. 531–537.

103. C. H. Van Iddekinge, P. L. Roth, P. H. Raymark, and H. N. Odle­ Dusseau, “The Criterion­ Related Validity of Integrity Tests: An Updated Meta­ Analysis,” Journal of Applied Psy- chol ogy, 2012, 97, pp. 499–530. For commentaries, see P. R. Sackett and N. Schmitt, “On Reconciling Conflicting Meta­ Analytic Findings Regarding Integrity Test Validity,” Journal of Applied Psy chol ogy, 2012, 97, pp. 550–556; D. S. Ones, C. Viswesvaran, and F. L. Schmidt, “Integrity Tests Predict Counterproductive Work Be hav iors and Job Per for mance Well: Com­ ment on Van Iddekinge, Roth, Raymark, and Odle­ Dusseau (2012),” Journal of Applied Psy chol- ogy, 2012, 97, pp. 537–542.

104. Berry, Sackett, and Wiemann, “A Review of Recent Developments in Integrity Test Research”; S. Fine and M. Pirak, “Faking Fast and Slow: Within­ Person Response Time Latencies for Mea­ sur ing Faking in Personnel Testing,” Journal of Business Psy chol ogy, 2016, 31, pp. 51–64.

105. R. J. Karren and L. Zacharias, “Integrity Tests: Critical Issues,” Human Resource Management Review, 2007, 17, pp. 221–234.

106. Hausknecht, Day, and Thomas, “Applicant Reactions to Se lection Procedures: An Updated Model and Meta­ Analysis.”

107. R. R. McCrae and P. T. Costa, Jr., “Reinterpreting the Myers­ Briggs Type Indicator From the Perspective of the Five­ Factor Model of Personality,” Journal of Personality, 1989, 57, pp. 17–40.

108. Hunter and Hunter, “Validity and Utility of Alternative Predictors of Job Per for mance”; C. H. Van Iddekinge, D. J. Putka, and J. P. Campbell, “Reconsidering Vocational Interests for Personnel Se lection: The Validity of an Interest­ Based Se lection Test in Relation to Job Knowledge, Job Per for mance, and Continuance Intentions,” Journal of Applied Psy chol ogy, 2011, 96(1), pp. 13–33.

109. M. Assouline and E. I. Meir, “Meta­ Analysis of the Relationship Between Congruence and Well­ Being Mea sures,” Journal of Vocational Be hav ior, 1987, 31, pp. 319–332.

110. See B. Schneider, H. W. Goldstein, and D. B. Smith, “The ASA Framework: An Update,” Per- sonnel Psy chol ogy, 1995, 48, pp. 747–773.

111. D. M. Cable, “The Role of Person­ Organization Fit in Orga nizational Entry,” Unpublished doc­ toral dissertation, Cornell University, Ithaca, NY, 1995.

112. C. D. Nye, R. Su, J. Rounds, and F. Drasgow, “Vocational Interests and Per for mance: A Quanti­ tative Summary of Over 60 Years of Research,” Perspectives on Psychological Science, 2012, 7,

099-67811_ch09_4P.indd 508 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 509

pp. 384–403; B. Marcus and U. Wagner, “What Do You Want to Be? Criterion­ Related Validity of Attained Vocational Aspirations Versus Inventoried Person­ Vocation Fit,” Journal of Busi- ness Psy chol ogy, 2015, 30, pp. 51–62.

113. R. W. Eder and M. Harris (eds.), The Employment Interview Handbook (Thousand Oaks, CA: Sage, 1999).

114. M. Hosoda, E. F. Stone­ Romero, and G. Coats, “The Effects of Physical Attractiveness on Job­ Related Outcomes: A Meta­ Analysis of Experimental Studies,” Personnel Psy chol ogy, 2003, 56, pp. 431–462; M. R. Barrick, J. A. Shaffer, and S. W. DeGrassi, “What You See May Not Be What You Get: Relationships Among Self­ Presentation Tactics and Ratings of Interview and Job Per for mance,” Journal of Applied Psy chol ogy, 2009, 94, pp. 1394–1411; “Survey Finds Employers Form Opinions of Job Interviewees Within 10 Minutes,” IPMA- HR Bulletin, Apr. 21, 2007, p. 1; M. Bertrand and S. Mullainathan, “Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination,” American Economic Review, 2004, 94, pp. 991–1013; S. L. Purkiss, P. L. Perrewé, T. L. Gillespie, B. T. Mayes, and G. R. Ferris, “Implicit Sources of Bias in Employment Interview Judgments and Decisions,” Orga nizational Be hav ior and Human Decision Pro cesses, 2006, 101, pp. 152–167; A. I. Huffcutt, S. S. Culbertson, and W. S. Weyhrauch, “Employment Interview Reliability: New Meta­ Analytic Estimates by Structure and Format,” International Journal of Se lection and Assessment, 2013, 21, pp. 264–276.

115. M. A. Campion, D. K. Palmer, and J. E. Campion, “A Review of Structure in the Se lection Interview,” Personnel Psy chol ogy, 1997, 50, pp. 655–702; D. S. Chapman and D. I. Zweig, “Developing a Nomological Network for Interview Structure: Antecedents and Consequences of the Structured Se lection Interview,” Personnel Psy chol ogy, 2005, 58, pp. 673–702.

116. G. P. Latham, L. M. Saari, E. D. Pursell, and M. A. Campion, “The Situational Interview,” Journal of Applied Psy chol ogy, 1980, 65, pp. 422–427; S. D. Maurer, “The Potential of the Situational Interview: Existing Research and Unresolved Issues,” Human Resource Manage- ment Review, 1997, 7, pp. 185–201.

117. A. I. Huffcutt, J. N. Conurey, P. L. Roth, and U. Klehe, “The Impact of Job Complexity and Study Design on Situational and Be hav ior Description Interview Validity,” International Jour- nal of Se lection and Assessment, 2004, 12, pp. 262–273.

118. P. J. Taylor and B. Small, “Asking Applicants What They Would Do Versus What They Did Do: A Meta­ Analytic Comparison of Situational and Past Behaviour Employment Interview Questions,” Journal of Occupational and Orga nizational Psy chol ogy, 2002, 75, pp. 277–294; J. Levashina, C. J. Hartwell, F. P. Morgeson, and M. A. Campion, “The Structured Employment Interview: Narrative and Quantitative Review of the Research Lit er a ture,” Personnel Psy chol- ogy, 2014, 67, pp. 241–293.

119. S. Adams, “The Innovation That Could Make Most Job Interviews Obsolete,” Forbes, Aug. 8, 2012 (www . forbes . com / sites / susanadams / 2012 / 08 / 28 / the - innovation - that - could - make - most - job - interviews - obsolete / ), accessed Aug. 12, 2013.

120. F. L. Schmidt and R. D. Zimmerman, “A Counterintuitive Hypothesis About Employment Interview Validity and Some Supporting Evidence,” Journal of Applied Psy chol ogy, 2004, 89, pp. 553–561.

121. M. A. McDaniel, D. L. Whetzel, F. L. Schmidt, and S. D. Maurer, “The Validity of Employ­ ment Interviews: A Comprehensive Review and Meta­ Analysis,” Journal of Applied Psy chol ogy, 1994, 79, pp. 599–616; Huffcutt, Conurey, Roth, and Klehe, “The Impact of Job Complexity and Study Design on Situational and Be hav ior Description Interview Validity”; A. I. Huffcutt and D. J. Woehr, “Further Analy sis of Employment Interview Validity: A Quantitative Evalu­ ation of Interviewer­ Related Structuring Methods,” Journal of Orga nizational Be hav ior, 1999, 20, pp. 549–560; A. I. Huffcutt, J. M. Conway, P. L. Roth, and N. J. Stone, “Identification and Meta­ Analytic Assessment of Psychological Constructs Mea sured in Employment Interviews,”

099-67811_ch09_4P.indd 509 11/17/17 1:31 PM

510 PART FOUR Staffing Activities: Selection

Journal of Applied Psy chol ogy, 2001, 86, pp. 897–913; Taylor and Small, “Asking Applicants What They Would Do Versus What They Did Do: A Meta­ Analytic Comparison of Situational and Past Behaviour Employment Interview Questions.”

122. K. I. van der Zee, A. B. Bakker, and P. Bakker, “Why Are Structured Interviews So Rarely Used in Personnel Se lection?” Journal of Applied Psy chol ogy, 2002, 87, pp. 176–184; F. Lievens and A. De Paepe, “An Empirical Investigation of Interviewer­ Related Factors That Discourage the Use of High Structure Interviews,” Journal of Orga nizational Be hav ior, 2004, 25, pp. 29–46; N. Smith, “Using Structured Interviews to Increase Your Organ ization’s Hiring Investments,” HR Weekly, Oct. 2006, pp. 1–3.

123. Hausknecht, Day, and Thomas, “Applicant Reactions to Se lection Procedures: An Updated Model and Meta­ Analysis.”

124. A. I. Huffcutt and P. L. Roth, “Racial Group Differences in Interview Evaluations,” Journal of Applied Psy chol ogy, 1998, 83, pp. 179–189; Huffcutt Conway, Roth, and Stone, “Identification and Meta­ Analytic Assessment of Psychological Constructs Mea sured in Employment Interviews.”

125. C. H. Van Iddekinge, C. E. Sager, J. L. Burnfield, and T. S. Heffner, “The Variability of Criterion­ Related Validity Estimates Among Interviewers and Interview Panels,” International Journal of Se lection and Assessment, 2006, 14, pp. 193–205; M. R. Barrick, B. W. Swider, and G. L. Stew­ art, “Initial Evaluations in the Interview: Relationships With Subsequent Interviewer Evalua­ tions and Employment Offers,” Journal of Applied Psy chol ogy, 2010, 95, pp. 1163–1172.

126. F. S. De Kock, F. Lievens, and M. P. Born, “An In­ Depth Look at Dispositional Reasoning and Interviewer Accuracy,” Human Per for mance, 2015, 28, pp. 19–221; C.­ C. Chen, I. W.­ F. Yang, and W.­ C. Lin, “Applicant Impression Management in Job Interview: The Moderating Role of Interviewer Affectivity,” Journal of Occupational and Orga nizational Psy chol ogy, 2010, 83, pp. 739–757.

127. S. A. Carless and A. Imber, “The Influence of Perceived Interviewer and Job and Orga nizational Characteristics on Applicant Attraction and Job Choice Intentions: The Role of Applicant Anxi­ ety,” International Journal of Se lection and Assessment, 2007, 15, pp. 359–371.

128. M. Harris, “Reconsidering the Employment Interview: A Review of Recent Lit er a ture and Sug­ gestions for Future Research,” Personnel Psy chol ogy, 1989, 42, pp. 691–726.

129. D. S. Chapman and D. I. Zweig, “Developing a Nomological Network for Interview Structure: Antecedents and Consequences of the Structured Se lection Interview,” Personnel Psy chol ogy, 2005, 58, pp. 673–702.

130. S. P. Robbins and T. A. Judge, Orga nizational Be hav ior, 13th ed. (Upper Saddle River, NJ: Prentice­ Hall, 2008).

131. Robbins and Judge, Orga nizational Be hav ior. 132. M. J. Stevens and M. A. Campion, “The Knowledge, Skill, and Ability Requirements for Team­

work: Implications for Human Resource Management,” Journal of Management, 1994, 20, pp. 503–530.

133. M. J. Stevens, “Staffing Work Teams: Testing for Individual­ Level Knowledge, Skill, and Abil­ ity Requirements for Teamwork,” Unpublished doctoral dissertation, Purdue University, West Lafayette, IN, 1993; A. C. McClough and S. G. Rogelberg, “Se lection in Teams: An Explora­ tion of the Teamwork Knowledge, Skills, and Ability Test,” International Journal of Se lection and Assessment, 2003, 11, pp. 56–65.

134. R. S. Wellens, W. C. Byham, and G. R. Dixon, Inside Teams (San Francisco: Jossey­ Bass, 1995). 135. T. V. Mumford, C. H. Van Iddekinge, F. P. Morgeson, and M. A. Campion, “The Team Role

Test: Development and Validation of a Team Role Knowledge Situational Judgment Test,” Jour- nal of Applied Psy chol ogy, 2008, 93(2), pp. 250–267.

136. S. M. Colarelli and A. L. Boos, “Sociometric and Ability­ Based Assignment to Work Groups: Some Implications for Personnel Se lection,” Journal of Orga nizational Be hav ior Management,

099-67811_ch09_4P.indd 510 11/17/17 1:31 PM

CHAPTER NINE External Se lection II 511

1992, 13, pp. 187–196; M. Levinson, “When Workers Do the Hiring,” Newsweek, June 21, 1993, p. 48.

137. S. W. Whiting and T. D. Maynes, “Selecting Team Players: Considering the Impact of Con­ textual Per for mance and Workplace Deviance on Se lection Decisions in the National Football League,” Journal of Applied Psy chol ogy, 2016, 101, pp. 484–497.

138. B. Dumaine, “The Trou ble With Teams,” Fortune, Sept. 5, 1994, pp. 86–92. 139. W. C. Borman and S. J. Motowidlo, “Expanding the Criterion Domain to Include Ele ments of

Contextual Per for mance,” in N. Schmitt, W. Borman, and Associates (eds.), Personnel Se lection in Organ izations (San Francisco: Jossey­ Bass, 1993), pp. 71–98.

140. “Why Worry About Drugs and Alcohol in the Workplace?” Facts for Employers, American Council for Drug Education, 2007.

141. Smithers Institute, “Drug Testing: Cost and Effect,” Cornell/Smithers Report, Vol. 1 (Ithaca, NY: Cornell University, 1992), pp. 1–5.

142. “SHRM Poll: Drug Testing Efficacy,” Society for Human Resource Management, Sept. 7, 2011 (www . shrm . org / research / surveyfindings / articles / pages / ldrugtestingefficacy . aspx).

143 . “U . S. Corporations Reduce Levels of Medical, Drug and Psychological Testing of Employees,” American Management Association, 2007 (www . amanet . org).

144 . Quest Diagnostics, Drug Testing Index: A Comprehensive Analy sis of Workplace Drug Use Trends, Employer Solutions Annual Report, Fall 2016 (www . employer - solutions - resources . com / whitepaper / 2016 - drug - testing - index).

145 . L. Paik, “Orga nizational Interpretations of Drug Test Results,” Law & Society Review, Dec. 2006, pp. 1–28.

146. Mandatory Guidelines and Proposed Revisions to Mandatory Guidelines for Federal Work- place Drug Testing Programs, Department of Health and Human Ser vices, Substance Abuse and Mental Health Ser vices Administration, 2004.

147. S. Overman, “Debating Drug Test ROI,” Staffing Management, Oct.– Dec. 2005, pp. 19–22. 148. S. Overman, “Staffing Management: Wanted: Non­ Smokers,” Staffing Management, Jan. 1,

2008 (www . shrm . org / Publications / StaffingManagementMagazine / editorialcontent / pages / 0801 _ tools . aspx), accessed Jan. 28, 2011.

149. K. Helliker, “A Test for Alcohol— and Its Flaws,” Wall Street Journal, Aug. 12, 2006, pp. A1, A6.

150. J. Normand, S. D. Salyards, and J. J. Mahoney, “An Evaluation of Preemployment Drug Test­ ing,” Journal of Applied Psy chol ogy, 1990, 75, pp. 629–639.

151. J. M. Crant and T. S. Bateman, “An Experimental Test of the Impact of Drug­ Testing Programs on Potential Job Applicants’ Attitudes and Intentions,” Journal of Applied Psy chol ogy, 1990, 75, pp. 127–131; K. R. Murphy, G. C. Thornton III, and D. H. Reynolds, “College Students’ Attitudes Toward Employee Drug Testing Programs,” Personnel Psy chol ogy, 1990, 43, pp. 615–631.

152. E. A. Fleishman, “Some New Frontiers in Personnel Se lection Research,” Personnel Psy chol- ogy, 1988, 41, pp. 679–701.

153. M. A. Campion, “Personnel Se lection for Physically Demanding Jobs: Review and Recommen­ dations,” Personnel Psy chol ogy, 1983, 36, pp. 527–550.

154. Equal Employment Opportunity Commission, “Uniform Guidelines on Employee Se lection Procedures (1978),” Code of Federal Regulations, Title 29, Part 1607, Aug. 25, 1978; D. J. Walsh, Employment Law for Human Resource Practice, 5th ed. (Boston: Cengage Learning, 2016), pp. 204–215; Equal Employment Opportunity Commission, “Employment Tests and Se lection Procedures” (https:// www . eeoc . gov / policy / docs / factemployment _ procedures . html), accessed Feb. 12, 2016; W. F. Cascio and H. Aquinis, “The Federal Uniform Guidelines on Employee Se lection Procedures: An Update on Selected Issues,” Review of Public Personnel Administration, 2001, 21, pp. 200–218; C. Daniel, “Separating Law and Professional Practice

099-67811_ch09_4P.indd 511 11/17/17 1:31 PM

512 PART FOUR Staffing Activities: Selection

From Politics: The Uniform Guidelines Then and Now,” Review of Public Personnel Admin- istration, 2001, 21, pp. 175–184; A. I. E. Ewoh and J. S. Guseh, “The Status of the Uniform Guidelines on Employee Se lection Procedures: Legal Developments and Future Prospects,” Review of Public Personnel Administration, 2001, 21, pp. 185–199; G. P. Panaro, Employment Law Manual, 2nd ed. (Boston: Warren Gorham Lamont, 1993), pp. 3­28 to 3­82.

155. Equal Employment Opportunity Commission, “Regulations to Implement the Equal Employ­ ment Provisions of the Americans With Disabilities Act, as Amended,” Code of Federal Regu- lations, Part 1630, Title 29, July 1, 2011; Equal Employment Opportunity Commission, “The ADA: Your Responsibilities as an Employer,” 2008 (www . eeoc . gov / facts / ada17 . html) accessed Feb. 8, 2016; A. Lyer and S. Mashing, Recruiting, Hiring, Retaining, and Promoting People With Disabilities, Equal Employment Opportunity Commission, 2015 (https:// obamawhitehouse . archives . gov / sites / default / files / docs / employing _ people _ with _ disabilities _ toolkit _ february _ 3 _ 2015 _ v4 . pdf ); D. D. Bennett­ Alexander and L. P. Hartman, Employment Law for Business, 8th ed. (New York: McGraw­ Hill Education, 2015), pp. 584–653: D. J. Walsh, Employment Law For Human Resource Practice, 5th ed. (Boston: Cengage Learning, 2016), pp. 193–216.

156. Equal Employment Opportunity Commission, “Employment Tests and Se lection Procedures.” 157. Equal Employment Opportunity Commission, Enforcement Guidance on Disability- Related

Inquiries and Medical Examinations of Employees Under the Americans With Disabilities Act (Washington, DC: author, 2001).

158. Walsh, Employment Law for Human Resource Practice, pp. 187–193. 159. J. Schramm, “Reefer Madness,” HR Magazine, Feb. 2016, p. 64; S. Lan, “Medical Marijuana,”

HR Magazine, Oct. 2016, p. 21; L. Nagele­ Piazza, “Marijuana at the Polls and in the Work­ place,” Oct. 12, 2016 (www . shrm . org / resourcesandtools / legal - and - compliance / state - and - local - updates / pages / marijuana - ballot - initiatives - 2016 . aspx).

160 . J. Gantt and K. Wessels, Policies for Marijuana Use in the Workplace (Alexandria, VA: Society for Human Resource Management, 2015).

161. Schramm, “Reefer Madness”; Lan, “Medical Marijuana”; Nagele­ Piazza, “Marijuana at the Polls and in the Workplace.”

162. Gantt and Wessels, Policies for Marijuana Use in the Workplace.

099-67811_ch09_4P.indd 512 11/17/17 1:31 PM

C H A P T E R T E N

Internal Se lection

Learning Objectives and Introduction Learning Objectives Introduction

Preliminary Issues The Logic of Prediction Types of Predictors Se lection Plan

Initial Assessment Methods Talent Management/Succession Systems Peer Assessments Self- Assessments Managerial Sponsorship Informal Discussions and Recommendations Choice of Initial Assessment Methods

Substantive Assessment Methods Se niority and Experience Job Knowledge Tests Per for mance Appraisal Promotability Ratings Assessment Centers Interview Simulations Promotion Panels and Review Boards Choice of Substantive Assessment Methods

Discretionary Assessment Methods

Legal Issues Uniform Guidelines on Employee Se lection Procedures The Glass Ceiling

Summary

Discussion Questions

Ethical Issues

099-67811_ch10_4P.indd 513 11/17/17 1:32 PM

Applications Changing a Promotion System Promotion From Within at Citrus Glen Questions

Endnotes

099-67811_ch10_4P.indd 514 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 515

LEARNING OBJECTIVES AND INTRODUCTION

Learning Objectives

• Compare how the logic of prediction applies to internal se lection decisions with how it applies to external se lection decisions

• Evaluate the relative advantages and disadvantages of the five initial assess- ment methods used in internal se lection

• Consider the merits and pitfalls of using se niority and experience for internal se lection decisions

• Describe the main features of assessment centers • Understand the advantages and disadvantages of using assessment centers for

internal se lection decisions • Evaluate the relative advantages and disadvantages of the seven substantive

assessment methods used in internal se lection

Introduction

Internal se lection refers to the assessment and evaluation of employees from within the organ ization as they move between jobs via transfer and promotion systems. Internal se lection is of considerable practical value to an organ ization because one nearly always knows one’s own employees better than external applicants, and effective internal se lection decisions can motivate valued employees in any organ ization.

Preliminary issues we will discuss to guide the use of assessment methods include the logic of prediction, the nature of predictors, and the development of a se lection plan. Initial assessment methods are used to select candidates from among the internal applicants. Methods that will be reviewed include talent management/ succession systems, peer assessments and self- assessments, managerial sponsor- ship, and informal discussions and recommendations. The criteria used to choose among these methods will be discussed.

Substantive assessment methods are used to select finalists from among the internal candidates. Vari ous methods will be reviewed, including se niority and experience, job knowledge tests, per for mance appraisals, promotability ratings, assessment centers, interview simulations, and promotion panels and review boards. The criteria used to choose among the substantive assessment methods will also be discussed.

Discretionary assessment methods are used to select offer recipients from among the finalists. The factors on which these decisions are based will also be considered, including equal employment opportunity and affirmative action (EEO/AA) con- cerns, whether the finalist had previously been a finalist, and second opinions about the finalist by others in the organ ization.

099-67811_ch10_4P.indd 515 11/17/17 1:32 PM

516 PART FOUR Staffing Activities: Selection

All of these assessment methods require a large amount of data to be collected. Accordingly, attention must be given to support ser vices; the required expertise needed to administer and interpret predictors; security, privacy, and confidential- ity; and the standardization of procedures. Also, the use of internal se lection meth- ods requires a clear understanding of legal issues.

PRELIMINARY ISSUES

The Logic of Prediction

The logic of prediction, described in Chapter 8, is equally relevant to the case of internal se lection. Specifically, indicators of internal applicants’ degree of success in past situations should be predictive of their likely success in new situations. Impor- tantly, past situations include not only the current job but also previous jobs held by the applicant within the organ ization. The new situation is the internal vacancy the applicant is seeking via the organ ization’s transfer or promotion system.

There may also be similarities between internal and external se lection in terms of the effectiveness of se lection methods. As you may recall from Chapters 8 and 9, three of the most valid external se lection mea sures are biographical data, cogni- tive ability tests, and work samples. These methods also have validity in internal se lection decisions. Personality mea sures have been found to be a valid predictor in selecting top corporate leaders. Research indicates that cognitive ability is strongly predictive of long- term job per for mance and advancement. Fi nally, work samples are also valid predictors of advancement.1 In this chapter we focus on pro cesses and methods of se lection that are unique to promotion and transfer decisions. However, in considering these methods and pro cesses, it should be remembered that many of the techniques of external se lection might be relevant as well.

Although the logic of prediction and the likely effectiveness of se lection methods are similar for external and internal se lection, internal se lection has several potential advantages over external se lection in practice. In par tic u lar, the data collected on internal applicants in their previous jobs often provide greater depth, relevance, and verifiability than the data collected on external applicants. This is because organ- izations usually have much more detailed and in- depth information about internal candidates’ previous job experiences.

Along with depth and relevance, another positive aspect of the nature of predic- tors for internal se lection is variability. Rather than simply relying on the opinion of one person as to the suitability of an internal candidate for the job, multiple assessments may be solicited from other supervisors and peers. By pooling opin- ions, it is pos si ble to get a more complete and accurate picture of a candidate’s qualifications.

While internal se lection has impor tant advantages over external se lection, two factors can derail the logic of prediction. First, impression management and orga-

099-67811_ch10_4P.indd 516 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 517

nizational politics can play impor tant roles in who gets promoted in organ izations. Although impression management also plays a role in external hiring (especially in employment interviews), internal “apple polishers” have a much greater oppor- tunity to work their magic, with more targets for their influence and over a longer period of time, than external candidates. On this point, one recent study found that those who are po liti cally skilled were more likely to be viewed as promotable by not only their bosses but also their peers and direct reports.2 Thus, decision makers selecting internal candidates need to make sure they are selecting candidates for the right reasons. A second factor that can undermine the logic of prediction for internal se lection is title inflation. One study revealed that the job responsi- bilities of nearly half (46%) of recently promoted executives remained roughly the same after their new titles. Although such title inflation may not be harmful, the newly promoted, with no corresponding change in pay or responsibilities, should see these “promotions” for what they are. Being given a title of “pro cess change man ag er” may mean little more than words.3

Types of Predictors

The distinctions made between the types of predictors used in external se lection are also applicable to the dif fer ent types of internal predictors. One impor tant differ- ence to note between internal and external predictors pertains to the content. There is usually greater depth and relevance to the data available on internal candidates. That is, the organ ization can go to its own files or man ag ers to get reports on the applicants’ previous experiences.

Se lection Plan

Often it seems that internal se lection is based on “who you know” rather than on relevant knowledge, skill, ability, and other characteristics (KSAOs). Man ag ers tend to rely heavi ly on the subjective opinions of previous man ag ers who supervised the internal candidate. When asked why they rely on these subjective assessments, the answer is often, “ because the candidate has worked here for a long time, and I trust the supervisor’s feel for the candidate.”

Decision errors often occur when relying on subjective feelings for internal se lection decisions. For example, in selecting man ag ers to oversee engineering and scientific personnel in organ izations, it is sometimes felt that those internal job candidates with the best technical skills will be the best man ag ers. This is not always the case. Some technical wizards are poor man ag ers and vice versa. As another example, because internal candidates have spent some time in the organ- ization, feelings and friendships that have developed over time may create barriers to effective se lection. Such “feelings” about job applicants may result in lowered hiring standards for some employees, discrimination against protected- class employees, and decisions with low validity. Sound internal se lection procedures

099-67811_ch10_4P.indd 517 11/17/17 1:32 PM

518 PART FOUR Staffing Activities: Selection

need to be followed to guard against these errors. A sound job analy sis will show that both technical and managerial skills need to be assessed with well- crafted pre- dictors, while at the same time leaving irrelevant factors off the table. Therefore, it is imperative that a se lection plan be used for internal as well as external se lection. As described in Chapter 8, a se lection plan lists the predictors to be used for assess- ment of each KSAO.

INITIAL ASSESSMENT METHODS

The internal recruitment pro cess may generate a large number of applications for vacant positions. This is especially true when an open recruitment system (where jobs are posted for employees to apply) rather than a closed recruitment system is used. Given the time and cost of rigorous se lection procedures, organ izations use initial assessment methods to screen out applicants who do not meet the mini- mum qualifications needed to become a candidate. Initial assessment methods for internal recruitment typically include the following predictors: talent management/ succession systems, peer evaluations, self- assessments, managerial sponsorship, and informal discussions and recommendations. Each of these predictors will be discussed in turn, followed by a general evaluation of all predictors.

Talent Management/Succession Systems

Most organ izations have a desire to internally select (or promote from within) for both informational and motivational reasons. Respectively, the reasons are that one knows one’s employees better than external applicants and that valued employ- ees may be motivated and retained based on an expectation of future promotions. For example, nearly all man ag ers at Enterprise Rent- A- Car, including its CEO, began in the com pany’s management trainee program. Based on their per for mance, employees move up the ranks from management trainee, to assistant man ag er, to branch man ag er, to area and city man ag er, and so forth— all promoted from within.

Though internal se lection is attractive to employees, a major prob lem for organ- izations (especially medium- sized and large ones) is finding out which employees have the desired skills. This is where talent management/succession systems come into play.

Talent management/succession systems— sometimes called human capital management— keep an ongoing orga nizational rec ord of the skills, talents, and capa- bilities of an organ ization’s employees to inform human resource (HR) decisions. Talent management/succession systems can be used to attain many goals, including per for mance management, recruitment needs analy sis, employee development, com- pensation, and career management. However, one of the primary goals of such sys- tems is to facilitate internal se lection decisions by keeping an or ga nized, up- to- date rec ord of employee skills, talents, and capabilities.

099-67811_ch10_4P.indd 518 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 519

As logical as talent management/succession systems seem, a recent survey of large multinationals revealed that less than half have such a system in place. Organ- izations may not use a talent management system for two reasons. First, it may be perceived as too costly. However, the cost of a talent management/succession system should be considered against the cost of not using a system: what are the costs of making se lection decisions based on incomplete knowledge of the skills and capabilities of current employees? Second, the expertise to develop a system may not be available. This prob lem can be mitigated by working with a vendor that specializes in talent management software. According to one recent estimate, the talent management software market grew by 20% in 2012.4 Talent management/ succession software is often integrated within a vendor’s human resource infor- mation systems (HRISs). For example, the two largest HRIS providers— SAP and Oracle/Peoplesoft— include talent management systems in the HRIS packages they market to organ izations.

Whether developed internally or purchased from a vendor, a good talent manage- ment/succession system includes the KSAOs held by each employee in the organ- ization. The KSAOs are or ga nized by skill categories such as education/experience, intangible talents such as leadership accomplishments and potential, and ratings of managerial competencies or talents. An effective talent management/succession system also includes the employee’s current position, along with any future positions that the employee is capable of occupying. Additionally, a good talent management system also summarizes the data so that a skills audit can be generated to ascertain unit- or organization- wide talent shortages. Indianapolis- based phar ma ceu ti cal giant Eli Lilly does this on a quarterly basis.

One of the prob lems with talent management/succession systems is that they often quickly become outdated. For the system to be useful (rather than simply another bureaucratic form to complete), man ag ers must systematically update the database with the latest skills acquired by employees. Another limitation is that the KSAOs are often rather general or generic. For a talent management/succession sys- tem to be successful, it must be specific, actively maintained and updated, aligned with an organ ization’s strategies (so as to anticipate future talent needs), and used when internal se lection decisions are made.5

Peer Assessments

Assessments by peers or coworkers can be used to evaluate the promotability of an internal applicant. A variety of methods can be used, including peer ratings, peer nominations, and peer rankings.6 Examples of all three are shown in Exhibit 10.1.

As can be seen in Exhibit 10.1, whereas peers are used to make promotion decisions in all three methods of peer assessments, the format of each is dif fer ent. With peer ratings, readiness to be promoted is assessed using a rating scale for each peer. The person with the highest rating is deemed most promotable. Peer nominations rely on voting for the most promotable candidates. Peers receiving

099-67811_ch10_4P.indd 519 11/17/17 1:32 PM

520 PART FOUR Staffing Activities: Selection

the greatest number of votes are the most promotable. Fi nally, peer rankings rely on a rank ordering of peers. Those peers with the highest rankings are the most promotable.

Peer assessments have been used extensively in the military over the years and to a lesser degree in industry. A virtue of peer assessments is that they rely on rat- ers who presumably are very knowledgeable of the applicants’ KSAOs due to their day- to- day contact with them. Notably, one meta- analysis suggests that the valid- ity of peer assessments for ability is very strong ( r

_ xy = .69), although it is stronger

in correlations collected for research purposes and for those who have had more

EXHIBIT 10.1 Peer Assessment Methods

Peer Rating

On a scale of 1–5, please rate the following employees for the position of manager as described in the job requirements matrix:

Not Promotable

1 2

Promotable in One Year

3 4

Promotable Now 5

Jean 1 2 3 4 5 John 1 2 3 4 5 Andy 1 2 3 4 5 Herb 1 2 3 4 5

Peer Nomination

Please place an X next to the employee who is most promotable to the position of manager as described in the job requirements matrix:

Joe Nishant Carlos Suraphon Renee

Peer Ranking

Please rank the following employees from the most promotable (1) to the least promotable (5) for the position of manager as described in the job requirements matrix:

Ila Karen Phillip Yi-Chan Kimlang

099-67811_ch10_4P.indd 520 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 521

opportunities to observe their peers.7 A pos si ble downside to peer assessments, however, is that they may encourage friendship bias and may undermine morale in a work group by fostering a competitive environment.

Another pos si ble prob lem is that the criteria by which assessments are made are not always made clear. For peer assessments to work, the KSAOs needed for successful per for mance in the position the peer is being considered for should be outlined in advance. To do so, a job requirements matrix should be used. In addi- tion, recent research on peer nominations specifically suggests that examining not only nominations received but also nominations by nominees and nominations not returned increases predictive validity by more accurately reflecting the candidate’s social network. Of course, that increased accuracy comes with increased complex- ity and time.8

A probable virtue of peer assessments is that peers are more likely to feel that the decisions reached are fair since they had input into the pro cess; thus, it is not seen as a “ behind the back” maneuver by management. Peer assessments are used more often with open rather than closed systems of internal recruitment.

Self- Assessments

Job incumbents can be asked to evaluate their own skills as a basis for determining promotability. This procedure is sometimes used with open recruitment systems. An example of this approach is shown in Exhibit 10.2. Caution must be exercised in using this pro cess for se lection, as it may raise the expectations of those rating themselves that they will be selected. As one VP of HR noted, “Some people think a lot more highly of their skills and talent” than is warranted. Employees’ supervi- sors should encourage upward mobility (not “hoard” talent), but they also need to ensure that employees are realistic in their self- assessments.9 Further caution is also warranted given that even the inclusion of self- assessments may result in biased promotion judgments by HR experts and novices alike.10

Managerial Sponsorship

Increasingly, organ izations are relying on higher- ups to identify and develop the KSAOs of those at lower levels in the organ ization. Historically, the higher-up has been the person’s immediate supervisor. Today, however, the higher-up may be a person at a higher level of the organ ization who does not have direct responsibility for the person being rated. Higher- ups are sometimes labeled coaches, sponsors, or mentors, and their roles are defined in Exhibit 10.3. Some organ izations have formal mentorship programs where employees are assigned coaches, sponsors, and mentors. In other organ izations, these matches may naturally occur, often pro- gressing from coach to sponsor to mentor as the relationship matures. Regardless of the formality of the relationship, these higher- ups often have considerable influ- ence in promotion decisions.

099-67811_ch10_4P.indd 521 11/17/17 1:32 PM

522 PART FOUR Staffing Activities: Selection

Impor tant, too, is the developmental nature of these relationships. Sponsors are in a position to not only internally select candidates to sponsor but also give these individuals valuable developmental experiences that make them viable candidates in the future. Research shows that employees working with sponsors who provide them with challenging developmental experiences earn higher promotability rat- ings after those experiences. Mentors, too, may provide “psychosocial” support for employees—by being a sounding board, a source of interpersonal support, or a confidant— and, indeed, this form of support may be the clearest consequence of mentoring.11

Research also has shown that protégés are not the only ones who benefit from mentoring relationships. Mentors do as well. A recent meta- analysis found that

Source: Department of the Interior, Bureau of Indian Affairs. Form BIA-4450 (4/22/92).

EXHIBIT 10.2 Self- Assessment Form Used for Application in Job Posting System

SUPPLEMENTAL QUESTIONNAIRE This supplemental questionnaire will be the principal basis for determining whether or not you are highly qualified for this position. You may add information not identified in your SF-171 or expand on that which is identified. You should consider appropriate work experience, outside activities, awards, training, and education for each of the items listed below.

1. Knowledge of the Bureau of Indian A�airs’ mission, organization, structure, policies, and functions, as they relate to real estate.

2. Knowledge of technical administrative requirements to provide technical guidance in administrative areas, such as personnel regulations, travel regulations, time and attendance requirements, budget documents, Privacy Act, Freedom of Information Act, etc.

3. Ability to work with program directors and administrative sta� and ability to apply problem-solving techniques and management concepts; ability to analyze facts and problems and develop alternatives.

4. Ability to operate various computer programs and methodology in the analysis and design of automated methods for meeting the information and reporting requirements for the division.

5. Knowledge of the bureau budget process and statistical profile of all field operations that impact in the Real Estate Services program.

On a separate sheet of paper, address the above items in narrative form. Identify the vacancy announcement number across the top. Sign and date your supplemental questionnaire.

9781259756559_ch10_p513_550.indd 522 12/17/17 6:25 PM

CHAPTER TEN Internal Se lection 523

those who mentored others had higher levels of job satisfaction, commitment to the organ ization, and job per for mance than those not in mentoring roles. Thus, rather than being just a one- sided relationship, effective mentoring can be reciprocally rewarding for both parties.12

Informal Discussions and Recommendations

Not all promotion decisions are made on the basis of formal HR policy and procedures. For many promotions, much or all of the decision pro cess occurs outside normal channels, through informal discussions and recommendations. For example, Celeste Russell, vice president of HR for Good Times Entertain- ment, a New York home video and direct marketing com pany, invites employees out for coffee. “It’s like a sales call,” she says. Although such informal discus- sions are a common means of internal se lection decisions, especially in small companies, they may have limited validity because they are quite subjective. Although Russell prides herself on knowing the names of employees’ pets and other personal information, it seems likely that the personal and subjective nature of these conversations compromises her ability to make internal se lection

Coach

• Provides day- to-day feedback • Diagnoses and resolves performance problems • Creates opportunities for employees using existing training programs and career

development programs

Sponsor

• Actively promotes person for advancement opportunities • Guides person’s career rather than simply informing them of opportunities • Creates opportunities for people in decision- making capacities to see the skills of

the employee (e.g., lead a task force)

Mentor

• Becomes personally responsible for the success of the person • Is available to person on and off the job • Lets person in on “insider” information • Solicits and values person’s input

EXHIBIT 10.3 Employee Advocates

Source: Reprinted with permission from Dr. Janina Latack, PhD, Nelson O’Connor & Associates/ Outplacement International, Phoenix/Tucson.

099-67811_ch10_4P.indd 523 11/17/17 1:32 PM

524 PART FOUR Staffing Activities: Selection

E X

H IB

IT 1

0 .4

E

va lu

a ti

o n

o f

In it

ia l A

ss e

ss m

e n

t M

e th

o d

s

P re d ic to r

U se

C o st

R e lia

b ili ty

V a lid

it y

U ti lit y

R e a ct io n s

A d ve

rs e

A p p lic

a n t

T al

e n

t m

an ag

e m

e n

t/ su

cc e

ss io

n s

ys te

m s

Im p a ct

S e

lf- n

o m

in at

io n

s

P e

e r

as se

ss m

e n

ts

M an

ag e

ri al

sp o

n so

rs h

ip

In fo

rm al

m e

th o

d s

H ig

h

H ig

h

H ig

h H

ig h

H ig

h

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

M o

d e

ra te

M o

d e

ra te

M o

d e

ra te

M o

d e

ra te

M o

d e

ra te

M ix

e d

M ix

e d

? ?

? ?

? ? ? ? ?

? ? ? ? ?

P o

si tiv

e

N e

g at

iv e

099-67811_ch10_4P.indd 524 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 525

decisions relative to “cold and hard” data such as skills, accomplishments, abili- ties, and so forth. Such is the case with many, if not most, informal approaches to se lection.13

Choice of Initial Assessment Methods

As was discussed, there are several formal and informal methods of initial assess- ment available to screen internal applicants to produce a list of candidates. Research has been conducted on the effectiveness of each method, which will now be pre- sented to help determine which initial assessment methods should be used. The reviews of this research are summarized in Exhibit 10.4.

In Exhibit 10.4, the same criteria are applied to evaluate the effectiveness of these predictors as were used to evaluate the effectiveness of predictors for external se lection. Use refers to how much or how often the predictor is utilized. Cost refers to expenses incurred in using the predictor. Reliability refers to the consistency of mea sure ment. Validity refers to the strength of the relationship between the predictor and job per for mance. Low validity ranges from about .00 to .30, moder- ate validity ranges from about .31 to .50, and high validity is .51 and above. Utility refers to the monetary return, minus costs, associated with using the predictor. Adverse impact refers to the possibility that a disproportionate number of women and minorities will be rejected using this predictor. Fi nally, applicant reactions refers to the likely impact of the procedure on applicants.

Two points should be made about the effectiveness of initial internal se lection methods. First, talent management/succession systems and informal methods are used extensively, suggesting that many organ izations continue to rely on closed rather than open internal recruitment systems. Certainly this is a positive procedure when administrative ease is of importance. However, it must be noted that talented applicants may be overlooked in these approaches. Also, there may be discrimina- tory impact on women and minorities.

The second point is that peer assessment methods are very promising in terms of reliability and validity. They are not frequently used, but more organ izations should consider using them as a screening device. Perhaps this will take place as organ- izations continue to decentralize decision making and empower employees to make business decisions historically made only by the supervisor.

SUBSTANTIVE ASSESSMENT METHODS

The internal applicant pool is narrowed down to candidates using the initial assess- ment methods. The following substantive assessment methods are used to deter- mine which internal candidates will become finalists: se niority and experience, job knowledge tests, per for mance appraisal, promotability ratings, assessment centers, interview simulations, and promotion panels and review boards. Each of these methods is discussed, followed by a general evaluation of all methods.

099-67811_ch10_4P.indd 525 11/17/17 1:32 PM

526 PART FOUR Staffing Activities: Selection

Se niority and Experience

Initially, the concepts of se niority and experience may seem the same. In real ity, however, they are quite dif fer ent. Se niority typically refers to length of ser vice or tenure with the organ ization, department, or job. For example, com pany se niority is mea sured as length of continuous employment in an organ ization— the differ- ence between the pres ent date of employment and the date of hire. Thus, se niority is a purely quantitative mea sure that has nothing to do with the type or quality of job experiences.

Conversely, experience generally has a broader meaning. While se niority may be one aspect of experience, experience itself encompasses a broader range. As an example, two employees working at the same com pany for 20 years may have the same level of se niority but very dif fer ent levels of experience if one of them has performed a number of dif fer ent jobs, worked in dif fer ent areas of the organ- ization, and enrolled in vari ous training programs. Thus, experience includes not only the length of ser vice in the organ ization or in vari ous positions in the organ- ization but also the kinds of activities undertaken in those positions. So, although se niority and experience are often considered synonymous, the example shows that they are quite dif fer ent. And as we will see in the following discussion, these differences have real implications for internal se lection decisions.

Use and Evaluation Se niority and experience are among the most prevalent methods of internal se lection. Most unionized companies place heavy reliance on se niority over other KSAOs for advancement, and most union contracts stipulate that se niority be considered in promotion decisions. Indeed, research suggests that se niority matters more to the wages and advancement of union workers than nonunion workers. In policy, non- union organ izations claim to place less weight on se niority than on other factors in making advancement decisions. In practice, however, at least one study showed that regardless of the wording in policy statements, heavy emphasis is still placed on se niority in nonunion settings. Research has shown that se niority is more likely to be used for promotions in small, unionized, and capital- intensive companies.14

Se niority and experience are widely used methods of internal se lection for many reasons. First, organ izations believe that direct experience in a job content area reflects an accumulated stock of KSAOs necessary to perform the job. In short, experience may be content valid because it reflects on- the- job experience. Sec- ond, se niority and experience information is easily obtained. Furthermore, unions believe that reliance on objective mea sures such as se niority and experience pro- tects the employee from capricious treatment and favoritism. Fi nally, promot- ing experienced or se nior individuals is socially acceptable because it is seen as rewarding loyalty.

Due to these reasons, moving from a seniority- based system is not easy, particu- larly in union environments. When former Washington, DC, mayor Adrian Fenty

099-67811_ch10_4P.indd 526 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 527

and former schools chancellor Michelle Rhee attempted to reduce the weight placed on se niority in teacher hiring, promotion, and pay decisions, they were met with fierce re sis tance from teachers and teachers’ unions.15

In evaluating se niority and experience as methods of internal se lection, it is impor tant to return to our earlier distinction between the two concepts. A meta- analysis of 350 empirical studies revealed that se niority (orga nizational tenure) was rather weakly related to task per for mance ( r

_ xy = .10), helping be hav ior at

work ( r _

xy = .08), work creativity ( r _

xy = .06), and work counterproductive be hav ior ( r _

xy = −.07). 16

As compared with se niority, evidence for the validity of experience is more posi- tive. A large- scale review of the lit er a ture has shown that experience is moderately related to job per for mance.17 Research suggests that experience is predictive of job per for mance in the short run but is followed by a plateau during which experi- ence loses its ability to predict job per for mance. It appears that most of the effect of experience on per for mance is because experienced employees have greater job knowledge. However, while experience may result in increased per for mance due to greater job knowledge, it does not remedy per for mance difficulties due to low ability; initial per for mance deficits of low- ability employees are not remedied by increased experience over time.18 Thus, while experience is more likely than se niority to be related to job per for mance, neither ranks among the most valid predictors for internal se lection decisions.

Several conclusions drawn from the research evidence about the use of se niority and experience in internal se lection decisions seem appropriate:

1. Experience is a more valid method of internal se lection than se niority (although unionized employers may have little choice but to use se niority).

2. Experience is better suited to predict short- term rather than long- term potential.

3. Experience is more likely to be content valid if the past or pres ent jobs are similar to the future job.

4. Employees seem to expect that promotions will go to the most se nior or expe- rienced employee, so using se niority or experience for promotions may yield positive reactions from employees.

5. Experience is unlikely to remedy initial per for mance difficulties of low- ability employees.

Job Knowledge Tests

Job knowledge mea sures one’s mastery of the concepts needed to perform certain work. Job knowledge is a complex concept that includes ele ments of both ability (capacity to learn) and se niority (opportunity to learn). It is usually mea sured with a paper- and- pencil test. To develop a paper- and- pencil test to assess job knowledge, the content domain from which test questions will be constructed must be clearly

099-67811_ch10_4P.indd 527 11/17/17 1:32 PM

528 PART FOUR Staffing Activities: Selection

identified. For example, a job knowledge test used to select sales man ag ers from salespeople must identify the specific knowledge necessary for being a successful sales man ag er.

Job knowledge tests are often used in occupations where specific job knowledge is needed immediately on the first day of the job. Accordingly, they are often used for jobs that require technical or specialized knowledge that cannot be quickly acquired or learned. Job knowledge tests are very specific to the occupation for which candidates are being selected. For example, a job knowledge test for an information technology analyst in the health care industry might ask about knowl- edge of specific software used in that industry, such as Epic and NextGen.

Although job knowledge is not a well- researched method of either internal or external employee se lection, it holds great promise as a predictor of job per- for mance. This is because it ref lects an assessment of previous experiences of an applicant and an impor tant KSAO, namely, cognitive ability.19 However, it is impor- tant to distinguish between cognitive ability, which reflects learning potential, and job knowledge, which reflects what has already been learned. Job knowledge tests are also likely to be viewed favorably by candidates, so long as they see the link between the knowledge being tested and the knowledge required to perform the job.

Per for mance Appraisal

One pos si ble predictor of future job per for mance is past job per for mance. This assumes, of course, that ele ments of the future job are similar to those of the past job. Data on employees’ previous per for mance are routinely collected as part of the per for mance appraisal pro cess and thus available for use in internal se lection.

One advantage of per for mance appraisals over other internal assessment methods is that they are readily available in many organ izations. Another desirable feature is that they likely capture both ability and motivation. Hence, they can offer a com- plete look at the person’s qualifications for the job. Care must be taken in using per- for mance appraisals, because there is not always a direct correspondence between the requirements of the current job and the requirements of the position applied for. Per for mance appraisals should only be used as predictors when job analy sis indicates a close relationship between the current job and the position applied for.

For example, per for mance in a highly technical position (e.g., scientist, engineer) may require certain skills (e.g., quantitative skills) that are required in both junior- and senior- level positions. Thus, using the results of the per for mance appraisal of the ju nior position is appropriate in predicting per for mance in the se nior position. It is not, however, appropriate to use the results of the per for mance appraisal for the junior- level technical job to predict per for mance in a job requiring a dif fer ent set of skills (e.g., planning, organ izing, and staffing), such as that of man ag er.

Although there are some advantages to using per for mance appraisal results for internal se lection, they are far from perfect predictors. They are subject to many

099-67811_ch10_4P.indd 528 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 529

influences that have nothing to do with the likelihood of success in a future job.20 In addition, decision makers appear to be swayed not only by a person’s level of per for mance but also by his or her trajectory, that is, whether the person’s per for- mance has increased or decreased over time. One recent study found that NBA players whose per for mance was on a positive trajectory received higher levels of compensation than those whose trajectory was not as positive— even controlling for their average level of per for mance. Presumably, those with positive trajectories were viewed as “rising stars,” even though those views were overly optimistic. One implication is that employees viewed as rising stars, even if their initial per for- mance is low, may be promoted more quickly than they deserve.21

The well- known Peter Princi ple— that individuals rise to their lowest level of incompetence— illustrates another limitation of using the per for mance appraisal as a method for internal staffing decisions.22 The argument behind the Peter Princi ple is that if organ izations promote individuals on the basis of their past per for mance, the only time that people stop being promoted is when they perform poorly in the job into which they were last promoted. Thus, over time, organ- izations will have internally staffed positions with incompetent individuals. In fact, the authors have data from a Fortune 100 com pany showing that less than one- fifth of the variance in an employee’s current per for mance rating can be explained by the per for mance ratings of the previous three years. Thus, although past per for mance may have some validity in predicting future per for mance, the relationship may not be overly strong.

This is not to suggest that organ izations should abandon using per for mance ratings as a factor in internal staffing decisions. Rather, the validity of using per- for mance appraisals as an internal se lection method may depend on a number of considerations. Exhibit 10.5 provides several questions that should be asked in deciding how much weight to place on per for mance appraisals as a means of mak- ing internal se lection decisions. Answering yes to these questions suggests that past per for mance may be validly used in making internal se lection decisions.

If organ izations do rely on per for mance appraisals to make internal staffing decisions, a challenge is to ensure that per for mance mea sures are interpreted

• Is the performance appraisal process reliable and unbiased? • Is the present job content representative of future job content? • Have the KSAOs required for performance in the future job(s) been acquired and

demonstrated in the previous job(s)? • Is the organizational or job environment stable such that what led to past job

success will lead to future job success?

EXHIBIT 10.5 Questions to Ask in Using Performance Appraisal as a Method of Making Internal Staffing Decisions

099-67811_ch10_4P.indd 529 11/17/17 1:32 PM

530 PART FOUR Staffing Activities: Selection

similarly by raters. This is especially the case when ratings from multiple sources (e.g., supervisors, peers, and direct reports) are obtained. Recent evidence sug- gests that providing raters with an explicit frame of reference can increase rat- ing accuracy. An explicit frame of reference is achieved by including definitions and specific behavioral examples of per for mance on the mea sure itself and using multiple behavioral indicators for each competency assessed. The overall goal of this approach is to reduce idiosyncratic scoring tendencies between dif fer ent raters (e.g., being consistently lenient or harsh) by providing raters with an unambiguous frame of reference. For example, if “ability to work in teams” is a per for mance dimension being assessed, the rating scale itself would have an explicit definition of high versus low levels of per for mance, as well as multiple examples of be hav- iors exemplifying high per for mance.23

An advance over the simple use of per for mance ratings is to review past per for- mance rec ords more thoroughly, including evaluating vari ous dimensions of per- for mance that are particularly relevant to job per for mance (where the dimensions are based on job analy sis results). For example, a study of police officer promo- tions showed that a pool of six supervisors was used to score officers on four job- relevant police officer per for mance dimensions— supervisory- related education and experience, disciplined be hav ior, commendatory be hav ior, and reliability— with the goal of predicting future per for mance. Results of the study indicated that using ratings of past per for mance rec ords was an effective method of promoting officers.24 Such a method might be adapted to other positions and provide a use- ful means of incorporating past per for mance data into a more valid prediction of future potential.

Promotability Ratings

In many organ izations, an assessment of promotability (assessment of potential for a higher- level job) is made at the same time that per for mance appraisals are con- ducted. Replacement and succession planning frequently use both types of assess- ments (see Chapter 3).

Promotability ratings are useful not only from a se lection perspective but also from a recruitment perspective. By discussing what is needed to be promotable, employee development may be encouraged as well as coupled with orga nizational sponsorship of the opportunities needed to develop. In turn, the development of new skills in employees increases the internal recruitment pool for promotions.

Caution must be exercised in using promotability ratings. If employees receive separate evaluations for purposes of per for mance appraisal, promotability, and pay, they may receive mixed messages. For example, it would be difficult to under- stand why one received an excellent per for mance rating and a solid pay raise, but at the same time was rated as not promotable. Care must be taken to show employees the relevant judgments being made in each assessment. In this example, it must be clearly indicated that promotion is based not only on past per for mance but also on

099-67811_ch10_4P.indd 530 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 531

skill acquisition and opportunities for advancement. Furthermore, promotability ratings vary as a function of rating source and may be biased by po liti cal skill—in one study, man ag ers with more po liti cal skill (which may or may not be job rel- evant) had higher promotability ratings than those with less po liti cal skill (regard- less of rating source).25

Assessment Centers

An assessment center is an elaborate employee se lection method that is primarily used internally and for higher- level jobs. It consists of a collection of predictors used to forecast success and is used for higher- level jobs because of the high costs involved in conducting the center. The assessment center can be used to select employees for lower- level jobs as well, though this is rarely done.

The theory behind assessment centers is relatively straightforward— the main concern is with predicting an individual’s be hav ior and effectiveness in critical roles, usually managerial. Since these roles require complex be hav ior, multiple KSAOs will predict those be hav iors. Hence, there is a need to carefully identify and assess those KSAOs; multiple methods, as well as multiple assessors, will be required. The result should be higher validity than could be obtained from a single assessment method or assessor.

As with any sound se lection procedure, the assessment center predictors are based on a job analy sis that results in the identification of relevant KSAOs as well as aids in the construction of content- valid methods of assessment for those KSAOs. As a result, a se lection plan must be developed when using assessment centers. An example of such a se lection plan is shown in Exhibit 10.6.

Characteristics of Assessment Centers Whereas specific characteristics vary from situation to situation, assessment cen- ters generally have some common characteristics. Job candidates usually partici- pate in an assessment center for a period of days rather than hours. Most assessment centers last two to three days, but some may be as long as five days. As we describe shortly, a big part of assessment centers is simulations, where employees partici- pate in exercises and trained assessors evaluate their per for mance. Assessors are usually line man ag ers, but sometimes psychologists are used as well. The average ratio of assessors to assessees ranges from 1:1 to 4:1.

The participants in the center are usually man ag ers who are being assessed for higher- level managerial jobs. Normally, they are chosen to participate by other orga nizational members, such as their supervisor. Often se lection is based on an employee’s current level of job per for mance.

At the conclusion of the assessment center, the participants are evaluated by the assessors. Typically, this involves the assessor examining all the information gathered about each participant. The information is then translated into a series of ratings on several dimensions of managerial jobs. Typical dimensions assessed

099-67811_ch10_4P.indd 531 11/17/17 1:32 PM

532 PART FOUR Staffing Activities: Selection

E X

H IB

IT 1

0 .6

S

e le

ct io

n P

la n

f o

r a

n A

ss e

ss m

e n

t C

e n

te r

S o

u r

c e:

D e

p ar

tm e

n t

o f

E m

p lo

ym e

n t

R e

la tio

n s,

S ta

te o

f W

is co

n si

n .

K S

A O

W ri

ti n

g E

xe rc

is e

S p

e e

ch E

xe rc

is e

A n

a ly

si s

P ro

b le

m

In -B

a sk

e t

T e

n t.

F in

a l

Le a

d e

rs h

ip G

ro u

p D

is cu

ss io

n M

a n

a g

e m

e n

t P

ro b

le m

s

C o

u n

ci l

X X

X O

ra l c

o m

m u

n ic

at io

n s

X X

O ra

l p re

se n

ta tio

n

X X

X X

W ri

tt e

n c

o m

m u

n ic

at io

n s

X X

X X

S tr

e ss

t o

le ra

n ce

X X

Le ad

e rs

h ip

X X

X X

X S

e n

si tiv

ity

X X

X T

e n

ac ity

X X

X X

X R

is k

ta ki

n g

X X

X X

X In

iti at

iv e

X X

X X

X P

la n

n in

g &

o rg

an iz

at io

n

X X

X M

an ag

e m

e n

t co

n tr

o l

X X

D e

le g

at io

n

X X

X X

X P

ro b

le m

a n

al ys

is

X X

X X

X D

e ci

si o

n m

ak in

g

X X

X X

X D

e ci

si ve

n e

ss

X X

X X

X R

e sp

o n

si ve

n e

ss

C it

y

9781259756559_ch10_p513_550.indd 532 12/17/17 6:32 PM

CHAPTER TEN Internal Se lection 533

include communications (written and oral), leadership and human relations, plan- ning, prob lem solving, and decision making. A meta- analysis found that these dimensions cluster into three broad factors: administrative skills, relational skills, and drive.26 In evaluating these dimensions, assessors are trained to look for criti- cal be hav iors that represent highly effective or in effec tive responses to the exercise situations in which participants were placed. There may also be an overall assess- ment rating that represents the bottom- line evaluation for each participant. Assess- ment center dimensions are relatively highly correlated with one another, though evidence suggests that the dimensions do add to the prediction of per for mance beyond the overall score.27 Exhibit 10.7 provides a sample rating form.

A variety of exercises are used with the assessment center method. Experts argue that the simulation is the key to an assessment center, though exactly how future per for mance is simulated varies from center to center.28

Although many assessment centers contain written tests and interviews— and thus may include some of the external se lection techniques we discussed in Chap- ters 8 and 9— the simulation exercises are the heart of the assessment center. The most frequently used exercises are the in- basket exercise, group discussion, and case analy sis. Each of these exercises will be briefly described.

In- Basket Exercise. The most commonly used assessment center exercise is the in- basket (according to one study, 82% of assessment centers use it). The in- basket (sometimes called “inbox”) usually contains memoranda, reports, phone messages, and letters that require a response. These materials are presented to a candidate, and he or she is asked to respond to the items by prioritizing them, drafting responses, scheduling meetings, and so forth. It is a timed exercise, and the candidate usually has two to three hours to complete it. Even when used alone, the in- basket exercise seems to forecast ascendancy, one of the key criteria of assess- ment centers.29

Group Discussion. In a group discussion, a small group of candidates is given a prob lem to solve. The prob lem is one they would likely encounter in the higher- level position for which they are applying. As the candidates work on the prob lem, assessors sit around the perimeter of the group and evaluate how each candidate behaves in an unstructured setting. They look for skills such as leadership and communication. Roughly 60% of assessment centers include a group discussion. Some group discussion exercises assign candidates specific roles to play; others are “leaderless” in that no one is assigned a par tic u lar role. An example of the former is where participants are part of a proj ect team and each participant assumes a role (IT, HR, marketing, etc.). An example of the latter is a “lost in the wilderness” exercise, where a group of individuals is presented a scenario in which they are lost and have few resources on which they can survive and find their way home. Both assigned- role and leaderless group discussions assess the skills of leadership, judg- ment, persuasive oral communication, teamwork, and interpersonal sensitivity.

099-67811_ch10_4P.indd 533 11/17/17 1:32 PM

534 PART FOUR Staffing Activities: Selection

EXHIBIT 10.7 Sample Assessment Center Rating Form

Participant Name:

Personal Qualities 1. Energy 2. Risk taking 3. Tolerance for ambiguity 4. Objectivity 5. Reliability

Communication Skills 6. Oral 7. Written 8. Persuasion

Human Relations 9. Teamwork

10. Flexibility 11. Awareness of social environment

Leadership Skills 12. Impact 13. Autonomy

Decision-Making Skills 14. Decisiveness 15. Organizing 16. Planning

Problem-Solving Skills 17. Fact finding 18. Interpreting information

Overall Assessment Rating Indication of potential to perform e�ectively at the next level is:

Excellent Good Moderate Low

099-67811_ch10_4P.indd 534 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 535

Case Analy sis. Cases of actual business situations can also be presented to the candidates. Each candidate is asked to provide a written analy sis of the case, describ- ing the nature of the prob lem, likely causes, and recommended solutions. Not only are the written results evaluated but the candidate’s oral report is scored as well. The candidates may be asked to give an oral pre sen ta tion to a panel of man ag ers and to respond to their questions, comments, and concerns. Case analyses are used in roughly half of all assessment centers.

Validity and Effective Practices A meta- analysis of 27 validity studies revealed that the correlation between the assessment center overall assessment rating (OAR) and job per for mance was rea- sonably positive ( r

_ xy = .28).

30 Another advantage of assessment centers is that they appear to have little to no adverse impact against protected groups— including women and African Americans— even when the assessors are predominantly white men. Indeed, one study of nearly 2,000 man ag ers found that female candidates generally performed better than male candidates. However, one study found that assessment centers were more likely to have adverse impact against Hispanics. Fi nally, analyses based on meta- analytic data suggest that assessment centers add incremental validity over personality and cognitive ability.31

On the other hand, research has uncovered several prob lems with assessment cen- ters. First, the construct validity of assessment center evaluations is often questioned. Research has shown that there are much stronger exercise and assessor effects than there are dimension effects, meaning that there is much higher agreement within exercises and within assessors than there is within dimensions. Recent research illu- minates that reliability of assessment center ratings is a complex interaction between assessors, exercises, and dimensions and recommends separating ratings into finer categories as opposed to simply aggregating ratings into one score. However, it is unclear whether the construct validity improvements are substantial enough to warrant the increased complexity that would result from such separation.32 In short, assessment center dimensions do not show much construct validity, calling into ques- tion the content of what is being assessed. As one reviewer of the lit er a ture noted, “Assessment centers (ACs), as they are often designed and implemented, do not work as they are intended to work and prob ably never will.” Two reasons why dimensional effects tend to be weak are (1) halo effects in assessors’ ratings (if an assessor thinks an assessee is a strong candidate, it spills over to ratings on other dimensions), and (2) assessee be hav ior tends to be inconsistent across situations (and thus across exer- cises and dimensions) but consistent within exercises (blurring distinctions between multiple dimensions). These pieces of evidence do not mean assessment centers utterly lack construct validity, but they do suggest that more research is needed as to what constructs are uniquely captured with assessment centers.33

One proposed solution suggests that although error and exercise- specific variance appears to dominate on the surface, relevant dimension variance (especially that

099-67811_ch10_4P.indd 535 11/17/17 1:32 PM

536 PART FOUR Staffing Activities: Selection

which is attributable to a general factor of assessment center per for mance) tends to accumulate with the addition of more exercises, and criterion- related validity tends to improve with exercises that impose substantively dissimilar demands.34 However, a recent comprehensive study of the specific sources of variance related to exercises and dimensions across assessment center ratings found that less than 1.12% of the variance in assessment center ratings is attributable to dimensions. Notably, the varia- tion was mostly attributable to exercise factors and the general per for mance factor.35

Another way of approaching the construct validity of assessment centers impasse is by adopting the lens of trait activation theory.36 When there is an opportunity to observe trait- relevant be hav ior in any given exercise, the construct validity evi- dence of assessment center ratings may improve (e.g., the exercises themselves do not offer the same opportunities to observe traits, which may be why they do not converge across exercises). Drawing on 30 separate studies of assessment center ratings, one review found support for the application of trait activation theory to assessment centers, observing improvements in construct validity when exercises provided opportunities to observe trait- relevant be hav ior.37

So what assessment center design features can make a difference in increasing the chances to observe trait- relevant be hav iors? Making sure the targeted dimen- sions are masked (or not transparent) to applicants is one way to potentially prevent them from acting in a socially desirable way (or do what they think raters are look- ing for).38 In addition, some research suggests that impression management, along with being able to identify what is required of you / the situational demands in an assessment center exercise, is related to on- the- job per for mance, further bolster- ing the argument to mask dimensions (although problematic for construct valid- ity and trait assessment).39 A second way of increasing the chances of observing trait- relevant be hav iors is to carefully manage how the facilitators and role- players portray themselves, along with the prompts (e.g., feedback, hints, or suggestions) that they provide throughout the exercise.40 Overall, a focus on design for trait acti- vation combined with a focus on improving mea sure ment accuracy prob ably holds the most promise for improving assessment center behavioral ratings.41

One of the biggest limitations of assessment centers is their cost. The nature of the individualized assessment and the requirement of multiple assessors make them cost- prohibitive for many organ izations. One way some organ izations are mitigating the costs is through other, related assessments. For example, the organ ization can vid- eotape an assessee’s per for mance so that assessors can evaluate it when con ve nient. This saves coordination and travel costs. A practice that results in even greater cost savings is to use situational judgment tests, where assessees are given vari ous exercises in written, video, or computerized form. A meta- analysis of 45 studies suggested that the validity of a situational judgment test composite score ( r

_ xy = .28)

was identical to the validity of assessment centers.42

Another way to reduce the costs of the assessment center is to use computer- ized assessments. One research study reported favorable results for a computerized assessment center simulation that asked assessees to prioritize information, for-

099-67811_ch10_4P.indd 536 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 537

mulate e- mail correspondences, make decisions about hy po thet i cal simulations, and engage in strategic planning.43 Another means of reducing costs is to use off- the- shelf assessments provided by vendors. For example, Assessment Center Exercises (AC- ESX) is a vendor that sells more than 150 assessment center exer- cises, including instructions on how to train assessors, administer the exercises, and score responses. The exercises include the three most common exercises noted above, as well as scheduling exercises, interview simulations, and fact- finding exercises. While using off- the- shelf products may save money, it is critical that assessors have proper training. Without the right training, the resulting assessment or score derived from the assessment may be so scattershot as to be useless.

There is little research that has examined participant reactions to assessment centers, though professional guidelines recommend that assessee reactions be included in the pro cess. However, it is commonly noted that assessment centers are stressful to participants, and the unfavorable feedback that often results from participation is particularly taxing to assessees. Those with low self- esteem and self- efficacy are particularly sensitive to assessment center feedback. This does not mean, however, that assessment centers always or even generally generate negative reactions from assessees, and assessees quickly recover from either positive or nega- tive initial reactions from assessment center participation. Perhaps more impor tant is what happens ­after the assessment center experience ( whether the assessee was promoted and whether the feedback proved helpful) than what happened during the assessment center experience.44 This may prove true for the construct valid- ity dilemma as well, given that despite poor construct validity, be hav ior assessed under dif fer ent circumstances (e.g., a high situational bandwidth) results in better criterion- related validity, as opposed to similar exercises with a high degree of convergence in demands.45

Assessment for Global Assignments When assessment centers were developed, little thought was given to the pros- pect of using assessment data to forecast job success in a foreign environment. As globalization continues, however, organ izations are increasingly promoting indi- viduals into overseas positions. A survey indicated that 80% of midsize and large companies send professionals abroad, and many plan on increasing this percentage. Because overseas assignments pres ent additional demands on an employee beyond the typical skills and motivations required to perform a job in the host country, staffing overseas positions pres ents special challenges for employers. Indeed, one study revealed that cultural factors were much more impor tant to success in an overseas assignment than technical skills factors. Although many competencies are impor tant to expatriate success, such as family stability/support and language skills, the most impor tant competency is cultural adaptability and flexibility.

One means of predicting success in overseas assignments is a personality test. For example, employees who respond positively to items such as “It is easy for me to strike up conversations with people I do not know” or “I find it easy to put

099-67811_ch10_4P.indd 537 11/17/17 1:32 PM

538 PART FOUR Staffing Activities: Selection

myself in other people’s positions” may better navigate the challenges of overseas assignments. Personnel Decisions International developed a personality test to assess whether employees will be successful in overseas assignments. The com pany reports a positive relationship between scores on the test and success in overseas assignments. Another tool to predict success in overseas assignments is simulations or interviews designed to simulate conditions overseas or typical chal- lenges that arise.46 As one can see, bringing these methods together may make the assessment pro cess for global assignments closely resemble an assessment center.

Interview Simulations

An interview simulation mimics the oral communication required on the job. It is sometimes used in an assessment center, but less frequently than in- basket exer- cises, leaderless group discussions, and case analy sis. It is also used as a predictor separate from the assessment center. There are several dif fer ent forms of interview simulations.47

Role- Play With a role- play, the job candidate is placed in a simulated situation where he or she must interact with a person at work, such as the boss, a subordinate, or a cus- tomer. The interviewer or another individual plays one role, and the job candidate plays the role of the person in the position applied for. So, for example, in selecting someone to be promoted to a supervisory level, the job candidate may be asked to role- play dealing with a difficult employee.

Fact Finding In a fact- finding interview, the job candidate is presented with a case or prob lem with incomplete information. The candidate’s job is to solicit from the interviewer or a resource person the additional facts needed to resolve the case. A candidate for the position of EEO man ag er, for example, might be presented with a case where adverse impact is suggested. The candidate would be evaluated by the interviewer according to the data he or she solicits to confirm or disconfirm adverse impact.

Oral Pre sen ta tions In many jobs, pre sen ta tions need to be made to customers, clients, or even boards of directors. To select someone to perform this role, an oral pre sen ta tion can be required. This approach would be useful, for example, for seeing what sort of “sales pitch” a con sul tant might make or for seeing how an executive would pres- ent his or her proposed strategic plan to a board of directors.

Given the importance of interpersonal skills in many jobs, it is unfortunate that not many organ izations use interview simulations. This is especially true with internal se lection, where the organ ization knows whether the person has the right

099-67811_ch10_4P.indd 538 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 539

credentials (e.g., com pany experiences, education, and training) but may not know whether the person has the right interpersonal chemistry to fit in with the work group. Interview simulations allow for a systematic assessment of this chemistry rather than relying on the instinct of the interviewer. To be effective, these interviews need to be structured and evaluated according to observable be hav iors identified in the job analy sis as necessary for successful per for mance.

Promotion Panels and Review Boards

In the public sector, it is a common practice to use a panel or board of people to review the qualifications of candidates. Frequently, both internal and external candidates are assessed. The panel or board typically consists of job experts, HR professionals, and representatives from constituencies in the community that the board represents. Having a board to hire public servants, such as school superin- tendents or fire and police officials, offers two advantages. First, as with assess- ment centers, there are multiple assessors with which to ensure a complete and accurate assessment of the candidate’s qualifications. Second, by participating in the se lection pro cess, constituents are likely to be more committed to the decision reached. This buy-in is particularly impor tant for community representatives with whom the job candidate will interact. It is hoped that by having a say in the pro cess, they will be less likely to voice objections once the candidate is hired.

Choice of Substantive Assessment Methods

Along with research on initial assessment methods, research has also been con- ducted on substantive assessment methods. The reviews of this research are summarized in Exhibit 10.8. The same criteria are applied to evaluating the effec- tiveness of these predictors as were used to evaluate the effectiveness of initial assessment methods.

An examination of Exhibit 10.8 indicates that there is no single best method of narrowing down the candidate list to finalists. What is suggested, however, is that some predictors are more likely to be effective than others. In par tic u lar, job knowledge tests, promotability ratings, and assessment centers have strong rec- ords in terms of reliability and validity in choosing candidates. A very promising development for internal se lection is the use of job knowledge tests. The validity of these tests appears to be substantial, but unfortunately, few organ izations use them for internal se lection purposes.

The effectiveness of several internal se lection predictors (case analy sis, inter- view simulations, and panels and review boards) is not known at this stage. Interview simulations appear to be a promising technique for jobs requiring public contact skills. All of these techniques need additional research, especially with regard to the utility, applicant reactions, and adverse impact associated with all the substantive assessment methods.

099-67811_ch10_4P.indd 539 11/17/17 1:32 PM

540 PART FOUR Staffing Activities: Selection

E X

H IB

IT 1

0 .8

E

va lu

a ti

o n

o f

S u

b st

a n

ti ve

A ss

e ss

m e

n t

M e

th o

d s

P re d ic to r

U se

C o st

R e lia

b ili ty

V a lid

it y

U ti lit y

R e a ct io n s

A d ve

rs e

A p p lic

a n t

Im p a ct

S e n io ri ty

E xp

e ri e n ce

Jo b kn

o w le d g e te st s

P e rf o rm

an ce

ap p ra is al

P ro m o ta b ili ty

ra tin

g s

A ss e ss m e n t ce

n te r

In -b as ke

t e xe

rc is e

Le ad

e rl e ss

g ro u p

d is cu

ss io n

C as e an

al ys is

G lo b al

as si g n m e n ts

In te rv ie w

si m u la tio

n s

P an

e ls an

d re vi e w

b o ar d s

H ig h

H ig h

H ig h

H ig h

H ig h

H ig h

H ig h

H ig h

H ig h

H ig h

H ig h

H ig h

H ig h

H ig h

H ig h

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

Lo w

M o d e ra te

M o d e ra te

M o d e ra te

M o d e ra te

M o d e ra te

M o d e ra te

M o d e ra te

M o d e ra te

M o d e ra te

M o d e ra te

M o d e ra te

H ig h

M ix e d

M ix e d

M ix e d

P o si tiv e

M o d e ra te

? ?

? ?

?

? ?

? ?

? ?

? ?

? ? ?

? ?

? ?

?

? ?

?

? ?

?

? ?

? ?

? ?

? ?

? ?

Lo w

?

099-67811_ch10_4P.indd 540 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 541

DISCRETIONARY ASSESSMENT METHODS

Discretionary methods are used to narrow down the list of finalists to those who will receive job offers. Sometimes all finalists will receive offers, but other times there may not be enough positions to fill for each finalist to receive an offer. As with external se lection, discretionary assessments are sometimes made on the basis of orga nizational citizenship be hav ior and staffing philosophy regarding EEO/AA.

Two areas of discretionary assessment differ from external se lection and need to be considered in deciding job offers. First, previous finalists who do not receive job offers do not simply dis appear. They may remain with the organ ization in hopes of securing an offer the next time the position is open. At the margin, this may be a factor in decision making because being bypassed a second time may create a disgruntled employee. As a result, a previous finalist may be given an offer over a first- time finalist, all other things being equal.

Second, multiple assessors are generally used with internal se lection. That is, not only can the hiring man ag er’s opinion be used to select who will receive a job offer but so can the opinions of others (e.g., previous man ag er, top management) who are knowledgeable about the candidate’s profile and the requirements of the current position. As a result, in deciding which candidates will receive job offers, evaluations by people other than the hiring man ag er may be accorded substantial weight in the decision- making pro cess.

LEGAL ISSUES

From a legal perspective, methods and pro cesses of internal se lection are to be viewed in the same way as those of external se lection. The laws and regulations do not distinguish between internal and external se lection. Consequently, most of the legal influences on internal se lection have already been treated in Chapters 8 and 9. There are, however, some brief comments to be made about the internal se lection legal influences of the Uniform Guidelines on Employee Se lection Procedures (UGESP) and the glass ceiling.

Uniform Guidelines on Employee Se lection Procedures

The UGESP define a “se lection procedure” in such a way that virtually any se lection method, be it used in an external or internal context, is covered by the requirements of the UGESP. Moreover, the UGESP apply to any “employment decision,” which explic itly includes promotion decisions.

When there is adverse impact in promotions, the organ ization is given the option of justifying it through the conduct of validation studies. These are primar- ily criterion- related or content validity studies. Ideally, criterion- related studies with predictive validation designs will be used, as has been partially done in the

099-67811_ch10_4P.indd 541 11/17/17 1:32 PM

542 PART FOUR Staffing Activities: Selection

case of assessment centers. Unfortunately, this places substantial administrative and research demands on the organ ization that are often difficult to fulfill. Conse- quently, content validation appears to be a better bet for validation purposes.

Many of the methods of assessment used in internal se lection attempt to gauge KSAOs and be hav iors directly associated with a current job that are felt to be related to success in higher- level jobs. Examples include se niority, per for mance appraisals, and promotability ratings. These are based on current as well as past job content. Val- idation of these methods, if legally necessary, likely occurs along content validation lines. Therefore, the organ ization should pay par tic u lar and close attention to the validation and documentation requirements for content validation in the UGESP.

The Glass Ceiling

In Chapter 6, the nature of the glass ceiling was discussed, as well as staffing steps to remove it from orga nizational promotion systems. Most of that discussion centered on internal recruitment and supporting activities that could be undertaken. Surpris- ingly, se lection methods used for promotion assessment are rarely mentioned in lit er a ture on the glass ceiling.

This is a major oversight. Whereas the internal recruitment practices recommended may enhance the identification and attraction of minority and women candidates for promotion, effectively matching them to their new jobs requires applying internal se lection pro cesses and methods. The policy of the Equal Employment Opportunity Commission (EEOC) on nondiscriminatory promotions is (1) the KSAOs to be assessed must be job related and consistent with business necessity, and (2) there must be uniform and consistently applied standards across all promotion candi- dates.48 How might the organ ization operate its internal se lection system to comply with EEOC policy?

The first possibility is for greater use of se lection plans. As discussed in Chapter 8, these plans lay out the KSAOs required for a job, which KSAOs are necessary to bring to the job (as opposed to being acquired on the job), and, of those neces- sary, the most appropriate method of assessment for each. Such a plan forces an organ ization to conduct job analy sis, construct career ladders or KSAO lattices, and consider alternatives to many of the traditional methods of assessment used in promotion systems.

A second suggestion is for the organ ization to back away from use of the tra- ditional methods of assessment as much as pos si ble, in ways that are consistent with the se lection plan. This means a move away from casual, subjective methods such as supervisory recommendation, typical promotability ratings, quick reviews of personnel files, and informal recommendations. In their place should be more formal, standardized, and job- related assessment methods. Examples here include assessment centers, promotion review boards or panels, and interview simulations.

A final suggestion is for the organ ization to pay close attention to the types of KSAOs necessary for advancement, and undertake programs to impart these KSAOs

099-67811_ch10_4P.indd 542 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 543

to aspiring employees. These developmental actions might include key job and committee assignments, participation in conferences and other networking oppor- tunities, mentoring and coaching programs, and skill acquisition in formal training programs. Internal se lection methods would then be used to assess proficiency on these newly acquired KSAOs, in accordance with the se lection plan.49

SUMMARY

The se lection of internal candidates follows a pro cess very similar to the se lection of external candidates. The logic of prediction is applied, and a se lection plan is developed and implemented.

One impor tant area where internal and external se lection methods differ is in the nature of the predictor. Predictors used for internal se lection tend to have greater depth and more relevance and are better suited for verification. As a result, the types of predictors used for internal se lection decisions are dif fer ent from those used for external se lection decisions.

Initial assessment methods are used to narrow down the applicant pool to a set of qualified candidates. Approaches used are talent management/succession systems, peer assessments, self- assessments, managerial sponsorship, and informal discus- sions and recommendations. Of these approaches, none is particularly strong in predicting future per for mance. Hence, consideration should be given to using mul- tiple predictors to verify the accuracy of any one method. These results also point to the need to use substantive as well as initial assessment methods in making internal se lection decisions.

Substantive assessment methods are used to select finalists from the list of can- didates. Predictors used to make these decisions are se niority and experience, job knowledge tests, per for mance appraisals, promotability ratings, assessment centers, interview simulations, and panels and review boards. Of this set of predictors, job knowledge tests, promotability ratings, and assessment centers work well. Organ- izations need to give greater consideration to the latter three predictors to supplement traditional se niority and experience.

Although very costly, the assessment center seems to be very effective. This is because it is grounded in behavioral science theory and the logic of prediction. In par tic u lar, samples of be hav ior are analyzed, multiple assessors and predictors are used, and predictors are developed on the basis of job analy sis.

Due to their physical proximity to the data, internal job applicants potentially have greater access to se lection data than external job applicants. As a result, proce- dures must be implemented to ensure that manual and computer files with sensitive data are kept private and confidential.

Two areas of legal concern for internal se lection decisions are the UGESP and the glass ceiling. In terms of the UGESP, par tic u lar care must be taken to ensure that internal se lection methods are valid if adverse impact is occurring. To minimize

099-67811_ch10_4P.indd 543 11/17/17 1:32 PM

544 PART FOUR Staffing Activities: Selection

glass ceiling effects, organ izations should make greater use of se lection plans and more objective internal assessment methods, as well as help impart the KSAOs necessary for advancement.

DISCUSSION QUESTIONS

1. Explain how internal se lection decisions differ from external se lection decisions.

2. What are the differences between peer ratings, peer nominations, and peer rankings?

3. Explain the theory behind assessment centers. 4. Describe the three dif fer ent types of interview simulations. 5. Evaluate the effectiveness of se niority, assessment centers, and job knowl-

edge as substantive internal se lection procedures. 6. What steps should be taken by an organ ization that is committed to shattering

the glass ceiling?

ETHICAL ISSUES

1. Given that se niority is not a particularly valid predictor of job per for mance, do you think it’s unethical for a com pany to use it as a basis for promotion? Why or why not?

2. Vincent and Peter are sales associates and are up for promotion to sales man ag er. In the past five years, on a scale of 1–5 (where 1 = poor and 5 = excellent), Vincent’s average per for mance rating was 4.7 and Peter’s was 4.2. In an assessment center that was meant to simulate the job of sales man- ag er, on a scale of 1–10 (where 1 = very poor and 10 = outstanding), Vincent’s average score was 8.2 and Peter’s was 9.2. Other things being equal, who should be promoted? Why?

APPLICATIONS

Changing a Promotion System

Bioglass, Inc. specializes in sales of a wide array of glass products. One area of the com pany, the commercial sales division (CSD), specializes in selling high- tech mirrors and microscope and photographic lenses. Sales associates in CSD are responsible for selling the glass products to corporate clients. CSD has four levels of sales associates, ranging in pay from $28,000 to $76,000 per year. There are also

099-67811_ch10_4P.indd 544 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 545

four levels of managerial positions; those positions range in pay from $76,000 to $110,000 per year.

Tom Caldwell has been a very effective sales associate. He has consistently demonstrated good sales techniques in his 17 years with Bioglass and has a large and loyal client base. Over the years, Tom has risen from the lowest level of sales associate to the highest. He has proved himself successful at each stage. An entry- level management position in CSD opened up last year, and Tom was a natu ral candidate. Although several other candidates were considered, Tom was the clear choice for the position.

However, once in the position, Tom had a great deal of difficulty being a man- ag er. He was not accustomed to delegating and rarely provided feedback or guid- ance to the people he supervised. Although he set goals for himself, he never set per for mance goals for his workers. Morale in Tom’s group was low, and group per for mance suffered. The com pany felt that demoting Tom back to sales would be disastrous for him and pres ent the wrong image to other employees; firing such a loyal employee was considered unacceptable. Therefore, Bioglass deci ded to keep Tom where he was but not consider him for future promotions. It was also considering enrolling Tom in some expensive managerial development programs to enhance his management skills.

Meanwhile, Tom’s replacement, although successful at the lower three levels of sales associate positions, was struggling with the large corporate contracts that the highest- level sales associates must ser vice. Two of Tom’s biggest clients had recently left Bioglass for a competitor. CSD was confused about how such a disas- trous situation had developed when they seemed to make all the right decisions.

Based on this application and your reading of this chapter, answer the following questions:

1. What is the likely cause of CSD’s prob lems? 2. How might CSD, and Bioglass more generally, make better promotion deci-

sions in the future? Be specific. 3. In general, what role should per for mance appraisals play in internal se lection

decisions? Are there some cases in which they are more relevant than others? Explain.

Promotion From Within at Citrus Glen

Mandarine “Mandy” Pamplemousse is vice president of HR for Citrus Glen, a juice producer based in south Florida that supplies orange and grapefruit juice to grocery stores, con ve nience stores, restaurants, and food pro cessors throughout the United States. Citrus Glen has been growing rapidly over the last few years, lead- ing Mandy to worry about how to hire and promote enough qualified individuals to staff the ever- expanding array of positions within the com pany.

099-67811_ch10_4P.indd 545 11/17/17 1:32 PM

546 PART FOUR Staffing Activities: Selection

One of the ways Mandy has been able to staff positions internally is by contracting with Staffing Systems International (SSI), a management consulting firm based in Charlotte, North Carolina. When positions open up at Citrus Glen that are appro- priate to staff internally, Mandy sends a group of candidates for the position up to SSI to participate in its assessment center. The candidates return from SSI three days later, and a few days after that, SSI sends Mandy the results of the assessment with a recommendation. Though Mandy has never formally evaluated the accuracy of the promotions, she feels that the pro cess is pretty accurate. Of course, for $5,500 per candidate, Mandy thought, it should be accurate.

A few days ago, Mandy was hosting Thanksgiving, and her brother- in- law, Vin Pomme, joined them. Vin is a doctoral student in industrial psy chol ogy at Ohio International University. After Thanksgiving dinner, while Mandy, Vin, and their family were relaxing on her lanai and enjoying the warm Florida sunshine, Mandy began telling Vin about her worries in promoting from within and the cost of SSI’s assessment pro cess. Vin quickly realized that SSI was using an assessment center. He was also aware of research suggesting that once one takes an applicant’s person- ality and cognitive ability into account, assessment center scores may contribute little additional validity. Given the high cost of assessment centers, he reasoned, one must won der whether this “incremental” validity (the validity that assessment centers contribute beyond the validity provided by personality and cognitive ability tests) would prove cost- effective. After Vin conveyed these impressions to Mandy, she deci ded that after the holidays she would reexamine Citrus Glen’s internal se lection pro cesses.

Questions

1. Drawing from concepts presented in Chapter 7 (“Mea sure ment”), how can Mandy more formally evaluate SSI’s assessment pro cess and, as Vin suggests, determine whether the assessment pro cess adds anything above and beyond other se lection mea sures she uses, such as personality and cognitive ability tests.

2. Construct a scenario in which you think Mandy should continue her business relationship with SSI. On the other hand, if Mandy decides on an alternative assessment pro cess, what would that pro cess be? How would she evaluate whether that pro cess was effective?

3. Citrus Glen has considered expanding its operations into the Ca rib bean and Latin Amer i ca. One of Mandy’s concerns is how to staff such positions. If Cit- rus Glen does expand its operations to dif fer ent cultures, how should Mandy go about staffing such positions? Be specific.

099-67811_ch10_4P.indd 546 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 547

ENDNOTES

1. A. Howard and D. W. Bray, “Predictions of Managerial Success Over Long Periods of Time: Lessons From the Management Pro gress Study,” in K. E. Clark and M. B. Clark (eds.), Mea­sures­ of­Leadership (West Orange, NJ: Leadership Library of Amer i ca, 1990), pp. 113–130; C. J. Rus- sell, “Selecting Top Corporate Leaders: An Example of Biographical Information,” Journal­ of­ Management, 1990, 16, pp. 73–86; J. S. Schippman and E. P. Prien, “An Assessment of the Con- tributions of General Mental Ability and Personality Characteristics to Management Success,” Journal­of­Business­and­Psy­chol­ogy, 1989, 3, pp. 423–437.

2. W. Gentry, D. C. Gilmore, M. L. Shuffler, and J. B. Leslie, “Po liti cal Skill as an Indicator of Promotability Among Multiple Rater Sources,” Journal­ of­ Orga­nizational­ Be­hav­ior, 2012, 33, pp. 89–104.

3. “Nearly Half of Newly- Promoted Executives Say Their Responsibilities Are Same,” IPMA-­HR­ Bulletin, Dec. 22, 2006, p. 1.

4. J. Bersin, “The Talent Management Software Market Continues to Explode,” Forbes, Nov. 29, 2012 (www­.­forbes­.­com­/­sites­/­joshbersin­/­2012­/­11­/­29­/­the­-­talent­-­management­-­software­-­market­-­con­ tinues­-­to­-­explode­/ ­), accessed Aug. 12, 2013.

5. E. E. Lawler III, “Make Human Capital a Source of Competitive Advantage,” Orga­nizational­ Dynamics, 2009, 38(1), pp. 1–7; R. Burbach and T. Royle, “Talent on Demand? Talent Man- agement in the German and Irish Subsidiaries of a US Multinational Corporation,” Personnel­ Review, 2010, 39(4), pp. 414–431; A. McDonnell, R. Lamare, and P. Gunnigle, “Developing Tomorrow’s Leaders— Evidence of Global Talent Management in Multinational Enterprises,” Journal­of­World­Business, 2010, 45(2), pp. 150–160.

6. J. J. Kane and E. E. Lawler, “Methods of Peer Assessment,” Psychological­ Bulletin, 1978, 85, pp. 555–586.

7. S. M. Norton, “Peer Assessments of Per for mance and Ability: An Exploratory Meta- Analysis of Statistical Artifacts and Contextual Moderators,” Journal­of­Business­and­Psy­chol­ogy, 1992, 6, pp. 387–399.

8. G. Luria and Y. Kalish, “A Social Network Approach to Peer Assessment: Improving Predictive Validity,” ­Human­Resource­Management, 2013, 52, pp. 537–560.

9. L. Grensing- Pophal, “Internal Se lections,” HR­Magazine, Dec. 2006, p. 75. 10. Z. Chen and S. Kemp, “Lie Hard: The Effect of Self- Assessments on Academic Promotion Deci-

sions,” Journal­of­Economic­Psy­chol­ogy, 2012, 33, pp. 578–589. 11. I. E. De Pater, A. E. M. Van Vianen, M. N. Bechtoldt, and U. Klehe, “Employees’ Challenging

Job Experiences and Supervisors’ Evaluations of Promotability,” Personnel­ Psy­chol­ogy, 2009, 62(2), pp. 297–325; J. D. Kammeyer- Mueller and T. A. Judge, “A Quantitative Review of Men- toring Research: Test of a Model,” Journal­of­Vocational­Be­hav­ior, 2008, 72, pp. 269–283.

12. R. Ghosh and T. G. Reio, Jr., “ Career Benefits Associated With Mentoring for Mentors: A Meta- Analysis,” Journal­of­Vocational­Be­hav­ior, 2013, 83, pp. 106–116.

13. C. Patton, “Standout Performers: HR Professionals Are Testing Unconventional Strategies for Finding Employees With Leadership Potential,” ­Human­ Resource­ Executive, Aug. 1, 2005, pp. 46–49.

14. N. Williams, “Se niority, Experience, and Wages in the UK,” ­Labour­ Economics, 2009, 16, pp. 272–283.

15. B. Turque, “Top Teachers Have Uneven Reach in District,” Washington­ Post, Nov. 14, 2010, pp. M1– M2.

16. T. W. H. Ng and D. C. Feldman, “Orga nizational Tenure and Job Per for mance,” Journal­of­Man- agement, 2010, 36(5), pp. 1220–1250.

099-67811_ch10_4P.indd 547 11/17/17 1:32 PM

548 PART FOUR Staffing Activities: Selection

17. M. A. Quinones, J. K. Ford, and M. S. Teachout, “The Relationship Between Work Experience and Job Per for mance: A Conceptual and Meta- Analytic Review,” Personnel­ Psy­chol­ogy, 1995, 48, pp. 887–910; P. E. Tesluk and R. R. Jacobs, “ Toward an Integrated Model of Work Experi- ence,” Personnel­Psy­chol­ogy, 1998, 51, pp. 321–355.

18. F. L. Schmidt, J. E. Hunter, and A. N. Outerbridge, “Joint Relation of Experience and Ability With Job Per for mance: Test of Three Hypotheses,” Journal­of­Applied­Psy­chol­ogy, 1988, 73, pp. 46–57.

19. F. L. Schmidt and J. E. Hunter, “Development of a Causal Model of Pro cesses Determining Job Per for mance,” Current­Directions­in­Psychological­Science, 1992, 1, pp. 89–92.

20. K. R. Murphy and J. M. Cleveland, Per­for­mance­ Appraisal:­ An­ Orga­nizational­ Perspective (Boston: Allyn and Bacon, 1991).

21. C. M. Barnes, J. Reb, and D. Ang, “More Than Just the Mean: Moving to a Dynamic View of Performance- Based Compensation,” Journal­of­Applied­Psy­chol­ogy, 2012, 97, pp. 711–718.

22. L. J. Peter and R. Hull, The­Peter­Princi­ple (New York: William Morrow, 1969). 23. B. J. Hoffman, C. A. Gorman, C. A. Blair, J. P. Meriac, B. Overstreet, and E. K. Atchley, “Evi-

dence for the Effectiveness of an Alternative Multisource Per for mance Rating Methodology,” Personnel­Psy­chol­ogy, 2012, 65, pp. 531–563.

24. G. C. Thornton III and D. M. Morris, “The Application of Assessment Center Technology to the Evaluation of Personnel Rec ords,” Public­Personnel­Management, 2001, 30, pp. 55–66.

25. Gentry, Gilmore, Shuffler, and Leslie, “Po liti cal Skill as an Indicator of Promotability Among Multiple Rater Sources.”

26. J. P. Meriac, B. J. Hoffman, and D. J. Woehr, “A Conceptual and Empirical Review of the Struc- ture of Assessment Center Dimensions,” Journal­of­Management, 2014, 40, pp. 1269–1296.

27. W. Arthur, Jr., E. A. Day, T. L. McNelly, and P. S. Edens, “A Meta- Analysis of the Criterion- Related Validity of Assessment Center Dimensions,” Personnel­Psy­chol­ogy, 2003, 56, pp. 125–154.

28. D. A. Joiner, “Assessment Center: What’s New?” Public­ Personnel­ Management, 2003, 31, pp. 179–185.

29. B. B. Gaugler, D. B. Rosenthal, G. C. Thornton III, and C. Bentson, “Meta- Analysis of Assess- ment Center Validity,” Journal­of­Applied­Psy­chol­ogy, 1987, 72, pp. 493–511.

30. E. Hermelin, F. Lievens, and I. T. Robertson, “The Validity of Assessment Centres for the Predic- tion of Supervisory Per for mance Ratings: A Meta- Analysis,” International­Journal­of­Se­lection­ and­Assessment, 2007, 15, pp. 405–411.

31. J. P. Meriac, B. J. Hoffman, D. J. Woehr, and M. S. Fleisher, “Further Evidence for the Validity of Assessment Center Dimensions: A Meta- Analysis of the Incremental Criterion- Related Validity of Dimension Ratings,” Journal­ of­ Applied­ Psy­chol­ogy, 2008, 93(5), pp. 1042–1052; B. J. Hoff- man, C. L. Kennedy, A. C. LoPilato, E. L. Monahan, and C. E. Lance, “A Review of the Content, Criterion- Related, and Construct- Related Validity of Assessment Center Exercises,” Journal­of­ Applied­ Psy­chol­ogy, 2015, 100, pp. 1143–1168; S. Dilchert and D. S. Ones, “Assessment Cen- ter Dimensions: Individual Differences Correlates and Meta- Analytic Incremental Validity,” International­Journal­of­Se­lection­and­Assessment, 2009, 17(3), pp. 254–270; H. J. Bernardin, R. Konopaske, and C. M. Hagan, “Impact Levels Based on Top- Down, Multisource, and Assess- ment Center Data: Promoting Diversity and Reducing Legal Challenges,” ­Human­ Resource­ Management, 2012, 51, pp. 313–341.

32. D. J. Putka and B. J. Hoffman, “Clarifying the Contribution of Assessee- , Dimension- , Exercise- , and Assessor- Related Effects to Reliable and Unreliable Variance in Assessment Center Ratings,” Journal­of­Applied­Psy­chol­ogy, 2013, 98, pp. 114–133.

33. A. M. Gibbons and D. E. Rupp, “Dimension Consistency as an Individual Difference: A New (Old) Perspective on the Assessment Center Construct Validity Debate,” Journal­of­Management, 2009, 35(5), pp. 1154–1180; C. E. Lance, “Why Assessment Centers Do Not Work the Way They

099-67811_ch10_4P.indd 548 11/17/17 1:32 PM

CHAPTER TEN Internal Se lection 549

Are Supposed To,” Industrial­and­Orga­nizational­Psy­chol­ogy, 2008, 1, pp. 84–97; B. S. Connelly, D. S. Ones, A. Ramesh, and M. Goff, “A Pragmatic View of Assessment Center Exercises and Dimensions,” Industrial­and­Orga­nizational­Psy­chol­ogy, 2008, 1, pp. 121–124.

34. N. R. Kuncel and P. R. Sackett, “Resolving the Assessment Center Construct Validity Prob lem (as We Know It),” Journal­of­Applied­Psy­chol­ogy, 2014, 99, pp. 38–47; B. J. Hoffman, K. G. Melchers, C. A. Blair, M. Kleinmann, and R. T. Ladd, “Exercises and Dimensions Are the Currency of Assessment Centers,” Personnel­ Psy­chol­ogy, 2011, 64, pp. 351–395; A. B. Speer, N. D. Christiansen, R. D. Goffin, and M. Goff, “Situational Bandwidth and the Criterion- Related Validity of Assessment Center Ratings: Is Cross- Exercise Convergence Always Desirable?” Journal­of­Applied­Psy­chol­ogy, 2014, 99, pp. 282–295.

35. D. J. R. Jackson, G. Michaelides, C. Dewberry, and Y.- J. Kim, “Every thing That You Have Ever Been Told About Assessment Center Ratings Is Confounded,” Journal­ of­ Applied­ Psy­chol­ogy, 2016, 101, pp. 976–994.

36. S. Haaland and N. D. Christiansen, “Implications of Trait- Activation Theory for Evaluating the Construct Validity of Assessment Center Ratings,” Personnel­Psy­chol­ogy, 2002, 55, pp. 137–163; R. P. Tett and H. A. Guterman, “Situation Trait Relevance, Trait Expression, and Cross- Situational Consistency: Testing a Princi ple of Trait Activation,” Journal­of­Research­in­Personality, 2000, 34, pp. 397–423.

37. F. Lievens, C. S. Chasteen, E. A. Day, and N. D. Christiansen, “Large- Scale Investigation of the Role of Trait Activation Theory for Understanding Assessment Center Convergent and Discrimi- nant Validity,” Journal­of­Applied­Psy­chol­ogy, 2006, 91(2), pp. 247–258.

38. P. V. Ingold, M. Kleinmann, C. J. König, and K. G. Melchers, “Transparency of Assessment Cen- ters: Lower Criterion- Related Validity but Greater Opportunity to Perform?” Personnel­Psy­chol­ogy, 2016, 69, pp. 467–497; K. A. Smith- Jentsch, “The Impact of Making Targeted Dimensions Transpar- ent on Relations With Typical Per for mance Predictors,” ­Human­Per­for­mance, 2007, 20(3), 187–203.

39. A. Jansen, K. G. Melchers, F. Lievens, M. Kleinmann, M. Brändli, L. Fraefel, and C. J. König, “Situation Assessment as an Ignored Factor in the Behavioral Consistency Paradigm Under lying the Validity of Personnel Se lection Procedures,” Journal­ of­ Applied­ Psy­chol­ogy, 2013, 98(2), pp. 326–341; U.- C. Klehe, M. Kleinmann, C. Nieβ, and J. Grazi, “Impression Management Be hav ior in Assessment Centers: Artificial Be hav ior or Much Ado About Nothing?” ­Human­Per- for­mance, 2014, 27, pp. 1–24; A. B. Speer, N. D. Christiansen, K. G. Melchers, C. J. König, and M. Kleinmann, “Establishing the Cross- Situational Convergence of the Ability to Identify Cri- teria: Consistency and Prediction Across Similar and Dissimilar Assessment Center Exercises,” ­Human­Per­for­mance, 2014, 27, pp. 44–60.

40. T. Oliver, P. Hausdorf, F. Lievens, and P. Conlon, “Interpersonal Dynamics in Assessment Center Exercises: Effects of Role Player Portrayed Disposition,” Journal­of­Management, 2016, 42(7), pp. 1992–2017; E. Schollaert and F. Lievens, “Building Situational Stimuli in Assessment Center Exercises: Do Specific Exercise Instructions and Role- Player Prompts Increase the Observability of Be hav ior?” ­Human­Per­for­mance, 2012, 25, pp. 255–271.

41. F. Lievens, E. Schollaert, and G. Keen, “The Interplay of Elicitation and Evaluation of Trait- Expressive Be hav ior: Evidence in Assessment Center Exercises,” Journal­of­Applied­Psy­chol­ogy, 100(4), pp. 1169–1188.

42. M. S. Christian, B. D. Edwards, and J. C. Bradley, “Situational Judgment Tests: Constructs Assessed and a Meta- Analysis of Their Criterion- Related Validities,” Personnel­ Psy­chol­ogy, 2010, 63(1), pp. 83–117.

43. F. Lievens, E. Van Keer, and E. Volckaert, “Gathering Behavioral Samples Through a Computer- ized and Standardized Assessment Center Exercise: Yes, It Is Pos si ble,” Journal­ of­ Personnel­ Psy­chol­ogy, 2010, 9(2), pp. 94–98.

099-67811_ch10_4P.indd 549 11/17/17 1:32 PM

550 PART FOUR Staffing Activities: Selection

44. D. E. Krause and G. C. Thornton III, “A Cross- Cultural Look at Assessment Center Practices: Survey Results From Western Eu rope and North Amer i ca,” Applied­Psy­chol­ogy:­An­International­ Review, 2009, 58(4), pp. 557–585; N. Merkulova, K. G. Melchers, M. Kleinmann, H. Annen, and T. S. Tresch, “Effects of Individual Differences on Applicant Perceptions of an Operational Assessment Center,” International­Journal­of­Se­lection­and­Assessment, 2014, 22, pp. 356–370; I. J. van Emmerik, A. B. Bakker, and M. C. Euwema, “What Happens After the Developmental Assessment Center? Employees’ Reactions to Unfavorable Per for mance Feedback,” Journal­of­ Management­Development, 2008, 27(5), pp. 513–527; N. Anderson and V. Goltsi, “Negative Psy- chological Effects of Se lection Methods: Construct Formulation and an Empirical Investigation Into an Assessment Center,” International­ Journal­ of­ Se­lection­ and­ Assessment, 2006, 14(3), pp. 236–255.

45. A. B. Speer, N. D. Christiansen, R. D. Goffin, and M. Goff, “Situational Bandwidth and the Criterion- Related Validity of Assessment Center Ratings: Is Cross- Exercise Convergence Always Desirable?” Journal­of­Applied­Psy­chol­ogy, 2014, 99(2), pp. 282–295.

46. J. E. Abueva, “Return of the Native Executive,” New­ York­ Times, May 17, 2000, pp. B1, B8; P. Caligiuri and W. F. Cascio, “Sending Women on Global Assignments,” WorldatWork, Second Quarter 2001, pp. 34–41; J. A. Hauser, “Filling the Candidate Pool: Developing Qualities in Potential International Assignees,” WorldatWork, Second Quarter 2000, pp. 26–33; M. Mukuda, “Global Leaders Wanted . . . Apply Within,” Workspan, Apr. 2001, pp. 36–41; C. Patton, “Match Game,” ­Human­Resource­Executive, June 2000, pp. 36–41.

47. G. C. Thornton III, Assessment­ Centers­ in­ ­Human­ Resource­ Management (Reading, MA: Addison- Wesley, 1992).

48. Equal Employment Opportunity Commission, EEOC Compliance Manual— Section 15: Race and Color Discrimination, 2006 (www­.­eeoc­.­gov­/­policy­/­docs­/­race­-­color­.­html); J. A. Segal, “Land Executives, Not Lawsuits,” HR­Magazine, Oct. 2006, pp. 123–130.

49. D. J. Walsh, Employment­Law­for­­Human­Resource­Practice, 5th ed. (Boston: Cengage Learn- ing, 2016), pp. 250–255.

099-67811_ch10_4P.indd 550 11/17/17 1:32 PM

099-67811_ch11_4P.indd 551 11/17/17 1:15 PM

The Staffing Organizations Model

Organization

Mission Goals and Objectives

Organization Strategy

HR and Sta�ng Strategy

Sta�ng Policies and Programs

Sta�ng System and Retention Management

Legal compliance Planning Job analysis and rewards

Recruitment: external, internal Selection: measurement, external, internal Employment: decision making, final match

Core Sta�ng ActivitiesSupport Activities

099-67811_ch11_4P.indd 552 11/17/17 1:15 PM

PA R T F I V E

Staffing Activities: Employment

C H A P T E R E L E V E N Decision Making

C H A P T E R T W E L V E Final Match

099-67811_ch11_4P.indd 553 11/17/17 1:15 PM

099-67811_ch11_4P.indd 554 11/17/17 1:15 PM

C H A P T E R E L E V E N

Decision Making

Learning Objectives and Introduction Learning Objectives Introduction

Choice of Assessment Method Validity Coefficient Correlation With Other Predictors Adverse Impact Hiring Success Gain Economic Gain

Determining Assessment Scores Single Predictor Multiple Predictors

Hiring Standards and Cut Scores Description of the Pro cess Consequences of Cut Scores Methods to Determine Cut Scores

Methods of Final Choice Random Se lection Ranking Grouping Ongoing Hiring

Decision Makers Orga nizational Leaders Human Resource Professionals Man ag ers Coworkers

Legal Issues Uniform Guidelines on Employee Se lection Procedures Diversity and Hiring Decisions

Summary

099-67811_ch11_4P.indd 555 11/17/17 1:15 PM

Discussion Questions

Ethical Issues

Applications Utility Concerns in Choosing an Assessment Method Choosing Entrants Into a Management Training Program

Endnotes

099-67811_ch11_4P.indd 556 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 557

LEARNING OBJECTIVES AND INTRODUCTION

Learning Objectives

• Be able to interpret validity coefficients • Estimate adverse impact and utility of se lection systems • Learn about methods for combining multiple predictors • Establish hiring standards and cut scores • Evaluate vari ous methods of making a final se lection choice • Understand the roles of vari ous decision makers in the staffing pro cess • Recognize the importance of diversity concerns in the staffing pro cess

Introduction

The preceding chapters described a variety of techniques that organ izations can use to assess candidates. However, collecting data on applicants does not ultimately lead to a straightforward conclusion about who should be selected. Should inter­ views take pre ce dence over standardized ability tests? Should job experience be the primary focus of se lection decisions, or will organ izations make better choices if experience ratings are supplemented with data on personality? What role should experience and education have in se lection? In this chapter, we will discuss how this information can be used to make decisions about who will ultimately be hired. As we will see, subjective factors often enter into the decision pro cess. Having methods to resolve any disputes that arise in the pro cess of evaluating candidates in advance can greatly facilitate efficient decision making and reduce conflict among members of the hiring committee.

When it comes to making final decisions about candidates, it is necessary to understand the nature of the organ ization and the jobs being staffed. Organ­ izations that have strong cultures and heavy needs for customer ser vice might put a stronger emphasis on candidate personality and values. For jobs with a stronger technical emphasis, it makes more sense to evaluate candidates on the basis of demonstrated knowledge and skills. Throughout this chapter, you will want to consider how your own organ ization’s strategic goals factor into staffing decision making.

The pro cess of translating predictor scores into assessment scores is broken down into a series of subtopics. First, techniques for using single predictors and multiple predictors are discussed. The pro cess and methods used to determine min­ imum standards (a.k.a. “cut scores”) will be described, as well as the consequences of cut scores. Methods of final choice must be considered to determine who from among the finalists will receive a job offer. For all the preceding decisions, consid­ eration must be given to who should be involved in the decision pro cess. Fi nally, legal issues should also guide decision making. Par tic u lar consideration will be

099-67811_ch11_4P.indd 557 11/17/17 1:15 PM

558 PART FIVE Staffing Activities: Employment

given to the Uniform Guidelines on Employee Se lection Procedures (UGESP) and to the role of diversity considerations in hiring decisions.

CHOICE OF ASSESSMENT METHOD

In our discussions of external and internal se lection methods, we listed multiple criteria to consider when deciding which method(s) to use. Some of these criteria require further discussion, specifically validity, correlation with other predictors, adverse impact, hiring success, and economic gain. In this section, we will con­ sider a variety of techniques man ag ers can use to assess how well vari ous se lection methods predict future per for mance, and which should therefore be retained in the mea sure ment pro cess.

Our discussion of how to choose an assessment method is based on the mate­ rial we have already presented regarding the value of standardization, objectivity, and statistical decision tools. Despite a great deal of evidence supporting the use of these decision aids, man ag ers often prefer to use their intuition when making impor tant decisions. Although it is tempting to conclude that one’s own subjective feeling and intuition will perform better than a mathematical formula for decision making, a very large body of research shows that experts seldom are as good as the mathematical models they develop when it comes to combining information and assessing across specific alternatives.1 Put differently, experts are very good at designing systems for decision rules, and are usually better off relying on these systems in practice, rather than making specific choices on the fly. Intuitive deci­ sion making tends to rely on relatively little information, stories about past events that may not represent the current situation, and personal biases. One study that involved recording panels of man ag ers making hiring decisions found that the man ag ers often completely departed from the standardized information they were provided. They used very minor cues, like inferring intellectual ability from the speed of answering one question, and attempted to read complex motives or per­ sonality traits from the subtle wording of answers to interview questions. Decision makers are strongly encouraged to focus their attention on objective, standardized assessment tools and decision­ making aids as much as pos si ble for impor tant deci­ sions like hiring.

Validity Coefficient

Validity refers to the relationship between predictor and criterion scores. Often this relationship is assessed using a correlation (see Chapter 7). The correlation between predictor and criterion scores is known as a validity coefficient. The use­ fulness of a predictor is determined on the basis of the practical significance and statistical significance of its validity coefficient. As was noted in Chapter 7, reli­

099-67811_ch11_4P.indd 558 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 559

ability is a necessary condition for validity. Se lection mea sures with questionable reliability will have questionable validity.

Practical Significance Practical significance represents the extent to which the predictor adds value to the prediction of job success. It is assessed by examining the sign and the magnitude of the validity coefficient.

Sign. The sign of the validity coefficient refers to the direction of the relationship between the predictor and the criterion. A useful predictor is one where the sign of the relationship is positive or negative and is consistent with the logic or theory behind the predictor.

Magnitude. The magnitude of the validity coefficient refers to its size. It can range from 0 to 1.00, where a coefficient of 0 is least desirable and a coefficient of 1.00 is most desirable. The closer the validity coefficient is to 1.00, the more useful the predictor. Predictors with validity coefficients of 1.00 are not to be expected, given the inherent difficulties in predicting human be hav ior. Instead, as shown in Chapters 8 and 9, validity coefficients for current assessment methods range from 0 to about .60. Any validity coefficient above 0 is better than random se lection and may be somewhat useful. Validities above .15 are moderately useful, and validities above .30 are highly useful.

Statistical Significance Statistical significance, as assessed by probability or p values (see Chapter 7), is another factor that should be used to interpret the validity coefficient. If a valid­ ity coefficient has a reasonable p value, chances are good that it would yield a simi­ lar validity coefficient if the same predictor was used with dif fer ent sets of job applicants. That is, a reasonable p value indicates that the method of prediction, rather than chance, produced the observed validity coefficient. Convention has it that a reasonable level of significance is p < .05. This means there are fewer than 5 chances in 100 of concluding there is a relationship in the population of job applicants when, in fact, there is not.

Caution must be exercised in using statistical significance as a way to gauge the usefulness of a predictor. Research has clearly shown that nonsignificant validity coefficients may simply be due to the small samples of employees used to calculate the validity coefficients. Thus, a predictor should not be rejected solely on the basis of a small sample size, since the predictor would likely be quite acceptable had a larger sample of employees been used to test for validity. These concerns over sig­ nificance testing have led some researchers to recommend the use of “confidence intervals,” for example, showing that one can be 90% confident that the true valid­ ity is no less than .30 and no greater than .40.2

099-67811_ch11_4P.indd 559 11/17/17 1:15 PM

560 PART FIVE Staffing Activities: Employment

Correlation With Other Predictors

If a predictor is to be considered useful, it must add value to the prediction of job success, which is to say that it must add to the prediction of success above and beyond the forecasting powers of current predictors. In general, a predictor is more useful if it has a smaller correlation with other predictors and a higher correlation with the criterion.

To assess whether the predictor adds anything new to forecasting, a matrix show­ ing all of the correlations between the predictors and the criteria should always be generated. If the correlations between the new predictor and the existing predictors are higher than the correlations between the new predictor and the criterion, the new predictor is not adding much that is new. There are also relatively straight­ forward techniques, such as multiple regression, that take the correlation among predictors into account.

Predictors are likely to be highly correlated with one another when their content domain is similar. For example, both biodata and application blanks may focus on the applicants’ previous training. Thus, using both biodata and application blanks as predictors may be redundant, and neither one may augment the other much in predicting job success. Instead, it might be more useful to supplement the applica­ tion blank with a situational interview or a cognitive ability test.

Adverse Impact

A predictor discriminates between people in terms of the likelihood of their success on the job. A predictor may also discriminate by screening out a disproportionate number of minorities and women. To the extent that this happens, the predictor has adverse impact, and it may result in legal prob lems. As a result, when the validity of alternative predictors is the same and one predictor has less adverse impact than the other predictor, the one with less adverse impact should be used.

A very difficult judgment call arises when one predictor has high validity and high adverse impact while another predictor has low validity and low adverse impact.3 From the perspective of accurately predicting job per for mance, the former predic­ tor should be used. From an equal employment opportunity and affirmative action (EEO/AA) standpoint, the latter predictor is preferable. Balancing the trade­ offs is difficult and requires use of the organ ization’s staffing philosophy regarding EEO/AA. Later in this chapter we consider some pos si ble solutions to this impor­ tant prob lem.

Hiring Success Gain

Hiring success refers to the proportion of new hires who turn out to be successful on the job. Hiring success gain refers to the increase in the proportion of success­ ful new hires that is expected to occur as a result of adding a new predictor to the se lection system. If the current staffing system yields a success rate of 75% for

099-67811_ch11_4P.indd 560 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 561

new hires, how much of a gain in this success rate will occur by adding a new hir­ ing tool? The greater the expected gain, the greater the utility of the new predictor. This gain is influenced not only by the validity of the new predictor but also by the se lection ratio and base rate.

Se lection Ratio The se lection ratio is simply the number of people hired divided by the number of applicants (sr = number hired / number of applicants). When the com pany has a large number of applicants for an opening, the se lection ratio is low, and the com­ pany can freely pick its most preferred applicants from a large pool. On the other hand, when the se lection ratio is high, there are few applicants for openings, and the com pany needs to hire nearly every applicant. In other words, the se lection ratio is a direct index of how constrained the com pany is in hiring, with higher se lection ratios indicating greater constraints. On an operational level, the more successful a com pany’s recruiting methods, the higher the se lection ratio.

Base Rate The base rate is defined as the proportion of current employees who are successful on some criterion or human resource (HR) outcome (br = number of successful employees / number of employees). When nearly every one an organ ization hires can do the job at an acceptable level, the base rate is very high. On the other hand, when many employees are not minimally acceptable, the base rate tends to be lower.

Taylor- Russell Tables Taylor­ Russell tables combine information on se lection ratios, base rates, and pre­ dictor validity coefficients in an easily interpretable format. An excerpt is shown in Exhibit 11.1.

The cells show the percentages of new hires who will be successful. The top matrix (A) shows the percentages of successful new hires when the base rate is low (.30), the validity coefficient is low (.20) or high (.60), and the se lection ratio is low (.10) or high (.70). The bottom matrix (B) shows the percentages of suc­ cessful new hires when the base rate is high (.80), the validity coefficient is low (.20) or high (.60), and the se lection ratio is low (.10) or high (.70).

Two illustrations show how these tables may be used. The first illustration has to do with the decision of whether to use a new test to

select computer programmers. The current test has a validity coefficient of .20. A consulting firm has approached the organ ization with a new test that has a validity coefficient of .60. Should the organ ization purchase and use the new test?

At first blush, the answer might seem to be yes, because the new test has a sub­ stantially higher level of validity. This initial reaction, however, must be gauged in the context of the se lection ratio and the current base rate. If the current base

099-67811_ch11_4P.indd 561 11/17/17 1:15 PM

562 PART FIVE Staffing Activities: Employment

rate is .80 and the current se lection ratio is .70, then, as can be seen in matrix B of Exhibit 11.1, the new se lection procedure will only result in a hiring success gain from 83% to 90%. The organ ization may already have a very high base rate due to other facets of HR management it does quite well (e.g., training, rewards). Hence, even though it has validity of .20, the base rate of its current predictor is already .80.

On the other hand, if the existing base rate of the organ ization is .30 and the existing se lection ratio is .10, the organ ization should strongly consider the new test. As shown in matrix A of Exhibit 11.1, the hiring success gain will go from 43% to 77% with the addition of the new test.

A second illustration using the Taylor­ Russell tables has to do with recruitment in conjunction with se lection. Consider the case where the organ ization’s current hir­ ing method, combining a structured job interview and simulation, has a validity of .60. A new college recruitment program has been very aggressive. As a result, there is a large swell in the number of applicants, and the se lection ratio has decreased from .70 to .10. Given this, the organ ization must decide whether to continue the college recruitment program.

An initial reaction may be that the program should be continued because of the large increase in applicants generated. As shown in matrix A of Exhibit 11.1, this answer would be correct if the current base rate is .30. By decreasing the se lection ratio from .70 to .10, the hiring success gain increases from 40% to 77%. On the other hand, if the current base rate is .80 (most new hires are already successful),

EXHIBIT 11.1 Excerpt From the Taylor- Russell Tables

A.

Validity

Base Rate .30 Selection Ratio

.10 .70

33%3402. 047706.

B.

Validity

Base Rate .80 Selection Ratio

.10 .70

38%9802. 099906.

Source: H. C. Taylor and J. T. Russell, “The Relationship of Validity Coefficients to the Practical Effectiveness of Tests in Selection,” Journal of Applied Psychology, 1939, 23, pp. 565–578.

099-67811_ch11_4P.indd 562 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 563

continuing the program prob ably isn’t worth it. The hiring success increases from 90% to 99%, which may not justify the very large expense associated with aggres­ sive college recruitment campaigns.

The point of these illustrations is that the decision of whether to use a new predic­ tor depends on the validity coefficient, base rate, and se lection ratio. They should not be considered in de pen dent of one another. HR professionals should carefully rec ord and monitor base rates and se lection ratios. Then, when management asks whether they should invest more money in recruiting or in using a new predic­ tor, the HR professionals can respond appropriately. Taylor­ Russell tables can be developed for any combination of validity coefficient, base rate, and se lection ratio values. The values shown in Exhibit 11.1 are excerpts for illustration only. Several online calculators make calculating these comparisons straightforward.

Economic Gain

Economic gain refers to the bottom­ line or monetary impact of a predictor on the organ ization. The greater the economic gain the predictor produces, the more useful the predictor. Considerable work has been done over the years in assessing the eco­ nomic gain associated with predictors. Exhibit 11.2 describes three techniques that have been developed over time and in a variety of disciplines to facilitate predictions of economic gain from using se lection tools.4 The exhibit reviews the sources of information to derive each estimate of economic gain, the economic outcome that is predicted, and links to other areas of the business. This final component is crucial for enhancing the strategic relevance of HR practices, as HR man ag ers are con­ tinually urged to put the value of interventions, like staffing, into terms that are well understood by those in finance, marketing, operations, and other functional areas.

Utility Analy sis The first of these procedures is utility analy sis. Originally developed by industrial psychologists as a complement to Taylor­ Russell tables, this procedure combines the improvement in se lection accuracy with information on the financial returns of job per for mance. In essence, this model multiplies the improved validity from a new se lection tool by the average standardized score of the new hires to show improvement in per for mance. This improvement in per for mance is then multiplied by the dollar value of an additional standard deviation in per for mance over a year, which gives an estimate of the increased revenue for a single individual over that year. Then this value is multiplied by the number of individuals to be hired. Other adjustments can be incorporated, such as taking the costs of recruiting and se lection tools into account when assessing economic returns.

The utility approach is highly useful for communication purposes because it takes raw validity and hiring success information and converts it into a dollar met­ ric. Utility analy sis has been criticized because of the inherent difficulty in esti­ mating how much additional revenue is produced by a worker who is one standard

099-67811_ch11_4P.indd 563 11/17/17 1:15 PM

564 PART FIVE Staffing Activities: Employment

deviation above the average. However, the same criticism could be put forward for nearly every financial accounting model commonly employed in industry. Ulti­ mately, the utility approach provides a starting point for considering how much financial per for mance might increase in a job role for a given time period if a new se lection procedure is employed.

Predictive Analytics The planning chapter described how tools like multiple regression could be used to assess future labor demand by determining which variables in previous time periods were associated with higher and lower demand. Predictive analytics is a closely related method, except that dif fer ent per for mance metrics become the focus of prediction. For example, an organ ization might use existing data to predict turnover rates for dif fer ent departments based on the percentage of employees who had family and friends in the organ ization, the average level of conscientiousness in each group, and the average level of experience in each group. A regression analy sis might show that turnover rates are 10% lower in groups where a major­ ity of employees learned about the job from family members or friends, and that conscientiousness is also negatively related to turnover rates. Or perhaps sales data

EXHIBIT 11.2 Assessment of Economic Impact

Technique Sources of Information What is Evaluated? Links to Other Areas

Utility analysis Data on predictor validity, applicant test scores, and estimated dollar value of performance variability

Expected value of improved job performance if a new selection tool is implemented

Line manager judgments of employee value, expected financial returns for investing in selection

Predictive analytics

Historical information on performance outcomes for business units

Contribution of different characteristics of the workforce to performance outcomes

Existing “hard” data from organizational records for valued outcomes

Kano analysis Line manager and director descriptions of strategic impact of performance across domains

Changes in economic performance from enhanced levels of different types of employee skills

Tools from marketing, manager judgments regarding critical competencies are incorporated

099-67811_ch11_4P.indd 564 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 565

could be predicted by dif fer ent levels of employee competence or skill in relation­ ship management, so the organ ization should hire based on this trait. From this information, the organ ization can learn which characteristics of new hires or staff­ ing procedures are directly related to eco nom ically valued outcomes of interest.

The use of existing operational data on financially valued outcomes in predic­ tive models is the major contribution of predictive analytics approaches. In the past, there may have been some difficulty in collecting enough data to make these predictions, but most con temporary organ izations have ample information on per for mance across employees or groups of employees to easily create pre­ dictive analytic models for a variety of KSAOs (knowledge, skill, ability, and other characteristics).

Kano Analy sis Kano analy sis, named after Professor Noriaki Kano, was originally designed as a technique to evaluate how customers of a business react to changes in product attributes. The essential insight from this technique is that in some cases, small improvements in certain features of a product can result in a substantial increase in customer interest, whereas in other cases even large improvements will not cre­ ate much change. To perform these analyses, curves are drawn showing how the level of an outcome relates to changes in the product, usually illustrating points of diminishing returns or increasing returns.

The same logic has been applied to the job per for mance domain. For example, perhaps sales man ag ers at an online store find that when customer ser vice repre­ sentatives have high levels of product knowledge and the ability to discuss product features, they are able to significantly increase sales. On the other hand, as long as the individual is at least minimally polite, increases in friendliness produce very small sales gains. This suggests that, for this organ ization, a minimum bar for politeness is all that is needed, whereas product market knowledge and communi­ cation skills should receive more careful attention in se lection. Other organ izations have found that expertise in production serves as a useful base for per for mance in operations, and that there is a greater payoff for enhancing expertise in global sourcing.

This comparison of payoffs across per for mance areas is the essential point that differentiates Kano analy sis from other techniques. Kano analy sis highlights areas where maximum strategic impact from per for mance is pos si ble, rather than assum­ ing that all increments in job per for mance have comparable increments in financial per for mance. In any of these cases, man ag er judgments related to critical compe­ tencies for economic per for mance are required, but data from predictive analytics models can be incorporated into these estimates as well. While Kano analy sis is not especially useful for quantifying how much economic gain can occur from a change in focus, it is very useful for assessing areas where existing assessment and se lection tools are performing adequately, and identifying areas where increased rigor in se lection will yield larger improvements in per for mance.

099-67811_ch11_4P.indd 565 11/17/17 1:15 PM

566 PART FIVE Staffing Activities: Employment

DETERMINING ASSESSMENT SCORES

Once the predictors for final decision making have been selected, it is necessary to determine assessment scores for each candidate. This pro cess is focused on devel­ oping a method to assign numerical scores to each candidate. These methods vary in complexity, from using a single predictor, to combining information from multiple predictors si mul ta neously, to sequentially eliminating candidates from consideration at each stage.

Single Predictor

Using a single predictor in se lection decisions simplifies the pro cess of determin­ ing scores. In fact, scores on the single predictor are the final assessment scores. Thus, concerns over how to combine assessment scores are not relevant when a single predictor is used in se lection decisions. Although using a single predic­ tor has the advantage of simplicity, there are some obvious drawbacks. First, few employers would feel comfortable hiring applicants on the basis of a single attri­ bute. In fact, almost all employers use multiple methods in se lection decisions. A second and related reason for using multiple predictors is that utility increases as the number of valid predictors used in se lection decisions increases. In most cases, using two valid se lection methods results in more effective se lection decisions than using a sole predictor. Unfortunately, in many cases, organ izations rely entirely on an unstructured interview, which has already been described as less than desirable because it is inconsistent, low in validity, and potentially difficult to defend in a lawsuit. For these reasons, basing se lection decisions on a single predictor is rarely the best way to make decisions.

Multiple Predictors

Given the less­ than­ perfect validities of predictors, most organ izations use multiple predictors in making se lection decisions. With multiple predictors, decisions must be made about combining the resultant scores. These decisions can be addressed through compensatory, multiple hurdles, and combined approaches.

Compensatory Model With a compensatory model, scores on one predictor are simply added to scores on another predictor to yield a total score. This means that high scores on one predic­ tor can compensate for low scores on another. For example, if an employer is using an interview and grade point average (GPA) to select a person, an applicant with a low GPA who does well in the interview may still get the job.

The advantage of a compensatory model is that it recognizes that people have multiple talents and that many dif fer ent constellations of talents may produce success on the job. The disadvantage of a compensatory model is that, at least for

099-67811_ch11_4P.indd 566 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 567

some jobs, the level of proficiency for specific talents cannot be compensated for by other proficiencies. For example, a firefighter requires a certain level of strength that cannot be compensated for by intelligence.

In terms of using the compensatory model to make decisions, four procedures may be followed: clinical prediction, unit weighting, rational weighting, and mul­ tiple regression. The four methods differ from one another in terms of the manner in which predictor scores (raw or standardized) are weighted before being added together for a total or composite score.

Exhibit 11.3 illustrates these procedures. In all four methods, raw scores are used to determine a total score. Standard scores (see Chapter 7) may need to be used rather than raw scores if each predictor variable uses a dif fer ent method of mea­ sure ment or is mea sured under dif fer ent conditions. Differences in weighting meth­ ods are shown in the bottom part of Exhibit 11.3, and a se lection system consisting of interviews, application blanks, and recommendations is shown in the top part. For simplicity, assume that scores on each predictor range from 1 to 5. Scores on these three predictors are shown for three applicants.

Clinical Prediction. In the clinical prediction approach in Exhibit 11.3, note that man ag ers use their expert judgment to arrive at a total score for each applicant. That final score may or may not be a simple addition of the three predictor scores shown in the exhibit. Hence, applicant A may be given a higher total score than applicant B even though simple addition shows that applicant B had one more point (4 + 3 + 4 = 11) than applicant A (3 + 5 + 2 = 10).

Frequently, clinical prediction is done by initial screening interviewers or hiring man ag ers. These decision makers may or may not have “scores” per se, but they have multiple pieces of information on each applicant, and they make a decision on the applicant by taking every thing into account. In initial screening decisions, this summary decision determines whether the applicant gets over the initial hur­ dle and passes on to the next level of assessment. For example, when making an initial screening decision on an applicant, a man ag er at a fast­ food restaurant might subjectively combine his or her impressions of vari ous bits of information about the applicant on the application form and a quick interview. A hiring man ag er for a professional position might focus on a finalist’s résumé and answers to the man ag er’s interview questions to decide whether to extend an offer to the finalist.

The advantage of the clinical prediction approach is that it draws on the exper­ tise of man ag ers to weight and combine predictor scores. In turn, man ag ers may be more likely to accept the se lection decisions than if a mechanical scoring rule (e.g., add up the points) were used. Many man ag ers believe that basing decisions on their experiences, rather than on mechanical scoring, makes them better at judg­ ing which applicants will be successful.5 The prob lem with this approach is that the reasons for the weightings are known only to the man ag er. In addition, clinical predictions have been consistently shown to be less accurate than mechanical deci­ sions. Research has shown again and again that experts who rely on intuition are

099-67811_ch11_4P.indd 567 11/17/17 1:15 PM

568 PART FIVE Staffing Activities: Employment

less capable of accurately combining information compared with using a standard­ ized system based on mathematical tools for combining information. This finding has been replicated in domains such as picking stocks, making medical diagnoses, granting university admission to students, and hiring employees.6

Unit Weighting. With unit weighting, each predictor is weighted the same at a value of 1.00. As shown in Exhibit 11.3, the predictor scores are simply added together to generate a total score. Therefore, the total scores for applicants A, B, and C are 10,

EXHIBIT 11.3 Raw Scores for Applicants on Three Predictors

Clinical Prediction P

1 , P

2 , P

3 Subjective assessment of qualifications

Example: Select applicant A based on “gut feeling” for overall qualification level.

Unit Weighting P

1 + P

2 + P

3 = Total score

Example: All predictor scores are added together. Applicant A = 3 + 5 + 2 = 10 Applicant B = 4 + 3 + 4 = 11 Applicant C = 5 + 4 + 3 = 12

Rational Weighting w

1 P

1 + w

2 P

2 + w

3 P

3 = Total score

Example: Weights are set by manager judgment at w 1 = .5, w

2 = .3, w

3 = .2

Applicant A = (.5 × 3) + (.3 × 5) + (.2 × 2) = 3.4 Applicant B = (.5 × 4) + (.3 × 3) + (.2 × 4) = 3.7 Applicant C = (.5 × 5) + (.3 × 4) + (.2 × 3) = 4.3

Multiple Regression a + b

1 P

1 + b

2 P

2 + b

3 P

3 = Total score

Example: Weights are set by statistical procedures at a = .09, b 1 = .9, b

2 = .6, b

3 = .2

Applicant A = .09 + (.9 × 3) + (.6 × 5) + (.2 × 2) = 6.19 Applicant B = .09 + (.9 × 4) + (.6 × 3) + (.2 × 4) = 6.29 Applicant C = .09 + (.9 × 5) + (.6 × 4) + (.2 × 3) = 7.59

Applicant Application Blank RecommendationInterview

Predictor

A 3 5 2 B 4 3 4 C 5 4 3

099-67811_ch11_4P.indd 568 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 569

11, and 12, respectively. The advantage of unit weighting is that it is a simple and straightforward pro cess and makes the importance of each predictor explicit to decision makers. The prob lem with this approach is that it assumes each predictor contributes equally to the prediction of job success, which is often not the case.

Rational Weighting. With rational weighting, each predictor receives a differen­ tial rather than equal weighting. Man ag ers and other subject matter experts (SMEs) establish the weights for each predictor according to the degree to which each is believed to predict job success. These weights (w) are then multiplied by each raw score (P) to yield a total score, as shown in Exhibit 11.3.

For example, the predictors are weighted .5, .3, and .2 for the interview, applica­ tion blank, and recommendation, respectively. This means man ag ers think interviews are the most impor tant predictors, followed by application blanks and recommenda­ tions. Each applicant’s raw score is multiplied by the appropriate weight to yield a total score. For example, the total score for applicant A is (.5)3 + (.3)5 + (.2)2 = 3.4.

The advantage of this approach is that it considers the relative importance of each predictor and makes this assessment explicit. The downside, however, is that it is an elaborate procedure that requires man ag ers and SMEs to agree on the dif­ ferential weights to be applied.

To simplify the pro cess of rational weighting, some organ izations are turning to computer­ aided decision tools. Williams Insurance Ser vice utilizes a program called ChoiceAnalyst to make it easier for hiring man ag ers to integrate informa­ tion on a variety of candidate characteristics into a single score.7 Recruiters select the predictor constructs that will be used to judge applicants, and provide decision weights for how impor tant they think each construct should be in making a final choice. Scores on a variety of predictor mea sures are entered into the software, which produces a rank ordering of candidates. One advantage of these software­ based solutions is that they can be explic itly developed to consider a variety of manage­ rial preferences and assess how differences in perceptions of predictor importance can lead to differences in final hiring decisions.

Multiple Regression. Multiple regression is similar to rational weighting in that the predictors receive dif fer ent weights. With multiple regression, however, the weights are established on the basis of statistical procedures rather than on judg­ ments by man ag ers or other SMEs. The statistical weights are developed from (1) the correlation of each predictor with the criterion, and (2) the correlations among the predictors. As a result, regression weights provide optimal weights in the sense that they will yield the highest total validity.

The calculations result in a multiple regression formula like the one shown in Exhibit 11.3. A total score for each applicant is obtained by multiplying the sta­ tistical weight (b) for each predictor by the predictor (P) score and summing these along with the intercept value (a). As an example, assume the statistical weights are .9, .6, and .2 for the interview, application blank, and recommendation, respectively,

099-67811_ch11_4P.indd 569 11/17/17 1:15 PM

570 PART FIVE Staffing Activities: Employment

and that the intercept is .09. Using these values, the total score for applicant A is .09 + (.9)3 + (.6)5 + (.2)2 = 6.19.

Multiple regression offers the possibility of a higher degree of precision in the pre­ diction of criterion scores than do the other methods of weighting. Unfortunately, this level of precision is realized only under a certain set of circumstances. In par tic­ u lar, for multiple regression to be more precise than unit weighting, there must be a small number of predictors, low correlations between predictor variables, and a large sample that is similar to the population that will be tested.8 Many se lection settings do not meet these criteria, so in these cases consideration should be given either to unit or rational weighting or to alternative regression­ based weighting schemes that have been developed, such as general dominance weights or relative importance weights.9 In situations where these conditions are met, however, multiple regression weights can produce higher validity and utility than the other weighting schemes.

Choosing Among Weighting Schemes. The choice of the best weighting scheme is consequential and likely depends on answers to the most impor tant questions about clinical, unit, rational, and multiple regression schemes:

• For clinical weighting: Do se lection decision makers have considerable expe­ rience and insight into se lection decisions, and is managerial ac cep tance of the se lection pro cess impor tant?

• For unit weighting: Is there reason to believe that each predictor contributes relatively equally to job success?

• For rational weighting: Are there differences in importance across predictor areas, and can these be better assessed through judgment rather than through statistical tools?

• For regression weighting: Are the conditions under which multiple regression is superior (relatively small number of predictors, low correlations among predictors, and large sample) satisfied?

Answers to these questions will go a long way toward deciding which weighting scheme to use. We should also note that while statistical weighting is more valid than clinical weighting, the combination of both methods may yield the highest validity. One study indicated that regression­ weighted predictors were more valid than clinical judgments, but that clinical judgments contributed uniquely to per for mance after controlling for regression­ weighted predictors. This suggests that both statistical tools and clinical judgments have contributions to make. In other words, the weight­ ing schemes are not necessarily mutually exclusive and may be complementary.10

Multiple Hurdles Model With a multiple hurdles approach, an applicant must earn a passing score on each predictor before advancing in the se lection pro cess. Such an approach is taken when each requirement mea sured by a predictor is critical to job success. The deci­

099-67811_ch11_4P.indd 570 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 571

sion to move a candidate forward is based on either a top­ down se lection from early predictor scores (or through the use of cut scores at some stages) or a top­ down se lection for later stages (discussed in the next section). Unlike the compensatory model, the multiple hurdles model does not allow a high score on one predictor to compensate for a low score on another predictor, because some individuals have no scores on some predictors.

Many organ izations use multiple hurdles se lection systems to both reduce the cost of selecting applicants and make the decision­ making pro cess more trac­ table in the final se lection stage. It would be very inefficient to pro cess all the pos­ si ble information the organ ization might collect on a large number of candidates, so some candidates are screened out relatively early in the pro cess. Typically, the first stage of a se lection pro cess screens the applicant pool down to those who meet some minimal educational or years­ of­ experience requirement. Collecting informa­ tion on such requirements is fairly inexpensive for organ izations and can usually be readily quantified. After this stage, the pool of remaining applicants might be further reduced by administering relatively inexpensive standardized tests to those who passed the initial screen. Further reducing the pool of potential candidates allows the organ ization to devote more resources to interviewing finalists and having them meet with man ag ers at the organ ization’s headquarters. This is the se lection stage. There are many variations in how the multiple hurdles model can be implemented, and the exact nature of the “screen” versus “select” mea sures will vary based on the job requirements.

Combined Model For jobs where some but not all requirements are critical to job success, a com­ bined method involving both the compensatory and the multiple hurdles models may be used. The pro cess starts with the multiple hurdles model and ends with the compensatory method.

An example of the combined approach for the position of recruitment man ag er is shown in Exhibit 11.4. The se lection pro cess starts with two hurdles that appli­ cants must pass in succession: the application blank and the job knowledge test. Failure to clear either hurdle results in rejection. Applicants who pass receive an interview and have their references checked. Information from the interview and the references is combined in a compensatory manner. Those who pass are offered jobs, and those who do not pass are rejected.

HIRING STANDARDS AND CUT SCORES

Hiring standards or cut scores address the issue of what constitutes a minimally qualified candidate. The score for a candidate may be from a single predictor or a total score from multiple predictors. To address this, a description of the pro cess and the consequences of cut scores are presented. Then, methods that may be used

099-67811_ch11_4P.indd 571 11/17/17 1:15 PM

572 PART FIVE Staffing Activities: Employment

to establish the actual cut score are described. These techniques include minimum standards, top­ down hiring, and banding.

Description of the Pro cess

Once one or more predictors have been chosen for use in a multiple hurdles model, a decision must be made as to who advances in the se lection pro cess. This decision requires that one or more cut scores be established. A cut score is the score that separates those who advance in the pro cess (e.g., applicants who become candidates) from those who are rejected. For example, assume a test is used on which scores range from 0 to 100 points. A cut score of 70 means that those applicants with a 70 or higher would advance, while all others would be rejected for employment purposes. A cut score also needs to be established for jobs where there will be ongoing hiring needs. For example, even when a com­ pensatory model is used, there might be a minimum standard on one predictor that would completely rule out a candidate no matter how well he or she per­ formed on other parts of the pro cess. In some cases, legal requirements mandat­ ing minimum hiring standards must be considered, such as a passing score on a nursing licensure exam.

EXHIBIT 11.4 Combined Model for Recruitment Manager

Application blank Fail

Pass

Job knowledge

test Fail

Pass Fail

Pass

Reject

Job o er

Interview and

references

Reject

Reject

099-67811_ch11_4P.indd 572 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 573

Consequences of Cut Scores

Setting a cut score is a very impor tant pro cess, as it has consequences for the organ­ ization and the applicant. The consequences of cut scores are shown in Exhibit 11.5, which contains a summary of a scatter diagram of predictor and criterion scores. The horizontal line shows the criterion score at which the organ ization has deter­ mined whether an employee is successful or unsuccessful— for example, a 3 on a 5­ point per for mance appraisal scale where 1 is low per for mance and 5 is high per­ for mance. The vertical line is the cut score for the predictor— for example, a 3 on a 5­ point interview rating scale where 1 reveals no chance of success and 5 a high chance of success.

The consequences of setting the cut score at a par tic u lar level are shown in each of the quadrants. Quadrants A and C represent correct decisions, which have positive consequences for the organ ization. Quadrant A applicants are called true positives because they were assessed as having a high chance of success using the predictor and would have succeeded if hired. Quadrant C applicants are called true negatives because they were assessed as having little chance for success and, indeed, would not be successful if hired.

Quadrants D and B represent incorrect decisions, which have negative conse­ quences for the organ ization and affected applicants. Quadrant D applicants are called false negatives because they were assessed as not being likely to succeed, but had they been hired, they would have been successful. Not only was an incorrect

EXHIBIT 11.5 Consequences of Cut Scores

Criterion Predictor Cut Score

False negatives

True negatives

No hire

Predictor

True positives

False positives

Hire

A

B

Successful

Unsuccessful

D

C

099-67811_ch11_4P.indd 573 11/17/17 1:15 PM

574 PART FIVE Staffing Activities: Employment

decision reached, but a person who would have done well was not hired. Quad­ rant B applicants are called false positives. They were assessed as being likely to succeed, but would have ended up being unsuccessful performers. Eventually, these people would need to receive remedial training, be transferred to a new job, or even be terminated.

How high or low a cut score is set has a large impact on the consequences shown in Exhibit 11.5, and trade­ offs are always involved. Compared with the moderate cut score in the exhibit, a high cut score results in fewer false positives but a larger number of false negatives. Is this a good, bad, or inconsequential set of out­ comes for the organ ization? The answer depends on the job open for se lection and the costs involved. If the job is an astronaut position for NASA, it is essential that there be no false positives. The cost of a false positive may be the loss of human life.

Now consider the consequences of a low cut score, relative to the one shown in Exhibit 11.5. There are fewer false negatives and more true positives, but more false positives are hired. In organ izations that gain competitive advantage in their industry by hiring the very best, this set of consequences may be unacceptable. Alternatively, for EEO/AA purposes it may be desirable to have a low cut score so that the number of false negatives for minorities and women is minimized.

In short, when setting a cut score, attention must be given to the consequences, as they can be very serious. As a result, dif fer ent methods of setting cut scores have been developed to guide decision makers. These will now be reviewed.11

Methods to Determine Cut Scores

Three methods may be used to determine cut scores: minimum competency, top­ down, and banding. Each of these is described below, along with professional guidelines for setting cut scores.

Minimum Competency Using the minimum competency method, the cut score is set on the basis of the minimum qualifications deemed necessary to perform the job. SMEs usually estab­ lish the minimum competency score. This approach is often needed in situations where the first step in the hiring pro cess is the demonstration of minimum skill requirements. Exhibit 11.6 illustrates the use of cut scores in se lection. The scores of 25 applicants on a par tic u lar test are listed. The cut score is set at the level at which applicants who score below the line are deemed unqualified for the job. In this case, a score of 75 was determined to be the minimum competency level nec­ essary. Thus, all applicants who scored below 75 are deemed unqualified and are rejected, and all applicants who scored 75 or above are deemed at least minimally qualified. Finalists and ultimately offer receivers can then be chosen from among these qualified applicants on the basis of other criteria.

099-67811_ch11_4P.indd 574 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 575

A well­ known example of a minimum competency approach is the Angoff method.12 In this approach, SMEs set the minimum cut scores needed to proceed in the se lection pro cess. These experts go through the content of the predictor (e.g., test items) and determine the proportion of individuals with a minimum level of competence who would answer each item correctly. For example, experts might estimate that at least 75% of minimally qualified electricians would be able to define the term “ampacity” on a quiz. The experts might estimate that only 25% would be able to identify a bonding jumper. These ratings are then summed together to obtain a minimal cut score.

EXHIBIT 11.6 Use of Cut Scores in Selection Decisions

Rank Test Score

Minimum *gnidnaBnwoD-poTycnetepmoC

-001eciohcts1001-0010011 89eciohcdn28989892 79eciohcdr37979793 69eciohcht46969694 39eciohcht55939395T 39eciohcht55939395T

-19’’1919197 -09’’0909098T

09’’0909098T 10. 88 88 Qualified 88 ’’ 88

78’’78787811 58’’58585821T 58’’58585821T 38’’38383841

-18’’18181851 -97’’97979761

77’’77777771T 77’’77777771T 67’’67676791

20. 75 75 - Min. competency

75 ’’ 75 47eciohcts1247-474712

-17eciohcdn2217171722 23. 70 70 Unqualified 70 23rd choice 70 -

96eciohcht4296969642 -56eciohcht5256-565652

*All scores within brackets are treated as equal; choice of applicants within brackets (if necessary) can be made on the basis of other factors, such as EEO/AA considerations.

099-67811_ch11_4P.indd 575 11/17/17 1:15 PM

576 PART FIVE Staffing Activities: Employment

There are several prob lems with this par tic u lar approach and the subsequent modifications to it. First, it is a time­ consuming procedure. Second, the results are dependent on the SMEs. It is very difficult to get members of the organ ization to agree on who “the” SMEs are. Which SMEs are selected may have a bearing on the actual cut scores developed. Fi nally, it is unclear how much agreement there must be among SMEs when they evaluate test items. There may also be judgmen­ tal errors and biases in how cut scores are set. If the Angoff method is used, it is impor tant that SMEs be provided with a common definition of minimally compe­ tent test takers and encouraged to discuss their estimates. Each of these steps has been found to increase the reliability of the SME.13

A variation of the minimum competency approach is hiring the first acceptable candidate. It is often used when candidates come to the attention of the hiring per­ son sequentially, one at a time, rather than having a total pool of candidates from which to choose the finalists. It is also used when the organ ization is desperate for “warm bodies” and willing to hire anyone who meets some threshold. Although at times a rush to hire is understandable, the consequences can be most unfortunate. In one case, due to the difficulty of finding telemarketers, a home mortgage call center had a policy of hiring the first acceptable candidate. The hiring man ag er at this call center overheard a newly hired employee tell a customer, “If I had a rate as high as yours, I’d slit my wrists, then climb to the top of the highest building and jump off.”14 While hiring the first acceptable candidate may seem necessary, it is far from an ideal hiring strategy and the costs may not be revealed until it is too late.

Another variant on the minimum competency approach is to impose a sort of maximum competency on overqualified applicants. The assumption here is that the job will not be sufficiently rewarding and the overqualified employee will quickly quit. Evidence suggests that employees who perceive themselves to be overquali­ fied for their jobs report lower levels of job satisfaction and higher intentions to leave.15 This may be because individuals who feel that they are overqualified believe that they deserve a better job and that their pres ent work does not sufficiently challenge them. Employers can use tactics like increasing employee empowerment to alleviate these feelings among overqualified employees and therefore allow the organ ization to retain individuals who have exceptional levels of skills.16 Man ag ers should exercise caution before automatically rejecting individuals who appear to be overqualified. Sometimes people are interested in a job for reasons unknown to the hiring man ag er. There are also legal dangers, as many apparently overqualified applicants are over the age of 40. As one man ag er said, “I think it’s a huge mistake not to take a second look at overqualified candidates. Certainly there are valid rea­ sons to reject some candidates, but it shouldn’t be a blanket response.”17

Top- Down Another method of determining the level at which the cut score should be set is to simply examine the distribution of predictor scores for applicants and then deter­

099-67811_ch11_4P.indd 576 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 577

mine which proportion of applicants will be hired. These demands might include the number of vacancies to be filled and EEO/AA requirements. This top­ down method of setting cut scores is illustrated in Exhibit 11.6. As the exhibit shows, under top­ down hiring, cut scores are established by the number of applicants that need to be hired. Once that number has been determined, applicants are selected from the top based on the order of their scores until the number desired is reached. The advantage of this approach is that it is easy to administer. It also minimizes judgment required because the cut score is determined on the basis of the demand for labor. The big drawback is that validity is often not established prior to the use of the predictor. If the applicant pool is particularly low­ quality and hiring needs are high, it is pos si ble that in an effort to staff a position the organ ization will hire individuals who are poorly qualified. In these situations, knowing a minimum competency score in advance might suggest that it would be better to continue recruiting than to hire some individuals. Also, there may be overreliance on the use of a single predictor and cut score while other potentially useful predictors are ignored.

Test Score Banding For both external hiring and internal promotions, the top­ down method will yield the highest validity and utility. This method has been criticized, however, for ignor­ ing the possibility that small differences between scores are due to mea sure ment error. Another criticism of the top­ down method is its potential for adverse impact, particularly when cognitive ability or physical ability tests are used.18

Banding refers to the procedure whereby applicants who score within a certain score range or band are considered to have scored equivalently. A simple banding procedure is provided in Exhibit 11.6. In a 100­ point test, all applicants who score within the band of 10­ point increments are considered to have scored equally. For example, all applicants who score 91 and above could be assigned a score of 9, those who score 81–90 are given a score of 8, and so on. Hiring within bands could then be done based on a variety of other factors, including workforce composition. In practice, band widths are usually calculated on the basis of the standard error of mea sure ment.

Research suggests that banding procedures result in substantial decreases in the adverse impact of cognitive ability tests.19 The major limitation with banding is that it sacrifices validity. The standard error of the difference between test scores is partly a function of the reliability of the test, so when test reliability is low, band widths are wider than when test reliability is high. For example, if the reliability of a test is .80, at a reasonable level of confidence, nearly half the scores on a test can be considered equivalent.20 Obviously, taking scores on a 100­ point test and lump­ ing applicants into only two groups wastes a great deal of impor tant information on applicants. There is also evidence that typical banding procedures overestimate the width of bands, which of course exacerbates the prob lem.21

099-67811_ch11_4P.indd 577 11/17/17 1:15 PM

578 PART FIVE Staffing Activities: Employment

The scientific merit of test banding is hotly debated.22 It is unlikely that we could resolve here the myriad ethical and technical issues under lying its use. Organ izations considering the use of banding in personnel se lection decisions must weigh the pros and cons carefully, including the legal issues. A review of lawsuits concerning banding found that it was generally upheld by the courts.23 In the end, however, a values choice may need to be made: to optimize validity (to some detriment to diversity) or to optimize diversity (with some sacrifice in validity). As one review noted, though “ there is extensive evidence supporting the validity [of cognitive tests], adverse impact is unlikely to be eliminated as long as one assesses” cognitive abilities in the se lection pro cess.24

Differential Weighting and Multi- Stage Se lection In an effort to resolve this somewhat pessimistic trade­ off between validity and diversity goals, several alternative techniques have been proposed. One advantage of these alternatives is that most retain the decision­ making logic of top­ down se lection, which is generally perceived as more fair by members of both majority and minority groups.

Some researchers have developed differential weighting schemes that attempt to find optimal solutions that maximize validity and diversity. One effort produced a statistical algorithm that attempts to achieve an optimal trade­ off between valid­ ity and adverse impact by giving more weight to predictors that have less adverse impact. Such algorithms allow decision makers to more clearly see the trade­ offs for dif fer ent choices, and do tend to produce some solutions with lower adverse impact and comparable validity to unit weighting predictors.25

Other recent work has evaluated the use of multi­ stage se lection procedures, as we described previously. A number of ways of ordering predictors to minimize adverse impact have been evaluated.26 Most evidence suggests that using lower adverse impact predictors, such as integrity tests, structured interviews, and consci­ entiousness tests, early in se lection, and then incorporating higher adverse impact predictors, such as ability tests, later in the pro cess tends to have the effect of low­ ering adverse impact earlier in the pro cess. Validity levels are comparable. Simply put, the early screen should minimize adverse impact.

Another suggestion that clearly comes across in this lit er a ture is that using a variety of dif fer ent se lection tools together can maintain high validity while main­ taining comparatively lower adverse impact. In fact, breaking down cognitive abil­ ity into component subtests with differential adverse impact, and putting greater weight on lower adverse impact sections of the test can greatly increase diversity with little decrease in validity.27 Techniques to statistically adjust se lection based on a small number of predictors can reduce, but not eliminate, the validity/diversity paradox. Adding mea sures with lower adverse impact can improve diversity with­ out sacrificing validity.

099-67811_ch11_4P.indd 578 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 579

METHODS OF FINAL CHOICE

The discussion thus far has been on decision rules that can be used to narrow down the list of people to successively smaller groups that advance in the se lection pro­ cess from applicant to candidate to finalist. How does the organ ization determine which finalists will receive job offers? Discretionary assessments about the final­ ists must be converted into final choice decisions. The methods of final choice are the mechanisms by which discretionary assessments are translated into job offer decisions.

Methods of final choice include random se lection, ranking, and grouping. Exam­ ples of each of these methods are shown in Exhibit 11.7 and are discussed here.

Random Se lection

With random se lection, each finalist has an equal chance of being selected. The only rationale for selecting a person is the “luck of the draw.” For example, the six names from Exhibit 11.7 could be put in a hat and the finalist drawn out and tendered a job offer. This approach has the advantage of being quick. In addition, with random se lection, one cannot be accused of favoritism, because every one has an equal chance of being selected. The disadvantage of this approach is that discre­ tionary assessments are simply ignored.

Ranking

With ranking, finalists are ordered from the most desirable to the least desirable based on results of discretionary assessments. As shown in Exhibit 11.7, the per­ son ranked first (Keisha) is the most desirable, and the person ranked sixth (Luis)

EXHIBIT 11.7 Methods of Final Choice

Random

Casey Keisha Buster Lyn Aung Meg Luis

Pick one

Ranking

1 . Keisha 2. Meg 3. Buster 4. Lyn Aung 5. Casey 6. Luis

Grouping

Keisha Meg

Buster Lyn Aung

Casey Luis

] Top choices

] Acceptable

] Last resorts

099-67811_ch11_4P.indd 579 11/17/17 1:15 PM

580 PART FIVE Staffing Activities: Employment

is the least desirable. It is impor tant to note that desirability should be viewed in the context of the entire se lection pro cess. When this is done, persons with lower levels of desirability (e.g., ranks of 3, 4, and 5) should not be viewed necessarily as failures. Job offers are extended to people on the basis of their rank ordering, with the top­ ranked person receiving the first offer. Should that person turn down the job offer or suddenly withdraw from the se lection pro cess, finalist number 2 receives the offer, and so on.

The advantage of ranking is that it indicates the relative worth of each finalist for the job. It also provides a set of backups should one or more of the finalists withdraw from the pro cess.

Backup finalists may decide to withdraw from the pro cess to take a position elsewhere. Although ranking gives the organ ization a cushion if the top choices withdraw from the pro cess, it does not mean that the pro cess of extending job offers can proceed at a leisurely pace. Immediate action needs to be taken with the top choices in case they decide to withdraw and there is a need to go to the back­ ups. This is especially true in tight labor markets, where there is a strong demand for the ser vices of people on the ranking list.

Grouping

With the grouping method, finalists are banded together into rank­ ordered catego­ ries. In Exhibit 11.7, the finalists are grouped according to whether they are top choices, acceptable, or last resorts. The advantage of this method is that it permits ties among finalists, thus avoiding the need to assign a dif fer ent rank to each per­ son. The disadvantage is that decisions still have to be made from among the top choices. These decisions might be based on factors such as the probability of each person accepting the offer.

Ongoing Hiring

In some organ izations, the hiring pro cess is continuous, meaning that there is never a final list of candidates to be selected. Instead, an organ ization that has ongoing needs for employees in a variety of positions might continuously collect résumés from interested parties, and then when positions open up, call in for interviews every one who passes the minimum qualifications for open jobs. In many ways, this is like the method of hiring the first acceptable candidate, described under the minimum competency approach. Jobs with very high turnover rates, like entry­ level retail and food ser vice positions, are typically staffed in this way. The advantage of an ongoing hiring method is that it generates a large quantity of applicants who can start in a relatively short period of time, which can be very impor tant for organ izations that frequently replace staff. The disadvantage of this system is that it seldom allows for careful consideration of the best pos si ble candidates from a set of qualified applicants.

099-67811_ch11_4P.indd 580 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 581

DECISION MAKERS

A final consideration in decision making for se lection is who should participate in the decisions. That is, who should determine the pro cess to be followed (e.g., establishing cut scores), and who should determine the outcome (e.g., who gets the job offer)? The answer is that orga nizational leaders, HR professionals, and line man ag ers must play a role.28 Employees may play certain roles as well. Each of these parties has its own specialized knowledge and outlook that can greatly facilitate the successful implementation of the se lection system. Exhibit 11.8 dem­ onstrates the level of involvement in the decision­ making pro cess in staffing of each of these parties.

Orga nizational Leaders

Se lection systems can have a huge impact on orga nizational capabilities and per for­ mance, so leaders of the organ ization, including executives and directors, will have some input into decision making. Leaders have a uniquely valuable, holistic under­ standing of the purpose of a se lection system. Having buy­in from orga nizational

EXHIBIT 11.8 Decision Makers in Selection

Organizational leaders: guiding principles and strategic goals

HR professionals: policy and technical expertise; data analysis

Line managers: policy implementation; operational expertise

Coworkers: understand fit with the work group

099-67811_ch11_4P.indd 581 11/17/17 1:15 PM

582 PART FIVE Staffing Activities: Employment

leaders also greatly enhances the success of any policy initiative.29 This support will be far greater when leaders are able to describe the goals of the se lection system.

Orga nizational leaders can serve several functions in the design and imple­ mentation of se lection systems. First, they can develop a philosophy of staffing systems that links to the organ ization’s strategy and is compelling for line man­ ag ers. Second, leaders are in a good position to develop policies and procedures for the entire organ ization that fit with the organ ization’s culture overall. Third, besides articulating an overall philosophy of the se lection system, leaders can coordinate competency modeling with orga nizational plans and goals from the top down. This means specific attributes to be mea sured are determined based on input from orga nizational leaders. Fi nally, leaders can ensure that the metrics gathered through the staffing pro cess are relevant for orga nizational success, so the efficacy of the system in meeting relevant goals is ensured. This can help HR pro­ fessionals communicate effectively in terms that matter to leaders. Except in the smallest organ izations, leaders will not participate in most day­ to­ day hiring, but as this discussion shows, their guidance in structuring the se lection system should not be overlooked.

Human Resource Professionals

As a general rule, HR professionals should have a high level of involvement in the pro cesses used to design and manage the se lection system. They should be con­ sulted in matters such as which predictors to use and how to best use them. In par­ tic u lar, they need to orchestrate the development of policies and procedures in the staffing areas covered. These professionals have, or know where to find, the techni­ cal expertise needed to develop sound se lection decisions. They also have access to quantitative information from HR information systems that can be used to quantify predictor­ outcome relationships within the organ ization. Fi nally, they can represent the interests and concerns of employees to management.

Although the primary role HR professionals should play is in terms of the pro cess, they should also have some involvement in determining who receives job offers. HR professionals may be able to provide an external perspective on applicants. For example, they may be able to offer some insight on the applicants’ fit with the broader set of skills across the organ ization. HR professionals are sensitive to these issues because of their training and experience. They may have data to share on these matters as a result of their screening interviews, knowledge of how to interpret standard se lection instruments (e.g., personality tests), and interactions with internal candidates (e.g., serving on task forces with the candidates).

The other area where HR professionals may contribute to outcomes is in terms of initial assessment methods. Many times, HR professionals are empowered to make initial screening decisions, such as who gets invited into the organ­ ization for administration of the next round of se lection. Doing so saves man­ ag ers time and allows them to concentrate their efforts on the most promising

099-67811_ch11_4P.indd 582 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 583

candidates. In addition, HR professionals can ensure the overall diversity of the applicant pool.

Man ag ers

As a general rule, a man ag er’s primary involvement in staffing is in determining who is selected for employment. Man ag ers are the SMEs for their business areas, and they are thus held accountable for the success of the people hired. They are far less involved in determining the pro cesses followed to staff the organ ization, because they often do not have the time or expertise to do so. The average man ag er also is unlikely to have extensive knowledge regarding the more technical details of designing and implementing se lection systems.30

Although they may not play a direct role in establishing pro cesses, man ag ers should be periodically consulted on pro cess issues. They will be in a good posi­ tion to identify critical needs in the se lection system that might not be addressed, and can also identify areas where the policies and procedures are too complex or burdensome to be effective. Their work with new hires can also identify character­ istics that are impor tant for getting up to speed quickly in specific roles.

An additional benefit of allowing management a role in pro cess issues is that, as a result of their involvement, man ag ers may develop a better understanding of why HR professionals prescribe certain practices. When they are not invited to be part of the pro cess to establish staffing policy and procedures, line man ag ers may view HR professionals as obstacles to hiring the right person for the job. In this case, it is likely that man ag ers will not make an effort to implement the se lection system effectively.31 And as a final concern, the more man ag ers participate in the pro cess of selecting specific individuals to work under them, the more likely it is that they will find the new hire acceptable and will support his or her development.

Coworkers

Traditionally, coworkers of the new hire have not been considered part of the decision­ making pro cess in staffing, but this tradition is slowly changing. For exam­ ple, in team assessment approaches (see Chapter 8), coworkers may have a voice in both the staffing pro cess and its outcomes. That is, they may have ideas about how se lection procedures are established, and they may make decisions about, or provide input into, who gets hired. Involvement in the team approach is encouraged because it may give group members a sense of owner ship of the work pro cess and help them better identify with orga nizational goals. Also, it may result in selecting members who are more compatible with the goals of the work team. Google includes line man ag ers and peers in its hiring pro cess. Its consensus­ based hiring pro cess is seen as a valuable way to get a variety of perspectives on the fit between applicants and the organ ization.32 In order for employee involvement to be effective, employees need to be provided with staffing training just as man ag ers are (see Chapter 9).

099-67811_ch11_4P.indd 583 11/17/17 1:15 PM

584 PART FIVE Staffing Activities: Employment

LEGAL ISSUES

One of the most impor tant legal issues in decision making is that of establishing cut scores or hiring standards. These scores or standards regulate the flow of individu­ als from applicant to candidate to finalist to new hire. Throughout this flow, adverse impact may occur. When it does, the UGESP come into play. In addition, the organ­ ization could form a multipronged strategy for increasing workforce diversity.

Uniform Guidelines on Employee Se lection Procedures

If the use of cut scores does not lead to adverse impact in decision making, the UGESP are essentially silent on the issue of cut scores. The discretion exercised by the organ ization as it makes its se lection decisions is thus unconstrained legally. If adverse impact is occurring, the UGESP become directly applicable to decision making.

Under conditions of adverse impact, the UGESP require the organ ization to either eliminate its occurrence or justify it by conducting validity studies and care­ fully setting cut scores:

Where cutoff scores are used, they should normally be set as to be reasonable and consistent with normal expectations of acceptable proficiency within the workforce. Where applicants are ranked on the basis of properly validated se lection procedures and those applicants scoring below a higher cutoff score than appropriate in light of such expectations have little or no chance of being selected for employment, the higher cutoff score may be appropriate, but the degree of adverse impact should be considered.

This provision suggests that the organ ization should be cautious in general about setting cut scores that are above those necessary to achieve acceptable pro­ ficiency among those hired. In other words, even with a valid predictor, the organ­ ization should be cautious that its hiring standards are not so high that they create needless adverse impact. This is particularly true with ranking systems. Use of random methods—or to a lesser extent, grouping methods— would help overcome this par tic u lar objection to ranking systems.

What ever cut score procedure is used, the UGESP also require that the organ­ ization be able to document its establishment and operation. Specifically, the UGESP say that “if the se lection procedure is used with a cutoff score, the user should describe the way in which normal expectations of proficiency within the workforce were determined and the way in which the cutoff score was determined.”

The UGESP also suggest two options to eliminate adverse impact, rather than to justify it as in the validation and cut score approach. One option is use of “alter­ native procedures.” Here, the organ ization uses an alternative se lection procedure that causes less adverse impact (e.g., work sample instead of a written test) but has roughly the same validity as the procedure it replaces.

099-67811_ch11_4P.indd 584 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 585

The other option is that of affirmative action. The UGESP do not relieve the organ ization of any affirmative action obligations it may have. Also, the UGESP strive to “encourage the adoption and implementation of voluntary affirmative action programs” for organ izations that do not have any affirmative action obligations.

Diversity and Hiring Decisions

There has been considerable controversy and litigation over the issue of whether it is permissible for a legally protected characteristic such as race or gender to enter into a staffing decision, and if so, under exactly what circumstances. At the crux of the matter is whether staffing decisions should be based solely on a person’s quali­ fications or on qualifications along with the protected characteristic. It is argued that allowing the protected characteristic to receive some weight in the decision would serve to create a more diverse workforce, which many public and private organ izations claim is something they have a compelling interest in and responsi­ bility to do (refer back to Chapter 3 and the discussion of affirmative action).

It can be concluded that unless the organ ization is under a formal affirmative action plan (AAP), protected characteristics (e.g., race, sex, and religion) should not be considered in se lection decision making. This conclusion is consistent with Equal Employment Opportunity Commission (EEOC) policy: the organ ization should use job­ related hiring standards, and the same se lection techniques and weights must be used for all people.33

How should the organ ization proceed, especially if it wants to not only comply with the law but also increase the diversity of its workforce? Several things might be done. First, carefully establish KSAOs for jobs so that they are truly job related; as part of that pro cess, establish some job­ related KSAOs that correlate with pro­ tected characteristics, such as diversity in experience and customer contacts. For example, a KSAO for the job of marketing man ag er might be “substantial contacts within diverse racial and ethnic communities.” Both white and nonwhite applicants could potentially meet this requirement, increasing the chances of recruiting and selecting a person of color for the job. Second, use recruitment (both external and internal) as a tool for attracting a more qualified and diverse applicant pool. Third, use valid methods of KSAO assessment derived from a formal se lection plan. Fourth, avoid clinical or excessively subjective prediction in making the assessment and deriving a total assessment or score for candidates. Instead, establish and use the same set of predictors and weights for them to arrive at the final assess­ ment. Fifth, provide training in se lection decision making for hiring man ag ers and staffing man ag ers. Content of the training should focus on overcoming the use of ste reo types, learning how to gather and weight predictor information consistently for all candidates, and looking for red flags about ac cep tance or rejection based on vague judgments about the candidate being a “good fit.” Sixth, use a diverse group of hiring and staffing man ag ers to gather and evaluate KSAO information, including a diverse team to conduct interviews. Fi nally, monitor se lection decision

099-67811_ch11_4P.indd 585 11/17/17 1:15 PM

586 PART FIVE Staffing Activities: Employment

making and challenge those decision makers who reject candidates who would enhance diversity to demonstrate that the reasons for rejection are job related.

When the organ ization is under an AAP, either voluntary or court imposed, the above recommendations are still appropriate. Attempts to go even further and pro­ vide a specific “plus” to protected characteristics should not be undertaken without a careful examination and opinion of whether this would be legally permissible.

SUMMARY

The se lection component of a staffing system requires that decisions be made in several areas. The critical concerns are deciding which predictors (assessment methods) to use, determining assessment scores and setting cut scores, making final decisions about applicants, considering who within the organ ization should help make se lection decisions, and complying with legal guidance.

In deciding which assessment methods to use, consideration should be given to the validity coefficient, face validity correlation with other predictors, adverse impact, utility, and applicant reactions. Ideally, a predictor would have a validity coefficient with large magnitude and significance, high face validity, low correlations with other predictors, little adverse impact, and high utility. In practice, this ideal situation is hard to achieve, so decisions about trade­ offs are necessary.

How assessment scores are determined depends on whether a single predictor or multiple predictors are used. In the case of a single predictor, assessment scores are simply the scores on the predictor. With multiple predictors, a compensatory, mul­ tiple hurdles, or combined model must be used. A compensatory model allows a person to compensate for a low score on one predictor with a high score on another predictor. A multiple hurdles model requires that a person achieve a passing score on each successive predictor. A combined model uses ele ments of both the com­ pensatory and the multiple hurdles models.

In deciding who earns a passing score on a predictor or a combination of predic­ tors, cut scores must be set. When doing so, the consequences of setting dif fer ent levels of cut scores should be considered, especially those of assessing some appli­ cants as false positives or false negatives. Approaches to determining cut scores include minimum competency, top­ down, and banding methods. Professional guidelines were reviewed on how best to set cut scores.

Methods of final choice involve determining who will receive job offers from among those who have passed the initial hurdles. Several methods of making these decisions were reviewed, including random se lection, ranking, and grouping. Each has advantages and disadvantages.

Multiple individuals may be involved in se lection decision making. HR profes­ sionals play a role primarily in determining the se lection pro cess to be used and in making se lection decisions based on initial assessment results. Man ag ers play a role primarily in deciding whom to select during the final choice stage. Employees

099-67811_ch11_4P.indd 586 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 587

are becoming part of the decision­ making pro cess, especially in team assessment approaches.

A basic legal issue is conformance with the UGESP, which provide guidance on how to set cut scores in ways that help minimize adverse impact and allow the organ ization to fulfill its EEO/AA obligations. In the absence of an AAP, protected class characteristics must not enter into se lection decision making. That prohibi­ tion notwithstanding, organ izations can take numerous steps to increase workforce diversity.

DISCUSSION QUESTIONS

1. Your boss is considering using a new predictor. The base rate is high, the se lection ratio is low, and the validity coefficient is high for the current pre­ dictor. What would you advise your boss and why?

2. What are the positive consequences associated with a high predictor cut score? What are the negative consequences?

3. Under what circumstances should a compensatory model be used? When should a multiple hurdles model be used?

4. What are the advantages of ranking as a method of final choice over random se lection?

5. What roles should HR professionals play in staffing decisions? Why? 6. What guidelines do the UGESP offer to organ izations when it comes to set­

ting cut scores?

ETHICAL ISSUES

1. Do you think companies should use banding in se lection decisions? Defend your position.

2. Is clinical prediction the fairest way to combine assessment information about job applicants, or are the other methods (unit weighting, rational weighting, and multiple regression) fairer? Why?

APPLICATIONS

Utility Concerns in Choosing an Assessment Method

Randy May is a 32­ year­ old airplane mechanic for a small airline based on Nan­ tucket Island, Mas sa chu setts. Recently, Randy won $2 million in the New England lottery. Because Randy is relatively young, he deci ded to invest his winnings in a

099-67811_ch11_4P.indd 587 11/17/17 1:15 PM

588 PART FIVE Staffing Activities: Employment

business to create a future stream of earnings. After weighing many investment options, Randy chose to open up a chain of ice cream shops in the Cape Cod area. (As it turns out, Cape Cod and the nearby islands are short of ice cream shops.) Randy reviewed his bud get and figured he had enough cash to open shops on each of the two islands (Nantucket and Martha’s Vineyard) and two shops in small towns on the Cape (Falmouth and Buzzards Bay). Randy contracted with a local builder, and the construction/renovation of the four shops is well under way.

The task that is occupying Randy’s attention now is how to staff the shops. Two weeks ago, he placed advertisements in three area newspapers. So far, he has received 100 applications. Randy has done some informal HR planning and figures he needs to hire 50 employees to staff the four shops. Being a novice at this, Randy is unsure how to select the 50 people he needs to hire. Randy consulted his friend Mary, who owns the lunch counter at the airport. Mary told Randy that she used interviews to get “the most knowledgeable people pos si ble” and recommended it to Randy because her people had “generally worked out well.” While Randy greatly respected Mary’s advice, on reflection some questions came to mind. Does Mary’s use of the interview mean that it meets Randy’s requirements? How can Randy determine whether his chosen method of selecting employees is effective or in effec tive?

Confused, Randy also sought the advice of Professor Ray Higgins, from whom Randy took an HR management course while getting his business degree. After learning of the situation and offering his consulting ser vices, Professor Higgins suggested that Randy choose one of two se lection methods ( after paying Professor Higgins’s consulting fees, he cannot afford to use both methods). The two methods Professor Higgins recommended are the interview (as Mary recommended) and a work sample test that entails scooping ice cream and serving it to a customer. Randy estimates that it would cost $100 to interview an applicant and $150 per applicant to administer the work sample. Professor Higgins told Randy that the validity of the interview in predicting overall job per for mance for customer ser vice employees is r = .30, while the validity of the work sample in predicting overall job per for mance is r = .50. Professor Higgins also informed Randy that the se lection ratio is prob ably fairly high because there aren’t a lot of job seekers and because the minimum wage he plans on paying isn’t likely to attract people in this area.

Randy would really appreciate it if you could help him answer the following questions:

1. What parts of this information seem most impor tant for the choice of se lection mea sures? How does each piece of information fit with the “choice of assess­ ment method” discussion?

2. If Randy can use only one method, which should he use? 3. If the number of applicants for these jobs increases dramatically (more appli­

cations are coming in than Randy expected), how will your answers to ques­ tions 1 and 2 change?

099-67811_ch11_4P.indd 588 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 589

4. What are some additional pieces of information you’d like to have before committing to any of these options? What other criteria might be relevant?

Choosing Entrants Into a Management Training Program

Come As You Are, a con ve nience store chain headquartered in Fayetteville, Arkan­ sas, has developed an assessment program to promote nonexempt employees into its management training program. The minimum entrance requirements for the program are five years of com pany experience, a college degree from an accred­ ited university, and a minimum acceptable job per for mance rating (3 or higher on a 1–5 scale). Anyone interested in applying for the management program can enroll in the half­ day assessment program, where the following assessments are made:

1. Cognitive ability test 2. Integrity test 3. Signed permission for background test 4. Brief (30­ minute) interview by vari ous members of the management team 5. Drug test

At the Hot Springs store, 11 employees have applied for openings in the manage­ ment training program. The se lection information on the candidates is provided in the following exhibit. (The scoring key is provided at the bottom of the exhibit.) It is estimated that three slots in the program are available for qualified candidates from the Hot Springs location. Given this information and what you know about external and internal se lection, as well as staffing decision making, answer the fol­ lowing questions:

1. How would you go about deciding whom to select for the openings? In other words, without providing your decisions for the individual candidates, describe how you would weigh the vari ous se lection information to reach a decision.

2. Using the decision­ making pro cess from the previous question, which three applicants would you select for the training program? Explain your decision.

3. Although the data provided in the exhibit reveal that all se lection mea sures were given to all 11 candidates, would you advise Come As You Are to con­ tinue to administer all the predictors at one time during the half­ day assess­ ment program? Alternatively, should the predictors be given in a sequence so that a multiple hurdles or combined approach could be used? Explain your recommendation.

099-67811_ch11_4P.indd 589 11/17/17 1:15 PM

590 PART FIVE Staffing Activities: Employment

N a

m e

C o

m p

a n

y

E xp

e ri

e n

ce C

o lle

g e

D

e g

re e

P e

rf o

rm a

n ce

R

a ti

n g

C o

g n

it iv

e

A b

ili ty

T e

st In

te g

ri ty

Te

st B

a ck

g ro

u n

d

Te st

In te

rv ie

w

R a

ti n

g D

ru g

T e

st

R a

d h

u 4

Ye s

4 9

6 O

K 6

P M

e rv

12 Ye

s 3

3 6

O K

8 P

M a

ri a

n n

e 9

Ye s

4 8

5 A

rr e

st ’9

5 4

P H

e lm

u t

5 Ye

s 4

5 5

O K

4 P

S io

b h

a n

14 Ye

s 5

7 8

O K

8 P

G a

lin a

7 N

o 3

3 4

O K

6 P

R a

u l

6 Ye

s 4

7 8

O K

2 P

F ra

n k

9 Ye

s 5

2 5

O K

7 P

O sv

a ld

o 10

Ye s

4 10

9 O

K 3

P B

yr o

n 18

Ye s

3 3

7 O

K 6

P A

le th

a 11

Ye s

4 7

6 O

K 5

P

S ca

le Ye

a rs

Ye s–

N o

1– 5

1– 10

1– 10

O K

– O

th e

r 1–

10 P

– F

E X

H IB

IT P

re di

ct or

S co

re s

fo r

11 A

pp lic

an ts

t o

M an

ag em

en t

T ra

in in

g P

ro gr

am

099-67811_ch11_4P.indd 590 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 591

ENDNOTES

1. R. Hastie and R. M. Dawes, Rational Choice in an Uncertain World, 2nd ed. (Thousand Oaks, CA: Sage, 2010); D. Kahneman, Thinking, Fast and Slow (New York: Farrar, Straus, and Giroux, 2011); P. Bolander and J. Sandberg, “How Employee Se lection Decisions Are Made in Practice,” Organ­ ization Studies, 2013, 34, pp. 285–311.

2. R. B. Kline, Beyond Significance Testing: Statistics Reform in the Behavioral Sciences, 2nd ed. (Washington, DC: American Psychological Association, 2013).

3. W. De Corte, P. R. Sackett, and F. Lievens, “Selecting Predictor Subsets: Considering Validity and Adverse Impact,” International Journal of Se lection and Assessment, 2010, 18, pp. 260–270; W. De Corte, F. Lievens, and P. R. Sackett, “Combining Predictors to Achieve Optimal Trade­ Offs Between Se lection Quality and Adverse Impact,” Journal of Applied Psy chol ogy, 2007, 92, pp. 1380–1393.

4. I. S. Fulmer and R. E. Ployhart, “Our Most Impor tant Asset: A Multidisciplinary/Multilevel Review of Human Capital Valuation for Research and Practice,” Journal of Management, 2014, 40, pp. 161–192; J. W. Boudreau, Retooling HR: Using Proven Business Tools to Make Better Decisions About Talent (Boston: Harvard Business School Press, 2010); J. Fitz­ Enz and J. R. Mattox, Predictive Analytics for Human Resources (Hoboken, NJ: Wiley, 2014); J. W. Boudreau, “ ‘Retooling’ Evidence Based Staffing: Extending the Validation Paradigm Using Management Mental Models,” in N. Schmitt (ed.), Oxford Handbook of Personnel Assessment and Se lection (New York: Oxford University Press, 2012), pp. 793–813.

5. S. High house, “Stubborn Reliance on Intuition and Subjectivity in Employee Se lection,” Industrial and Orga nizational Psy chol ogy, 2008, 1, pp. 333–342; D. L. Diab, S­ Y Pui, M. Yankelevich, and S. High house, “Lay Perceptions of Se lection Decision Aids in US and Non­ US Samples,” Interna­ tional Journal of Se lection and Assessment, 2011, 19, pp. 209–216.

6. Hastie and Dawes, Rational Choice in an Uncertain World; Kahneman, Thinking, Fast and Slow. 7. “ChoiceAnalyst Software Makes Hiring Decisions Easier on the Brain,” Recruiter, Mar. 3, 2010,

p. 12. 8. R. E. McGrath, “Predictor Combination in Binary Decision­ Making Scenarios,” Psychological

Assessment, 2008, 20, pp. 195–205. 9. J. M. LeBreton, M. B. Hargis, B. Griepentrog, F. L. Oswald, and R. E. Ployhart, “A Multidimen­

sional Approach for Evaluating Variables in Orga nizational Research and Practice,” Personnel Psy chol ogy, 2007, 60, pp. 475–498.

10. Y. Ganzach, A. N. Kluger, and N. Klayman, “Making Decisions From an Interview: Expert Mea­ sure ment and Mechanical Combination,” Personnel Psy chol ogy, 2000, 53, pp. 1–20.

11. W. F. Cascio, R. A. Alexander, and G. V. Barrett, “Setting Cutoff Scores: Legal, Psychometric, and Professional Issues and Guidelines,” Personnel Psy chol ogy, 1988, 41, pp. 1–24.

12. W. H. Angoff, “Scales, Norms, and Equivalent Scores,” in R. L. Thorndike (ed.), Educational Mea sure ment (Washington, DC: American Council on Education, 1971), pp. 508–600; R. E. Biddle, “How to Set Cutoff Scores for Knowledge Tests Used in Promotion, Training, Certifica­ tion, and Licensing,” Public Personnel Management, 1993, 22, pp. 63–79.

13. J. P. Hudson, Jr., and J. E. Campion, “Hindsight Bias in an Application of the Angoff Method for Setting Cutoff Scores,” Journal of Applied Psy chol ogy, 1994, 79, pp. 860–865; G. M. Hurtz and M. A. Auerbach, “A Meta­ Analysis of the Effects of Modifications to the Angoff Method on Cutoff and Judgment Consensus,” Educational and Psychological Mea sure ment, 2003, 63, pp. 584–601.

14. J. Bennett, “Scientific Hiring Strategies Are Raising Productivity While Reducing Turnover,” Wall Street Journal, Feb. 10, 2004, p. B7.

099-67811_ch11_4P.indd 591 11/17/17 1:15 PM

592 PART FIVE Staffing Activities: Employment

15. W. R. Johnson, P. C. Morrow, and G. J. Johnson, “An Evaluation of Perceived Overqualification Scales Across Work Settings,” Journal of Psy chol ogy, 2002, 136, pp. 425–441; D. C. Maynard, T. A. Joseph, and A. M. Maynard, “Underemployment, Job Attitudes, and Turnover Intentions,” Journal of Orga nizational Be hav ior, 2006, 27, pp. 509–536.

16. B. Erdogan and T. N. Bauer, “Perceived Overqualification and Its Outcomes: The Moderating Role of Empowerment,” Journal of Applied Psy chol ogy, 2009, 94, pp. 557–565.

17. S. J. Wells, “Too Good to Hire?” HR Magazine, Oct. 2004, pp. 48–54. 18. P. R. Sackett and S. L. Wilk, “Within­ Group Norming and Other Forms of Score Adjustment in

Preemployment Testing,” American Psychologist, 1994, 49, pp. 929–954. 19. K. R. Murphy, K. Osten, and B. Myors, “Modeling the Effects of Banding in Personnel Se lection,”

Personnel Psy chol ogy, 1995, 48, pp. 61–84. 20. K. R. Murphy, “Potential Effects of Banding as a Function of Test Reliability,” Personnel Psy­

chol ogy, 1994, 47, pp. 477–495. 21. P. Bobko, P. L. Roth, and A. Nicewander, “Banding Se lection Scores in Human Resource Man­

agement Decisions: Current Inaccuracies and the Effect of Conditional Standard Errors,” Orga­ nizational Research Methods, 2005, 8, pp. 259–273.

22. W. F. Cascio, I. L. Goldstein, and J. Outtz, “Social and Technical Issues in Staffing Decisions,” in H. Aguinis (ed.), Test­ Score Banding in Human Resource Se lection: Technical, Legal, and Societal Issues (Westport, CT: Praeger, 2004), pp. 7–28; R. E. Ployhart and B. C. Holtz, “The Diversity­ Validity Dilemma: Strategies for Reducing Racioethnic and Sex Subgroup Differences and Adverse Impact in Se lection,” Personnel Psy chol ogy, 2008, 61, pp. 153–172.

23. C. A. Henle, “Case Review of the Legal Status of Banding,” Human Per for mance, 2004, 17, pp. 415–432.

24. P. R. Sackett, N. Schmitt, J. E. Ellingson, and M. B. Kabin, “High­ Stakes Testing in Employ­ ment, Credentialing, and Higher Education,” American Psychologist, 2001, 56, pp. 302–318.

25. De Corte, Lievens, and Sackett, “Combining Predictors to Achieve Optimal Trade­ Offs Between Se lection Quality and Adverse Impact”; H. Aguinis and M. A. Smith, “Understanding the Impact of Test Validity and Bias on Se lection Errors and Adverse Impact in Human Resource Se lection,” Personnel Psy chol ogy, 2007, 60, pp. 165–190.

26. D. M. Finch, B. D. Edwards, and J. C. Wallace, “Multistage Se lection Strategies: Simulating the Effects on Adverse Impact and Expected Per for mance for Vari ous Predictor Combinations,” Journal of Applied Psy chol ogy, 2009, 94, pp. 318–340.

27. S. Wee, D. A. Newman, and D. L. Joseph, “More Than g: Se lection Quality and Adverse Impact Implications of Considering Second­ Stratum Cognitive Abilities,” Journal of Applied Psy chol­ ogy, 2014, 99, pp. 547–563; Ployhart and Holtz, “The Diversity­ Validity Dilemma: Strategies for Reducing Racioethnic and Sex Subgroup Differences and Adverse Impact in Se lection.”

28. C. Chadwick, J. F. Super, and K. Kwon, “Resource Orchestration in Practice: CEO Emphasis on SHRM, Commitment­ Based HR Systems, and Firm Per for mance,” Strategic Management Jour­ nal, 2015, 36, pp. 360–367; D. Ulrich, J. Allen, W. Brockbanck, J. Younger, and M. Nyman, HR Transformation: Building Human Resources From the Outside In (Chicago: McGraw­ Hill, 2009); T. Henneman, “Is HR at Its Breaking Point?” Workforce, March 22, 2013, www . workforce . com.

29 . D. G. Sirmon, M. A. Hitt, R. D. Ireland, and B. A. Gilbert, “Resource Orchestration to Create Competitive Advantage: Breadth, Depth, and Life Cycle Effects,” Journal of Management, 2011, 37, pp. 1390–1412; P. Stanton, S. Young, T. Bartram, and S. G. Leggat, “Singing the Same Song: Translating HRM Messages Across Management Hierarchies in Australian Hospitals,” Interna­ tional Journal of Human Resource Management, 2010, 21, pp. 567–581.

30. M. D. Nowicki and J. G. Rosse, “Man ag ers’ Views of How to Hire: Building Bridges Between Science and Practice,” Journal of Business and Psy chol ogy, 2002, 17, pp. 157–170.

099-67811_ch11_4P.indd 592 11/17/17 1:15 PM

CHAPTER ELEVEN Decision Making 593

31. D. M. Sikora and G. R. Ferris, “Strategic Human Resource Practice Implementation: The Critical Role of Line Management,” Human Resource Management Review, 2014, 24, pp. 271–281.

32. “Google Goes for Consensus in Hiring,” Recruiter, Apr. 28, 2010, p. 5. 33. D. D. Bennett­ Alexander and L. P. Hartman, Employment Law for Business, 8th ed. (New York:

McGraw­ Hill­ Education, 2015), pp. 224–237; R. K. Robinson, G. M. Franklin, and R. E. Wayland, Employment Regulation in the Workplace (Armonk, NY: M. E. Sharpe, 2010), pp. 182–212; US Equal Employment Opportunity Commission, “EEOC Compliance Manual,” 2006 (www . eeoc . gov / policy / docs / race ­ color . html), accessed July 27, 2010; D. Walsh, Employment Law for Human Resource Practice, 5th ed. (Boston: Cengage Learning, 2016), pp. 212–218 and 240–255.

099-67811_ch11_4P.indd 593 11/17/17 1:15 PM

099-67811_ch11_4P.indd 594 11/17/17 1:15 PM

C H A P T E R T W E LV E

Final Match

Learning Objectives and Introduction Learning Objectives Introduction

Employment Contracts Requirements for an Enforceable Contract Parties to the Contract Form of the Contract Disclaimers Contingencies

Job Offers Strategic Approach to Job Offers Job Offer Content

Job Offer Pro cess Formulation of the Job Offer Pre sen ta tion of the Job Offer Timing of the Offer Job Offer Ac cep tance and Rejection Reneging

New Employee Orientation and Socialization Orientation Socialization Long- Term Adjustment Examples of Programs

Legal Issues Employment Eligibility Verification Negligent Hiring Employment- at- Will

Summary

Discussion Questions

Ethical Issues

099-67811_ch12_4P.indd 595 11/15/17 6:48 PM

Applications Making a Job Offer Evaluating a Hiring and Variable- Pay Plan

Endnotes

099-67811_ch12_4P.indd 596 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 597

LEARNING OBJECTIVES AND INTRODUCTION

Learning Objectives

• Learn about the requirements for an enforceable contract • Recognize issues that might arise in the employment contract pro cess • Understand how to make strategic job offers • Plan for the steps of formulating and presenting a job offer • Know how to establish a formal employment relationship • Develop effective plans for new employee orientation and socialization • Recognize potential legal issues involving final matches

Introduction

In the previous chapter, we described how to reduce the initial applicant pool to a smaller set of candidates and identify one or more job finalists. In this chapter we move to the next stage— the pro cess of actually hiring the individuals who have been selected. A final match occurs when the offer receiver and the organ ization have determined that there is sufficient overlap between the person’s knowledge, skill, ability, and other characteristics (KSAOs) and the job’s requirements and rewards. Once the decision to enter the employment relationship has been made, the organ ization and the candidate become bound through mutual agreement on the terms and conditions of employment.

The initial theme of this chapter is setting the stage for a legally sound employ- ment relationship. Organ izations often get into legal trou ble when they fail to understand the contractual nature of many employment relationships. As we show, careless promises or guarantees made during the job offer can come back to haunt an organ ization when it needs to alter the employment relationship at a later time. This chapter also discusses the pro cess of convincing promising job finalists to take the job offer, and developing the grounds of the relationship that will persist throughout this individual’s employment through onboarding or socialization activities.

This chapter begins with an overview of employment contract concepts and princi ples, emphasizing the essential requirements for establishing a legally bind- ing employment contract. A strategic approach to job offers is then presented, fol- lowed by a discussion of the major components of a job offer and points to address in it. Through the job offer pro cess, these terms and conditions are proposed, discussed, negotiated, modified, and, ultimately, agreed on. Once agreement on the terms and conditions of employment has been reached, the final match pro cess is completed, and the formal employment relationship is established. To phase the new hire into his or her job, it is vital to develop appropriate techniques for ori- enting and socializing the newcomer. The chapter concludes with a discussion of

099-67811_ch12_4P.indd 597 11/15/17 6:48 PM

598 PART FIVE Staffing Activities: Employment

specific legal issues that pertain not only to the establishment of the employment contract but also to potential long- term consequences of the contract that must be considered at the time it is established.

EMPLOYMENT CONTRACTS

The establishment and enforcement of employment contracts is a very complex and constantly changing undertaking. Covered next are some very basic, yet subtle, issues associated with this undertaking. It is crucial to understand the ele ments that compose a legally enforceable contract and be able to identify the parties to the con- tract (e.g., employees, in de pen dent contractors, third- party representatives), the form of the contract (e.g., written, oral), disclaimers, and fulfillment of other conditions.

Since the staffing pro cess in general, and the job offer pro cess in par tic u lar, involves making promises to offer receivers about terms and conditions of employ- ment, it is impor tant for the organ ization to (1) not make promises it is unwilling to keep, and (2) be sure that promises made are actually kept. Unfulfilled promises may spur the disappointed person to pursue legal action against the organ ization. Several types of claims might be pursued.1

The first claim is that of breach of contract. This occurs when the candidate believes that an offer was made but was not fulfilled. This can happen even when an orga nizational representative makes an offhand comment like, “We hope you’ll join our workgroup soon!” The second claim is that of promissory estoppel. Here, even if there is no enforceable oral contract, employees may claim that they relied on promises made by the organ ization, to their subsequent detriment, since the actual or presumed job offer was withdrawn (such withdrawal is known as reneging). Examples of detrimental effects include resigning from one’s current employer, passing up other job opportunities, relocating geo graph i cally, and incur- ring expenses associated with the job offer. When the offer receiver experiences such detrimental reliance, the person may sue the employer for compensatory dam- ages. The final claim is that of fraud, where the employee claims the organ ization made promises it had no intention of keeping. Employees may legally pursue fraud claims and seek both compensatory and punitive damages.

Requirements for an Enforceable Contract

Three basic ele ments are required for a contract to be legally binding and enforce- able: offer, ac cep tance, and consideration.2 If any one of these is missing, there is no binding contract.

Offer The offer is usually made by the employer and is composed of the terms and con- ditions of employment desired and proposed by the employer. The terms must be

099-67811_ch12_4P.indd 598 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 599

clear and specific enough to be acted on by the offer receiver. Vague statements and offers are unacceptable (e.g., “Come to work for me right now; we’ll work out the details later”). The content of advertisements for the job and general written employer material, such as a website describing the organ ization, are prob ably too vague to be considered offers. Both the employer and the offer receiver should have a definite understanding of the specific terms proposed.

Ac cep tance To constitute a contract, the offer must be accepted on the terms as offered. Ac cep- tance of an offer on a contingency basis does not constitute an ac cep tance. If the offer receiver responds to the salary offer of $70,000 by saying, “Pay me $75,000 and I’ll come work for you,” this is not an ac cep tance. Rather, it is a counteroffer, and the employer must now either formally accept or reject it. The offer receiver must also accept the offer in the manner specified in the offer. If the offer requires ac cep tance in writing, for example, the offer receiver must accept it in writing. Similarly, if the offer requires ac cep tance by a certain date, it must be accepted by that date.

Consideration Consideration entails the exchange of something of value between the parties to the contract. Usually, it involves an exchange of promises. The employer offers or promises to provide compensation to the offer receiver in exchange for labor, and the offer receiver promises to provide labor to the employer in exchange for compensation. The exchange of promises must be firm and of value, which is usu- ally quite straightforward. Occasionally, consideration can become an issue. For example, if the employer makes an offer to a person that requires a response by a certain date, and then does not hear from the person, there is no contract, even though the employer thought that they “had a deal.”

Parties to the Contract

Two issues arise regarding the parties to the contract: whether the employer is enter- ing into a contract with an employee or an in de pen dent contractor, and whether an outsider or third party can execute or other wise play a role in the employment contract.3

Employee or In de pen dent Contractor Individuals are hired by the organ ization as either employees or in de pen dent con- tractors. Both of these terms have definite legal meanings that the organ ization should review (see Chapter 2) before entering into a contractual relationship. The organ ization should be clear in its offer whether the relationship being sought is that of employer– employee or employer– independent contractor. Experts report

099-67811_ch12_4P.indd 599 11/15/17 6:48 PM

600 PART FIVE Staffing Activities: Employment

that companies have been increasingly claiming that individuals who should be classified as employees are being reported as in de pen dent contractors. As a result, the Department of Labor has been working to identify organ izations that are misclassifying employees. This push has resulted in the collection of millions of dollars in unpaid taxes, as well as payouts of millions of additional dollars due to underpayments and insufficient benefits provision.4 Therefore, understanding how to maintain the distinction between an employee and an in de pen dent contractor will be of great importance.

Third Parties Often, someone other than the employer or the offer receiver speaks on their behalf in the establishment or modification of an employment contract. For the employer, this may mean the use of outsiders such as employment agencies, execu- tive recruiters, or search con sul tants; it also usually means the use of one or more employees, such as the human resource (HR) department representative, the hiring man ag er, higher- level man ag ers, and other man ag ers within the organ ization. For the offer receiver, it may mean the use of a special representative, such as a profes- sional agent for an athlete or an executive. It should be very clear who speaks for the offer receiver and what limits are placed on this person by the offer receiver. Employers have to be especially careful, because virtually any employee could sug- gest and agree to contract terms, knowingly or unknowingly. This means that the employer should formulate and enforce explicit policies as to who is authorized to speak on its behalf and what the spokesperson is authorized to discuss and agree to.

Form of the Contract

Employment contracts may be written ( whether documented on paper or with electronic media), oral, or a combination of the two.5 As a general rule, the law favors written contracts over oral contracts, although all may be legally binding and enforceable.

Written Contracts A written contract may take many forms, and all may be legally enforceable. Exam- ples of a written document that may be construed as a contract include a letter of offer and ac cep tance (the usual example), a statement on a job application blank (such as an applicant voucher to the truthfulness of information provided), internal job posting notices, e- mail messages, and statements in employee handbooks or on websites. The more specific the information and statements in the documentation, the more likely they are to be considered employment contracts.

Unintended prob lems may arise with this documentation. They may be interpreted as enforceable contracts even though that was not their intent (perhaps the intent was merely informational), or statements on a given term or condition of employ- ment may contradict one another across vari ous documents.

099-67811_ch12_4P.indd 600 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 601

A com pany’s desire to have a strictly at- will employment relationship may unintentionally become undercut by documentation that implies something else. For example, electronic correspondence with an applicant may talk of “continued employment after you complete your probationary period.” This statement might be legally interpreted as creating something other than a strict at- will employment relationship.

Care must be taken to ensure that all communication accurately conveys only the intended meanings regarding terms and conditions of employment. To this end, the following suggestions should be heeded:6

• Before putting anything in writing, ask, “Does the com pany mean to be held to this?”

• Avoid using words that imply a binding commitment. • Make sure all related documentation is internally consistent. • Always have a second person, preferably a lawyer, review what has been written. • Look at the entire hiring procedure, including recruiting and se lection prac-

tices, and consider any and all written documentation within that context.

Oral Contracts While oral contracts may be every bit as binding as written contracts, there are two notable exceptions that support placing greater importance on written contracts.

Generally, oral statements are more likely to be enforceable as employment con- tract terms in the following situations:7

• When there is no written statement regarding the terms of employment in question

• When the terms in the oral statement are quite certain and specific • When the person making the oral statement is in a position of authority to do

so (e.g., the hiring man ag er as opposed to a coworker) • When the oral statement is made under more formal circumstances

For example, if a supervisor (person in authority) says to a potential employee during a job interview (formal circumstance), “Your work schedule will only cover weekdays” (certain and specific terms), and there is no written evidence to the contrary, the oral statement may be seen as part of a contract. On the other hand, if a coworker (not in authority) says to a potential employee during a meet and greet event at a college recruiting fair (informal circumstance), “ People don’t usually work weekends, but it can vary” (uncertain and vague terms), and the actual written employment agreement specifies that weekend work is pos si ble, the oral statement is far less likely to be seen as part of a contract.

Oral statements may pres ent legal prob lems and challenges not only at the time of the initial employment contract but also throughout the course of the employment relationship. Of par tic u lar concern here are oral promises made to employees

099-67811_ch12_4P.indd 601 11/15/17 6:48 PM

602 PART FIVE Staffing Activities: Employment

regarding future events, such as job security (“ Don’t worry, you will always have a place with us”) or job assignments (“ After training, you will be assigned as the assistant man ag er at our new store”).

As this discussion makes clear, from a legal perspective, oral statements are a potential minefield in establishing employment contracts. They obviously cannot be avoided (the employer and the applicant have to speak to each other), and they may serve other legitimate and desired outcomes, such as providing realistic recruit- ment information to job applicants. Nonetheless, the organ ization should use oral statements with extreme caution and alert all members to its policies regarding their use. As further protection, the organ ization should include in its written offer that, by accepting the offer, the employee agrees the organ ization has made no other promises than those contained in the written offer.

Disclaimers

A disclaimer is a statement (oral or written) that explic itly limits an employee’s right and reserves that right for the employer.8 Disclaimers are often used in letters of appointment, job application blanks, and employee handbooks.

A common employee “right” that is being limited by a disclaimer is that of job security. Here, through its policy of employment- at- will, the employer explic- itly makes no promise of any job security and reserves the right to terminate the employment relationship at its own will. The following is an example of such a disclaimer suggested by the Society for Human Resource Management:

Your employment with [com pany name] is a voluntary one and is subject to termination by you or [com pany name] at will, with or without cause, and with or without notice, at any time. Nothing in these policies shall be interpreted to be in conflict with or to eliminate or modify in any way the employment- at- will status of [com pany name] employees. This policy of employment- at- will may not be modified by any officer or employee and shall not be modified in any publication or document.9

An employment- at- will disclaimer should appear in the job offer letter. It should also appear on the application blank, along with two other disclaimers. First, there should be a statement of consent by the applicant for the organ ization to check provided references, along with a waiver of the right to make claims against them for anything they say. Second, there should be a so- called false statement warn- ing, indicating that any false statement, misleading statement, or material omission may be grounds for dismissal.

In the case of disclaimers in employee handbooks, the employer must consider whether these statements are legally enforceable or merely informational. While there is legal opinion on both sides of this question, handbooks are increasingly being considered as a legally enforceable part of the employment contract. To avoid

099-67811_ch12_4P.indd 602 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 603

this occurrence, the employer may wish to place an explicit disclaimer in the hand- book that states the intent is to provide only information to employees and that the employer will not be bound by any of the statements contained in the handbook.

Disclaimers are generally enforceable. They can thus serve as an impor tant component of employment contracts. Their use should be guided by the following set of recommendations:10

1. They should be clearly stated and conspicuously placed in appropriate documents.

2. The employee should acknowledge receipt and review of the document and the disclaimer.

3. The disclaimer should state that it may be modified only in writing and by whom.

4. The terms and conditions of employment, including the disclaimer, as well as limits on their enforceability, should be reviewed with offer receivers and employees.

Contingencies

The employer may wish to make a job offer that is contingent on certain other conditions being fulfilled by the offer receiver.11 Examples of such contingencies include (1) passage of a par tic u lar test, such as a licensure exam (e.g., CPA or bar exam), (2) passage of a medical exam, including alcohol/drug screening tests, (3) satisfactory background and reference checks, and (4) proof of employability under the Immigration Reform and Control Act (IRCA).

Though contingencies to a contract are generally enforceable, contingencies to an employment contract (especially those involving any of the preceding examples) are exceedingly complex and may be made only within defined limits. For this reason, contingencies should not be used in employment contracts without prior legal counsel.

JOB OFFERS

A job offer is an attempt by the organ ization to induce the offer receiver into the establishment of an employment relationship. Assuming that the offer is accepted and that consideration is met, the organ ization and the offer receiver will have established their relationship in the form of a legally binding employment contract. That contract is the culmination of the staffing pro cess. The contract also signifies that the person/job match pro cess has concluded and that the person/job match is now about to become a real ity. That real ity, in turn, becomes the start of, and foun- dation for, subsequent employee effectiveness on vari ous HR outcomes. For these

099-67811_ch12_4P.indd 603 11/15/17 6:48 PM

604 PART FIVE Staffing Activities: Employment

reasons, the content and extension of the job offer become critical final parts of the overall staffing pro cess.

This section discusses a strategic approach to job offers, along with the numer- ous factors that should be considered in the determination of the content of job offers. Then the actual content of job offers is discussed, along with some of the complexities associated with it.

Strategic Approach to Job Offers

The organ ization has considerable discretion in the content of the offers that it puts together to pres ent to finalists. Rather than hastily crafting job offers, often in the heat of the hiring moment and with a desire to fill the vacancy now, it is better to think a bit more strategically about job offer content.

Shown in Exhibit 12.1 is the strategic approach to job offers, or the employee value proposition (EVP). The EVP is the total package of extrinsic and intrinsic rewards that the offered job will provide to the finalist if the job offer is accepted. Technically, the job offer is not the same as the EVP, because it is difficult to write in the job offer letter the nature of the intrinsic rewards that will be provided, and because a job offer contains information in addition to job rewards (e.g., starting date, date the offer lapses, and disclaimers). Nonetheless, the major thrust and purpose of the job offer is to convey to the finalist the nature of the rewards “deal”

EXHIBIT 12.1 Strategic Approach to Job Offers

Organization Needs

Short- and long-term outcomes Cost control

Legal Issues

Contract language EEO/AA goals

Applicant Needs

Reward sought Willingness to leave job

Labor Market Conditions

Supply availability Tightness

Job O�er (Employee Value

Proposition)

099-67811_ch12_4P.indd 604 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 605

being promised if the offer is accepted. First and foremost, the job offer must be a compelling one—an EVP the finalist will find enticing and difficult to turn down.12 The offer thus must pres ent a package of rewards with the right combination of magnitude, mix, and distinctiveness to be compelling to the offer receiver.

Exhibit 12.1 indicates that labor market conditions, organ ization needs, appli- cant needs, and legal issues are forces to consider in the creation of job offers. As to labor markets, the simple availability of potential offer receivers needs to be considered. If there are few individuals with the required KSAOs, offers may need to be more generous than if the skills are easily acquired. Similarly, in a tight labor market in which there are few applicants per opening, job offers need to have a stronger EVP compared to the situation when many job seekers can be found.

The organ ization has both short- and long- term goals for hiring. For example, short- term objectives include getting someone in the position and ready to perform quickly. Such objectives produce pressure for hiring bonuses and high starting pay. Long- term outcomes such as the extent to which the employee fits in with the organ- ization and work unit, the promotability of the employee, and expected retention suggest correspondingly long- term offer components like deferred compensation and development plans. Fi nally, cost control must come into play. All job offers will cost the organ ization if accepted, so how much is it willing to spend?

In terms of applicant needs, the organ ization must seek to identify the rewards likely sought by applicants. Many of the princi ples related to applicant attraction that were covered in the discussion of job rewards job analy sis and the recruit- ing strategy are still relevant during the offer stage. Strategically, it will be helpful to identify rewards with a distinctiveness that may be particularly alluring. For example, Red Frog Events emphasizes factors that set it apart from alternative employers. The extrinsic features of the EVP include not just competitive pay and benefits but also unlimited vacation days and a four- week, all- expenses- paid sab- batical for travel after five years of ser vice. Unique intrinsic features of the EVP include a casual environment, energized and motivated teams, and one- on- one job coaching. Having a compelling EVP is especially impor tant for firms like Red Frog that are rapidly expanding and need a flow of qualified new employees.13 The EVP should also be tailored to the types of employees being sought. One study of over 1,000 individuals in the United States demonstrated some of the dif- fer ent types of preferences employees have.14 About a third of respondents were identified as stabilizers and preferred team- based rewards, communication, and work- value balance. Another quarter of respondents were pioneers who were more intrinsically motivated and most valued work that allowed them to learn and con- tribute. Drivers, who made up about a quarter of respondents, valued achievement and success and so preferred work with a clear track to promotions. Fi nally, the remaining respondents were most interested in social work environments in which they could make a positive impact on others. Organ izations should consider what types of employees they are recruiting for each job and make sure their EVP fits for these individuals.

099-67811_ch12_4P.indd 605 11/15/17 6:48 PM

606 PART FIVE Staffing Activities: Employment

Coupled with the assessment of applicant needs should be an assessment of the finalists’ willingness to leave their current jobs. If the finalist is relatively willing, or even eager to leave, the job offer may not need to be very compelling in magni- tude, mix, or distinctiveness. On the other hand, if the finalist is satisfied with the current job and current geographic location, the need to craft a compelling offer rises dramatically. Essentially, such offers must provide an EVP that stirs in the finalist a dissatisfaction with the current job and boosts the willingness to change locations, both by pointing out positive features of the new location and by mini- mizing the costs of making the move.

Job Offer Content

The organ ization has considerable latitude in specifying the terms and conditions of employment that it may offer to people. That latitude, of course, should be exer- cised within the organ ization’s par tic u lar applicant attraction strategy.

With some degree of latitude in terms and conditions offered for almost any job, it is apparent that job offers should be carefully constructed. There are definite rewards that can, and for the most part should, be addressed in any job offer. More- over, the precise terms or content of the offer to any given finalist requires careful forethought. What follows is a discussion of the types of rewards to address, as well as some of their subtleties and complexities.

Starting Date Normally, the organ ization controls when the employment relationship begins. To do so, it must provide a definite starting date in its offer. If it does not, ac cep tance and consideration of the offer occur at the time the new hire actually begins work. Oftentimes, the starting date is one that allows the offer receiver at least two weeks to provide notification of resignation to a current employer.

Duration of Contract Employment contracts may be of a fixed term (i.e., have a definite ending date) or an indeterminate term (i.e., have no definite ending date). The decision about dura- tion is intimately related to the employment- at- will issue.

A fixed- term contract provides certainty to both the new hire and the organ- ization regarding the length of the employment relationship. Both parties decide on and must abide by an agreed-on term of employment. The organ ization can then (according to common law) terminate the contract prior to its expiration date for “just cause” only. Determination and demonstration of just cause can be a compli- cated legal prob lem for the organ ization.

Most organ izations are unwilling to provide such employment guarantees. They much prefer an employment- at- will relationship, in which either party may termi- nate the employment relationship at any time without having to demonstrate just cause.15 Should the organ ization decide to have indeterminate- term employment

099-67811_ch12_4P.indd 606 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 607

contracts, it should carefully state in its written offer that the duration is indeter- minate and that it may be terminated by either party at any time, for any reason. Because of the overriding importance of this issue, all wording should be approved at the highest orga nizational level.

Although employers can request that employees give advance notice (e.g., two weeks’ notice) before quitting, employment- at- will generally does not allow employers to compel employees to give advance notice. Some employers specify in their policies that employees who do not give notice will be ineligible for rehire or will be denied accumulated vacation time, but some state laws prohibit these actions.16

Compensation Although recent research suggests that orga nizational characteristics and per- ceived working conditions are the strongest predictors of applicant attraction in the final stages of the job choice pro cess, compensation remains a power ful predictor of employee interest at the point of a job offer.17 Compensation is a multifaceted set of rewards that may be presented to the offer receiver in many forms. Some- times it consists of a standard pay rate and benefits package, which must be simply accepted or rejected. Other times the offer may be more tailor- made, often negoti- ated in advance.

Job seekers carry with them a set of pay preferences and expectations that shape how they respond to the compensation components of the job offer. A survey of around 600 employees conducted in 2012 across diverse industries and jobs found that employees thought being paid competitively with the local market was the most impor tant feature of a pay plan, while opportunities for variable pay (e.g., bonuses or commissions) and stock options ranked substantially lower.18 The same survey also found that health care and paid time off were the most impor tant ben- efits, while family- friendly benefits were the least impor tant. So contrary to some speculation in the popu lar press, most employees are still seeking a strong conven- tional compensation package as their highest priority. The compensation portion of the job offer should thus be carefully thought out and planned in advance. This pertains to starting pay, variable pay, and benefits.

Starting Pay: Flat Rate. In flat- rate job offers, all persons are offered an identi- cal rate of pay, and variance from this is not permitted. Starting pay is thus offered on a “take it or leave it” basis.

Use of flat rates is appropriate in many circumstances, such as the following examples:

• When there is a plentiful supply of job applicants • Where applicants are of quite similar KSAO quality • Where there is a desire to avoid creating potential inequities in starting pay

among new employees

099-67811_ch12_4P.indd 607 11/15/17 6:48 PM

608 PART FIVE Staffing Activities: Employment

Note that under some circumstances, use of flat rates may be mandatory. Exam- ples here include pay rates under many collective bargaining agreements and for many jobs covered by civil ser vice laws and regulations.

Starting Pay: Differential Rates. Organ izations often opt out of flat rates, despite their simplicity, and choose differential starting pay rates. In general, this occurs under three sets of circumstances.

First, there are situations where the organ ization thinks there are clear qualita- tive (KSAO) differences among finalists. Education is one factor that matters. After taking parents’ level of income and education into account, college gradu ates earn 66% more than high school gradu ates, and those holding masters’ degrees earn 106% more than high school gradu ates.19 It’s also clear that workers with dif fer- ent fields of study have significant differences in income. Science and technology majors make more than humanities majors, and the returns on a science or technol- ogy degree are even greater for individuals with higher levels of cognitive ability.20 Fi nally, some market conditions lead employers to devote more money to hiring “stars.” As an example, software companies that develop products for fast- moving and evolving markets tend to pay especially high premiums to experienced and highly skilled workers.21

The second situation occurs when the organ ization is under intense pressure to acquire new employees and fill vacancies promptly. To accomplish these out- comes, flexibility in starting pay offers is used to respond to finalists’ demands, to sweeten offers, and to other wise impress applicants with a willingness to accom- modate their needs.

The third situation involves geographic pay differentials. For organ izations with multiple facilities in dif fer ent geographic areas, the starting pay rate for any par tic u lar job may need to vary because of average pay differentials across geographic areas. For example, for the job of HR man ag er, which had an average national rate of $99,270 in 2013, pay varied from $65,500 in Mississippi to $118,300 in Delaware.22 Clearly, starting pay must take into account geographic pay variation.

Use of differential starting pay rates requires attention to several potential prob- lems.23 Issues of fairness and internal equity among employees may arise when there is too much discretion in the range of starting salaries. Naturally, similarly quali- fied employees receiving wide differences in starting pay is a guaranteed recipe for perceived pay inequities, and paying new hires starting salaries that exceed those of current “leapfrogged” employees also fuels the perceived inequity flames. Research shows that women are less likely than men to negotiate for higher wages at the time of hire, leading to lower starting wages and clear grounds for discrimination claims.

For such reasons, whenever differential rates of starting pay are used, the organ- ization must carefully consider what is permissible and within bounds. These con- straints may specify when differential starting pay offers may be made and where within a pay range starting pay rates must fall. Exhibit 12.2 contains an example of such starting pay policies.

099-67811_ch12_4P.indd 608 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 609

Variable Pay: Short Term. Prior to the job offer, the organ ization should deter- mine whether there should be variable pay. This can have impor tant implica- tions for the likely effectiveness of staffing activities. If there are to be short- term variable- pay plans, the organ ization should communicate this in the offer letter.

Consider an organ ization with sales jobs, a classic example of a situation in which incentive or commission pay systems might be used. The mere presence/ absence of such a pay plan will likely affect the motivation/job rewards part of the matching pro cess. “Different types of workers” may be attracted to jobs providing incentive plans as opposed to those that do not. Employees will not be satisfied if their expectations for variable pay aren’t met, so advance communication is needed.

More generally, research shows that the use of short- term incentive pay is quite common, with almost 90% of private sector, 76% of partnerships, and 44% of pub- lic sector organ izations offering incentive pay plans of vari ous sorts. Of these organ- izations, 95% provide cash payments via individual incentive pay and bonuses, based on financial, customer ser vice, production, goal attainment, efficiency, and cost reduction mea sures. Enhancing motivation to perform is clearly a reason for variable pay, but staffing is also a consideration— two of the major reasons these organ izations provide for such short- term incentive offerings are to compete for qualified employees and to retain employees.24

Variable Pay: Long Term. Long- term variable- pay plans provide employees owner ship opportunity and the opportunity to increase their income as the value of the organ ization increases. Applicable only in the private sector, stock options— either

The Wright Company

The following policies regarding starting pay must be adhered to:

1. No person is to be offered a salary that is below the minimum, or above the midpoint, of the salary range for the job.

2. Generally, persons with reasonable qualifications should be offered a salary within the first quartile (bottom 25%) of the salary range for the job.

3. Salary offers above the first quartile, but not exceeding the midpoint, may be made for exceptionally well- qualified persons, or when market conditions dictate.

4. Salary offers should be fair in relation to other offers made and to the salaries paid to current employees.

5. Salary offers below the first quartile may be made without approval; offers at or above the first quartile must be approved in advance by the manager of compensation.

6. Counteroffers may not be accepted without approval of the manager of compensation.

EXHIBIT 12.2 Example of Starting Pay Policies

099-67811_ch12_4P.indd 609 11/15/17 6:48 PM

610 PART FIVE Staffing Activities: Employment

an incentive stock option or a nonqualified stock option— are the most commonly used long- term variable- pay plans.25 A stock option is a right to purchase a share of stock for a predetermined price at a later date; there is both a time span during which the right may be exercised (e.g., 10 years) and a waiting period before the employee is eligible (vested) to make purchases (e.g., 1 year).

Stock options only have value to the recipient if the value of the stock appreci- ates beyond the purchase price and if the employee remains eligible to participate in the plan— such as through remaining with the organ ization for a specified time period. Research suggests that stock options tend to impact employee per for- mance only ­after the options have been exercised.26 In other words, stock options are motivational only for workers who have already been paid. However, a reward that only pays out after a long time may enhance a sense of participation and loyalty, which further translates into retention.27 This means that like short- term variable pay, long- term variable pay may be offered for reasons related to staffing.

Perhaps because man ag ers have also noticed that stock options do not achieve their stated goals, their use has been waning. Taking the place of stock options are numerous other long- term variable- pay plans— performance options, stock appre- ciation rights, stock grants, restricted stock, delayed issuance awards, employee stock owner ship, and employee stock purchase. Each of these types of plans has both strong and weak points, and careful analy sis of the objectives sought (e.g., employee retention) should occur prior to its use and pre sen ta tion to job offer receivers.28 As with short- term variable- pay plans, the job offer letter should men- tion the right or requirement to participate in these plans, but not go into too much detail about them.

Benefits. A job is usually accompanied by a fixed benefits package that is offered to all offer receivers. Examples include health insurance and retirement and work/ life plans. When a fixed or standard benefits package is offered, the offer letter should not spell out all of the specific benefit provisions. Rather, it should state that the employee would be eligible to participate in the benefit plans maintained by the organ ization, as provided in written descriptions of these plans. In this way, the job offer letter does not inadvertently make statements or promises that contradict or go beyond the organ ization’s actual benefits plan.

Hiring Bonuses. Hiring, signing, or “up- front” bonuses are onetime payments offered and subsequently paid upon ac cep tance of the offer. Typically, the bonus is in the form of an outright cash grant; the bonus may also be in the form of a cash advance against future expected earnings. Top executives are likely to receive not only a cash bonus but also restricted stock and/or stock options. Use of short- term incentives is continually increasing, with one study finding that over half of sur- veyed companies offer hiring bonuses.29

Offers of hiring bonuses should be used judiciously. For example, while it is desirable to be flexible as to the use and amount of hiring bonuses, it is necessary

099-67811_ch12_4P.indd 610 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 611

to carefully monitor them so that they do not get out of control. Also, it is impor tant to avoid getting into overly spirited hiring bonus bidding wars with competitors— the other rewards of the job need to be emphasized in addition to the bonus. A danger is that hiring bonuses might give rise to feelings of jealousy and inequity, necessitating retention bonuses if existing employees learn of the bonuses given to new hires. To avoid this possibility, hiring bonuses should be confidential. Another potential prob lem is that bonus recipients may be tempted to “take the money and run,” and their per for mance motivation may be lessened because their bonus money is not contingent on their job per for mance.

To address these prob lems, the organ ization may place restrictions on the bonus payment, paying half up front and the other half after some designated time period, such as 6 or 12 months; another option is to make payment of a portion or all of the bonus contingent on meeting certain per for mance goals within a designated time period. Such payment arrangements should help other employees see the hiring bonus as not a total “freebie” and should encourage only serious and committed offer receivers to accept the offer. Although such “clawbacks” are awkward, and some employers have had difficulties enforcing such agreements, they are gener- ally necessary in some form because the labor markets in which bonuses are most likely to be used (tight labor markets) are the same markets in which job- hopping is very easy to do.30

Relocation Assistance. Ac cep tance of the offer may require a geographic move and entail relocation costs for the offer receiver. The organ ization may want to provide assistance to conduct the move, as well as totally or partially defray mov- ing costs. Thus, a relocation package may include assistance with house hunting, guaranteed purchase of the applicant’s home, a mortgage subsidy, actual moving cost reimbursement, and a cost- of- living adjustment if the move is to a higher- cost area. To simplify things, a lump- sum relocation allowance may be provided, thus reducing rec ord keeping and other paperwork.31 Man ag ers should be especially attentive to the potential needs of dual- career couples and may find offering job search assistance as part of the package a valuable enticement.32 An increasing number of companies are giving employees relocation counseling prior to a formal job offer, to ensure that applicants know all the costs and benefits of moving in advance. If applicants are well informed about the likely outcome of a move, those who might drop out of the pro cess can be eliminated from consideration before an expensive investment in se lection and hiring is made.33

Severance Packages. Terms and conditions that the organ ization states the employee is entitled to upon departure from the organ ization constitute a severance package. Content of the package typically includes one or two weeks of pay for every year of ser vice, earned vacation and holiday pay, extended health insurance coverage and premium payment, and outplacement assistance in finding a new job.34 What is the organ ization willing to provide?

099-67811_ch12_4P.indd 611 11/15/17 6:48 PM

612 PART FIVE Staffing Activities: Employment

In pondering this question, a few points should be borne in mind. Severance packages for top executives are usually expected and provided, and their provi- sions can be quite complex. Lower- level man ag ers and non- managers also appear to be aware of and expect severance packages. In other words, job applicants con- sider these packages as part of the EVP. This expectation is prob ably due to a real- ization of how marketable their KSAOs are, as well as increased concerns about job security and layoff protection. Unmet severance expectations may translate into demands by candidates for a severance package to be included in their job offer, or a refusal to even consider a job offer that does not provide some form of severance benefit.35

Other thorny issues surround these packages. When does an employee become eligible for the package? Will severance be granted for voluntary or involuntary termination, or both? If involuntary, are there exceptions, such as for unacceptable job per for mance or misconduct? Questions such as these illustrate the need to very carefully craft the terms that will govern the package and define its contents.

Idiosyncratic Deals While most of our discussion up to this point has centered around negotiating com- mon contract terms, with an emphasis on salary and benefits, many organ izations find that employees wish to engage in a discussion of unique terms that go beyond the traditional menu. The results of these negotiations are “idiosyncratic deals,” and they can have impor tant consequences.36

What makes a deal idiosyncratic? The most impor tant features are that it is indi- vidually negotiated, concerns issues unique to the specific employee, is mutually beneficial for the employee and the employer, and varies in its scope. The main goal here is to strike an integrative or win– win arrangement in which both the employer and the employee expand the terms of the negotiation pro cess to capture positive outcomes that benefit both parties.37 Unlike traditional negotiation, which asks “how much” employees get from a job (e.g., how much money), idiosyncratic negotiations are about “what” employees get (e.g., a variety of dif fer ent work and benefit items).

Four broad categories cover the content of most idiosyncratic deals.38 They are described in Exhibit 12.3, along with examples of each category. Because of the nature of idiosyncratic deals, it is impossible to list all the pos si ble ele ments of these deals; each situation is unique.

Idiosyncratic deals have resulted in a number of unique positive outcomes. Research has shown that employees who have negotiated tasks, work responsibili- ties, and schedule flexibility to fit their needs are particularly satisfied, committed to their employers, and engaged in their work.39 Because we know that satisfied and committed employees are less likely to quit, employers should definitely take these deals into account during the negotiation pro cess. Other research has shown that employees who have idiosyncratic deals help their coworkers and pitch in with

099-67811_ch12_4P.indd 612 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 613

extra effort above and beyond what is generally required, further demonstrating the importance of taking a broader perspective of the job negotiation pro cess.40

Restrictions on Employees In some situations, the organ ization may want to place certain restrictions on employees to protect its own interests. These restrictions should be known, and agreed to, by the new employee at the time of hire. Thus, they should be incorpo- rated into the job offer and resultant employment contract. Because of the poten- tial complexities in these restrictions and because they are subject to state contract

EXHIBIT 12.3 Elements and Examples of Idiosyncratic Deals

Category Examples

Tasks and work responsibilities that are specially tailored to the employee’s unique KSAOs

• Allow an engineer with an interest and background in marketing to participate in marketing meetings

• Give a salesperson who is especially familiar with a certain product line paid time to share expertise with other workers

• Give a customer service provider who is interested in management paid time to attend skill development workshops

Flexible schedules to accommodate individual employee needs

• Allow an employee to come in later in the day and leave later to accommodate child care needs

• Allow an employee whose spouse works a nonstandard workweek to work a Tuesday to Saturday schedule

• Allow a nonexempt employee to work variable hours from week to week

The ability to work outside the main office

• Use a virtual private network or cloud-based servers to allow employees to access work data remotely

• Provide a mobile device like a tablet computer or smartphone and pay for connectivity fees for an employee who travels frequently with family

Financial incentives that are particular to the employee and match his or her unique contribution to the organization

• Compensate an especially productive research developer based on patent applications

• Designate an employee with well-developed social networks a “rainmaker” and pay him a bonus for each new client he brings in

• Pay a bonus to a manager with strong developmental skills for each person successfully mentored

099-67811_ch12_4P.indd 613 11/15/17 6:48 PM

614 PART FIVE Staffing Activities: Employment

laws, legal counsel should be sought to guide the organ ization in drafting appropri- ate contract language. Several types of restrictions are pos si ble.41

One form of restriction involves so- called confidentiality clauses that prohibit current or departing employees from the unauthorized use or disclosure of confi- dential information during or after employment. Confidential information is any information not made public and that gives the organ ization an advantage over its competitors. Examples of such information include trade secrets, customer lists, secret formulas, manufacturing pro cesses, marketing and pricing plans, and business forecasts. It will be necessary to spell out, to some degree, exactly what information the organ ization considers confidential, as well as the time period after employment for which confidentiality must be maintained.

Another restriction, known as a noncompete agreement, seeks to keep departed employees from competing against the organ ization. For example, former Microsoft VP Kai- Fu Lee signed a noncompete agreement when he first joined Microsoft. When Lee left Microsoft to run a Google research fa cil i ty in China, Microsoft sued Google and Lee for violating his noncompete agreement. Google and Microsoft eventually settled out of court, but the case showed that not all noncompete agree- ments are enforceable. For example, some states (Alabama, California, Georgia, Montana, Nebraska, North Dakota, Oklahoma, and Texas) do not favor noncom- petes. If an employee signs a noncompete agreement in a state that allows them, but relocates to a state that disfavors them, the employer may be out of luck— which is exactly what happened to Convergys Corp. when an employee signed a noncompete agreement with Convergys in Ohio and then moved to work for a competitor in Georgia, which bars such agreements.42

More generally, noncompete agreements cannot keep departed employees from practicing their trade or profession completely or in def initely, for this would in essence restrict the person from earning a living in a chosen field. Accordingly, the noncompete agreement must be carefully crafted in order to be enforceable. The agreement should prob ably not be a blanket statement that applies to all employees; rather, the agreement should apply to those employees who truly could turn into competitors, such as high- level man ag ers, scientists, and technical staff. Addition- ally, the agreement must be limited in time and geography. The time should be of short duration (less than two years), and the area should be limited to the geo- graphic area of the organ ization’s competitive market. For example, the VP of sales for an insurance agency with locations in two counties of a state might have a non- compete agreement that prohibits working with any other agencies within the two counties, and the solicitation of the agency’s policyholders, for one year.

A final type of restriction is the “golden handcuff,” or payback agreement. The intent of this restriction is to retain new hires for some period of time and to finan- cially discourage them from leaving the organ ization, particularly soon after they have joined. A typical golden handcuff requires the employee to repay (in full or pro rata) the organ ization for any up- front payments made at the time of hire if the employee departs within the first year of employment. These payments might

099-67811_ch12_4P.indd 614 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 615

include hiring bonuses, relocation expenses, tuition reimbursements, or any other financial hiring lures. Executive pay packages might contain even more restrictions designed to tie the executive to the organ ization for an extended period of time. Annual bonuses might be deferred for two or three years and be contingent on the executive not leaving during that time, or an executive may forfeit accrued pension benefits if he or she departs before a par tic u lar date.

Ac cep tance Terms The job offer should specify terms of ac cep tance required of the offer receiver. For reasons previously noted regarding oral contracts, ac cep tances should normally be required in writing only. The receiver should be required to accept or reject the offer in total, without revision. Any other form of ac cep tance is not an ac cep tance, merely a counteroffer. Fi nally, the offer should specify the date, if any, by which it will lapse. A lapse date is recommended so that certainty and closure are brought to the offer pro cess.

Sample Job Offer Letter A sample job offer letter that summarizes and illustrates the previous discussion and recommendations regarding job offers is shown in Exhibit 12.4. This letter should be read and analyzed for purposes of becoming familiar with job offer letters, as well as gaining an appreciation for the many points that need to be addressed in such a letter. Remember that, normally, what ever is put in the job offer letter, once accepted by the receiver, becomes a binding employment contract. Examples of more complex job offer letters, more relevant to executives, might also be consulted.

JOB OFFER PRO CESS

Besides knowing the types of issues to address in a job offer, it is equally impor tant to understand the total job offer pro cess. The content of any specific job offer must be formulated within a broad context of considerations. Once these have been taken into account, the specific offer must be developed and presented to the final- ist. Following this, there will be matters to address in terms of either ac cep tance or rejection of the offer. Fi nally, there will be an occasional need to deal with the unfortunate issue of reneging, either by the organ ization or by the offer receiver.

Formulation of the Job Offer

When the organ ization puts together a specific job offer, several factors should be explic itly considered: knowledge of the terms and conditions offered by com- petitors, applicant truthfulness about KSAOs and reward information provided, the receiver’s likely reaction to the offer, and policies on negotiation of job offer content with the offer receiver.

099-67811_ch12_4P.indd 615 11/15/17 6:48 PM

616 PART FIVE Staffing Activities: Employment

The Wright Company Mr. Vern Markowski 152 Legion Lane Clearwater, Minnesota

Dear Mr. Markowski:

We are pleased to offer you the position of Human Resource Specialist, beginning March 1, 2016. Your office will be located here in our main facility at Silver Creek, Minnesota.

This offer is for full- time employment, meaning you will be expected to work a minimum of 40 hours per week. Weekend work is also expected, especially during peak production periods.

You will receive a signing bonus of $2,500, half payable on March 1, 2016, and the other half on August 1, 2016, if you are still an employee of the company. Your starting pay will be $3,100 per month. Should you complete one year of employment, you will then participate in our managerial performance review and merit pay process. You will be eligible to participate in our benefit plans as provided in our written descriptions of those plans.

Should you choose to relocate to the Silver Creek area, we will reimburse you for one house/apartment hunting trip for up to $1,000. We will also pay reasonable and normal moving expenses up to $7,500, with receipts required.

It should be emphasized that we are an employment- at-will employer. This means that we, or you, may terminate our employment relationship at any time, for any reason. Only the president of the Wright Company is authorized to provide any modification to this arrangement.

We must have your response to this offer by February 1, 2016, at which time the offer will lapse. If you wish to accept our offer as specified in this letter, please sign and date at the bottom of the letter and return it to me (a copy is enclosed for you). Should you wish to discuss these or any other terms prior to February 1, 2016, please feel free to contact me.

Sincerely yours,

Mary Kaiser Senior Vice President, Human Resources

I accept the employment offer, and its terms, contained in this letter. I have received no promises other than those contained in this letter.

____________________________________________ __________ Signed Date

EXHIBIT 12.4 Example of Job Offer Letter

099-67811_ch12_4P.indd 616 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 617

Knowledge of Competitors The organ ization competes for labor within labor markets. The job offer must be sensitive to the labor demand and supply forces operating, for these forces set the overall par ameters for job offers to be extended.

On the demand side, this requires becoming knowledgeable about the terms and conditions of job contracts offered by competitors. Here, the organ ization must confront two issues: exactly who are the competitors, and exactly what terms and conditions are they offering for the type of job for which the hiring organ- ization is staffing?

Assume the hiring organ ization is a national discount retailer, and it is hiring recent or soon- to-be college gradu ates for the job of management trainee. It may identify as competitors other retailers at the national level (e.g., Sears), as well as other national discount retailers (e.g., Target, Wal- Mart, and Kmart). There may be fairly direct competitors in other industries as well (e.g., banking, insurance) that typically place new college gradu ates in training programs.

Once such competitors are identified, the organ ization needs to determine what terms and conditions they are offering, if pos si ble. This may be done through formal mechanisms such as performing salary surveys, viewing competitors’ ads and websites, or consulting with trade associations. Information may be gathered informally as well, such as through telephone contacts with competitors and con- versations with actual job applicants, who have firsthand knowledge of competi- tors’ terms.

The organ ization may quickly acquire salary information through the use of free online salary sites or ones that charge fees. Salary information is also avail- able through O*Net. Listings of the sites and discussions of their advantages and disadvantages are available.43 Generally, the user should be cautious in the use of these data, being careful to assess salary survey characteristics such as sample nature and size, currency of data, definitions of terms and job descriptions, and data pre sen ta tion. The organ ization should remember that a job seeker can and will access these data, making this individual a very knowledgeable “shopper” and negotiator.

Through all of the above mechanisms, the organ ization becomes “marketwise” regarding its competitors. Invariably, however, the organ ization will discover that for any given term or condition, a range of values will be offered. For example, starting pay might range from $50,000 to $70,000 per year, and the length of the training program may vary from three months to two years. The organ ization will thus need to determine where within these ranges it wishes to position itself in general, as well as for each par tic u lar offer receiver.

On the labor supply side, the organ ization will need to consider its needs con- cerning both labor quantity and quality (KSAOs and motivation). In general, offers need to be attractive enough that they yield the head count required. Moreover, offers need to take into account the KSAOs each specific receiver possesses and

099-67811_ch12_4P.indd 617 11/15/17 6:48 PM

618 PART FIVE Staffing Activities: Employment

what these specific KSAOs are worth in terms and conditions offered the person. This is illustrated in Exhibit 12.2, which shows an example of an organ ization’s policies regarding differential starting pay offers among offer receivers. Such dif- ferential treatment, and all the issues and questions it raises, applies to virtually any other term or condition as well.

Applicant Truthfulness Throughout the recruitment and se lection pro cess, the applicant provides informa- tion about KSAOs and other factors (e.g., current salary). Initially, this information is gathered as part of the assessment pro cess, the purpose of which is to determine which applicants are most likely to provide a good fit with the job requirements and rewards. For applicants who pass the hurdles and are to receive job offers, the information that has been gathered may very well be used to decide the specific terms and conditions included in the job offer. Just how truthful or believable is this information? The content and cost of job offers depend on how the organ ization answers this question.

Indications are that deceit may be common. Applicants may be tempted to embellish or enhance not only their reported salaries but also their KSAOs to pro- vide an artificially high base or starting point for the organ ization as it prepares its job offer. Some companies specialize in providing job applicants with tips and assistance in fabricating educational qualifications, embellishing prior work tasks and responsibilities, and overstating previous salaries and even provide contacts who will “verify” that an applicant performed well at a job he or she may have never held.44

To combat such deceit by applicants, organ izations are increasingly verifying all applicant information, including salary, and may go to extremes to do so. At the executive level, for example, some organ izations require people to provide copies of their W-2 income forms. The organ ization should not act on finalist- provided information in the preparation of job offers unless it is willing to assume, or has verified, that the information is accurate.

Likely Reactions of Offer Receivers Naturally, the terms and conditions presented in an offer should be based on some assessment of the receiver’s likely reaction to it. Will the receiver jump at it, laugh at it, or respond somewhere in between?

One way to gauge likely reactions to the offer is to gather information about vari ous preferences from the offer receiver during the recruitment/selection pro- cess. Such preliminary discussions and communications will help the organ ization construct an offer that is likely to be acceptable. At the extreme, the pro cess may lead to almost simultaneous pre sen ta tion and ac cep tance of the offer. Another way to assess likely reactions to offers from offer receivers is to conduct research on reward importance to employees and applicants.

099-67811_ch12_4P.indd 618 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 619

Policies on Negotiations and Initial Offers Before making job offers, the organ ization should decide whether it will negotiate on them. In essence, the organ ization must decide whether its first offer to a person will also be its final offer. If there will be room for negotiation, the style of negotia- tion should also be determined.

To help make this decision, it is useful to consider what components of the salary and benefits part of the offer are considered open to negotiation by organ- izations. An example of such data, based on a survey of 418 HR professionals in organ izations of all sizes, is shown in Exhibit 12.5. It can be seen that salary is

EXHIBIT 12.5 Negotiable Components of Salary and/or Benefits According to HR Professionals

Source: E. Esen, Job Negotiation Survey Findings: A Study by SHRM and CareerJournal.com (Alexandria, VA: Society for Human Resource Management, 2004), p. 9. Used with permission.

Flexible work schedule

Salary

Early salary reviews with the possibility for increases

Professional development opportunities

Number of work hours per week

Payment for relocation cost

Paid time o�

Sign-on bonus

Bonuses/incentives

Educational assistance

Perks

Stock

Severance packages

Health care coverage

Retirement benefits

40%0% 20% 60% 80% 100%

HR Professionals (number of respondents = 418)

90%

56%

55%

51%

49%

47%

40%

37%

29%

24%

16%

12%

10%

9%

4%

099-67811_ch12_4P.indd 619 11/15/17 6:48 PM

620 PART FIVE Staffing Activities: Employment

almost uniformly considered negotiable. A majority also considers the following components negotiable: payment for relocation costs, flexible work schedules, and early salary reviews with the possibility for increases. The openness to negotiation of other components trails off from there.

Several considerations should be kept in mind when formulating strategies and policies for making job offers. First, remember that job offers occur for both external and internal staffing. For external staffing, the job offer is intended to convert the offer receiver into a new hire. For internal staffing, the job offer is being made to induce the employee to accept a new job assignment or to attempt to retain the employee by making a counteroffer to an offer the employee has received from another organ ization. These separate types of job offers (new hire, new assignment, and retention) will likely require separate job offer strategies and policies.

Second, consider the costs of the offer receiver not accepting the job offer. Are other equally qualified individuals available as backup offer receivers? How long can the organ ization afford to let a position remain vacant? How will current employees feel about job offers being rejected— will they, too, feel rejected or will they feel that something they are unaware of is amiss in the organ ization? Will those next in line to receive an offer feel like second- class citizens or choices of desperation and last resort? Answers to such questions often suggest it may be desirable to negotiate (up to a point) with the offer receiver.

Third, recognize that many people to whom you will be making offers may in turn be seeking and receiving counteroffers from their current employer. Although counteroffers are less likely in a poor economy, many organ izations do seek to keep their employees by making counteroffers even during down times.45 Hence, the organ ization should recognize that any offer it makes might lead to a bidding war of sorts with other organ izations.

Fourth, a currently employed offer receiver normally incurs costs for leaving and will expect a “make whole” offer from the organ ization. Often these costs can amount to 20%–30% of the offer receiver’s current base pay. In addition to relocation or higher commuting costs, the offer receiver may forfeit employer contributions to a retirement plan, vacation time and holidays, vari ous perks, and so forth. In addition, there may be waiting periods before the offer receiver is eligible for vari ous ben- efits, leading to opportunity costs of lost coverage and possibly paying the costs (e.g., health insurance premiums) out of pocket until coverage begins.

Fi nally, job seekers are often quite sophisticated in formulating and present- ing their demands to the organ ization. They know what it will truly cost them to leave their current job and will frame their demands accordingly. They are aware of the par tic u lar KSAOs that they have to offer, will make these acutely known to the organ ization, and will demand a high price for them. The terms demanded (or more politely, proposed) may focus not only on salary but on myriad other pos- sibilities, including vacation time, a flexible work schedule to help balance work and family pressures, guaranteed expenditures on training and development, higher

099-67811_ch12_4P.indd 620 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 621

employer matching to a 401(k) retirement plan, and so on. In short, unless it is illegal, it is negotiable, and the organ ization must be prepared to handle demands from job seekers on virtually every term and condition of employment.

Presumably, each term or condition contained in an offer is a mini- offer in itself; therefore, the organ ization must decide the following:

• Whether it will negotiate on the term or condition • If it negotiates, what are its lower and (especially) upper bounds

Once these questions have been answered, the organ ization may determine its posture regarding the pre sen ta tion of the initial offer to the receiver. There are three strategies to choose from: lowball, market- matching, and best- shot.

Lowball. The lowball strategy involves offering the lower bounds of terms and conditions to the receiver. Advantages of this strategy include getting ac cep tances from desperate or unknowledgeable receivers, minimizing initial employment costs, and leaving plenty of room to negotiate upward. Dangers of the lowball strat- egy include failing to get any ac cep tances, driving people away from and out of the finalist pool, developing an unsavory reputation among future potential applicants, and creating inequities and hard feelings that the reluctant accepter may carry into the organ ization, which may then influence postemployment attraction outcomes such as retention. This strategy is often adopted during periods of economic down- turn, when applicants have relatively few alternatives.46

Market- Matching. With a market- matching strategy, the organ ization prepares an offer that corresponds to the average salary for a given job based on salary survey information. The market- matching strategy should yield a sufficient num- ber of job offer ac cep tances overall, though not all of the highest- quality (KSAO) applicants. This strategy leaves room for subsequent negotiation, should it be necessary. Market- matching offers are unlikely to offend or excite the receiver, and they prob ably will not have negative consequences for postemployment outcomes.

Best- Shot. With the best- shot strategy, the organ ization goes for broke and gives a high offer, one right at the upper bounds of feasible terms and conditions. Accom- panying this offer is usually a statement to the receiver that this is indeed the organ- ization’s best shot, thus leaving little or no room for negotiation. These offers should enhance both preemployment attraction outcomes (e.g., filling vacancies quickly) and postemployment outcomes (e.g., job satisfaction). Best- shot offers obviously increase employment costs. They also leave little or no room for negotiation or for sweetening the offer. Fi nally, they may create feelings of inequity or jealousy among current employees.

None of these initial offer strategies is inherently superior, but the organ ization will need to choose one of them. It could also choose to tailor a strategy to fit the

099-67811_ch12_4P.indd 621 11/15/17 6:48 PM

622 PART FIVE Staffing Activities: Employment

finalist pursued, as well as other circumstances. For example, the best- shot strategy may be chosen (1) for high- quality finalists, (2) when there is strong hiring pres- sure from competitors, (3) when the organ ization is pressured to fill vacancies quickly, and (4) as part of an aggressive EEO/AA recruitment program.

Policies for how negotiations will be conducted should also be discussed in advance. After the initial offer is made— either lowball, market- matching, or best- shot— the one who made the job offer will have to know which style of negotiation is appropriate. Research has generally suggested that individuals are more satisfied with a give- and- take negotiation than a hardline “take it or leave it” approach.47 In other words, offer receivers may be more satisfied with their offer if they feel as though they have a chance to move the initial figure somewhat. This argues against setting in stone all components of the job offer in advance. A nonconfrontational tone may also generate more positive outcomes down the road. Research also sug- gests that individuals who are more satisfied with the job negotiation pro cess and outcomes are more satisfied with their subsequent compensation and jobs in gen- eral and have lower intentions to leave a year later.48

Pre sen ta tion of the Job Offer

Pre sen ta tion of the offer may proceed along many dif fer ent paths. The precise path chosen depends on the content of the offer, as well as factors considered in formulating the offer. To illustrate, two extreme approaches to presenting the job offer— the mechanical approach and the sales approach— are detailed.

Mechanical Approach The mechanical approach relies on simple one- way communication from the organ ization to the offer receiver. Little more than a standard (or “form”) written offer is sent to the person. The organ ization then awaits a response. Little or no input about the content of the offer is received from the person, and after the offer has been made, there is no further communication with the person. If the person rejects the offer, another form letter acknowledging receipt of the rejection is sent. Meanwhile, the offer pro cess is repeated anew, without modification, for a dif fer- ent receiver. Although there are obvious disadvantages to such an approach, it is highly efficient and inexpensive. It also ensures that all applicants are treated in exactly the same manner, which may improve the legal defensibility of the pro cess.

Sales Approach The sales approach treats the job offer as a product that must be developed and sold to the customer (i.e., receiver). There is active interaction between the organ ization and the receiver as the terms and conditions are developed and incorporated into an offer package. Informal agreement unfolds between the receiver and the organ- ization, and reduction of that agreement into an actual job offer is a mere formality.

099-67811_ch12_4P.indd 622 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 623

After the formal offer has been presented, the organ ization continues to have active communication with the receiver. In this way, the organ ization can be alert to pos- si ble glitches that occur in the offer pro cess and can continue to sell the job to the receiver. The sales approach is much more expensive and time- consuming, but it may have a higher chance of the receiver accepting the offer. It is more likely to be employed for high- value employees who likely have more varied KSAO sets than entry- level employees.

Timing of the Offer

Another issue that must be considered in the pro cess of presenting an offer is the timing of the offer. In general, organ izations will want to deliver the offer as quickly as pos si ble after a final decision has been reached. Post- interview delays in communication with candidates have been linked to negative perceptions of the organ ization.49 Research has also demonstrated that organ izations that make offers more quickly are more likely to have their offers accepted than organ- izations that wait to make an offer.50 This same research has shown that individuals who accept these quicker offers have similar levels of per for mance and turnover relative to those who received later offers. In sum, it appears that organ izations can increase ac cep tance rates and reduce vacancy times by making offers in a timely manner.

Job Offer Ac cep tance and Rejection

Ultimately, of course, job offers are accepted and rejected. How this happens and how it is handled are often as impor tant as the outcomes themselves. Provided next is some general guidance on ac cep tances and rejections.

Ac cep tance When the offer receiver accepts a job offer, the organ ization should do two impor- tant things. First, it should check that the receiver has accepted the position as required in the offer. Thus, the ac cep tance should not come in the form of a coun- teroffer or with any other contingencies attached to it. Also, the ac cep tance should occur in the manner required (normally in writing), and it should arrive on or before the date specified.

Second, the organ ization must maintain contact with the new hire. Initially, this means acknowledging receipt of the ac cep tance. Additional communication may also be appropriate to further “cement the deal” and build commitment to the new job and organ ization. Examples of such continued communication include soon- to-be coworkers calling and offering congratulations to the new hire, sending work materi- als and reports to the new hire to help phase the person into the new job, and inviting the new hire to meetings and other activities prior to that person’s starting date.

099-67811_ch12_4P.indd 623 11/15/17 6:48 PM

624 PART FIVE Staffing Activities: Employment

Rejection The organ ization may reject the finalist, and the finalist may reject the organ ization.

By the Organ ization. Depending on the decision- making pro cess used, the ac cep tance of an offer by one person means that the organ ization will have to reject others. This should be done promptly and courteously. Moreover, the organ- ization should keep rec ords of those it rejects. This is necessary for legal purposes (e.g., applicant flow statistics) and for purposes of building and maintaining a pool of potential applicants that the organ ization may wish to contact about future vacancies.

The content of the rejection message (usually a letter) is at the discretion of the organ ization. Most organ izations opt for short and vague content that mentions a lack of fit between the applicant’s KSAOs and the job’s requirements. Providing more specific reasons for rejection should only be done with caution. The reasons pro- vided should be candid and truthful, and they should match the reasons recorded and maintained on other documents by the organ ization.

By the Offer Receiver. When the receiver rejects the job offer, the organ ization must decide whether to accept the rejection or extend a new offer to the person. If the organ ization’s position on negotiations has already been determined, as ideally it should, the organ ization simply needs to carry out its plan to either extend a new offer or move on to the next candidate.

The organ ization should accept the rejection in a prompt and courteous manner. Moreover, rec ords should be kept of these rejections, for the same reasons they are kept when rejection by the organ ization occurs.

Reneging

Occasionally, and unfortunately, reneging occurs. Organ izations rescind offers extended, and receivers rescind offers accepted. Solid evidence on reneging, and exactly why it occurs, is lacking. Sometimes reneging is unavoidable. The organ- ization may experience a sudden downturn in business conditions, which causes planned-on jobs to evaporate, or the offer receiver may experience sudden changes in circumstances requiring reneging, such as a change in health status.

As an example of reneging, consider the case of Ford Motor Com pany, which extended offers of employment as assemblers to hundreds of individuals in its Oakville plant in Ontario, Canada.51 A sudden drop in demand for vehicles led Ford to withdraw these job offers soon after they had been made. As a result, the individuals who had lost their offers brought a class- action lawsuit, claiming that they had faced considerable economic difficulties because of this repudiation of the employment agreement. Economic damages included lost wages for individu-

099-67811_ch12_4P.indd 624 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 625

als who had terminated work at other employers in anticipation of these jobs with Ford. In addition to the legal concerns, there are also reputational concerns that come with reneging. As word of the Oakville plant prob lems spread, Ford could anticipate prob lems in staffing future positions because applicants might be wor- ried about the com pany’s tendency to not keep its word.

While some reneging by the organ ization may be necessary, we believe that the organ ization can and should take steps to lessen its occurrence. If these steps are insufficient, we believe the organ ization should take other actions to handle reneging. Examples of these actions are shown in Exhibit 12.6. They represent attempts to be fair to the offer receiver while still representing the interests of the organ ization.

For the offer receiver, high standards of fairness are also required. The receiver should not be frivolous and should not go through the application pro cess just “for the experience.” Nor should the receiver accept an offer as a way of extracting a counteroffer out of his or her current employer. Indeed, organ izations should be aware that some people to whom they make job offers will receive such counter- offers, and this should be taken into account during the time the offer is initially formulated and presented. Fi nally, the receiver should carefully assess the probable fit for the person/job match prior to accepting an offer.

A. To Lessen the Occurrence of Reneging

• Extend offers only for positions known to exist and be vacant • Require top management approval of all reneging • Conduct thorough assessments of finalists prior to job offer • Honor outstanding offers but make no new ones • Discourage offer receiver from accepting offer • Defer starting date and provide partial pay in interim • Keep offer open but renegotiate or reduce salary and other economic items • Stagger new hire starting dates to smooth out additions to payroll

B. To Handle Reneging

• Communicate honestly and quickly with offer receiver • Provide consolation or apology package (e.g., hiring bonus, three months’ salary) • Pay for any disruption costs (e.g., relocation) • Hire as consultant (independent contractor), convert to employee later • Guarantee priority over other applicants when future vacancies occur

EXHIBIT 12.6 Organization Actions to Deal With Reneging

099-67811_ch12_4P.indd 625 11/15/17 6:48 PM

626 PART FIVE Staffing Activities: Employment

NEW EMPLOYEE ORIENTATION AND SOCIALIZATION

Establishment of the employment relationship through final match activities does not end a concern with the person/job match. Rather, that relationship must now be nurtured and maintained over time to ensure that the intended match becomes and remains effective. The new hires become newcomers, and their initial entry into the job and organ ization should be guided by orientation and socialization activities. Orientation and socialization may be concurrent, overlapping activities that occur for the newcomer. Orientation is typically more immediate, while socialization is more long term.

Despite the importance of a quality orientation program, many organ izations do not invest substantial resources in helping new employees get on board.52 A survey conducted by Harris Interactive found that only 29% of employers give man ag ers training in techniques to facilitate orientation for newcomers, and 15% leave the pro cess of getting new employees on board entirely in the hands of the hiring man ag er. Experts agree that this shortsighted approach can be very costly, as turn- over rates for new hires tend to be much higher than those for established employ- ees. Programs that continue to challenge and develop employees are an especially impor tant ele ment in effective orientation and socialization pro cesses.

As an example of a comprehensive “onboarding” program, Sun Microsystems has jettisoned the typical orientation program that involves filling out mountains of paperwork.53 Instead, new employees learn about the com pany through an interactive video game. When they arrive at their desks, new hires receive welcome notes and other company- themed paraphernalia. There are also opportunities to join online social networks to form relationships with established employees. Forms must still be filled out during orientation, of course, but the entire pro cess has been integrated with the com pany’s human resource information systems, and hiring man ag ers can guide employees through a checklist of requirements relatively quickly and efficiently. This level of attention and guidance is certainly not typical— many companies still engage in minimal, low- cost efforts to facilitate newcomer engagement— but Sun believes that the returns from the system are well worth the expenditures.

It should be remembered that the newcomer is likely entering a situation of uncer- tainties and unknowns. Research indicates that how the organ ization responds to the situation will have an impor tant impact on how well the newcomer adapts to the job and remains with the organ ization. Several factors have been identified as influencing the likely effectiveness of orientation and socialization:54

• Providing realistic recruitment information about job requirements and rewards (orientation begins before the job does)

• Clarifying for the newcomer the job requirements, knowledge, and skills to be acquired

• Encouraging the newcomer to actively seek out information and build relationships

099-67811_ch12_4P.indd 626 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 627

• Ensuring that man ag ers and coworkers provide assistance to the newcomer • Conducting active mentoring for the newcomer

Elaboration on these points, as well as many examples, is provided below.

Orientation

Orientation requires considerable advanced planning in terms of topics to cover, development of materials for the newcomer, and scheduling of the many activities that contribute to an effective program. Often, the HR department is responsible for the design and conduct of the orientation, and it will seek close coordination of actual orientation activities and schedules with the newcomer’s supervisor. This is also the organ ization’s first opportunity to welcome new hires and to emphasize the opportunities it can provide.

Exhibit 12.7 contains a far- ranging set of suggested topics of information for an orientation program, delivery of which is accomplished via written materi- als, online ser vices, training programs, meetings with vari ous people, and visual inspection. Note that these activities are spaced out rather than concentrated in just the first day of work for the newcomer. An effective orientation program will foster an understanding of the organ ization’s culture and values, help the new employee understand his or her role and how he or she fits into the total organ ization, and help the new employee achieve objectives and shorten the learning curve.

Some organ izations see the orientation program as a crucial part of their cul- ture formation pro cess.55 For example, Accenture Consulting puts new employees through a two- week orientation at headquarters, followed by an additional two- week New Joiner Orientation program. During the orientation program, new employees learn about the com pany’s methods for interacting with clients, go through mock client engagement sessions, make pre sen ta tions to clients, and implement systems to solve client prob lems. As a follow-up, each new hire has a career counselor who reinforces orientation materials in the workplace and helps the new employee throughout his or her career. Although this extensive orientation program is costly, representatives from the organ ization argue that it has helped create a unified cul- ture among employees who work in offices around the world. Some experts argue that in addition to making sure the first few weeks are successful, organ izations should conduct routine follow-up sessions with new employees throughout the first year of employment as a means of enhancing newcomer engagement and retention. This extended check-in period bridges the gap between orientation and socialization.

Socialization

Socialization of the newcomer is a natu ral extension of orientation activities. Like orientation, socialization aims to achieve effective person/job and person/or ga ni za tion matches. Whereas orientation focuses on the initial and immediate aspects of

099-67811_ch12_4P.indd 627 11/15/17 6:48 PM

628 PART FIVE Staffing Activities: Employment

Before the Employee Arrives

• Notify everyone in your unit that a new person is starting and what the person’s job will be; ask the other staff members to welcome the new employee and encourage their support

• Prepare interesting tasks for the employee’s first day • Provide the new employee with a copy of the job description, job performance standards,

organization chart, and your department’s organization chart • Enroll the employee in any necessary training programs • Make sure the employee’s work location is available, clean, and organized • Make sure a copy of the appropriate personnel policy manual or contract is available for

the employee • Have a benefits information package available • If possible, identify a staff member to act as a peer mentor for the first week • Put together a list of key people the employee should meet and interview to get a broader

understanding of their roles • Arrange for a building pass, parking pass, and IDs if necessary • Draft a training plan for the new employee’s first few months

First Day on the Job

• Give a warm welcome and discuss the plan for the first day • Tour the employee’s assigned work space • Explain where restrooms, vending machines, and break areas are located • Provide required keys • Arrange to have lunch with the new employee • Tour the building and immediate area and introduce the new employee to other staff

members • Introduce the new employee to the person you’ve identified as a peer mentor (if appropriate) • Review the job description • Review the department’s (or office’s) organizational chart • Review your office’s policies and procedures involving working hours, telephone, e-mail

and Internet use, office organization, office resources, and ethics

During the First Week

• Check the employee’s work area to ensure needed equipment is in place • Set up a brief meeting with the employee and the assigned peer mentor to review the first

week’s activities (if appropriate) • Schedule a meeting with the human resources office to complete required paperwork,

review personnel policies and procedures, learn about benefits, obtain credentials, and explain other policies and procedures

EXHIBIT 12.7 New Employee Orientation Guidelines

(continued)

099-67811_ch12_4P.indd 628 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 629

newcomer adaptation, socialization emphasizes helping the newcomer fit into the job and organ ization over time. The emphasis is on the long haul, seeking to gain newcomers’ adaptation in ways that will make them want to be successful, long- term contributors to the organ ization. Research has shown that when socialization pro- grams are effective, they facilitate new employee adjustment by increasing employees’ role clarity (clarify job duties and per for mance expectations), by enhancing their self- efficacy (their belief that they can do the job), and by fostering their social ac cep tance (making employees believe that they are valued members of the team).56

To increase new employees’ role clarity, self- efficacy, and social ac cep tance, two key issues should be addressed in developing and conducting an effective socialization pro cess. First, what are the major ele ments or contents of socializa- tion that should occur? Second, how can the organ ization best deliver those ele- ments to the newcomer?

Content While the content of the socialization pro cess should obviously be somewhat job- and organization- specific, several components are likely candidates for inclusion. From the newcomer’s perspective, these components are the following:57

1. ­People— meeting and learning about coworkers, key contacts, informal groups and gatherings, and networks; becoming accepted and respected by these people as “one of the gang”

EXHIBIT 12.7 Continued

Source: Based on “Guide to Managing Human Resources: New Employee Orientation,” Human Resources, University of California, Berkeley (http://hr.berkeley.edu/hr-network/central-guide -managing-hr/managing-hr/recruiting-staff/new-employee/checklist).

Within the First Month of Employment

• Meet with the employee to review: Job description Performance standards Work rules Organization structure Health and safety Benefits

Within Six Months of Starting

• Revisit performance standards and work rules • Schedule a performance appraisal meeting

099-67811_ch12_4P.indd 629 11/15/17 6:48 PM

630 PART FIVE Staffing Activities: Employment

2. Per­for­mance­ proficiency— becoming very familiar with job requirements; mastering tasks; having an impact on per for mance results; and acquiring nec- essary KSAOs for proficiency in all aspects of the job

3. Organ­ization­goals­and­values— learning of the organ ization’s goals; accept- ing these goals and incorporating them into the line of sight for per for mance proficiency; learning about values and norms of desirable be hav ior (e.g., working late and on weekends; making suggestions for improvements)

4. Politics— learning about how things really work; becoming familiar with key players and their quirks; taking acceptable shortcuts; schmoozing and networking

5. Language— learning special terms, buzzwords, and acronyms; knowing what not to say; learning the jargon of people in the trade or profession

6. History— learning about the origins and growth of the organ ization; becoming familiar with customs, rituals, and special events; understanding the origins of the work unit and the backgrounds of people in it

Many of these topics overlap with the pos si ble content of an orientation program, suggesting that orientation and socialization programs be developed in tandem so that they are synchronized and seamless as the newcomer passes from orientation into socialization.

Delivery Helping to socialize the newcomer should be the responsibility of several people. First, the newcomer’s supervisor should be personally responsible for socializing the newcomer, particularly in terms of per for mance proficiency and organ ization goals and values. The supervisor is intimately familiar with and the “enforcer” of these key ele ments of socialization. It is impor tant that the newcomer and the supervisor communicate directly, honestly, and formally about these ele ments.

Peers in the newcomer’s work unit or team are promising candidates for assisting in socialization. They can be most helpful in terms of politics, language, and history, drawing on their own accumulated experiences and sharing them with the newcomer. They can also make their approachability and availability known to the newcomer when he or she wants to ask questions or raise issues in an informal manner.

To provide a more formal information and support system to the newcomer, but one outside a chain of command, a mentor or sponsor may be assigned to (or cho- sen by) the newcomer. The mentor functions as an identifiable point of contact for the newcomer, as well as someone who actively interacts with the newcomer to pro- vide the inside knowledge, savvy, and personal contacts that will help the newcomer settle into the current job and prepare for future job assignments. Mentors can also play a vital role in helping shatter the glass ceiling of the organ ization.

Given the advances in computer technology and the increasing geographic dis- persion of an organ ization’s employees, organ izations might be tempted to con- duct their orientation programs online. Web- based recruiting tools make it easy

099-67811_ch12_4P.indd 630 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 631

to track and monitor new hires, provide new hires with an online tour complete with streaming video, provide mandatory training, and automate pro cesses like signing up for insurance, e- mail addresses, and security badges.58 Though some of this may be necessary, depending on the job, research suggests that socialization programs are less effective when conducted entirely online—in the eyes of both the employees and their supervisors. As would be expected, when compared with in- person programs, online socialization programs do a particularly poor job of socializing employees to the personal aspects of the job and organ ization, such as orga nizational goals and values, politics, and how to work well with others.59

Fi nally, the HR department can be very useful to the socialization pro cess. Its representatives can help establish formal, organization- wide socialization activities such as mentoring programs, special events, and informational pre sen ta tions. Also, representatives may undertake development of training programs on socialization topics for supervisors and mentors. Representatives might also work closely, but informally, with supervisors and coach them in how to become successful social- izers of their own newcomers.

Long- Term Adjustment

After an initial period of facilitating adjustment through socialization and orienta- tion programs, many organ izations opt for a more hands- off approach. This can be unintentional. Coworkers and supervisors become accustomed to the newcomer’s presence and assume that all the necessary information has already been provided. At other times, the lower investment in a newcomer is part of a tacit assumption about how to get employees to be more in de pen dent. Help and guidance might be withdrawn, leaving a newcomer to sink or swim.

Unfortunately, this laissez- faire approach to longer- term adjustment is likely leading to lower levels of retention among established employees, and can dimin- ish their interest in further advancement through internal recruiting drives. The assumption that employees become dependent if too much help is provided does not seem to be supported in research.60 Employees who receive more help are actually found to be more proactive, making more efforts to learn and develop in de pen dently. Those who see less help over time, on the other hand, may exert less effort to learn and adapt, settling for a more passive and less engaged work style. Heavy levels of conflict further diminish newcomer proactivity in the socialization pro cess. In sum, it seems that continued support provides an indication that the organ ization, supervisor, and coworkers want the newcomer to succeed, resulting in greater engagement among newcomers.

Another form of long- term adjustment concerns providing orientation and social- ization for employees as they pro gress through an internal labor market. Sometimes a shift from an in de pen dent contributor to a leadership role can be an even more dramatic change in role expectations than starting work at a new organ ization.61 Old habits and relationships within the organ ization will change, and some sort

099-67811_ch12_4P.indd 631 11/15/17 6:48 PM

632 PART FIVE Staffing Activities: Employment

of formal socialization program may be needed to provide effective skills and knowledge to accommodate the change. Similarly, an employee accepting a job assignment overseas will need significant orga nizational support in the form of ori- entation and socialization for the new role. Providing sufficient support throughout the adjustment period helps alleviate stress, enhance per for mance, and limit turn- over of expatriates.62

Examples of Programs

The Sonesta Hotels chain developed a formal program to help newcomers adapt to their jobs during their first 100 days. After 30 days, the hotel site HR director meets with the newcomer to see whether his or her expectations are being met and whether he or she has the resources needed to do the job. At 60 days, the newcomer participates in a program called the Booster, which focuses on developing cus- tomer ser vice and communication skills. Then at the end of 90 days, the newcomer meets with the supervisor to do per for mance planning for the rest of the year. In addition, man ag ers are encouraged to take the newcomer and the rest of the depart- ment out to lunch during the first month.63

The president and CEO of Southcoast Hospitals Group in Fall River, Mas sa- chu setts, deci ded to develop an “own er’s manual” about himself that was to be given to the new VP of per for mance improvement that he was recruiting for. The one- page manual gave tips to the new VP on how to work for the president. It was developed on the basis of self- assessment and feedback from colleagues and direct reports. These people began using the completed manual immediately in their inter- actions with the president. The manual was given to the finalist for the VP job two days before the job offer was actually extended. The finalist took the job and commented on how helpful the manual was in saving him time figuring out what the president thinks of things.64

The National City Corporation in Cleveland, a bank and financial ser vices organ ization, experienced high turnover among newcomers within the first 90 days on the job. These early- exiting employees were referred to as “quick quits” in the HR department. To combat this prob lem, a program called Early Success was designed for entry- level, nonexempt newcomers. Newcomers attend a series of custom- made training programs that provide them with necessary knowledge and skills. Examples of the programs are Plus (provides an overview of the organ ization’s objectives, employee benefits, and brand); People, Policies, and Practices (augments the employee handbook and reinforces the organ ization as an employer of choice); and Top- Notch Customer Care (focuses on customer ser vice delivery and how to be a team player). Another component of the program matches a newcomer with a peer; peer mentors then attend workshops to learn coaching skills. Fi nally, the hiring man- ag ers of the newcomers also attend workshops on such topics as how to select a peer mentor for the newcomer, how to communicate and create a supportive work environment, and how to help the newcomer assume more job responsibilities and

099-67811_ch12_4P.indd 632 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 633

achieve career goals. The program has reduced turnover by 50% and has improved attendance by 25%, saving over $1.6 million per year.65

LEGAL ISSUES

The employment contract establishes the actual employment relationship and the terms and conditions that will govern it. In the pro cess of establishing the relation- ship, the organ ization must deal with certain obligations and responsibilities per- taining to (1) employing only those people who meet the employment requirements under the IRCA, (2) avoiding the negligent hiring of individuals, and (3) maintaining the organ ization’s posture toward employment- at- will. Each of these is discussed in turn.

Employment Eligibility Verification

Under the IRCA (see Chapter 2), the organ ization must verify each new employee’s identity and employment eligibility (authorization). The verification cannot begin until after the job offer has been accepted. Specific federal regulations detail the requirements and methods of compliance.

For each new employee, the employer must complete the newest I-9 form. Sec- tion One, seeking employee information, must be completed no later than the first day of employment. Section Two, requiring the employer to examine evidence of the employee’s identity and employment authorization, must be completed within three business days of the date employment begins. Both identity and employment authorization must be verified. The I-9 form shows only those documents that may be used for verification. Some documents (e.g., US passport) verify both identity and authorization; other documents verify only identity (e.g., state- issued driver’s license or ID card) or eligibility (e.g., original Social Security card or birth certifi- cate). Section Three deals with reverification and rehires.

E- Verify is an Internet- based system that allows the employer to determine employment eligibility and the validity of Social Security numbers, based on I-9 information. The information is checked against federal databases, usually yielding results in a few seconds. E- Verify verifies only employment eligibility, not immigra- tion status. Federal contractors and subcontractors, along with employers in some states, are required to use E- Verify. Other employers may voluntarily participate in E- Verify. Users must first complete an E- Verify tutorial and pass a mastery test. Employers may not use E- Verify to prescreen applicants or selectively verify only some new employees.

I-9 rec ords should be retained for three years after the date of hire or one year after the date of employment ends, whichever is later. Use of paper or electronic sys- tems or a combination of these is permitted, as are electronic signatures. Employees must be given a copy of the rec ord if they request it.

099-67811_ch12_4P.indd 633 11/15/17 6:48 PM

634 PART FIVE Staffing Activities: Employment

Fi nally, since the IRCA prohibits national origin or citizenship discrimination, it is best not to ask for proof of employment eligibility before making the offer. The reason for this is that many of the identity and eligibility documents contain per- sonal information that pertains to national origin and citizenship status, and such personal information might be used in a discriminatory manner. As a further matter of caution, the organ ization should not refuse to make a job offer to a person based on that person’s foreign accent or appearance.

Negligent Hiring

Negligent hiring is a claim made by an injured party (coworker, customer, client, or the general public) against the employer. The claim is that an injury was the result of the employer hiring a person it knew, or should have known, was unfit and posed a threat of risk. In short, negligent hiring is a failure to exercise “due diligence” in the se lection and hiring of employees. Injuries may include vio lence, physical damage, bodily or emotional injury, death, and financial loss. For example, el derly patients in a long- term care fa cil i ty may suffer injury from a health care attendant due to overmedication or failure to provide adequate food and water, or an accoun- tant might divert funds from a client’s account into his or her own personal account.

The grounds for determining whether or not negligent hiring occurred are based on several factors. These include whether the organ ization had a duty (such as a legal or professional requirement) to try to avoid hiring an unfit employee, whether proper staffing steps and care were taken to avoid negligent hiring, whether the hired employee caused damage or injury, and whether the lack of care in hiring was the proximate cause of the harm that occurred.66

Notice the importance of the need for following proper and careful staffing steps for minimizing negligent hiring occurrences. What exactly are such steps? Several things could be done.67 First, be sure to identify in advance, using a se lection plan, the KSAOs that must be assessed as hiring requirements. Pay par tic u lar attention to the “Os,” such as educational and licensure requirements, background and crimi- nal history, references, employment gaps, and alcohol and illegal drug use. Second, follow through by actually using valid and legal se lection techniques, and docu- ment their usage.

Third, obtain complete KSAO information from each applicant. Where informa- tion is lacking or questionable, fill in the gaps and questions rather than ignore or gloss over them. This includes verifying the information provided by the applicant. Unfortunately, there are often pressures to ignore this recommendation, based on claims such as the need for a quick hire, unfavorable applicant reactions to excessive and delaying probes, and the excessive cost of a thorough follow- through.

Fourth, require the applicant to sign a disclaimer statement allowing the employer to check references and other wise conduct a background investigation. In addition, have the applicant sign a statement indicating that all provided information is true and that no requested information has been withheld.

099-67811_ch12_4P.indd 634 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 635

Fifth, apply utility analy sis to determine whether it is worthwhile to engage in the preceding recommendations to try to avoid the (usually slight) chance of a negligent hiring lawsuit. Such an analy sis will undoubtedly indicate great variability among jobs in terms of how many resources the organ ization wishes to invest in negligent hiring prevention.

Fi nally, when in doubt about a finalist and whether to extend a job offer, do not proceed until those doubts have been resolved. Acquire more information from the finalist, verify existing information more thoroughly, and seek the opinions of others on whether to proceed with the job offer.

Employment- at- Will

As discussed in this chapter and in Chapter 2, employment- at- will involves the right of either the employer or the employee to unilaterally terminate the employ- ment relationship at any time, for any legal reason. In general, the employment relationship is at- will, and usually the employer wishes it to remain that way. Hence, during the final match (and even before), the employer must take certain steps to ensure that its job offers clearly establish the at- will relationship. These steps are merely a compilation of points already made regarding employment contracts and employment- at- will.

First, ensure that job offers are for an indeterminate time period, meaning that they have no fixed term or specific ending date. Second, include in the job offer a specific disclaimer stating that the employment relationship is strictly at- will. Third, review all written documents (e.g., employee handbook, application blank) to ensure that they do not contain any language that implies anything but a strictly at- will relationship. Fi nally, take steps to ensure that orga nizational members do not make any oral statements or promises that would serve to create something other than a strictly at- will relationship.

SUMMARY

During the final match, the offer receiver and the organ ization move toward each other through the job offer/ac cep tance pro cess. They seek to enter into the employ- ment relationship and become legally bound to each other through an employment contract.

Knowledge of employment contract princi ples is central to understanding the final match. The most impor tant princi ple pertains to the requirements for a legally enforceable employment contract (offer, ac cep tance, and consideration). Other impor tant princi ples focus on the identity of parties to the contract, the form of the contract (written or oral), disclaimers by the employer, contingencies, reneging by the organ ization or the offer receiver, other sources that may also specify terms and conditions of employment (e.g., employee handbooks), and unfulfilled promises.

099-67811_ch12_4P.indd 635 11/15/17 6:48 PM

636 PART FIVE Staffing Activities: Employment

Job offers are designed to induce the offer receiver to join the organ ization. Offers should be strategically viewed and used by the organ ization. In that strat- egy, labor market conditions, organ ization and applicant needs, and legal issues all converge to shape the job offer and EVP.

Job offers may contain virtually any legal terms and conditions of employment. Generally, the offer addresses terms pertaining to the starting date, duration of con- tract, compensation, hours, special hiring inducements (if any), other terms (such as contingencies), and ac cep tance of the offer.

The pro cess of making job offers can be complicated, involving a need to think through multiple issues before making formal offers. Offers should take into account the content of competitors’ offers, potential prob lems with applicant truthfulness, likely reactions of the offer receiver, and the organ ization’s policies on negotiating offers. Pre sen ta tion of the offer can range from a mechanical pro cess all the way to a major sales approach. Ultimately, the offers are accepted and rejected, and all offer receivers should receive prompt and courteous attention during these events. Steps should be taken to minimize reneging by either the organ ization or the offer receiver.

Ac cep tance of the offer marks the beginning of the employment relationship. To help ensure that the initial person/job match starts out and continues to be effective, the organ ization should undertake both orientation and socialization activities for newcomers.

From a legal perspective, the organ ization must be sure that the offer receiver is employable according to provisions of the IRCA. Both identity and authorization for employment must be verified. The potential negligent hiring of individuals who, once on the job, cause harm to others (employees or customers) is also of legal concern. Those so injured may bring suit against the organ ization. The organ ization can take steps to help minimize the occurrence of negligent hiring lawsuits. There are limits on these steps, however, such as the legal constraints on the gathering of background information about applicants. Fi nally, the organ ization should have its posture, policies, and practices regarding employment- at- will firmly developed and aligned. Numerous steps can be taken to help achieve this.

DISCUSSION QUESTIONS

1. If you were the HR staffing man ag er for an organ ization, what guidelines might you recommend regarding oral and written communication with job applicants by members of the organ ization?

2. If the same job offer content is to be given to all offer receivers for a job, is there any need to use the strategic approach to job offers? Explain.

3. What are the advantages and disadvantages of the sales approach in the pre- sen ta tion of the job offer?

099-67811_ch12_4P.indd 636 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 637

4. What are examples of orientation experiences you have had as a new hire that have been particularly effective (or in effec tive) in helping to make the person/job match happen?

5. What steps should an employer take to develop and implement its policy regarding employment- at- will?

ETHICAL ISSUES

1. A large financial ser vices organ ization is thinking of adopting a new staffing strategy for entry into its management training program. The program will provide the trainees all the knowledge and skills they need for their initial job assignment after training. The organ ization has therefore deci ded to do college recruiting at the end of the recruiting season. It will hire those who have not been fortunate enough to receive any job offers, pay them a salary 10% below market, and provide no other inducements such as a hiring bonus or relocation assistance. The organ ization figures this strategy and EVP will yield a high percentage of offers accepted, low cost per hire, and considerable labor cost savings due to below- market salaries. Evaluate this strategy from an ethical perspective.

2. An organ ization has a staffing strategy in which it hires 10% more employees than it actually needs in any job category in order to ensure its hiring needs are met. It reasons that some of the new hires will renege on the accepted offer and that the organ ization can renege on some of its offers, if need be, in order to end up with the right number of new hires. Evaluate this strategy from an ethical perspective.

APPLICATIONS

Making a Job Offer

Clean Car Care (3Cs) is located within a western city of 175,000 people. The com- pany owns and operates four full- service car washes in the city. The owner of 3Cs, Arlan Autospritz, has strategically cornered the car wash market, with his only competition being two coin- operated car washes on the outskirts of the city. The unemployment rate in the city and surrounding area is 3.8%, and it is expected to dip even lower.

Arlan has staffed 3Cs by hiring locally and paying wage premiums (above- market wages) to induce people to accept job offers and to remain with 3Cs. Hiring occurs at the entry level only, for the job of washer. If they remain with 3Cs, wash- ers have the opportunity to pro gress upward through the ranks, going from washer

099-67811_ch12_4P.indd 637 11/15/17 6:48 PM

638 PART FIVE Staffing Activities: Employment

to shift lead person to assistant man ag er to man ag er of one of the four car wash facilities. Until recently, this staffing system worked well for Arlan. He was able to hire high- quality people, and a combination of continued wage premiums and promotion opportunities meant he had relatively little turnover ( under 30% annu- ally). Every man ag er at 3Cs, past or pres ent, had come up through the ranks. This is now changing with the sustained low unemployment and the new hires, who just naturally seem more turnover- prone. The internal promotion pipeline is thus drying up, since few new hires are staying with 3Cs long enough to begin climb- ing the ladder.

Arlan has a vacancy for the job of man ag er at the north- side fa cil i ty. Unfortu- nately, he does not think any of his assistant man ag ers are qualified for the job, and he reluctantly concluded that he has to fill the job externally.

A vigorous three- county recruitment campaign netted Arlan a total of five appli- cants. Initial assessments resulted in four of those being candidates, and two can- didates became finalists. Jane Roberts is the number- one finalist, and the one to whom Arlan has deci ded to extend the offer. Jane is excited about the job and told Arlan she will accept an offer if the terms are right. Arlan is quite certain Jane will get a counteroffer from her com pany. Jane has excellent supervisory experience in fast- food stores and a light manufacturing plant. She is willing to relocate, a move of about 45 miles. She will not be able to start for 45 days, due to preparing for the move and the need to give adequate notice to her pres ent employer. As a single parent, Jane wants to avoid working weekends. The number- two finalist is Betts Cook. Though she lacks the supervisory experience that Jane has, Arlan views her as superior to Jane in customer ser vice skills. Jane told Arlan she needs to know quickly if she is going to get the offer, since she is in line for a promotion at her current com pany and she wants to begin at 3Cs before being offered and accepting the promotion.

Arlan is mulling over what kind of offer to make to Jane. His three man ag ers make between $38,000 and $48,000, with annual raises based on a merit review conducted by Arlan. The man ag ers receive one week of vacation the first year, two weeks of vacation for the next four years, and three weeks of vacation after that. They also receive health insurance (with a 20% employee co- pay on the premium). The man ag ers work five days each week, with work on both Saturday and Sunday frequently occurring during peak times. Jane currently makes $40,500, receives health insurance with no employee co- pay, and has one week of vacation (she is due to receive two weeks shortly, after completing her second year with the com- pany). She works Monday through Friday, with occasional work on the weekends. Betts earns $47,500, receives health insurance fully paid by her employer, and has one week of vacation (she is eligible for two weeks in another year). Occasional weekend work is acceptable to her.

Arlan is seeking input from you on how to proceed. Specifically, he wants you to:

099-67811_ch12_4P.indd 638 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 639

1. Recommend whether Jane should receive a best- shot, market- matching, or lowball offer, and why.

2. Recommend other inducements beyond salary, health insurance, vacation, and schedule that might be addressed in the job offer, and why.

3. Draft a proposed job offer letter to Jane, incorporating your recommenda- tions from items 1 and 2 above, as well as other desired features that should be part of a job offer letter.

Evaluating a Hiring and Variable- Pay Plan

Effective Management Solutions (EMS) is a small, rapidly growing management consulting com pany. EMS has divided its practice into four areas: management sys- tems, business pro cess improvement, human resources, and quality improvement. Strategically, EMS has embarked on an aggressive revenue growth plan, seeking a 25% revenue increase in each of the next five years for each of the four practice areas. A key component of its plan involves staffing growth, since most of EMS’s current entry- level con sul tants (associates) are at peak client loads and cannot take on additional clients; the associates are also at peak hours load, working an average of 2,500 billable hours per year.

Staffing strategy and planning have resulted in the following information and pro- jections. Each practice area currently has 25 associates, the entry- level position and title. Each year, on average, each practice area has five associates promoted to se nior associate within the area ( there are no promotions or transfers across areas, due to dif- fering KSAO requirements), and five associates leave EMS, mostly to go to other con- sulting firms. Replacement staffing thus averages 10 new associates in each practice area, for a total of 40 per year. To meet the revenue growth goals, each practice area will need to hire 15 new associates each year, for a total of 60. A total of 100 associ- ate new hires will thus be needed each year (40 for replacement and 60 for growth).

Currently, EMS provides each job offer receiver with a generous benefits package plus what it deems to be a competitive salary that is nonnegotiable. About 50% of such offers are accepted. Most of those who reject the offer are the highest- quality applicants; they take jobs in larger, more established consulting firms that provide somewhat below- market salaries but high- upside monetary potential through vari- ous short- term variable- pay programs, plus rapid promotions.

Faced with these realities and projections, EMS recognizes that its current job offer practices need to be revamped. Accordingly, it has asked Manuel Rodriguez, who functions as a one- person HR “department” for EMS, to develop a job offer proposal for the EMS partners to consider at their next meeting. The partners tell Rodriguez they want a plan that will increase the job offer ac cep tance rate, slow down the outflow of associates to other firms, and not create dissatisfaction among the currently employed associates.

099-67811_ch12_4P.indd 639 11/15/17 6:48 PM

640 PART FIVE Staffing Activities: Employment

In response, Rodriguez developed the proposed hiring and variable pay (HVP) program. It has as its cornerstone varying monetary risk/reward packages through a combination of base and short- term variable (bonus) pay plans. The specifics of the HVP program are as follows:

• The offer receiver must choose one of three plans to be under, prior to receiv- ing a formal job offer. The plans are high- risk, standard, and low- risk.

– The high- risk plan provides a starting salary that is 10% to 30% below the market average and participation in the annual bonus plan, with a bonus range from 0% to 60% of current salary.

– The standard plan provides a starting salary that is 10% below the market average and participation in the annual bonus plan, with a bonus range from 0% to 20% of current salary.

– The low- risk plan provides a starting salary that is 5% above the market average and no participation in the annual bonus plan.

• The average market rate will be determined by salary survey data obtained by HR.

• The individual bonus amount will be determined by individual per for mance on three indicators: number of billable hours, number of new clients gener- ated, and client- satisfaction survey results.

• The hiring man ag er will negotiate the starting salary for those in the high- risk and standard plans, based on likely person/job and person/or ga ni za tion fit and on need to fill the position.

• The hiring man ag er may also offer a skills premium of up to 10% of ini- tial starting salary under all three plans— the premium will lapse after two years.

• Switching plans is permitted only once every two years. • Current associates may opt into one of the new plans at their current salary.

Evaluate the HVP program as proposed, answering the following questions:

1. If you were an applicant, would the HVP program be attractive to you? Why or why not? If you were an offer receiver, which of the three plans would you choose, and why?

2. Will the HVP program likely increase the job offer ac cep tance rate? Why or why not?

3. Will the HVP program likely reduce turnover? Why or why not? 4. How will current associates react to the HVP program, and why? 5. What issues and prob lems will the HVP plan create for HR? For the hiring

man ag er? 6. What changes would you make in the HVP program, and why?

099-67811_ch12_4P.indd 640 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 641

ENDNOTES

1. J. A. Segal, “An Offer They Couldn’t Refuse,” HR­Magazine, Apr. 2001, pp. 131–144; R. Maurer, “Beware: Rescinding Job Offers Can Prompt Legal Consequences,” SHRM­Talent­Acquisition, Aug. 25, 2016 (www­.­shrm­.­org).

2 . M. W. Bennett, D. J. Polden, and H. J. Rubin, Employment­ Relationships:­ Law­ and­ Practice (New York: Aspen, 2004), pp. 3-3 to 3-4; A. G. Feliu, Primer­ on­ Individual­ Employee­ Rights, 2nd ed. (Washington, DC: Bureau of National Affairs, 1996), pp. 7–29; G. P. Panaro, Employ- ment­ Law­ Manual (Boston: Warren, Gorham and Lamont, 1993), pp. 4-2 to 4-4; Society for Human Resource Management, “How to Create an Offer Letter Without Contractual Implica- tions,” Sept. 15, 2010 (www­.­shrm­.­org).

3 . Panaro, Employment­Law­Manual, pp. 4-61 to 4-63; D. Cadrain, “Coming to Terms,” Staffing­ Management­Magazine, Oct. 2009 (www­.­shrm­.­org).

4 . S. Green house, “U.S. Cracks Down on ‘Contractors’ as a Tax Dodge,” New­York­Times, Feb. 17, 2010 (www­.­nytimes­.­com).

5 . Bennett, Polden, and Rubin, Employment­ Relationships:­ Law­ and­ Practice, pp. 3-22 to 3-23; Panaro, Employment­Law­Manual, pp. 4-5 to 4-60.

6. Panaro, Employment­Law­Manual, pp. 4-18 to 4-19; Society for Human Resource Management, “How to Create an Offer Letter Without Contractual Implications.”

7. Feliu, Primer­on­Individual­Employee­Rights, pp. 48–51. 8. Bennett, Polden, and Rubin, Employment­ Relationships:­ Law­ and­ Practice, pp. 3-30 to 3-32;

Feliu, Primer­on­Individual­Employee­Rights, pp. 22–25. 9. Society for Human Resource Management, “At Will: Policy Statement,” Mar. 2010 (www­.­shrm­

.­org). 10 . Feliu, Primer­on­Individual­Employee­Rights, p. 26. 11. Panaro, Employment­Law­Manual, pp. 4-66 to 4-136. 12. G. Stahl, I. Björkman, E. Farndale, S. S. Morris, J. Paauwe, P. Stiles, J. Trevor, and P. Wright,

“Six Princi ples of Effective Global Talent Management,” Sloan­Management­Review, 2012, 53, pp. 25–42.

13. M. M. Breslin, “Why Companies Are Embracing the Employee Value Proposition,” Workforce, Feb. 28, 2013 (www­.­workforce­.­com).

14 . M. Pokorny, “Getting to Know Your Employees and What Motivates Them,” Employment­Rela- tions­­Today, 2013, 39, pp. 45–52.

15. Bennett, Polden, and Rubin, Employment­Relationships:­Law­and­Practice, pp. 2-11 to 2-49. 16. R. Mayhew, “Can My Boss Keep My Last Paycheck If I Don’t Put My Two Weeks Notice In?”

Houston­Chronicle, Aug. 15, 2013 (http://­work­.­chron­.­com­/­can­-­boss­-­keep­-­last­-­paycheck­-­dont­-­put­ -­two­-­weeks­-­notice­-­in­-­8946­.­html).

17 . K. L. Uggerslev, N. E. Fassina, and D. Kraichy, “Recruiting Through the Stages: A Meta- Analytic Test of Predictors of Applicant Attraction at Dif fer ent Stages of the Recruiting Pro cess,” Person- nel­Psy­chol­ogy, 2012, 65, pp. 597–660.

18. Society for Human Resource Management, 2012­ Employee­ Job­ Satisfaction­ and­ Engagement (Alexandria, VA: author, 2012).

19. L. Reisel, “Is More Always Better? Early Career Returns to Education in the United States and Norway,” Research­in­Social­Stratification­and­Mobility, 2013, 31, pp. 49–68.

20. M. Hout, “Social and Economic Returns to College Education in the United States,” Annual­ Review­of­Sociology, 2012, 38, pp. 379–400.

21. J. Barthiaume and L. Culpepper, “Hot Skills: Most Popu lar Compensation Strategies for Technical Expertise,” Jan. 14, 2008 (www­.­shrm­.­org); F. Andersson, M. Freedman, J. Haltiwanger,

099-67811_ch12_4P.indd 641 11/15/17 6:48 PM

642 PART FIVE Staffing Activities: Employment

J. Lane, and K. Shaw, “Reaching for the Stars: Who Pays for Talent in Innovative Industries?” The­Economic­Journal, 2009, 119, pp. F308– F332.

22. O*NET Online (www­.­onetonline­.­org). 23 . Y. J. Dreazen, “When #$%+! Recruits Earn More,” Wall­ Street­ Journal, July 25, 2000, p. B1;

K. J. Dunham, “Back to Real ity,” Wall­ Street­ Journal, Apr. 12, 2001, p. R5; L. Babcock and S. Laschever, ­Women­ ­Don’t­ Ask:­ The­ High­ Cost­ of­ Avoiding­ Negotiation (New York: Bantam Books, 2007); V. Slavina, “Why Women Must Ask,” Forbes, June 17, 2013 (www­.­forbes­.­com­/­sites­ /­dailymuse­/­2013­/­06­/­17­/­why­-­women­-­must­-­ask­-­the­-­right­-­way­-­negotiation­-­advice­-­from­-­stanfords­ -­margaret­-­a­-­neale­/ ­).

24 . Society for Human Resource Management, Strategic­ Compensation­ Survey (Alexandria, VA: author, 2000), pp. 35–47.

25. M. A. Jacobs, “The Legal Option,” Wall­Street­Journal, Apr. 12, 2001, p. R9; Society for Human Resource Management, Strategic­Compensation­Survey, pp. 48–57.

26. P. Cappelli and M. J. Conyon, “Stock Option Exercise and Gift Exchange Relationships: Evi- dence for a Large US Com pany,” NBER Working Paper No. 16814 (Cambridge, MA: National Bureau of Economic Research, 2012).

27. Society for Human Resource Management, 2012­Employee­Job­Satisfaction­and­Engagement. 28. B. Jones, M. Staubus, and D. N. Janich, “If Not Stock Options, Then What?” Workspan, Fall

2003, pp. 26–32; R. Simon, “With Options on the Outs, Alternatives Get a Look,” Wall­Street­ Journal, Apr. 28, 2004, p. D2.

29. Society for Human Resource Management, “Use of Short Term Incentives Up,” SHRM­Online, Nov. 9, 2012 (www­.­shrm­.­org).

30 . L. Morsch, “Return of the Signing Bonus?” CNN, Aug. 18, 2006 (www­.­cnn­.­com­/­2006­/­US­ /­Careers­/­08­/­18­/­cb­.­signing­.­bonus­/ ­).

31 . L. G. Klaff, “Tough Sell,” Workforce­ Management, Nov. 2003, pp. 47–50; J. S. Lublin, “The Going Rate,” Wall­Street­Journal, Jan. 11, 2000, p. B14.

32. J. M. Vick and J. S. Furlong, “The Logistics of a Dual- Career Search,” Chronicle­of­Higher­Edu- cation, Mar. 14, 2012 (http://­chronicle­.­com­/­article­/­the­-­logistics­-­of­-­a­-­dual­-­career­/­131140­/ ­).

33 . H. O’Neill, “Relocation Benefits Are on the Move,” Workforce, Feb. 6, 2012 (www­.­workforce­ .­com).

34 . J. S. Lublin, “You Should Negotiate a Severance Package— Even Before the Job Starts,” Wall­ Street­Journal, May 1, 2001, p. B1.

35. C. Patton, “Parting Ways,” ­Human­Resource­Executive, May 20, 2002, pp. 50–51. 36. D. M. Rousseau, V. T. Ho, and J. Greenberg. “I- Deals: Idiosyncratic Terms in Employment Rela-

tionships,” Acad­emy­of­Management­Review, 2006, 31, pp. 977–994. 37. M. A. Wheeler, quoted in K. Johnston, “The Art of Haggling,” Harvard­Business­School:­Work-

ing­Knowledge, May 7, 2012 (http://­hbswk­.­hbs­.­edu­/­item­/­6922­.­html). 38 . C. C. Rosen, D. J. Slater, C. Chang, and R. E. Johnson, “Let’s Make a Deal: Development and

Validation of the Ex Post I- Deals Scale,” Journal­of­Management, 2013, 39, pp. 709–742. 39. Rosen, Slater, Chang, and Johnson, “Let’s Make a Deal: Development and Validation of the Ex

Post I- Deals Scale”; S. Hornung, D. M. Rousseau, J. Glaser, P. Angerer, and M. Weigel, “Beyond Top- Down and Bottom- Up Work Redesign: Customizing Job Content Through Idiosyncratic Deals,” Journal­of­Orga­nizational­Be­hav­ior, 2010, 31, pp. 187–215.

40. S. Anand, P. R. Vidyarthi, R. C. Liden, and D. M. Rousseau, “Good Citizens in Poor- Quality Relationships: Idiosyncratic Deals as a Substitute for Relationship Quality,” Acad­emy­ of­ Man- agement­Journal, 2010, 53, pp. 970–988.

41. J. J. Meyers, D. V. Radack, and P. M. Yenerall, “Making the Most of Employment Contracts,” HR­Magazine, Aug. 1998, pp. 106–109; D. R. Sandler, “Noncompete Agreements,” Employment­

099-67811_ch12_4P.indd 642 11/15/17 6:48 PM

CHAPTER TWELVE Final Match 643

Management­ ­Today, Fall 1997, pp. 14–19; S. G. Willis, “Protect Your Firm Against Former Employees’ Actions,” HR­Magazine, Aug. 1997, pp. 117–122.

42. A. Smith, “Noncompetes Can Be Tough to Enforce When Former Employees Move,” HR­News, Apr. 10, 2006 (www­.­shrm­.­org).

43 . M. Orgel, “Web Sites That Provide Salary Help,” Wall­Street­Journal, Oct. 16, 2008, p. D5. 44. F. Dawkins, “Foiling Résumé Fraud,” Workforce, Aug. 6, 2009 (www­.­workforce­.­com). 45 . M. Himmelberg, “Counteroffers Grow More Commonplace,” Knight-­Ridder­ Tribune­ Business­

News, Feb. 6, 2007, p. 1. 46. J. S. Lublin, “How to Handle the Job Offer You Can’t Afford,” Wall­Street­Journal, Dec. 2, 2008,

p. B9; J. Sammer, “Money Matters in the Hiring Pro cess,” HR­Magazine, Sept. 2009, pp. 93–95. 47. S. Kwon and L. R. Weingart, “Unilateral Concessions From the Other Party: Concession

Be hav ior, Attributions, and Negotiation Judgments,” Journal­of­Applied­Psy­chol­ogy, 2004, 89, pp. 263–278.

48. J. R. Curhan, H. A. Elfenbein, and G. J. Kilduff, “Getting Off on the Right Foot: Subjective Value Versus Economic Value in Predicting Longitudinal Job Outcomes From Job Offer Negotiations,” Journal­of­Applied­Psy­chol­ogy, 2009, 94, pp. 524–534.

49. D. S. Chapman and J. Webster, “ Toward an Integrated Model of Applicant Reactions and Job Choice,” International­Journal­of­­Human­Resource­Management, 2006, 17, pp. 1032–1057.

50. W. J. Becker, T. Connolly, and J. E. Slaughter, “The Effect of Job Offer Timing on Offer Ac cep- tance, Per for mance, and Turnover,” Personnel­Psy­chol­ogy, 2010, 63, pp. 223–241.

51. T. Stefanik, “Ford Hit With Class- Action Lawsuit After Backing Out of 100s of Jobs,” Canadian­ HR­Reporter, Mar. 8, 2010, p. 5.

52. K. Gurchiek, “Many Employers Wing Support of New Hires,” HR­News, Sept. 18, 2007 (www­ .­shrm­.­org).

53 . L. G. Klaff, “New Emphasis on First Impressions,” Workforce­Management­Online, Mar. 2008 (www­.­workforce­.­com).

54 . A. M. Saks and J. A. Gruman, “Getting Newcomers on Board: A Review of Socialization Prac- tices and Introduction to Socialization Resources Theory,” in C. R. Wanberg (ed.), Oxford­Hand- book­of­Orga­nizational­Socialization (New York: Oxford University Press, 2012), pp. 27–55; T. N. Bauer, T. Bodner, B. Erdogan, D. M. Truxillo, and J. S. Tucker, “Newcomer Adjustment During Orga nizational Socialization: A Meta- Analytic Review of Antecedents, Outcomes, and Methods,” Journal­ of­ Applied­ Psy­chol­ogy, 2007, 92, pp. 707–721; H. J. Klein, B. Polin, and K. L. Sutton, “Specific Onboarding Practices for the Socialization of New Employees,” Inter- national­Journal­of­Se­lection­and­Assessment, 2015, 23, pp. 263–283.

55. J. Marquez, “Connecting a Virtual Workforce,” Workforce­ Management, Sept. 22, 2008, pp. 23–25; F. Hansen, “Onboarding for Greater Engagement,” Workforce­Management­Online, Oct. 2008 (www­.­workforce­.­com).

56 . Bauer et al., “Newcomer Adjustment During Orga nizational Socialization: A Meta- Analytic Review of Antecedents, Outcomes, and Methods.”

57. G. T. Chao, A. M. O’Leary- Kelly, S. Wolf, H. J. Klein, and P. D. Gardner, “Orga nizational Social- ization: Its Content and Consequences,” Journal­of­Applied­Psy­chol­ogy, 1994, 79, pp. 730–743.

58. A. D. Wright, “Experts: Web- Based Onboarding Can Aid Employee Retention,” July 14, 2008 (www­.­shrm­.­org).

59 . M. J. Wesson and C. I. Gogus, “Shaking Hands With a Computer: An Examination of Two Methods of Orga nizational Newcomer Orientation,” Journal­ of­ Applied­ Psy­chol­ogy, 2005, 90, pp. 1018–1026.

60. J. D. Kammeyer- Mueller, C. R. Wanberg, A. L. Rubenstein, and Z. Song, “Support, Undermin- ing, and Newcomer Socialization: Fitting In During the First 90 Days,” Acad­emy­of­Management­

099-67811_ch12_4P.indd 643 11/15/17 6:48 PM

644 PART FIVE Staffing Activities: Employment

Journal, 2013, 56, pp. 1104–1124; S. S. Nifadkar and T. N. Bauer, “Breach of Belongingness: Newcomer Relationship Conflict, Information, and Task- Related Outcomes During Orga- nizational Socialization,” Journal­of­Applied­Psy­chol­ogy, 2016, 101, pp. 1–13.

61. D. W. Johnston and W. Lee, “Extra Status and Extra Stress: Are Promotions Good for Us?” Industrial­and­­Labor­Relations­Review, 2013, 66, pp. 32–54; T. J. Mauer and M. London, “From Individual Contributor to Leader: A Role Identity Shift Framework for Leader Development Within Organ izations,” Journal­of­Management, 2015 (doi:10.1177/0149206315614372).

62. M. Kraimer, M. Bolino, and B. Mead, “Themes in Expatriate and Repatriate Research Over Four De cades: What Do We Know and What Do We Still Need to Learn?” Annual­Review­of­Orga- nizational­Psy­chol­ogy­and­Orga­nizational­Be­hav­ior, 2016, 3, pp. 83–109; B. M. Firth, G. Chen, B. L. Kirkman, and K. Kim, “Newcomers Abroad: Expatriate Adaptation During Early Phases of International Assignments,” Acad­emy­of­Management­Journal, 2013, 57, pp. 280–300.

63. J. Mullich, “ They’re Hired: Now the Real Recruiting Begins,” Workforce­ Management­ Online, Feb. 9, 2004 (www­.­workforce­.­com).

64 . J. S. Lublin, “Job Candidates Get Manual From Boss: How to Handle Me,” Wall­Street­Journal, Jan. 7, 2003, p. B1.

65. M. Hammers, “Optimas Award Financial Impact: National City Corporation,” Workforce­Man- agement­Online, Feb. 9, 2004 (www­.­workforce­.­com).

66 . US Legal, “Negligent Hiring Law and Legal Definition” (http://­definitions­.­uslegal­.­com­/­n­ /­negligent­-­hiring­/ ­), accessed Sept. 13, 2010; S. Smith, “Negligent Hiring” (http://­sideroad­.­com­ /­human­_­resources­/­negligent­_­hiring­.­html), accessed Sept. 13, 2010; R. K. Robinson, G. M. Franklin, and R. F. Wayland, Employment­ Regulation­ in­ the­ Workplace (Armonk, NY: M. E. Sharpe, 2010), pp. 334–336; D. D. Bennett- Alexander and L. P. Hartman, Employment­ Law­ for­ Business, 8th ed. (New York: McGraw Hill- Education, 2015), pp. 148–157; D. J. Walsh, Employment­ Law­ for­ ­Human­ Resource­ Practice, 5th ed. (Boston: Cengage Learning, 2016), pp. 149–160.

67. F. Hansen, “Taking ‘Reasonable Action’ to Avoid Negligent Hiring Claims,” Workforce­Manage- ment, Dec. 11, 2006, pp. 31–33; Bennett- Alexander and Hartman, Employment­ Law­ for­ Busi- ness, pp. 148–157; Walsh, Employment­Law­for­­Human­Resource­Practice, pp. 149–160.

099-67811_ch12_4P.indd 644 11/15/17 6:48 PM

099-67811_ch13_4P.indd 645 11/17/17 1:32 PM

The Staffing Organizations Model

Organization

Mission Goals and Objectives

Organization Strategy HR and Sta�ng Strategy

Sta�ng Policies and Programs

Sta�ng System and Retention Management

Legal compliance Planning Job analysis and rewards

Recruitment: external, internal Selection: measurement, external, internal Employment: decision making, final match

Core Sta�ng ActivitiesSupport Activities

099-67811_ch13_4P.indd 646 11/17/17 1:32 PM

PA R T S I X

Staffing System and Retention Management

C H A P T E R T H I R T E E N Staffing System Management

C H A P T E R F O U R T E E N Retention Management

099-67811_ch13_4P.indd 647 11/17/17 1:32 PM

099-67811_ch13_4P.indd 648 11/17/17 1:32 PM

C H A P T E R T H I R T E E N

Staffing System Management

Learning Objectives and Introduction Learning Objectives Introduction

Design and Administration of Staffing Systems Defining the Mission of Staffing Orga nizational Arrangements Policies and Procedures Human Resource Information Systems Outsourcing

Evaluation of Staffing Systems Staffing Pro cess Staffing Pro cess Results Calculating Staffing Metrics

Legal Issues Rec ord Keeping and Privacy EEO Report Legal Audits Training for Man ag ers and Employees Dispute Resolution

Summary

Discussion Questions

Ethical Issues

Applications Learning About Jobs in Staffing Evaluating Staffing Pro cess Results

Endnotes

099-67811_ch13_4P.indd 649 11/17/17 1:32 PM

650 PART SIX Staffing System and Retention Management

LEARNING OBJECTIVES AND INTRODUCTION

Learning Objectives

• Recognize the importance of effective policies and procedures for staffing • Understand the importance of concrete, fair policies and procedures in

se lection • Evaluate the advantages and disadvantages of outsourcing staffing pro cesses • Understand how to evaluate the vari ous results of staffing pro cesses • Develop metrics for the mea sure ment of staffing systems • Recognize the legal issues involving rec ord keeping and applicant/employee

privacy • Plan for effective dispute resolution

Introduction

Up to this point, we have covered how organ izations plan for effective staffing sys- tem implementation, recruit candidates, evaluate candidates, select from candidates, and make a final match. We now take a step back from these operational issues and evaluate whether the overall staffing system is functioning effectively. Staffing systems involve complex pro cesses and decisions that require orga nizational direction, coor- dination, and evaluation. Most organ izations must create mechanisms for managing their staffing system and its components. Management of staffing systems requires consideration of both administration and evaluation, as well as legal issues.

The evaluation of the effectiveness of a staffing system as a whole has become a central issue for human resource (HR) man ag ers. An increased push for account- ability in all areas of HR that began over 20 years ago has become a permanent feature of the orga nizational landscape. Staffing man ag ers who are successfully adapting to this environment focus on analytics, which demonstrate relationships between a variety of staffing functions and orga nizational per for mance.1

The chapter starts by describing how the staffing function operates within the HR department of many organ izations. The role and nature of staffing policies and pro- cedures in administering the staffing function are explained, as is the use of human resource information systems (HRISs) to enhance efficient operation of staffing sys- tems. Next, a discussion of ways to evaluate the effectiveness of the staffing function is presented. Vari ous results of the staffing pro cess are examined to gauge the effective- ness of staffing systems. Compilation and analy sis of staffing system costs are also suggested as an evaluation technique. Legal issues surrounding the management of staffing systems are discussed, including matters of compiling vari ous rec ords and reports and of conducting legal audits of staffing activities. Fi nally, training in employment law and compliance requirements for man ag ers and employees, and mechanisms for dispute resolution are described.

099-67811_ch13_4P.indd 650 11/17/17 1:32 PM

CHAPTER THIRTEEN Staffing System Management 651

DESIGN AND ADMINISTRATION OF STAFFING SYSTEMS

Defining the Mission of Staffing

The fundamental components of an effective staffing system are a clear mission statement and goals. All other administrative decisions flow from this starting point. As we have seen throughout the book, a clear understanding of the organ ization’s strategy and culture can help create the best solutions.

Taking a systematic, integrative view of HR practices has been consistently shown to enhance orga nizational per for mance.2 Effective, consolidated HR sys- tems are vis i ble and understandable to employees, applied in a way that shows a consistent set of goals, and agreed upon by multiple layers of management. Staffing can contribute to orga nizational success only if it complements practices in the areas of compensation, training and development, and employee relations.3 For example, staffing members must coordinate their activities with the compensation and benefits group in developing policies on the economic components of job offers, such as starting pay, hiring bonuses, and special perks. Staffing activities must also be closely coordinated with the training and development function to identify training needs for external, entry- level new hires and to plan transfer and promotion- enhancing training experiences for current employees. The director of employee relations will work with the staffing area to determine how policies and practices will be combined with corporate communications and other programs to improve employee morale and motivation.

Experts emphasize that an effective HR function must be aware of orga nizational strategy, build capabilities to execute strategies, integrate talent and orga nizational practices, and advocate for the effective implementation of policies and proce- dures.4 For the operational and staffing functions to work well together in organ- izations, there must be frequent communication among all man ag ers during the pro cess. A successful staffing function will help site man ag ers and line man ag ers easily and quickly fill vacancies with qualified individuals. A failure in coordina- tion and communication, on the other hand, can make the staffing function little more than an administrative hurdle that man ag ers will try to circumvent whenever pos si ble.

An increasing body of research supports the idea that the link between HR sys- tems and orga nizational per for mance is contingent on a fit between these systems and strategy.5 To develop a system of integrated practices that fits strategic consid- erations, orga nizational leaders analyze where the organ ization sits in the market and how it compares with other firms. An organ ization that is primarily focused on creating customer value by providing the lowest- cost products and ser vices will want a staffing system that is similarly frugal and efficient. In this case, fewer steps in the pro cess, greater use of automated systems, and higher tolerance for lower levels of qualifications are called for. Conversely, an organ ization that emphasizes quality will seek the best employees, which entails a more rigorous and elaborate

099-67811_ch13_4P.indd 651 11/17/17 1:32 PM

652 PART SIX Staffing System and Retention Management

screening system. Organ izations in rapidly changing environments will emphasize systems that can be rapidly modified and are flexible with more temporary and contingent workers, whereas more stable operating environments call for long- term and predictable se lection and internal staffing systems.

Corporate culture will dictate other components of the staffing system. A staff- ing system that corresponds with the values, norms, and habits of orga nizational members will be accepted as well as implemented consistently and effectively. Some of the most significant issues related to culture, such as hierarchy versus participation, or competition versus cooperation, will create dif fer ent sets of pref- erences for decision making that are reflected in orga nizational arrangements.

Orga nizational Arrangements

An orga nizational arrangement refers to how the organ ization structures itself to conduct HR and staffing activities, often within the HR department. The specific form of these arrangements is derived from the goals described earlier under the strategic and cultural factors.

Culture clearly will have an impact on orga nizational arrangements. An organ- ization that has a hierarchical system for decision making will incorporate a greater degree of centralized authority to maintain this control, whereas a flat or partici- pative culture is better matched with devolving staffing choices to individual man- ag ers, who would likely prefer to participate in staffing activities. An organ ization that seeks to build team consensus should seek to implement systems that lead to the hiring of individuals with agreeable personality traits and that allow team members to evaluate applicants in person, whereas employees in a more competi- tive or aggressive organ ization might feel as though screening new hires is a waste of their work time or might even select applicants who seem like they will not be able to compete with them effectively. These are just some examples; many other cultural considerations should be taken into account when determining the orga- nizational arrangements that best fit the organ ization’s workforce.

Orga nizational arrangements are also dependent on logistical considerations. The size and resource base of organ izations vary widely. The majority of organ izations (about 11 million) in the United States have fewer than 100 employees, and employ slightly more than half of all working adults. A relatively smaller group of about 20,000 organ izations have 500 or more employees, and employ about half of all work- ing adults.6 In small firms, staffing is most likely to be conducted by the owner, the president, or the work unit man ag er. Only a small percentage (13%) of these organ- izations have an HR department that is responsible for staffing. Among these small organ izations, staffing activities are quite varied in terms of establishing job require- ments, recruitment sources, recruitment communication techniques, se lection meth- ods, decision making, and job offers.

As organ ization size increases, so does the likelihood of there being an HR department and a unit within it that is responsible for staffing. But the exact con-

099-67811_ch13_4P.indd 652 11/17/17 1:32 PM

CHAPTER THIRTEEN Staffing System Management 653

figuration of the HR department and staffing activities will depend on whether the organ ization is composed of business units pursuing a common business product or ser vice (an integrated business organ ization) or a diverse set of products or ser vices (a multiple- business organ ization).7 Because of its diversity, the multiple- business organ ization will likely not try to have a major, centralized corporate HR department. Rather, it will have a small corporate HR department, with a separate HR department within each business unit. In this arrangement, staffing activities will be quite decentralized, with some guidance and expertise from the corporate HR department.

An integrated business organ ization will likely have a highly centralized HR department at the corporate level, with a much smaller HR presence at the plant, store, or site level. As pertains to staffing, such centralization creates economies of scale and consistency in staffing policies and pro cesses, as well as in hiring stan- dards and new hire quality.

Exhibit 13.1 gives two examples of how staffing systems might be or ga nized. Organ ization A has a hierarchical administrative arrangement. Such a system is marked by strong specialization of roles, with distinct chains of command for HR and operations. This is a good fit for large organ izations in stable environments that have predictable production demands and a highly formal culture. The chief human resources officer receives information from top management regarding orga nizational strategy and goals, and then translates this into policies and pro- cedures. Methods for tracking and evaluating success against standardized metrics are also developed. Talent management directors oversee the HR representatives, who implement recruiting drives and perform the initial screening of applicants. The director of operations, site man ag ers, and line man ag ers focus on their own areas of specialization, receiving detailed and standardized files of applicants who have been screened by HR representatives. This separation of roles is highly efficient and ensures that all systems function smoothly.

On the other hand, Organ ization B is far more decentralized and participative. This system is more characteristic of firms in which work is performed in teams and all employees have a role in determining how to best perform their tasks. This type of system is a good fit for rapidly changing environments where continual adaptation is the norm and the culture recognizes a need for employee voice. The top management team still develops orga nizational strategy and goals, but the talent management team and the proj ect team continually interact with orga nizational lead- ers and have consultative meetings. Fitting with the lack of specialization, talent management team members sit on committees with proj ect teams. During these meetings, proj ect team man ag ers discuss their needs for workplace competencies, as the talent management team members provide resources and guidance in how to acquire these competencies using internal and external staffing systems. The proj- ect team reviews all candidate files and participates in staffing decisions, while the talent management team informs proj ect teams and top management teams what sorts of capabilities are available to meet each goal. This interactive approach may

099-67811_ch13_4P.indd 653 11/17/17 1:32 PM

654 PART SIX Staffing System and Retention Management

EXHIBIT 13.1 Examples of Staffing System Administrative Arrangements

Organization A: Hierarchical Sta ng System

Chief Human Resources O�cer: Develops sta�ng policies, procedures, and evaluation criteria

Director of Operations: Develops production systems and evaluates performance of plants

Top Management Team: Develop organizational strategy and goals

Talent Management Directors: Train and monitor HR sta�, coordinate sta�ng operations

Site Managers: Oversee site operations, direct coordination across shifts, evaluate site performance

Organization B: Participative Sta ng System

Talent Management Team: Develop recruiting portals, send applicant files to project team, discuss with project team

Project Team: Review applicant files against project requirements, meet with all applicants, discuss with talent management team

Top Management Team: Develop organizational strategy and goals

Human Resource Representatives: Implement recruiting drives, interview applicants

Line Managers: Oversee performance of shifts, review applicants cleared by HR, and make hiring decisions

1259756556_ch13_p645_686.indd 654 12/17/17 7:14 PM

CHAPTER THIRTEEN Staffing System Management 655

not possess the extreme efficiency of the hierarchical system, but it is uniquely adapted to the operational environment.

Organ izations A and B are two examples of dif fer ent configurations of HR systems within two fairly extreme situations. Most organ izations find that they have a system that combines ele ments of both the hierarchical system and the participative system— for example, departments focused on manufacturing or rou- tine customer ser vice are hierarchical, while departments focused on research and development are configured in a more participative system.

Policies and Procedures

A policy is a selected course or guiding princi ple. It is an objective to be sought through appropriate actions. For example, the organ ization might have a promotion- from- within policy as follows: “It is the intent of XXX organ ization to fill from within all vacancies above the entry level, except in instances of critical, immediate need for a qualified person unavailable internally.” This policy makes it clear that promotion from within is the desired objective; the only exception is in the absence of an immediately available, qualified current employee.

A procedure is a prescribed routine or way of acting in similar situations. It pro- vides the rules that govern a par tic u lar course of action. To carry out the promotion- from- within policy, for example, the organ ization may follow specific procedures for listing and communicating the vacancy, identifying eligible applicants, and assessing the qualifications of the applicants.

Policies and procedures can improve the strategic focus of the staffing area.8 When there are clearly articulated systems of policies and procedures, it is pos si ble to consider the meaning and function of the entire system at a strategic level. On the other hand, poorly thought out or inconsistent policies and procedures result in HR man ag ers spending an inordinate amount of time playing catch-up or “put- ting out fires,” as inconsistent be hav ior across orga nizational units inevitably leads to employee complaints. Without clear staffing policies, man ag ers scramble to develop solutions to recruitment or se lection needs at the last minute. Dealing with these routine breakdowns in procedures leaves less time to consult orga nizational goals or consider alternatives. The final result is inefficiency and wasted time.

Policies and procedures can also greatly enhance the perceived justice of staff- ing activities. Research conducted in a wide variety of organ izations has consis- tently shown that employees perceive orga nizational decision making as most fair when decisions are based on facts rather than social influence or personal biases, when decision- making criteria are clearly communicated, and when the pro cess is consistently followed across all affected individuals.9 The use of well- articulated policies and procedures can increase perceived justice considerably (if they meet all of the requirements for perceived justice). There are also bottom- line implica- tions: employee perceptions of orga nizational justice have been linked to increased intention to pursue a job in the recruitment context, increased intention to accept

099-67811_ch13_4P.indd 655 11/17/17 1:32 PM

656 PART SIX Staffing System and Retention Management

a job in the se lection context, increased satisfaction and commitment in job assign- ments, and decreased intention to sue a former employer in the layoff context.10

What are the keys to writing staffing policies and procedures that enhance orga- nizational effectiveness? Exhibit 13.2 summarizes the most impor tant princi ples.11 The examples provided in the figure are not meant to be exhaustive; at every stage there are many alternative ele ments of the staffing policy and procedure develop- ment pro cess. Each organ ization needs to consider its business context to know what the right ele ments of this pro cess will be.

EXHIBIT 13.2 Guidelines for Creating Effective Staffing Policies and Procedures

Planning Process Stage Example Elements of the Process

Stage 1: Determine the overarching HR strategy and priorities that guide all policies and procedures

• Align employee capabilities and efforts with annual strategic plans

• Maintain diversity of employee expertise and perspectives • Deliver services in a timely and cost-effective manner

Stage 2: Define specific objectives for staffing policies and procedures

• Evaluate KSAOs and competencies that will guide the recruiting and selection process

• Recruit highly qualified individuals from a variety of sources • Use standardized and validated selection processes and

tools • Coordinate all facets of the staffing process with managers

to ensure positions are filled quickly and effectively

Stage 3: Communicate policies and procedures to all employees and ensure their implementation

• Provide all employees with links to policy and procedure statements on the company intranet or through a policy and procedure manual

• Train managers in techniques for implementing policies and procedures

• Provide experts who can explain policies and procedures, answer questions, and take suggestions

• Monitor ongoing compliance with policies and procedures Stage 4: Evaluate and revise existing policies and procedures

• Analyze staffing metrics • Perform periodic reviews of manager opinions regarding

policy and procedure outcomes • Review changes to organizational and HR strategy to

determine new staffing strategy and priorities • Assess new technology and techniques for improving

staffing outcomes

099-67811_ch13_4P.indd 656 11/17/17 1:32 PM

CHAPTER THIRTEEN Staffing System Management 657

The single most impor tant idea under lying every one of these princi ples can be found in maintaining a clear linkage between orga nizational goals and staffing policies and procedures. The policy and procedure pro cess is a cycle, in which existing practices are continually revised to match environmental demands. The plan is therefore based on identifying strategic goals, employing specific methods to achieve these goals, mea sur ing the success of these methods, and responding to ongoing information.

The first stage is determining the overarching HR strategy, as described in Chapter 3. The second stage involves defining specific objectives for staffing poli- cies and procedures. The third stage is communicating policies and procedures to employees and ensuring that they are implemented correctly. As we noted previ- ously, major benefits of the policies and procedures are the clarity they provide to employees and the perceived justice that comes from explicit rules for decision making. Organ izations that communicate the content of policies and procedures make the most of this benefit. The fourth stage is evaluating whether policies and procedures are effective in achieving goals. Based on this evidence, new policies and procedures will be implemented when HR strategy and priorities change (such as a shift toward a focus on competencies linked to innovation), when existing policies and procedures are not effective (such as finding that not enough qualified individuals are being recruited through current methods), or when new methods for achieving goals are developed (such as the development of more accurate or informative mea sures of employee knowledge, skill, ability, and other characteris- tics [KSAOs] levels).

Human Resource Information Systems

Staffing activities generate and use considerable information. Job descriptions, application materials, résumés, correspondence, applicant profiles, applicant flow and tracking, and reports are examples of the types of information necessary for the operation of a staffing system. Naturally, prob lems regarding what types of information to generate, along with how to file, access, and use it, will arise when managing a staffing system. Thus, management of a staffing system involves man- agement of an HRIS.

Most organ izations with a sufficient number of employees to warrant a dedi- cated HR department have integrated the staffing function with an HRIS. Many vendors have developed specialized HRIS interfaces that can track the critical pro cesses and outcomes involved in staffing, as shown in Exhibit 13.3. The fea- tures listed in the exhibit are meant to be illustrative rather than exhaustive; new functionality is continually being added to HRISs. Providing hard data on staffing system outcomes can increase the credibility of staffing ser vices in organ izations. The increased availability of data on staffing pro cesses following from the use of HRISs means that organ izations will also be able to track the efficacy of policies

099-67811_ch13_4P.indd 657 11/17/17 1:32 PM

658 PART SIX Staffing System and Retention Management

EXHIBIT 13.3 Human Resource Information Systems for Staffing Tasks

Staffing Task HRIS Functionality

Legal compliance EEO data analysis and reports Policy and procedure writing guides Statistical analysis for demonstrating job relatedness

Planning Tracking historical demand for employees Forecasting workforce supply Replacement and succession planning

Job analysis Database of job titles and responsibilities Database of competencies across jobs Comparing job descriptions with O*Net

External recruitment and selection

Job posting reports Time-to-fill hiring requisitions Applicant logs and status and tracking reports Recruitment source effectiveness Electronic résumé routing Keyword scanning of applications New hire reports (numbers, qualifications, assignments) Validation of selection systems

Internal recruitment and selection

Employee succession planning Intranet for job postings Skills databases Tracking progress through assessment centers Job performance reports Individual development plans

Final match Tracking job acceptance rates Contract development Tracking employee socialization progress

Staffing system management

System cost reports Return on investments Record-keeping functions

Retention Collection and analysis of job satisfaction data Tracking differences in turnover rates across locations and time Documenting performance management and/or progressive discipline

099-67811_ch13_4P.indd 658 11/17/17 1:32 PM

CHAPTER THIRTEEN Staffing System Management 659

and procedures with accuracy. Staffing policies that do not show a return on invest- ment can be eliminated, whereas those that show positive results can be expanded. Organ izations that have outsourced staffing functions should also be aware of the information provided by HRISs and should ensure that they are receiving accurate and comprehensive reports from their vendor’s HRIS database. Organ izations con- sidering outsourcing options should request historical data showing the efficacy of staffing systems in other organ izations before committing resources toward any par tic u lar vendor. If an outsourcing ser vice provider cannot provide these data, this may be a sign that it does not communicate well or may not be very rigorous about evaluating the quality of its ser vices.

Web- based staffing management systems are also available from application ser vice providers (ASPs) or software- as- a- service (SaaS) providers. With such sys- tems, the vendor provides both the hardware (e.g., servers, scanners) and the software, as well as day- to- day management of the system. Recruiters and hiring man ag ers access the system through a web browser. Kenexa’s BrassRing system is an example of what an ASP can provide. Designed to facilitate the management of all aspects of the se lection system, this customizable set of staffing tools can be designed to work for a wide variety of organ izations. For example, the system can link an organ- ization with a variety of online and social media applications to advertise a position. Applicants can then enter their qualifications directly into the system. Other tools facilitate the management of recruiting events, like campus visits or job fairs, includ- ing rapid screening of applicants and interview schedules. Alternatively, for organ- izations that outsource recruiting, tools are available to manage information flow across multiple hiring agencies or consulting companies. Man ag ers can then access these applications directly and use a variety of search criteria to identify applicants who best match the job requirements. Once individuals are in the system, screening tests can be performed prior to face- to- face interviews. Some modules are even able to facilitate the onboarding pro cess by creating hiring checklists, online forms, and so forth. Several trends continue to alter the landscape of HRISs.12 Many systems now allow frontline man ag ers and employees to access their HR rec ords and engage with the system directly rather than working through a centralized HR employee. These pro cesses are implemented to facilitate internal staffing functions. Employees can use self- service pages to stay up to date with the skills needed in the organ ization through succession management plans, find training that will help them prepare for higher- level positions, and submit applications for openings. The increased avail- ability of web- based solutions also makes it easier for even small employers with limited resources to provide a full suite of automated HRIS solutions for staffing.

Social networking applications for information sharing, mirroring Facebook or Twitter, have become much more common in HRISs. They have been particularly popu lar ele ments of employee orientation or onboarding programs because they allow newcomers to interact with established employees quickly.

099-67811_ch13_4P.indd 659 11/17/17 1:32 PM

660 PART SIX Staffing System and Retention Management

Effectiveness When assessing HRISs for staffing tasks, HR man ag ers must carefully consider their needs and goals for the entire HRIS today and in the future.13 Some of the key factors that differentiate HRISs include whether the system is hosted on- site or as an SaaS on a remote server run by an HRIS provider, the degree and nature of cus- tom reporting provided by the HRIS, the ability to generate reports that integrate a variety of HR functions, and the degree to which systems for recruitment, se lection, rec ord keeping, orientation, benefits, and compensation are integrated with one another. Other factors to consider include how long the ser vice provider has been in business, how often it upgrades its system, how many other customers the provider has, who those clients are, and, of course, costs. The sheer complexity of deciding which HRIS to use means that the decision is seldom made by a single individual; rather, the decision is made by joint committees made up of executives, members of the HR staff, and information technology professionals.

Staffing technologies have a multitude of potential positive and negative effects. Many of these effects extend beyond pro cess improvement (e.g., speed of staffing) and cost reduction. While these two potential advantages are very impor tant, they need to be considered within the context of other potential advantages, and espe- cially the myriad potential disadvantages. The organ ization should proceed with caution and due diligence in deciding how to use new staffing technologies, evaluat- ing products and vendors, establishing ser vice agreements with vendors, and plan- ning prior to implementation. It is also clear that even after the staffing technologies are implemented, monitoring and system improvement will need to be periodically undertaken.

Outsourcing

Outsourcing refers to contracting out work to a vendor or third- party administrator. In Chapter 3, we discussed outsourcing work for noncore orga nizational pro cesses. Here, we consider the case of outsourcing certain staffing functions. Examples of specific staffing activities that are outsourced include a search for temporary employees, an executive search, drug testing, skill testing, background checks, job fairs, employee relocation, assessment centers, and affirmative action planning. A number of factors that influence the decision of whether to outsource are reviewed in Exhibit 13.4. Outsourcing decisions require consideration of orga nizational strat- egy, size of the organ ization, and the skills required. Thus, the decision of whether to outsource is not an all- or- nothing proposition. Some staffing functions are more easily outsourced, so many organ izations use outsourcing for some tasks but not for others.

One of the benefits of outsourcing is that it frees the internal HR department from performing day- to- day administrative activities that could be more efficiently managed by an external organ ization. Reviews of best practices show that the major advantages of outsourcing include access to superior information from specialists,

099-67811_ch13_4P.indd 660 11/17/17 1:32 PM

CHAPTER THIRTEEN Staffing System Management 661

access to technology and ser vices that are difficult to implement internally, and gen- eral cost reduction.14 By eliminating the day- to- day work of maintaining staffing systems, it is pos si ble to dedicate more energy to analyzing and improving the effec- tiveness of the staffing system as a whole. Because specialized staffing firms work with the same pro cesses all the time, they can develop specialized, highly efficient systems that deliver results more quickly and more cheaply than an organ ization’s in- house staffing ser vices. An external staffing firm will have more resources to keep up with developments in its area. For example, a firm that specializes in equal employment opportunity compliance will always have the latest information regarding court decisions and changing pre ce dents.

These advantages of outsourcing should always be weighed against the potential downfalls of outsourcing too many staffing functions or outsourcing functions too rapidly. Experts in this area warn that the expected benefits will not materialize if the decision to outsource is not accompanied by a complete transformation of the

EXHIBIT 13.4 Comparison of Outsourced and In- House Staffing

Outsourced In-House

Strategy Staffing functions not linked to core organizational competencies

Staffing functions linked to core organizational competencies

Size Small organizations, organizations without a centralized HR function, or organizations with continual hiring needs

Large organizations where economies of scale will pay off or for executive selection tasks where knowledge of the organization is crucial

Skills required General human capital, such as that easily obtained through education

Firm-specific human capital, such as required knowledge of organizational policies or specific personality traits

Examples • Recruiting packaging employees in a small warehouse

• Screening registered nurses for a long- term care facility

• Developing a website for automatically screening entry- level candidates

• Providing temporary employees for a highly cyclical manufacturing organization

• Recruiting creative talent for an advertising firm

• Selecting members of the organization’s executive team

• Providing employee orientation • Recruiting and selecting

employees for a large retail organization

• Recruiting and selecting individuals for an interdependent work team

099-67811_ch13_4P.indd 661 11/17/17 1:32 PM

662 PART SIX Staffing System and Retention Management

way HR is delivered.15 Organ izations that outsource should hold external providers accountable by keeping track of staffing metrics, especially since specialized staff- ing firms should have access to better systems for managing and reporting staffing data. Someone inside the organ ization should have final, bottom- line accountabil- ity for any outsourced ser vices. In many organ izations, there is re sis tance to out- sourcing, and employees may feel that the com pany is treating them impersonally if questions or concerns about employment are directed to an external vendor. Thus, employees who have complaints or concerns about staffing ser vices should be able to discuss their concerns with someone inside the organ ization who can respond to them.

One increasingly popu lar type of vendor is a professional employer organ ization (PEO). It is similar to a staffing firm, but unlike a staffing firm, a PEO provides a wider range of HR ser vices and has a long- term commitment to the client. Under a typical arrangement, the client organ ization enters into a contractual relation- ship with a PEO to conduct some or all HR activities and functions. The client and the PEO are considered co- employers of rec ord. A PEO is particularly appealing to small employers because it can provide special HR expertise and technical assis- tance, conduct the administrative activities and transactions of an HR department, provide more affordable employee benefits, meet legal obligations (payroll, with- holding, workers’ compensation, and unemployment insurance), and manage legal compliance. A survey of over 740 small businesses suggested that small businesses that used a PEO had higher levels of satisfaction with HR outcomes and more effi- cient implementation of HR pro cesses relative to small businesses that did not use a PEO, and that the more functions the com pany outsourced to the PEO, the greater the results.16

The health care industry has often turned to outsourcing for staffing needs, with individual hospitals hoping to learn best practices that have worked in other facili- ties. For example, Fauquier Health, a small hospital in Virginia, was experiencing difficulty in finding and retaining qualified staff. It turned to three HR outsourcing firms that had expertise in the areas of situational assessments, standardized testing, and health care hiring practices. The firms worked in concert to develop a se lection tool that incorporated simulations to assess interpersonal skills, cognitive ability and personality tests, and medical knowledge. These dif fer ent se lection tools, when used together, helped Fauquier achieve a 98% retention rate for the year. Representatives from Fauquier note that the previous experience these firms had in implementing staffing solutions across other organ izations greatly facilitated the pro cess.17

Another example of successful staffing outsourcing comes from Chequed, a firm that specializes in applicant assessment. By studying competencies required for hundreds of positions over time, it was able to create a standardized questionnaire that can assess qualifications quickly, with assessments tailor- made to specific job requirements. In addition to gathering information regarding which applicants are most qualified, it can also note competency gaps that might need to be addressed in

099-67811_ch13_4P.indd 662 11/17/17 1:32 PM

CHAPTER THIRTEEN Staffing System Management 663

the future. Because it has data across so many dif fer ent jobs and companies— data that are much more comprehensive than the data of an in- house HR function—it can more easily identify which characteristics are associated with success. As with the previous example, the goal of using this deep knowledge of job fit is to allow the HR department to focus its attention on organ ization fit and its unique strategic needs.18

At the outset, it is impor tant to remember that the agreement (often called a service- level agreement, or SLA) with the vendor is usually negotiable, and that flaws in the negotiating stage are often responsible for many prob lems that may subsequently occur in the relationship. Using some form of legal or consulting assis- tance might be desirable, especially for the organ ization that has little or no staff- ing outsourcing experience.

There are many issues to discuss and negotiate when working with a vendor. Awareness of these factors and advance preparation with regard to the organ ization’s preferences and requirements are critical to a successful negotiation with a potential vendor. The factors include the actual staffing ser vices sought and provided, client control rights (e.g., monitoring of the vendor’s personnel and the software to be used), fees and other costs, guaranteed improvements in ser vice levels and cost savings, benchmarking metrics and per for mance reviews, and willingness to hire the organ- ization’s own employees to provide expertise and coordination. On top of these factors, the choice of vendor should take into account the vendor’s track rec ord and familiarity with the organ ization’s industry.19

EVALUATION OF STAFFING SYSTEMS

The evaluation of staffing systems entails an examination of the effectiveness of the total system. The evaluation should focus on the operation of the staffing pro- cess and the results and costs of the pro cess.

Staffing Process

The staffing pro cess establishes and governs the flow of employees into, within, and out of the organ ization. Evaluation of the pro cess itself requires mapping the intended pro cess, identifying any deviations from the intended pro cess, and plan- ning corrective actions to reduce or eliminate the deviations. The intent of such an evaluation is to ensure standardization of the staffing pro cess, remove bottlenecks in the operation, and improve the speed of the operation.

Standardization refers to the operational consistency of the organ ization’s staff- ing system. The use of standardized staffing systems is desirable for several reasons. First, standardization ensures that the same KSAO information is gathered from all job applicants, which in turn is a key requirement for reliably and validly mea sur- ing these KSAOs. Second, standardization ensures that all applicants receive the

099-67811_ch13_4P.indd 663 11/17/17 1:32 PM

664 PART SIX Staffing System and Retention Management

same information about job requirements and rewards. Thus, all applicants can make equally informed evaluations of the organ ization. Third, standardization will enhance applicants’ perceptions of the procedural fairness of the staffing system and of the decisions made about them by the organ ization. As noted previously, perceived fairness is closely associated with employees’ attitudes toward the organ- ization and their motivation to perform. Fi nally, standardized staffing systems are less likely to generate legal challenges and more likely to maintain diversity; both statutes and case law advocate for consistent treatment of all employees.

Mapping out the staffing pro cess involves constructing a staffing flowchart. The staffing flowchart shown in Exhibit 13.5 depicts the staffing system of a medium- sized (580 employees) high- tech printing and lithography com pany. It shows the actual flow of staffing activities and both organ ization and applicant decision points, from the time a vacancy occurs until the time it is filled with a new hire.

A detailed inspection of the chart reveals the following information about the organ ization’s staffing system:

1. It is a generic system used for both entry- level and higher- level jobs. 2. For higher- level jobs, vacancies are first posted internally (thus showing a

recruitment philosophy emphasizing a commitment to promotion from within). Entry- level jobs are filled externally.

3. External recruitment sources (colleges, advertising, and employment agen- cies) are used only if the current applicant file yields no qualified applicants.

4. Initial assessments are made using biographical information (application blanks, résumés), and the results of these assessments determine who will be interviewed.

5. Substantive assessments are made through the interview(s) conducted by the HR man ag er and the hiring supervisor, and the results of these assessments determine who receives the job offer.

6. The applicant may counteroffer, and ac cep tance of the final offer by the applicant is conditional on passing drug/alcohol and physical tests.

7. The new hire undergoes a six- month probationary employment period before becoming a so- called permanent employee.

A more fine- grained analy sis is then conducted to indicate the specific steps and actions that should be taken throughout the staffing pro cess. For example, it can be seen in Exhibit 13.5 that non- entry- level manufacturing jobs are posted internally, so the more fine- grained analy sis would describe the job posting process— content of the posting, timing of the posting, mechanisms for circulating and displaying the posting, and the person responsible for handling the posting. As another exam- ple, the staffing pro cess involves contacting qualified applicants, inviting them for an interview, and interviewing them. The more fine- grained analy sis would iden- tify the amount of time between the initial contact and completion of interviews, who conducts the interview, and the nature/content of the interview (such as a

099-67811_ch13_4P.indd 664 11/17/17 1:33 PM

CHAPTER THIRTEEN Staffing System Management 665

EXHIBIT 13.5 Staffing Flowchart for Medium- Sized Printing Company

HR notified of opening(s)

Entry-level mfg. job?

Search applicant file

Qualified applicant(s)

Contact applicant(s)

Post internally (1–2 weeks)

Fill internally

Professional jobs— recruit at colleges

Invite for interviews

Employee transferred or promoted

Review résumés

Send letter of rejection

Interview applicants

Interviews: HR mgr. or dept. supv.

O�er job to applicant

Send letter or telephone call

Pass drug/alcohol and physical tests

Accept o�er

Receive telephone call to start work

Pass six mo. probation period

Confirm as employee

Dismissed

Search applicant file

Screen résumés

Go to second choice

Place ad or contact agency

Counter- o�er

Opt out

Opt out

Opt out

Mfg./clerical jobs: place want ad or contact agency

No

No

No

No

No

No

No

No

No

Or

Or

Or

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes Yes

Yes

Yes

Yes

099-67811_ch13_4P.indd 665 11/17/17 1:33 PM

666 PART SIX Staffing System and Retention Management

structured, situational interview). After this analy sis is complete, there would be a detailed specification of the staffing pro cess in flow terms, along with specific events, actions, and timing that should occur over the course of the pro cess.

Once the staffing pro cess has been mapped out, the next step is to check for any deviations that have occurred. This will require an analy sis of some past staffing “transactions” with job applicants, following what was done and what actions were taken as the applicants entered and flowed through the staffing system. It might be found, for example, that the content of the job postings did not conform to specific requirements for listing tasks and necessary KSAOs, or that interviews were not conducted within the required one- week period from the date of first contact with a qualified applicant, or that interviewers conducted unstructured interviews rather than the required structured, situational interview.

It is impor tant to understand why deviations are occurring so that they can be corrected appropriately. If man ag ers simply do not know what the pro cess is or how to implement it, training is the solution. On the other hand, if man ag ers are actively resisting the pro cess, a dif fer ent response is required. Man ag er feedback on why the pro cess is not followed should be solicited through surveys or interviews. If they find the pro cess cumbersome, inefficient, or in effec tive, the pro cess should be changed. If staffing does not contribute to orga nizational effectiveness, it must adapt. If it is not pos si ble or if it is strategically unwise to change the pro cess, then efforts should be made to explain the rationale behind the pro cess; incentives might be considered to align man ag er motivation with orga nizational interests. Getting man ag ers to partici- pate in the pro cess is crucial, because man ag ers are much more engaged when they are directly involved.20

Staffing Pro cess Results

In the past, it was commonly argued that most of the pro cesses involved in staff- ing were too subjective or difficult to quantify. As a result, staffing man ag ers could not provide representatives from finance and accounting with the hard cost- effectiveness data they were looking for. Fortunately, a dramatic increase in the availability and functionality of database software in recent years means that staff- ing system effectiveness can be assessed much more readily. HRISs can cata log and quickly display recruiting, hiring, retention, and job per for mance data. HR scholars have developed standardized metrics based on these sources of information that can help staffing man ag ers communicate the business case for staffing ser vices across the organ ization.21

Exhibit 13.6 provides a flowchart for using metrics to evaluate and update staff- ing pro cesses. The first step is to collect and synthesize the objectives of the staffing pro cess that were developed in stage 2 of policy and procedure creation (reviewed in Exhibit 13.2). The second step is to develop metrics that are associated with those objectives. There should be a very close relationship between the objectives of the staffing pro cess and the objectives that are selected. Simply because an HR- related

099-67811_ch13_4P.indd 666 11/17/17 1:33 PM

CHAPTER THIRTEEN Staffing System Management 667

outcome is readily available in the HRIS does not necessarily mean that assessing and analyzing it will be informative. The third step is to actually gather, analyze, and evaluate metrics. Both internal and external benchmarks can be useful here. An internal benchmark can evaluate whether some business units are in greater need of attention than others, and it can evaluate trends in HR outcomes over time. External benchmarks can evaluate whether your organ ization is achieving exceptional, aver- age, or poor results relative to other organ izations in your industry or area. Fi nally, it is essential that these findings be communicated effectively to top management teams. Steps for correcting any prob lems identified in the pro cess should be high- lighted, along with suggestions for how to improve.

This strategic planning and evaluation pro cess is an essential component of staff- ing system management. If there are no attempts to monitor and check the outcomes of staffing systems, it is likely that systems that may have been effective in the past will remain in place long after they have failed to obtain desired results. Of course, there is no guarantee that HR programs will prove to be effective when put to the test; experienced man ag ers who have used staffing system metrics often find that new staffing systems may not represent a significant improvement.

One method for evaluating the efficacy of staffing programs is to use the scientific technique of split samples.22 As an example, a split sample analy sis might begin with the premise that a new recruiting program will affect operational outcomes by attracting more qualified employees, improving the organ ization’s ability to respond to staffing requisitions quickly, and reducing long- range turnover. The specific met- rics for this proposed program include mea sures of employee qualifications, time- to- hire for position openings taken from the organ ization’s HRIS, and unit turnover

Collect and synthesize objectives for the sta�ng process

Develop metrics that assess how well sta�ng processes achieve those objectives

Compile, analyze, and evaluate metrics on an ongoing basis

Communicate findings and implications to the top management team

EXHIBIT 13.6 Using Metrics for Staffing Process Evaluation

099-67811_ch13_4P.indd 667 11/17/17 1:33 PM

668 PART SIX Staffing System and Retention Management

rates. In a split sample analy sis, the target employee population is split in half, and the new HR program is initiated with only one of these halves. In this case, perhaps one region of a national chain would serve as the experimental group for the new recruiting program. This group’s outcome would be compared with the rest of the organ ization, which did not use the new recruiting program. After the program has had an opportunity to work, representatives from HR can compare the metrics from the experimental sample with areas of the com pany where the new recruiting system was not employed. The split sample technique is not just use- ful for evaluating new programs; it can also assess an existing program. To assess the effectiveness of an existing program, the program is selectively discontinued in one location or business unit but still maintained in another section. If the temporary elimination of a costly program does not appreciably alter business outcomes, it may be wise to eliminate the program permanently.

If it is not pos si ble to use the split sample technique because the workforce does not have geo graph i cally or operationally distinct units, it is still pos si ble to use metrics to assess the efficacy of proposed system changes. Staffing man ag ers can compare long- run data on a single business unit’s effectiveness before and after a change has been initiated. This is called a longitudinal design, or simply put, a mea sure of change. To make valid inferences, benchmark data should be taken over a long period of time so that changes in staffing metrics can be reliably attributed to the program implementation rather than just routine variability in orga nizational per for mance.

A final strategy for assessing the effectiveness of HR programs is to compare orga nizational results with external benchmarks. The Society for Human Resource Management (SHRM) provides a number of guidelines for developing and inter- preting staffing metrics. Its website lists a number of benchmarking studies, includ- ing surveys that outline the use of benchmarking and perceived efficacies across a number of practices, such as retention initiatives, e- recruiting, and diversity management. More detailed metrics can also be obtained from SHRM surveys of human capital benchmarks. Learning what other organ izations are doing may not always be especially informative for determining the effectiveness of these policies and procedures for the organ ization. Many practices that work in one context may not be as useful in another context, and the research on HR bundling suggests that policies need to be implemented into a comprehensive system rather than just implementing individual practices in isolation. Therefore, although it is helpful to have some benchmark information, any new policies should be investigated for how well they are working in one’s own organ ization.

The use of scientific methods along with data from HRISs can help investigate whether common assumptions about staffing are supported in an organ ization.23 For example, Thrivent financial man ag ers had assumed that new hires who had substantial prior experience in the industry were less likely to leave in their first year, but analy sis of HR metrics showed that the exact opposite was true. Man ag- ers at Metropolitan Life assumed that there was no common profile of individuals

099-67811_ch13_4P.indd 668 11/17/17 1:33 PM

CHAPTER THIRTEEN Staffing System Management 669

who were most likely to succeed in their organ ization, but they found that they could identify future high performers by looking at the variety of job experiences employees had in the com pany. Although man ag ers at the food ser vice com pany Wawa Inc. suspected that hourly wage rates were influencing turnover among clerks, analy sis of their staffing data found that part- time workers were more prone to turnover than full- time employees. This led the com pany to change its staffing mix to include a higher proportion of full- timers than it had previously. As these examples illustrate, HR metrics and associated analytics can be power ful tools for testing and refining beliefs about the effectiveness of a variety of practices related to staffing.

Over the course of the staffing pro cess it is pos si ble to develop quantitative indicators that show how effectively and efficiently the staffing system is operating. For example, how many applicants does a given vacancy attract on average? What percentage of job offers are accepted? What is the average number of days it takes to fill a vacancy? What percentage of new hires remain with the organ ization for one year post hire? Answers to such questions can be determined by tracking and analyzing applicant flows through the staffing pipeline.

In Exhibit 13.7 we offer some suggestions for the types of financial and pro cess data that might be most useful for assessing the effectiveness of staffing systems overall. These suggestions are based on established research on best practices in the field. Following from several other writers, we divided the outcomes into four key categories: cost, timeliness, outcomes, and reactions. For each category, we pres ent some representative metrics that might be useful, although many other mea sur able outcomes might be relevant depending on an organ ization’s goals.

Exhibit 13.8 shows the required layout for this tracking and analy sis, as well as some staffing pro cess results that may be easily calculated. In Part A, the steps in the staffing pro cess start with the announcement of a vacancy and run through a sequen- tial flow of se lection, job offer, offer ac cep tance, start as new hire, and retention. A timeline shows the average number of days to complete each step. For illustration purposes, it is assumed that 25 vacancies attracted 1,000 applicants who proceeded through the staffing pro cess. Ultimately, all 25 vacancies were filled, and these new hires were tracked to see how many remained with the organ ization for six months and one year post hire.

Staffing pro cess results indicators, also referred to as metrics, along with their calculations using data from the example, can be found in Part B of Exhibit 13.8. The first indicator is applicants per vacancy, which averaged 40. This is an indi- cation of the effectiveness of recruitment activities to attract people to the organ- ization. The second indicator is the yield ratio; it indicates the percentage of people who moved on to one or more of the next steps in the staffing pro cess. For example, the percentage of applicants who became candidates is 20%; the percentage of job offers accepted is 83.3%. The third indicator, elapsed time (or cycle time), shows the average amount of time elapsed between each step in the staffing pro cess. It can be seen that the average number of days to fill a vacancy is 44. The final indicator

099-67811_ch13_4P.indd 669 11/17/17 1:33 PM

670 PART SIX Staffing System and Retention Management

is retention rate; the six- month retention rate for new hires is 80% and the one- year rate is 52%.

These types of metrics are very useful barometers for gauging the pulse of the staffing flow. They have an objective, bottom- line nature that can be readily commu- nicated to man ag ers and others in the organ ization. These types of data are also use- ful for comparative purposes. For example, the relative effectiveness and efficiency of staffing systems in two dif fer ent units of the organ ization could be assessed by comparing their respective yield ratios. Additionally, the metrics of one staffing system could be compared over time. Such time- based comparisons are useful for tracking trends in effectiveness and efficiency. These comparisons are also used to help judge how well changes in staffing practices have worked to improve staffing pro cess per for mance.

Increasingly, organ izations are emphasizing time to fill vacancies as a key indica- tor of staffing effectiveness, because the shorter the vacancy time, the less employee

EXHIBIT 13.7 Common Staffing Metrics

Cost Timeliness Outcomes Reactions

Staffing system

Staffing budget

Staffing-to-employee ratios

Staffing expenses for full- time equivalents (FTEs)

Time to respond to requests

Evaluation of employee readiness for strategic goals

Communication

Satisfaction with services provided

Recruiting Advertising expenses

Cost per applicant

Recruits per week

Number of recruits

Applicant quality

Selection Test costs per candidate

Interview expenses

Cost per candidate

Time to hire

Days to fill

Competence

Workforce diversity

Candidate quality

Satisfaction with tests

Final match Training costs per hire

Cost per hire

Days to start

Time to perform

Number of positions filled

Job performance

New employee satisfaction

Retention Exit interview expenses

Replacement costs

Timely response to external offers

Voluntary separation rate

Involuntary separation rate

Employee job satisfaction

099-67811_ch13_4P.indd 670 11/17/17 1:33 PM

Chapter thirteen Staffing System Management 671

e X

h iB

it 1

3 .8

e

va lu

a ti

o n

o f

S ta

ff in

g p

ro ce

ss a

n d

r e

su lt

s: e

xa m

p le

A . S ta ffi n g P ro ce

ss E xa

m p le

N o

.o f

va ca

n ci

e s

fil le

d 2

5

P ro

ce ss

st e

p

V ac

an cy

an n

o u

n ce

d (1

) A

p p

lic an

ts (2

) C

an d

id at

e s

(3 )

F in

al is

ts (4

)

O �

e r

re ce

iv e

r (5

)

O �

e r

ac ce

p ta

n ce

(6 )

S ta

rt as

n e

w h

ir e

(7 )

O n

th e

jo b

S ix

m o

n th

s (8

)

O n

e ye

ar (9

)

N o

.o f

p e

o p

le 0

1, 0

0 0

2 0

0 12

5 3

0 2

5 2

5 2

0 13

P ro

ce ss

tim e

(a vg

.n o

.o f

d ay

s) 0

14 2

1 2

8 3

5 4

2 4

4

B . S ta ffi n g P ro ce

ss R e su

lt s

A p

p lic

an ts

/V ac

an cy

1, 0

0 0

/2 5

4 0

Y ie

ld ra

tio :

ca n

d id

at e

s /a

p p

lic an

t 2

0 %

;n e

w h

ir e

s /a

p p

lic an

t 2

.5 %

;o �

e rs

ac ce

p te

d /r

e ce

iv e

d 8

3 .3

% E

la p

se d

t im

e :

av g

.n o

. o f

d ay

s to

o �

e r

= 3

5 ; a

vg . n

o . o

f d

ay s

to s

ta rt

= 4

4 (c

yc le

tim e

)

R e

te n

tio n

ra te

: 8

0 %

fo r

si x

m o

n th

s; 5

2 %

fo r

fir st

ye ar

o n

jo b

o n

e y

e ar

o n

jo b

s ix

m o

n th

s n

e w

h ir

e s

n e

w h

ir e

s

1259756556_ch13_p645_686.indd 671 12/17/17 7:12 PM

672 PART SIX Staffing System and Retention Management

contributions are forgone. Vacancies in sales jobs, for example, often mean lost sales and revenue generation; so, shortening the time to fill means lessening the revenue forgone. Filling vacancies more quickly has led organ izations to develop “speed hiring” and continuous hiring programs, in which they redesign their staff- ing systems to eliminate any excessive delays or bottlenecks in the pro cess.24

Surveys of orga nizational practice in calculating staffing metrics should be con- sulted to learn about the many nuances involved.25

Calculating Staffing Metrics

We have already outlined methods for assessing the costs and benefits of staffing policies and procedures. Below we pres ent more specific methods for calculating these metrics.26 The number of positions filled is a straightforward count of the number of individuals who accepted positions during the fiscal year. These data are collected for both internal and external candidates. The time to fill openings is esti- mated by assessing the number of days it takes for a job requisition to result in a job ac cep tance by a candidate. Hiring cost estimates are the sum of advertising, agency fees, employee referrals, travel costs for applicants and staff, relocation costs, and pay and benefits for recruiters. Hiring cost estimates are often indexed by dividing by the number of positions filled. As we noted in the chapters on recruiting, these cost estimates may be subdivided in a number of ways to get a better idea of which portions of the staffing pro cess are comparatively more expensive. Turnover rates are also often used as staffing metrics. The annual turnover rate is estimated by dividing the number of separations per month by the average number of individuals employed each month and then taking the sum of these average monthly rates. Turnover rates are often differentiated based on whether they represent voluntary or involuntary turnover, which we cover in the next chapter. Other cost data, and how to calculate them, are also available.

Another staffing metric is the staffing cost or efficiency ratio.27 It takes into account the notion that recruiting applicants for jobs with a higher compensation level might cost more due to such costs as executive search fees, recruitment advertising, reloca- tion, and so forth. The formula for the efficiency ratio is total staffing cost ratio = total staffing costs / total compensation recruited. Though the cost per hire may be greater for one job category than for another, their staffing cost ratios may be the same. This

EXHIBIT 13.9 Comparison of Cost per Hire and Staffing Cost Ratio

Job Category

Repair

Sales manager

New Hires

100

500

Sta�ng Cost

$300,000

$500,000

Cost per Hire

$3,000

$1,000

Compensation per Hire

$60,000

$20,000

Sta�ng Cost Ratio

5%

5%

099-67811_ch13_4P.indd 672 11/17/17 1:33 PM

CHAPTER THIRTEEN Staffing System Management 673

is illustrated in Exhibit 13.9. If the cost per hire is the only factor considered, then it appears that recruitment for the repair job is more effective than for the sales man- ag er job. But by also calculating the staffing cost ratio, it can be seen that recruitment is at the same level of efficiency for both job categories. That is, recruitment for each source incurs the same relative expense to “bring in” the same amount of compensa- tion via new hires.

LEGAL ISSUES

Rec ord Keeping and Privacy

In staffing systems, substantial information is generated, used, recorded, and disclosed. Numerous legal constraints and requirements surround staffing information. These pertain to rec ord keeping and privacy concerns.

Rec ord Keeping The organ ization creates a wide range of information during staffing and other HR activities. Examples include personal data (name, address, date of birth, dependents, etc.), KSAO information (application blank, references, test scores, etc.), medical information, per for mance appraisal and promotability assessments, and changes in employment status (promotions, transfers, etc.). Why should rec ords of such infor- mation be created?

Rec ords should be created and maintained for two major legal purposes in staff- ing. First, they are necessary for legal compliance. Federal, state, and local laws specify what information should be kept and for how long. Second, having rec ords allows the organ ization to provide documentation to justify staffing decisions or to defend these decisions against legal challenge. For example, per for mance appraisal and promotability assessments might be used to explain to employees why they were or were not promoted. Or, these same rec ords might be used as evidence in a legal proceeding to show that promotion decisions were job related and unbiased.

It is strongly recommended that two sets of rec ords be created. These rec ords can be kept in paper or electronic form. The first set should be the individual employee’s personnel file. It should comprise only those documents that relate directly to the job and the employee’s per for mance of it. To determine which documents to place in the personnel file, ask if it is a document on which the organ ization could legally base an employment decision. If the answer is “no,” “prob ably no,” or “unsure,” the document should not be placed in the employee’s personnel file. The second set of rec ords should contain documents that cannot be used in staffing decisions. Examples include documents pertaining to medical information (both physical and mental), equal employment opportunity (e.g., information about protected charac- teristics such as age, sex, religion, race, color, national origin, and disability), and information about authorization to work (e.g., I-9 forms).28

099-67811_ch13_4P.indd 673 11/17/17 1:33 PM

674 PART SIX Staffing System and Retention Management

Any document that is to be placed in an employee’s personnel file should be reviewed before it becomes part of that rec ord. Examine the document for incomplete, inaccurate, or misleading information, as well as potentially damaging notations or comments about the employee. All such information should be completed, corrected, explained, or, if necessary, eliminated. Remember that any document in the person- nel file is a potential court exhibit that may work either for or against the employer’s defense of a legal challenge.

Federal equal employment opportunity and affirmative action (EEO/AA) laws contain general record- keeping requirements. Though the requirements vary some- what from law to law, major subject areas for which rec ords are to be kept (if cre- ated) are shown in Exhibit 13.10. Requirements by the Office of Federal Contract Compliance Programs (OFCCP) are broader than those shown, and rec ords must be maintained for at least two years.

The vari ous laws also have requirements about length of retention of rec ords. As a general rule, most rec ords must be kept for a minimum of one year from the date a document is made or a staffing action is taken, whichever is later. Exceptions to the one- year requirements all provide for even longer retention periods. If a charge of discrimination is filed, the rec ords must be retained until the matter is resolved.

Privacy Concerns The organ ization must observe legal requirements governing employees’ and others’ access to information in personnel files, as well as guard against unwarranted dis- closure of the information to third- party requesters (e.g., other employers). Matters of information access and disclosure raise privacy concerns under both constitutional and statutory law.29

Records that should be kept include the following:

• Applications for employment (hire, promote, or transfer) • Reasons for refusal to hire, promote, or transfer • Tests and test scores, plus other KSAO information • Job orders submitted to labor unions and employment agencies • Medical exam results • Advertisements or other notices to the public or employees about job openings and

promotion opportunities • Requests for reasonable accommodation • Impact of staffing decisions on protected groups (adverse impact statistics) • Records related to filing of a discrimination charge

All records should be kept for a minimum of one year.

EXHIBIT 13.10 Federal Record- Keeping Requirements

099-67811_ch13_4P.indd 674 11/17/17 1:33 PM

CHAPTER THIRTEEN Staffing System Management 675

Several states have laws guaranteeing employees reasonable access to their per- sonnel files. The laws generally allow the employee to review and copy pertinent documents; some documents such as letters of reference or promotion plans for the person may be excluded from access. The employee may also have a right to seek to correct erroneous information in the file. Where there is no state law permitting access, employees are usually allowed access to their personnel file only if the organ- ization has a policy permitting it. Disclosure of information in a personnel file to third parties is often regulated as well and may require the employee’s written consent.

At the federal level, numerous laws and regulations restrict access to and disclosure of employee personnel information. An example is the Americans With Disabilities Act (ADA) and its provisions regarding the confidentiality of medical information. There is, however, no general federal privacy law covering private employees. Public employees’ privacy rights are protected by the Privacy Act of 1974.

EEO Report

The law requires many private employers and federal contractors to submit an annual EEO-1 (Standard Form 100) report, which has two components. Federal contrac- tors with 50–99 employees must file Component 1; federal contractors and private employers with 100 or more employees must file Component 2.

Component 1 requires head- count employment data about employee ethnicity, race, and sex, by job category, as shown in Exhibit 13.11. The data may be gathered from orga nizational rec ords, visual inspection, or self- report. Detailed instructions and guidance for completing the form are online (eeoc​.​gov).

Component 2 (not shown) contains 12 annual salary pay bands, ranging from $19,239 and lower (grade 1) to $208,000 and above (grade 12). For each job cat- egory shown in Exhibit 13.11 the ethnicity/race/sex data from Component 1 must be broken down into the 12 pay bands.

Legal Audits

It is highly desirable to periodically conduct audits or reviews of the organ ization’s degree of compliance with laws and regulations pertaining to staffing.30 The audit forces the organ ization to study and specify its staffing practices and to compare these current practices against legally desirable and required practices. Results can be used to identify potential legal trou ble spots and to map out changes in staff- ing practices that will serve to minimize potential liability and reduce the risk of lawsuits being filed against the organ ization. Note that development of affirmative action plans (AAPs) and reports includes a large audit and review component. They do not, however, cover the entire legal spectrum of staffing practices, nor do they require sufficient depth of analy sis of staffing practices in some areas. For these reasons, AAPs and reports are not sufficient as legal audits, though they are im mensely impor tant and useful inputs to a legal audit.

099-67811_ch13_4P.indd 675 11/17/17 1:33 PM

676 PART SIX Staffing System and Retention Management

E X

H IB

IT 1

3 .1

1 C

o m

p o

n e

n t

1 o

f th

e E

E O

-1 F

o rm

Jo b

C

a te

g o

ri e

s

N u

m b

e r

o f

E m

p lo

ye e

s (R

e p

o rt

e m

p lo

ye e

s in

o n

ly o

n e

c a

te g

o ry

)

R a

ce /E

th n

ic ity

H is

p a

n ic

o r

La

tin o

N o

t- H

is p

a n

ic o

r La

tin o

To ta

l C

o l

A –

N

M a

le F

e m

a le

M a

le F

e m

al e

W h

ite B

la ck

o r

A fr

ic a

n

A m

e ri

ca n

N a

tiv e

H

a w

a iia

n

o r

o th

e r

P a

ci fic

Is

la n

d e

r

A si

a n

A m

e ri

ca n

In

d ia

n o

r A

la sk

a

N a

tiv e

Tw o

o

r m

o re

ra

ce s

W h

ite B

la ck

o r

A fr

ic a

n

A m

e ri

ca n

N a

tiv e

H

a w

a iia

n

o r

o th

e r

P a

ci fic

Is

la n

d e

r

A si

a n

A m

e ri

ca n

In

d ia

n o

r A

la sk

a

N a

tiv e

Tw o

o

r m

o re

ra

ce s

A B

C D

E F

G H

I J

K L

M N

O

E xe

cu tiv

e /S

e n

io r

Le ve

l O ff

ic ia

ls

a n

d M

a n

a g

e rs

1.1

F ir

st /M

id -L

e ve

l O ff

ic ia

ls a

n d

M

a n

a g

e rs

1.

2

P ro

fe ss

io n

a ls

2

Te ch

n ic

ia n

s 3

S a

le s

W o

rk e

rs

4

A d

m in

is tr

a tiv

e S

u p

p o

rt W

o rk

e rs

5

C ra

ft W

o rk

e rs

6

O p

e ra

tiv e

s 7

La b

o re

rs a

n d

H e

lp e

rs

8

S e

rv ic

e W

o rk

e rs

9

T O

TA L

10

P R

E V

IO U

S Y

E A

R T

O TA

L 11

S o

u r

c e:

E E

O -1

J o

in t

R e

p o

rt in

g C

o m

m itt

e e

, E m

p lo

ye r

In fo

rm a

ti o

n R

e p

o rt

E E

O -1

, n .d

. ( w

w w

.e e

o c.

g o

v/ e

m p

lo ye

rs /e

e o

1s u

rv e

y /u

p lo

a d

/i n

st ru

ct io

n s_

fo rm

.p d

f) .

099-67811_ch13_4P.indd 676 11/17/17 1:33 PM

CHAPTER THIRTEEN Staffing System Management 677

The audit could be conducted by the organ ization’s own legal counsel. Alter- natively, the HR department might first conduct a self- audit and then review its findings with legal counsel. Conducting an audit after involvement in employment litigation is also recommended.

Training for Man ag ers and Employees

Training in employment law and compliance requirements for man ag ers and employees is not only a sound practice but also increasingly a defense point for the organ ization in employment litigation. The following statement illustrates this:

Recent judicial and agency activity make clear that training is no longer a discre- tionary HR activity—it is essential. The question is not whether your com pany is going to provide it, but how long will it have to suffer the costly consequences of neglect. A carefully crafted, effectively executed, methodically mea sured, and frequently fine- tuned employment practices training program for man ag ers and employees is a power ful component of a strategic HRD ( human resource devel- opment) plan that aligns vital corporate values with daily practices. The costs of neglect are serious. The benefits are compelling and fundamental to long- term success . . . Adequate, effective, and regularly scheduled employment law and practices training is now the rule, not the exception.31

The constantly changing employment law landscape reinforces the need for training. New laws, regulations, and court rulings can all redefine permissible and imper- missible staffing practices.32

Though the requirements for employment law training are still being devel- oped, it appears there are several desirable components to be incorporated: (1) the training should be for all members of the organ ization; (2) basic harassment and discrimination training should be given immediately to new employees, man ag- ers should receive additional training, and refresher training should occur periodi- cally and when special circumstances arise, such as a significant change in policy or practice; (3) the trainers should have special expertise in employment law and practice; (4) the training content should be substantive and cover EEO practices in several staffing areas— such as recruitment, hiring, succession planning, and promotion—as pertains to the numerous EEO laws and regulations; training in other areas of HR, such as compensation and benefits, should also be provided; and (5) the training materials should also be substantive, incorporate the organ ization’s specific harassment and discrimination policies, and allow for both information pre sen ta tion and active practice by the participants.33 Trainees should learn which EEO actions they can implement on their own and which actions should be referred to the HR department. Fi nally, the training should be matched with diversity initia- tives to avoid an overly legalistic perspective.34

To help heighten trainee awareness and ac cep tance, the organ ization might blend material on implicit (hidden) biases into the training.35 Such biases are deeply held

099-67811_ch13_4P.indd 677 11/17/17 1:33 PM

678 PART SIX Staffing System and Retention Management

at the unconscious level and could unknowingly enter into how individuals interact with others at work and make decisions about them (such as hiring, promoting, and terminating). The biases could include a wide array of personal characteristics (e.g., demographic) and information (e.g., po liti cal views).

The Implicit Association Test (IAT) may be used in training to help reveal each trainee’s many pos si ble hidden biases, including skin tone, disability, ethnicity, race, sexuality, weight, age, religion, gender- science, and gender- career. (The IAT for many of these biases can be accessed and taken at https://​implicit​.​harvard​.​edu​ /​implicit​/​selectatest​.​html).

Once hidden biases are revealed and acknowledged in a nonthreatening way, steps for avoiding or controlling their effects can be suggested and implemented. Organ- izations have addressed hidden biases by providing staffing decision makers with prompts or tip sheets about hidden bias during staffing activities, encouraging social interaction at work with people dif fer ent from oneself, using objective scoring sys- tems for evaluating applicants’ résumés, and giving hiring man ag ers specific inter- view questions to help gauge cultural fit of the applicant to the organ ization’s culture.

Dispute Resolution

Employment laws naturally lead to claims of their violation by job applicants and employees. This sets in motion vari ous ways to resolve the dispute externally or internally.

External Resolution A complaint must be filed with the agency that administers the law in question, and that agency will have its own pro cess for dealing with the complaint. For example, if the agency is the EEOC, it will assign an investigator to the case who will deter- mine whether there is reasonable cause to assume a violation occurred.36 The organ ization can conduct its own investigation (described below) to help figure out what to do next. The EEOC prefers that the organ ization seek mediation or settle- ment in order to resolve the dispute informally, voluntarily, and quickly (see Chap- ter 2). If the organ ization decides against this, a formal charge- handling pro cess will be followed to investigate and determine whether there is reasonable cause. If reasonable cause is not found, the complaint is dismissed. But if reasonable cause is found, the informal pro cess of conciliation will be used to seek voluntary settlement. If that fails, the EEOC can then file suit or give the charging party the right to file a lawsuit by providing it a right- to- sue letter. In short, the EEOC prefers an informal means of settlement.

Internal Resolution A complaint filed internally by an employee should be promptly investigated, with appropriate corrective action following. Alternative dispute resolution (ADR) techniques might also be used.

099-67811_ch13_4P.indd 678 11/17/17 1:33 PM

CHAPTER THIRTEEN Staffing System Management 679

Internal Investigation. The goal is to conduct an investigation that could be shown to an external agency such as the EEOC or used in court. This will require careful planning and handling of many steps, which could include ensuring confidentiality, providing necessary protection to the person making the com- plaint, choosing a qualified and objective investigator (e.g., HR staff person, legal counsel, outside investigator), forming an investigation plan for gathering docu- ments and interviewing people, developing interview questions, conducting the interviews, reviewing the documents and interview responses, making a decision about the validity of the complaint, making necessary corrective actions (e.g., promoting a rejected candidate, changing the promotion system), and making a final report.37

Alternative Dispute Resolution. Along with conducting an internal investiga- tion, or separately, the organ ization could use one of the forms of ADR shown in Exhibit 13.12. These approaches range from informal (e.g., joint decision making) to formal (e.g., a binding decision issued by a neutral arbitrator).

Sometimes new hires are required to sign a provision as part of an employment contract that waives their protected rights under civil rights laws to file or partici- pate in a proceeding against the organ ization and to instead use only a specified ADR system to resolve complaints. The EEOC has issued guidance indicating that such waiver provisions are null and void, and that their existence cannot stop the

EXHIBIT 13.12 Alternative Dispute Resolution Approaches

Approach Description

Negotiation Employer and employee discuss complaint with goal of resolving complaint.

Fact finding A neutral person from within or outside the organization investigates a complaint and develops findings that may be the basis for resolving the complaint.

Peer review A panel of employees and managers work together to resolve the complaint.

Mediation A neutral person (mediator) from within or outside the organization helps the parties negotiate a mutually acceptable agreement. Mediator is trained in mediation methods. Settlement is not imposed.

Arbitration A neutral person (arbitrator) from within or outside the organization conducts a formal hearing and issues a decision that is binding on the parties.

099-67811_ch13_4P.indd 679 11/17/17 1:33 PM

680 PART SIX Staffing System and Retention Management

EEOC from enforcing the law.38 The EEOC may pursue a discrimination claim even when the employee has signed an ADR waiver.

With arbitration as the ADR procedure, the employer and the job applicant or employee agree in advance to submit their dispute to a neutral third- party arbi- trator, who will issue a final and binding decision. Such arbitration agreements usually include statutory discrimination claims, meaning that the employee agrees not to pursue charges of discrimination against the employer by any means (e.g., lawsuit) except arbitration. The courts have ruled that such arbitration agreements generally are legally permissible and enforceable. However, such agreements do not serve as a bar to pursuit by the EEOC of a discrimination claim seeking victim- specific relief. Legal counsel should be sought prior to use of arbitration agreements.

SUMMARY

The multiple and complex set of activities collectively known as a staffing system must be integrated and coordinated throughout the organ ization. Such manage- ment of the staffing system requires both careful administration and evaluation, as well as compliance with legal mandates.

To manage the staffing system, the usual orga nizational arrangement in all but very small organ izations is to create an identifiable staffing or employment function and place it within the HR department. That function then manages the staffing system at the corporate and/or plant and office levels.

The myriad staffing activities require staffing policies to establish general staff- ing princi ples and procedures to guide the conduct of those activities. Lack of clear policies and procedures can lead to misguided and inconsistent staffing practices, as well as potentially illegal ones. Staffing technology can help achieve these con- sistencies and aid in improving staffing system efficiency. Outsourcing of staffing activities is also being experimented with as a way of improving staffing system operation and results.

Evaluation of the effectiveness of the staffing system should proceed along several fronts. First is assessment of the staffing system from a pro cess perspective. Here, it is desirable to examine the degree of standardization (consistency) of the pro- cess, as well as use a staffing flowchart to identify deviations in staffing practice and bottlenecks. The results of the pro cess according to indicators such as yield ratios and elapsed time (cycle time), along with the costs of staffing system opera- tion, should also be estimated.

Vari ous laws require maintenance of numerous rec ords and protection of privacy. It is desirable to conduct a legal audit of all the organ ization’s staffing activities peri- odically. This will help identify potential legal trou ble spots that require attention. Employment law training for man ag ers and employees is increasingly becoming

099-67811_ch13_4P.indd 680 11/17/17 1:33 PM

CHAPTER THIRTEEN Staffing System Management 681

necessary. Methods for addressing employment disputes, known as ADRs, should be explored.

DISCUSSION QUESTIONS

1. What are the advantages of having a centralized staffing function, as opposed to letting each man ag er be totally responsible for all staffing activities in his or her unit?

2. What are examples of staffing tasks and activities that cannot or should not be simply delegated to a staffing information system?

3. What are the advantages and disadvantages of outsourcing an entire staffing system to a vendor?

4. In developing a report on the effectiveness of a staffing pro cess for entry- level jobs, what factors would you address and why?

5. How would you encourage individual man ag ers to be more aware of the legal requirements of staffing systems and to take steps to ensure that they them- selves engage in legal staffing actions?

ETHICAL ISSUES

1. It has been suggested that the use of staffing technology and software is wrong because it dehumanizes the staffing experience, making it nothing but a mechanical pro cess that treats applicants like digital widgets. Evaluate this assertion.

2. Since there are no standard ways of creating staffing pro cess results and cost metrics, is there a need for some sort of oversight of how these data are cal- culated, reported, and used within the organ ization? Explain.

APPLICATIONS

Learning About Jobs in Staffing

The purpose of this application is to have you learn in detail about a par tic u lar job in staffing currently being performed by an individual. The individual could be a staffing job holder in the HR department of a com pany or public agency (state or local government), a nonprofit agency, a staffing firm, an employment agency, a consult- ing firm, or the state employment (job) ser vice. The individual may perform staffing tasks full time, such as a recruiter, interviewer, counselor, employment representative,

099-67811_ch13_4P.indd 681 11/17/17 1:33 PM

682 PART SIX Staffing System and Retention Management

or employment man ag er. Or, the individual may perform staffing duties as part of the job, such as the HR man ag er in a small com pany or an HR generalist in a specific plant or site.

Contact the job holder and arrange for an interview with that person. Explain that the purpose of the interview is for you to learn about the person’s job in terms of job requirements (tasks and KSAOs) and job rewards (both extrinsic and intrinsic). To prepare for the interview, review job descriptions for HR man ag ers and special- ists on O*Net, obtain any information you can about the organ ization, and develop a set of questions to ask the job holder. Either before or at the interview, be sure to obtain a copy of the job holder’s job description if one is available. Use the written and interview information to prepare a report of your investigation that covers the following:

1. The organ ization’s products and ser vices, size, and staffing (employment) function

2. The job holder’s job title, and why you chose that person’s job to study 3. A summary of the tasks performed by the job holder and the KSAOs neces-

sary for the job 4. A summary of the extrinsic and intrinsic rewards received by the job holder 5. Unique characteristics of the job that you did not expect to be part of the job

Evaluating Staffing Pro cess Results

The Keepon Trucking Com pany (KTC) is a manufacturer of custom- built trucks. It does not manufacture any par tic u lar truck lines, styles, or models. Rather, it builds trucks to customers’ specifications; these trucks are used for specialty purposes such as snow removal, log hauling, and military cargo hauling. One year ago, KTC received a new, large order that would take three years to complete and required the external hiring of 100 new assemblers. To staff this par tic u lar job, the HR depart- ment man ag er of nonexempt employment hurriedly developed and implemented a special staffing pro cess for filling these new vacancies. Applicants were recruited from three sources: newspaper ads, employee referrals, and a local employment agency. All applicants generated by these methods were subjected to a common se lection and decision- making pro cess. All offer receivers were given the same terms and conditions in their job offer letters and were told there was no room for any negotiation. All vacancies were eventually filled.

After the first year of the contract, the man ag er of nonexempt employment, Dexter Williams, deci ded to pull together some data to determine how well the staffing pro cess for the assembler jobs had worked. Since he had not originally planned on doing any evaluation, Dexter was able to retrieve only the following data to help him with his evaluation:

099-67811_ch13_4P.indd 682 11/17/17 1:33 PM

CHAPTER THIRTEEN Staffing System Management 683

1. Determine the yield ratios (offer receivers / applicants, new hires / appli- cants), elapsed time or cycle times (days to offer, days to start), and retention rates associated with each recruitment source.

2. What is the relative effectiveness of the three sources in terms of yield ratios, cycle times, and retention rates?

3. What are some pos si ble reasons for the fact that the three sources differ in their relative effectiveness?

4. What would you recommend Dexter do differently in the future to improve his evaluation of the staffing pro cess?

ENDNOTES

1. T. H. Davenport, J. Harris, and J. Shapiro, “Competing on Talent Analytics,” Harvard​Business​ Review, Oct. 2010, pp. 52–58.

2. G. Saridakis, Y. Lai, and C. L. Cooper, “Exploring the Relationship Between HRM and Firm Per for mance: A Meta- Analysis of Longitudinal Studies,” ​Human​Resource​Management​Review, 2017, 27, pp. 87–96; C. Ostroff and D. E. Bowen, “Reflections on the 2014 De cade Award: Is There Strength in the Construct of HR System Strength?” Acad​emy​of​Management​Review, 2016, 41, pp. 196–214; R. A. Posthuma, M. C. Campion, M. Masimova, and M. A. Campion, “A High Per for mance Work Practices Taxonomy,” Journal​of​Management, 2013, 39, pp. 1184–1220.

3. S. T. Hunt, Driving​Business​Execution​Through​Integrated​Talent​Management (Brisbane, QLD, Australia: Success Factors, 2012); D. Zielinski, “Total Integration,” HR​Magazine, 2011, 56(11), pp. 69–72.

4. D. Ulrich, J. Younger, W. Brockbank, and M. Ulrich, HR​ From​ the​ Outside​ In (New York: McGraw- Hill, 2012).

Exhibit Staffing Data for Filling the Job of Assembler

Recruitment Source Offer

ReceiversApplicants Start as

New Hires Remaining

at Six Months

Newspaper ads No. apps. Avg. no. days

300 30

70 30

50 10

35

Employee referral No. apps. Avg. no. days

60 20

30 10

30 10

27

Employment agency No. apps. Avg. no. days

400 40

20 20

20 10

8

099-67811_ch13_4P.indd 683 11/17/17 1:33 PM

684 PART SIX Staffing System and Retention Management

5. D. G. Sirmon and M. A. Hitt, “Contingencies Within Dynamic Managerial Capabilities: Inter- dependent Effects of Resource Investment and Deployment on Firm Per for mance,” Strategic​ Management​Journal, 2009, 30, pp. 1375–1394; S. Aryee, F. O. Walumbwa, E. Y. M. Seidu, and L. E. Otaye, “Impact of High Per for mance Work Systems on Individual- and Branch- Level Per- for mance: Test of a Multilevel Model of Intermediate Linkages,” Journal​of​Applied​Psy​chol​ogy, 2012, 97, pp. 287–300; Y. Hong, H. Liao, J. Hu, and K. Jiang, “Missing Link in the Ser vice Profit Chain: A Meta- Analytic Review of the Antecedents, Consequences, and Moderators of Ser vice Climate,” Journal​of​Applied​Psy​chol​ogy, 2013, 98(2), pp. 237–267.

6. US Census Bureau, “2014 SUSB Annual Data Tables by Establishment Industry,” Dec. 2016 (www.census.gov/data/tables/2014/econ/susb/2014-susb-annual.html), accessed Mar. 9, 2017.

7. E. E. Lawler III and A. A. Mohrman, Creating​ a​ Strategic​ ​Human​ Resources​ Organ​ization (Stanford, CA: Stanford University Press, 2003), pp. 15–20.

8. M. Fiester, “Practicing Strategic Human Resources,” SHRM​ Templates​ and​ Toolkits, Mar. 21, 2013 (www​.​shrm​.​org).

9 . J. A. Colquitt, B. A. Scott, J. B. Rodell, D. M. Long, C. P. Zapata, D. E. Conlon, and M. J. Wes- son, “Justice at the Millennium, a De cade Later: A Meta- Analytic Test of Social Exchange and Affect Based Perspective,” Journal​of​Applied​Psy​chol​ogy, 2013, 98, pp. 199–236.

10. D. M. Truxillo, T. N. Bauer, M. A. Campion, and M. E. Paronto, “Se lection Fairness Information and Applicant Reactions: A Longitudinal Field Study,” Journal​of​Applied​Psy​chol​ogy, 2002, 87, pp. 1020–1031; K. L. Uggerslev, N. E. Fassina, and D. Kraichy, “Recruiting Through the Stages: A Meta- Analytic Test of Predictors of Applicant Reaction at Dif fer ent Stages of the Recruiting Pro cess,” Personnel​Psy​chol​ogy, 2012, 65, pp. 597–660; S. Schinkel, A. van Vianen, and D. van Dierendonck, “Se lection Fairness and Outcomes: A Field Study of Interactive Effects on App- licant Reactions,” International​ Journal​ of​ Se​lection​ and​ Assessment, 2013, 21, pp. 22–31; C. W. Wanberg, L. W. Bunce, and M. B. Gavin, “Perceived Fairness of Layoffs Among Indi- viduals Who Have Been Laid Off: A Longitudinal Study,” Personnel​ Psy​chol​ogy, 1999, 52, pp. 59–84.

11. D. Ulrich, J. Allen, W. Brockbank, J. Younger, and M. Nyman, HR​ Transformation:​ Building​ ​Human​ Resources​ From​ the​ Outside​ In (New York: McGraw- Hill, 2009); S. A. Smith and R. Mazin, The​HR​Answer​Book (New York: American Management Association, 2011).

12. H. Williams, “e- HR 2010: Key HR Software Developments Ahead,” Personnel​ ​Today, Dec. 1, 2009, p. 10; Anonymous, “What Are the Latest Trends in HR Applications Adoption,” HR​Focus, Dec. 2009, pp. 10–11; E. Frauenheim, “Core HR Technology Takes Center Stage,” Workforce​ Management, Oct. 2007 (www​.​workforce​.​com).

13 . B. Roberts, “How to Get Satisfaction From SAAS,” HR​ Magazine, Apr. 2010 (www​.​shrm​ .​org); L. Grensing- Pophal, “Mission: Or ga nized HR!” Credit​Union​Management, Oct. 2008, pp. 36–39; E. Frauenheim, “Talent Tools Still Essential,” Workforce​Management, Apr. 2009, pp. 20–26.

14. A. Collis, “Outsourcing the HR Function,” SHRM​Toolkits, Mar. 2013 (www​.​shrm​.​org). 15 . E. Van Slyke, “Laying the Groundwork for HR Outsourcing,” Workforce​Management, Jan. 2010

(www​.​workforce​.​com); P. Meskanik, “Critical Success Factors for Recruiting Pro cess Outsourc- ing,” Oil​and​Gas​Journal, Jan. 1, 2009, pp. 8–11.

16. B. S. Klaas, H. Yang, T. Gainey, and J. A. McClendon, “HR in the Small Business Enterprise: Assessing the Impact of PEO Utilization,” ​Human​Resource​Management, 2005, 44, pp. 433–448.

17. B. E. Rosenthal, “Coopitition Is an Rx for Success for Three HR Suppliers in the Healthcare Arena,” Outsourcing​Center, Jan. 2013 (www​.​outsourcing​-​center​.​com).

18 . B. E. Rosenthal, “Employers Make Better Hiring Decisions Using an Online Reference Check- ing App That Uses Logic,” Outsourcing​Center, Jan. 2013 (www​.​outsourcing​-​center​.​com).

099-67811_ch13_4P.indd 684 11/17/17 1:33 PM

CHAPTER THIRTEEN Staffing System Management 685

19 . P. Babcock, “Slicing Off Pieces of HR,” HR​ Magazine, July 2004, pp. 71–76; J. C. Berkshire, “Seeking Full Partnership,” HR​Magazine, July 2004, pp. 89–96; D. Dell, HR​Outsourcing (New York: The Conference Board, 2004); E. Esen, ​Human​Resource​Outsourcing (Alexandria, VA: Society for Human Resource Management, 2004).

20. D. Ulrich, J. Younger, W. Brockbank, and M. Ulrich, HR​Transformation (New York: McGraw- Hill, 2009); P. M. Wright, J. W. Boudreau, D. A. Pace, E. Sartain, P. McKinnon, and R. L. Antoine, The​ Chief​HR​Officer:​Defining​the​New​Role​of​​Human​Resource​Leaders (San Francisco: Wiley, 2011).

21. S. Overman, “Staffing Management: Mea sure What Matters,” Staffing​Management​Magazine, Oct. 1, 2008 (www​.​shrm​.​org); B. Roberts, “Analyze This!” HR​Magazine, Oct. 1, 2009 (www​ .​shrm​.​org); J. Fitz- enz, The​ROI​of​​Human​Capital:​Mea​sur​ing​the​Economic​Value​of​Employee​ Per​for​mance (New York: AMACOM, 2000); M. A. Huselid, B. E. Becker, and R. W. Beatty, The​ Workforce​Scorecard:​Managing​​Human​Capital​to​Execute​Strategy (Boston: Harvard Business School Press, 2005); Society for Human Resource Management, SHRM​​Human​Capital​Bench- marking​Study (Alexandria, VA: author, 2007).

22. J. Sullivan, “HR’s Burden of Proof,” Workforce​Management, Jan. 2007, p. 26. 23. Roberts, “Analyze This!”; B. Roberts, “How to Put Analytics on Your Side,” HR​ Magazine,

Oct. 1, 2010 (www​.​shrm​.​org). 24 . L. Micco, “Lockheed Wins the Best Catches,” Employment​ Management​ Association​ ​Today,

Spring 1997, pp. 18–20; E. R. Silverman, “The Fast Track,” ​Human​ Resource​ Executive, Oct. 1998, pp. 30–34.

25. L. Klutz, Time​to​Fill/Time​to​Start:​2002​Staffing​Metrics​Survey (Alexandria, VA: Society for Human Resource Management, 2003).

26. Fitz- enz, The​ROI​of​​Human​Capital:​Mea​sur​ing​the​Economic​Value​of​Employee​Per​for​mance; Society for Human Resource Management, SHRM​​Human​Capital​Benchmarking​Study.

27. Society for Human Resource Management, 2002​ SHRM/EMA​ Staffing​ Metrics​ Study (Alex- andria, VA: author, 2003); Staffing . Org, 2003​Recruiting​Metrics​and​Per​for​mance​Benchmark​ Report (Willow Grove, PA: author, 2003).

28. Nolo, “What to Keep in Personnel Files” (www​.​nolo​.​com​/​legal​-​encyclopedia​/​what​-​keep​-​employee​ -​personnel​-​files​-​30240​.​html); Equal Employment Opportunity Commission, “Recordkeeping Requirements” (www​.​eeoc​.​gov//​employers​/​recordkeeping​.​cfm).

29 . M. W. Finkin, Privacy​ in​ Employment​ Law, 3rd ed. (Washington, DC: BNA Books, 2009), pp. 650–657.

30. Equal Employment Advisory Council, Equal​ Employment​ Self-​Audit​ Checklist (Washington, DC: author, 2016); Equal Employment Advisory Council, EEO​Reference​Manual (Washington, DC: author, 2016); Society for Human Resource Management, Employment​​Labor​Law​Audit (Alexandria, VA: author, 2016); J. W. Janove, “It’s Not Over, Even When It’s Over,” HR​Maga- zine, Feb. 2004, pp. 123–131.

31. W. K. Turner and C. S. Thrutchley, “Employment Law and Practices Training: No Longer the Exception— It’s the Rule,” ​Legal​ Report, Society for Human Resource Management, July- Aug. 2002, p. 1.

32. A. Smith, “Managerial Training Needed as Hiring Resumes” (www​.​shrm​.​org), accessed Mar. 16, 2010; D. G. Bower, “ Don’t Cut Legal Compliance Training,” Workforce​Management, Feb. 2009 (www​.​workforce​.​com).

33 . S. K. Williams, “The New Law of Training,” HR​Magazine, May 2004, pp. 115–118. 34. J. A. Segal, “Unlimited Check- Writing Authority for Supervisors?” HR​ Magazine, Feb. 2007,

pp. 119–124; J. C. Ramirez, “A Dif fer ent Bias,” ​Human​Resource​Executive, May 2006, pp. 37–40. 35. D. Wilkie, “Bringing Bias Into the Light,” HR​Magazine, Dec. 2014, pp. 22–27.

099-67811_ch13_4P.indd 685 11/17/17 1:33 PM

686 PART SIX Staffing System and Retention Management

36. Equal Employment Opportunity Commission, “Resolving a Charge” (www​.​eeoc​.​gov​/​employers​ /​resolving​.​cfm); Equal Employment Opportunity Commission, “What You Can Expect After a Charge Is Filed” (www​.​eeoc​.​gov​/​employers​/​process​.​cfm).

37 . Society for Human Resource Management, “Investigations: How to Conduct an Investigation” (www​.​shrm​.​org​/​templatestools​/​howtoguides​/​pages​/​default​.​aspx).

38 . Equal Employment Opportunity Commission, EEOC​Enforcement​Guidance​on​Non-​Waivable​ Employee​Rights​​Under​EEO​Enforcement​Statutes (Washington, DC: author, 1997).

099-67811_ch13_4P.indd 686 11/17/17 1:33 PM

C H A P T E R F O U R T E E N

Retention Management

Learning Objectives and Introduction Learning Objectives Introduction

Turnover and Its Causes Nature of the Prob lem Types of Turnover Causes of Turnover

Analy sis of Turnover Mea sure ment Reasons for Leaving: Self- Report Predictive Analytics Costs and Benefits

Retention Initiatives: Voluntary Turnover Desirability of Leaving Ease of Leaving Alternatives Current Practices and Deciding to Act

Retention Initiatives: Discharge Per for mance Management Progressive Discipline

Retention Initiatives: Downsizing Weighing Advantages and Disadvantages Staffing Levels and Quality Alternatives to Downsizing Employees Who Remain

Legal Issues Separation Laws and Regulations Per for mance Appraisal

Summary

099-67811_ch14_4P.indd 687 11/17/17 1:06 PM

Discussion Questions

Ethical Issues

Applications Managerial Turnover: A Prob lem? Retention: Deciding to Act

Endnotes

099-67811_ch14_4P.indd 688 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 689

LEARNING OBJECTIVES AND INTRODUCTION

Learning Objectives

• Be able to differentiate among the types and causes of employee turnover • Recognize the dif fer ent reasons employees leave their jobs • Evaluate the costs and benefits of turnover • Learn about the variety of techniques companies use to limit turnover • See how per for mance management and progressive discipline limit discharge

turnover • Understand how companies manage downsizing • Recognize a variety of legal issues that affect separation policies and practices

Introduction

Even the best recruitment and se lection system in the world will be of little value to an organ ization if employees leave their jobs soon after being hired. Therefore, the establishment of effective systems for retaining employees is a crucial part of the staffing pro cess. While some loss of employees is both inevitable and desir- able, retention management seeks to ensure that the organ ization is able to keep enough employees with impor tant knowledge, skill, ability, and other characteristics (KSAOs) to generate future success.

From a strategic perspective, some turnover of employees is actually good. For example, when an employee who lacks the necessary competencies leaves, an oppor- tunity arises to find a more suitable replacement. On the other hand, if a highly produc- tive employee with unique skills leaves, the organ ization may have trou ble finding a suitable replacement. In this case, turnover can severely limit the organ ization’s ability to achieve strategic goals. Therefore, throughout the chapter we will highlight how turnover is a complex phenomenon with both positive and negative aspects.

The chapter begins with a look at three types of turnover— voluntary, discharge, and downsizing. Retention management must be based on a thorough analy sis of these three types of turnover. Turnover analyses include mea sur ing turnover, determining employees’ reasons for leaving, and assessing the costs and benefits of turnover. Attention then turns to retention initiatives. As we will see, organ izations often encourage retention by focusing on the extrinsic nature of jobs; this involves enacting policies like generous compensation plans, matching job offers from competitors, developing unique benefits programs, and providing incentives for long- term ser vice. Organ izations can also improve the intrinsic quality of jobs by providing more satisfying working conditions, improving the social nature of interac- tions with coworkers, and ensuring that supervisors engage in effective and moti- vational leadership be hav iors. Next, we discuss how to reduce employee discharges through both per for mance management and progressive discipline initiatives. Although

099-67811_ch14_4P.indd 689 11/17/17 1:06 PM

690 PART SIX Staffing System and Retention Management

layoffs are generally avoided in most organ izations, downsizing is necessary at times; thus, we will discuss some strategies for effectively and ethically reducing head count. The final topic involves the myriad laws and regulations pertaining to employee separation from the organ ization.

TURNOVER AND ITS CAUSES

Nature of the Prob lem

At its core, a retention strategy focuses on maintaining a workforce with the KSAOs and motivation to perform key work tasks. Turnover works against this goal if a departing employee means a loss of KSAOs that were identified in the recruiting and se lection pro cess. Most organ izations try to offset the negative consequences of turnover through a variety of retention initiatives.

Although turnover is often seen as a detriment to orga nizational per for mance, there may be several functional outcomes, including reduced labor costs and elimina- tion of unqualified employees. Thus, some extremely impor tant parts of an employee retention strategy and tactics include the careful assessment of both retention costs and benefits and the design of retention initiatives that provide positive benefits at a reasonable cost to the organ ization. Moreover, retention strategies and tactics must focus on not only how many employees are retained, but exactly who is retained. Both within and between jobs and organ ization levels, some employees are “worth” more than others in terms of their contributions to job and orga nizational effectiveness. Thus, another impor tant matter for the retention agenda is making special efforts to retain what we call “high- value” employees.

Retention must be tackled realistically, however, since some amount of employee turnover is inevitable. The Department of Labor estimates that employees between the ages of 18 and 44 have held an average of 11 jobs, and among employees aged 33–38, 58% of jobs lasted less than two years. In some industries, high voluntary turnover is a continual fact of life and cost of doing business. Turnover among sit- down restaurant man ag ers, for example, hovers around 50% annually year after year.1

When people voluntarily leave an organ ization, they do so for a variety of reasons, only some of which are potentially avoidable (controllable) by the organ ization. Sound retention management thus must be based on a gathering and analy sis of employees’ reasons for leaving. Specific retention initiatives must be tailor- made to address these reasons in a cost- effective way.

Types of Turnover

Exhibit 14.1 provides a basic classification of the dif fer ent types of employee turnover.2 It can be seen that turnover is either voluntary (initiated by the employee) or involuntary (initiated by the organ ization). This is something of an

099-67811_ch14_4P.indd 690 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 691

EXHIBIT 14.1 Types of Employee Turnover

Avoidable (could prevent)

Unavoidable (could not prevent)

Try to Prevent: High-Value Employees

• High performance • Strong KSAOs • Valued intellectual capital • High promotion potential • High training investment • High experience • Di­cult to find replacement

Do Not Prevent: Low-Value Employees

• Low performance • Weak KSAOs • Little intellectual capital • Low promotion potential • Low training investment • Low experience • Easy to find replacement

No Attempt to Prevent, Regardless of Value

• Retirement • Dual career • New career • Health • Child care or pregnancy • Elder care • Return to school • Leave country • Take a break

A. Voluntary (employee initiated)

Discharge

• Discipline • Poor performance

Downsizing

• Permanent layo� • Temporary layo� • Site or plant closing, relocation • Redundancy due to a merger or acquisition

B. Involuntary (organization initiated)

099-67811_ch14_4P.indd 691 11/17/17 1:06 PM

692 PART SIX Staffing System and Retention Management

oversimplification, of course, because in many cases employees “volunteer” to leave after being asked to resign, and sometimes the desire to end the employment relationship is mutual.

Voluntary Voluntary turnover is broken down into avoidable and unavoidable turnover. Avoidable turnover is that which potentially could have been prevented by certain orga nizational actions, such as a pay raise or a new job assignment. Unavoidable turnover represents employee quits that the organ ization prob ably could not have prevented, such as people who quit and withdraw from the labor force through retirement or by returning to school. Other examples of unavoidable turnover are people quitting due to dual career prob lems, pursuit of a new and dif fer ent career, health prob lems that require taking a dif fer ent type of job, child care and elder care responsibilities, or leaving the country. The line of demarcation between avoidable and unavoidable turnover is fuzzy and depends on decisions by the organ ization as to exactly what types of voluntary turnover it thinks it could prevent.

Organ izations further differentiate avoidable turnover that they wish to prevent from avoidable turnover that they are willing to accept, or even encourage. As shown in Exhibit 14.1, the organ ization will try to prevent high- value employees from quitting— those employees with high job per for mance, strong KSAOs, key intellectual capital, high promotion potential, and high investments of training and development, and who are difficult to replace. The organ ization is less likely to try to retain low- value employees.

Involuntary Involuntary turnover is split into discharge and downsizing turnover. Discharge turnover is aimed at the individual employee and is due to discipline and/or job per for mance prob lems. Downsizing turnover, also known as a reduction in force (RIF), typically targets groups of employees. It occurs as part of orga nizational restructuring or a cost- reduction program to improve orga nizational effectiveness and increase shareholder value (stock price). RIFs may occur as permanent or temporary layoffs for the entire organ ization, or as part of a plant or site closing or relocation. RIFs may also occur as the result of a merger or acquisition, in which some employees in the combined workforce are viewed as redundant in the posi- tions they hold. If the organ ization has to terminate employees through discharge or downsizing, it can take steps to minimize the negative reactions of the employees who were not terminated.

Causes of Turnover

Separate models of turnover causes are presented for voluntary, discharge, and down- sizing turnover. The organ ization may seek to inf luence these types of turnover with its retention strategies and tactics.

099-67811_ch14_4P.indd 692 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 693

Voluntary Turnover Through considerable research, vari ous models of voluntary turnover have been developed and tested.3 The model shown in Exhibit 14.2 is a distillation of that research. The employee’s intention to quit depends on three general factors: the perceived desirability of leaving, the perceived ease of leaving, and alternatives available to the employee. The model illustrates both avoidable and unavoidable turnover.

The perceived desirability of leaving is often an outgrowth of a poor person/ job or person/or ga ni za tion match. One form of this mismatch may be a differ- ence between what the employee wants and what the job provides. In addition to mismatches, unexpected events or “shocks” may occur to the employee that trigger a more impulsive intention to quit, such as a dramatic fight with a coworker or a stressful interaction with a customer. Fi nally, employees may find it desirable to leave for personal, nonjob reasons that are unavoidable.

The perceived ease of leaving represents a high likelihood of finding a new job with minimal sacrifice for leaving. Employees believe the ease of leaving will be

EXHIBIT 14.2 Causes (Drivers) of Voluntary Turnover

Note: The relative importance of the drivers and how they interact to determine the decision to quit varies across situations.

Desirability of Leaving Low job satisfaction Shocks to employee Personal (nonjob) reasons

Ease of Leaving Favorable labor market conditions General, transferable KSAOs Low cost of leaving

Alternatives Internal: new job possibilities External: job o­ers

Intention to Quit Quit

+

+ +

+

099-67811_ch14_4P.indd 693 11/17/17 1:06 PM

694 PART SIX Staffing System and Retention Management

higher when the unemployment rate is low, or if the employee possesses KSAOs that he or she thinks will be desirable to other employers. Employees who are highly embedded in their jobs, organ izations, and communities are less likely to leave. Some of the factors that increase embeddedness can be influenced by the organ ization, such as interpersonal relationships with supervisors and coworkers, or benefits that other employers can’t provide. On the other hand, the turnover of friends and colleagues can signal that good alternatives are available, and also reduce embeddedness, thereby leading to “turnover contagion.” Other factors are beyond the organ ization’s control, such as ties to the local community.4

Fi nally, the intention to quit will depend on other specific job alternatives avail- able to the employee within and outside the organ ization. A job offer from another employer is the most obvious indicator of job alternatives. The availability of pro- motion, transfer, and relocation alternatives may lessen or eliminate the employee’s intentions to quit, even if the employee is very dissatisfied with the current job.

The final stage of the turnover pro cess is the formation of the intention to quit, which will depend on other job alternatives available to the employee within and outside the organ ization. Specifically, the availability of promotion, transfer, and relocation alternatives may lessen or eliminate the employee’s intentions to quit, even if the employee is very dissatisfied with the current job. In addition, actual or potential receipt of a job offer from another employer represents a clear external alternative for the employee. Job searching has been empirically identified as a close correlate of turnover; however, employers should not assume that it is too late to make efforts to keep an employee who is seeking another job. Directly address- ing what changes would be necessary to keep the employee is a good strategy in this case. Many employees who are looking for an alternative would be willing to stay with their current employer if their job were sufficiently modified.

Discharge Turnover Discharge turnover is due to extremely poor person/job matches, particularly a mismatch between job requirements and KSAOs. One form of mismatch involves the employee failing to follow rules and procedures. These infractions can range from the relatively minor (e.g., dress code violations, horse play) to the very seri- ous (e.g., bringing a firearm to work). Often it is the cumulative effect of multiple incidents that results in the discharge.

The other form of discharge turnover involves unacceptable job per for mance. Here, the KSAO/job requirements mismatch is severe, and it is unlikely that either the employee’s competencies or the job requirements are likely to change in a way that would create fit.

Downsizing Turnover Downsizing turnover reflects a staffing level mismatch in which the organ ization is, or is projected to be, overstaffed. In other words, the head count available exceeds

099-67811_ch14_4P.indd 694 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 695

the head count required. Overstaffing may be due to (1) a lack of forecasting and planning, (2) inaccuracies in forecasting and planning, or (3) unanticipated changes in labor demand and/or labor supply. For example, optimistic forecasts of demand for products and ser vices that do not materialize may lead to overstaffing, as may unanticipated downturns in demand that create a sudden excess head count. Alterna- tively, a change in the labor market may reduce the ease of movement, causing fewer employees to leave the organ ization—an unanticipated decrease in the voluntary turnover rate and thus a change in workforce head count available.

ANALY SIS OF TURNOVER

Several tools have been developed that can help organ izations understand the mag- nitude of their turnover issues and uncover some of the under lying reasons for turnover. Analy sis of turnover requires that the three types of turnover be mea sured, that specific reasons for employees leaving be identified, and that costs and benefits of each type of turnover be assessed.

Mea sure ment

Turnover Rate and Employment Duration Since turnover involves the discrete action of leaving or staying with the organ- ization, it is expressed as the proportion or percentage of employees who leave the organ ization in some time period. Thus:

number of employees leaving turnover rate 100

average number of employees

Use of this formula to calculate turnover rates will require data on, and deci- sions about, the following: (1) the time period of interest (e.g., month, year), (2) the type of employee “counts” (e.g., full time only, part time, seasonal), and (3) a determination of how to calculate the average number of employees over the time period, such as a straight or weighted average.

An alternative metric, focused on retention, is assessing how long employees remain in their jobs after hire. In this case, an organ ization looks at the average level of tenure possessed by employees. This information is often similar to the results from assessing turnover rates, with high turnover rates corresponding to low employment duration, and low turnover rates corresponding to high employ- ment duration. However, employment duration frames the information on turnover differently by quantifying the retention of existing employees. At times, turnover rates can be quite dif fer ent than just a mirror image of employment duration, such as in an organ ization that has rapid turnover of new hires, coupled with very long- term retention of employees who make it past this initial entry period. In this case,

099-67811_ch14_4P.indd 695 11/17/17 1:06 PM

696 PART SIX Staffing System and Retention Management

turnover rates might be quite high, and average employment duration might be high as well.

Benchmarks It is useful to benchmark turnover data in order to have comparative statistics that will aid in the interpretation of the organ ization’s turnover data. One type of bench- mark is internal, looking at trends in the organ ization’s own turnover data over time. Such trend analy sis is very useful for identifying where turnover prob lems are worsening or improving and for evaluating the effectiveness of retention initiatives.

The other form of benchmarking is external, in which the organ ization compares its own data with the current turnover rates and trends of other organ izations. One major external benchmarking source is the data from the Job Openings and Labor Turnover Survey (JOLTS), collected and published by the US Department of Labor. The JOLTS is conducted monthly among 16,000 business establishments and provides data on total employment, job openings, hires, quits, layoffs and dis- charges, and other separations.

Exhibit 14.3 provides data from the JOLTS, summarizing mobility across a few representative industries for the year 2015. The differences across industries are

EXHIBIT 14.3 Data From the JOLTS

Hire Rates

Total Separations

Rates Quit

Rates

Layoff and Discharge

Rates

Other Separations

Rates

Construction 60.6% 56.1% 21.5% 32.0% 3.8%

Manufacturing 25.7% 25.5% 13.3% 10.0% 2.6%

Retail trade 58.1% 56.2% 35.0% 15.5% 5.7%

Finance and insurance 26.3% 24.5% 13.5% 6.9% 4.1%

Health care and social assistance

34.2% 30.8% 21.0% 7.2% 2.6%

Accommodation and food services

74.4% 72.1% 50.3% 19.5% 2.3%

State and local education 17.5% 16.9% 8.6% 5.6% 2.8%

Source: Bureau of Labor Statistics, “Job Openings and Labor Turnover Survey,” Mar. 17, 2016 (www .bls.gov/jlt/). Note: Rates reflect hires, quits, layoffs and discharges, and other separations as a percentage of total employment in the industry.

099-67811_ch14_4P.indd 696 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 697

helpful for understanding just where a com pany stands relative to its context. A com pany in the manufacturing industry, for example, would be quite concerned about a quit rate of 30% per year, because this is far above the industry average rate of 13.3%. Conversely, a com pany in the accommodation and food ser vices industry would note that its quit rate of 30% per year is well below the industry average rate of 50.3%. The data are also useful for evaluating quits versus layoffs and discharge rates. For example, construction has a higher proportion of layoffs than quits, reflecting the strong project- based and seasonal nature of the industry. In finance and insurance, layoff rates are only about half of quit rates, reflecting less seasonal fluctuation.

Reasons for Leaving: Self- Report

Measuring turnover rates and benchmarks provides preliminary information on the scope of the turnover situation for an organ ization. To learn more about the spe- cific reasons under lying exit decisions, however, more in- depth probing of employee motivation is necessary and can be obtained through exit interviews and post- exit surveys.5

Exit Interviews Exit interviews are formally planned and conducted discussions with departing employees. Exhibit 14.4 contains examples of structured exit interview questions.

The following suggestions will hopefully elicit accurate information from the interviewee: (1) a structured interview format should be developed that contains questions about unavoidable and avoidable reasons for leaving, and for the avoid- able category, the questions should focus on the desirability of leaving, ease of leaving, and job alternatives; (2) the interviewer should be a neutral person (some- one from the human resources department or an external con sul tant); (3) the interviewer should be trained in how to put the employee at ease and explain the purposes of the interview, how to take appropriate notes, and how to end the inter- view on a positive note; (4) the interviewer should prepare for each exit interview by reviewing the interview format and the interviewee’s personnel file; (5) the interview should be conducted in a private place, before the employee’s last day; and (6) the interviewee should be told that the interview is confidential and that only aggregate results will be used to help the organ ization better understand why employees leave.

In addition to providing an opportunity to learn the employee’s reasons for leav- ing, exit interviews are used to explain such things as rehiring rights, benefits, and confidentiality agreements. Conducting the interview before an employee’s last day can sometimes bring up issues that, if addressed, could prevent the employee from leaving. For example, if an exit interview reveals that an employee is only leaving for higher pay, the organ ization can make a counteroffer.

099-67811_ch14_4P.indd 697 11/17/17 1:06 PM

698 PART SIX Staffing System and Retention Management

Post- Exit Surveys To increase confidentiality and reduce the administrative burden of individual inter- views, anonymous post- exit surveys might be used. It is recommended that the survey cover the same areas as an exit interview, and that the survey be sent shortly after the employee’s last day. Open- ended surveys can be used to gather more detailed information from the employee’s individual point of view, while surveys with specific questions and standardized response options make it easier to quickly compile and compare responses.

Employee Satisfaction Surveys Since employee job dissatisfaction (desirability of leaving) is known to be a potent predictor of voluntary turnover, conducting job satisfaction surveys is a good way

EXHIBIT 14.4 Examples of Exit Interview Questions

1. Current job title Department/work unit 2. Length of time in current job Length of time with organization 3. Are you leaving for any of the following reasons?

retirement dual career new career health child care or pregnancy elder care return to school leave the country take a break

4. Do you have another job lined up? New employer

5. What aspects of your new job will be better than your current job?

6. Before deciding to leave did you check the possibility of: job transfer promotion relocation

7. Was it easy to find another job? Why?

8. Do many of your current skills fit with your new job?

9. What aspects of your job have been most satisfying? least satisfying?

10. What could the company have done to improve your job satisfaction?

11. How satisfactory has your job performance been since your last review? 12. What are things the company or your manager could have done to help you improve

your performance? 13. If you could have had a di�erent manager, would you have been more likely to stay

with the company?

14. Are you willing to recommend the company to others as a place to work?

15. Would you be willing to hire back with the company? 16. Is there anything else you would like to tell us about your decision to leave the

company?

099-67811_ch14_4P.indd 698 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 699

to discover the types of job rewards that are most dissatisfying to employees and might therefore become reasons for leaving. Conducting job satisfaction surveys has the advantage of learning from all employees (at least those who respond to the survey), rather than just those who have already left. Satisfaction survey results also give the organ ization information it can use to hopefully preempt turnover by making changes that will increase job satisfaction. Online surveys allow man ag- ers to quickly and con ve niently collect information from geo graph i cally dispersed employees.

Reasons for Leaving: Predictive Analytics

While exit interviews and surveys can be informative, they are plagued by signifi- cant mea sure ment issues, especially when former employees respond in a guarded manner for fear of creating a poor impression. Research suggests that there are differences between the reasons for turnover that employees provide in exit inter- views and the reasons they provide in anonymous surveys.6 Departing employees are reluctant to complain about their employer because they do not want to burn any bridges or jeopardize future references. It is also pos si ble that employees do not have the appropriate insight into their own reactions to identify actions the organ i- zation might take to reduce turnover. For all of these reasons, predictive analytics are an impor tant tool for evaluating turnover.

The simplest way to evaluate turnover using an analytical approach is by break- ing out turnover rates across vari ous employee and orga nizational characteristics. Factors that are relevant for breakouts include (1) type of turnover: voluntary (avoidable and unavoidable) or involuntary (discharge and downsizing), (2) type of employee (e.g., exempt/nonexempt, demographics, KSAOs, and per for mance level), (3) job category, and (4) geographic location. Such breakouts help iden- tify how much variation in turnover there is around the overall average and pock- ets of the most and least severe turnover. Human resource information systems (HRISs) are designed to pro cess and track employee departures, so data are often readily available regarding when, where, and even why employee turnover is occurring.

Exhibit 14.5 shows some representative data that might be used for assessing turnover across a variety of employees. The breakouts are based on vari ous charac- teristics of employees for a hy po thet i cal organ ization that produces gourmet roast coffee beans sold locally at coffee shops and online. The results show that among individuals with less than five years of experience, turnover is exceptionally high, whereas turnover is less common among high- tenure employees. There are also sub- stantial differences across departments, with customer ser vice and sales employees being more prone to turnover relative to employees in marketing, product develop- ment, and administrative support. Fi nally, data from employee self- reported levels of orga nizational commitment show that those who feel low levels of commitment are much more likely to leave the organ ization.

099-67811_ch14_4P.indd 699 11/17/17 1:06 PM

700 PART SIX Staffing System and Retention Management

Other, more analytically precise techniques are also available for assessing the predictors of turnover.7 Multiple regression analy sis, which we described in Chap- ter 3 as a tool for predicting workforce demand, can also be used as a tool for predicting the likelihood that an employee will turnover. Employee turnover at either the individual or group level is the dependent variable, and factors like pay rates, supervisor leadership be hav ior, perceived alternative job opportunities, or job char- acteristics are used as predictors. Much of the research described throughout this chapter is based on exactly these types of statistical relationships.

Some basic breakouts of turnover rates and regression analyses are easily accom- plished with the routine reports from HRIS. External vendors and con sul tants are able to provide more sophisticated statistical consulting when needed. Advanced analytical tools also can help visualize data relationships by showing scatterplots, trends of turnover across time, and heatmaps of where turnover is most problematic across regions.

Costs and Benefits

Costs, both financial and nonfinancial in nature, and benefits may be estimated for each of the three types of turnover. Most involve actual costs or benefits, though some are potential, depending on how events transpire. Some of the costs and ben- efits may be estimated financially, a useful and necessary exercise. Such financial

EXHIBIT 14.5 Example Turnover Breakout Results

Annual Turnover Rate

Experience Level Less than three years 35%

Three to five years 21%

More than five years 13%

Department Customer service 45%

Sales 36%

Marketing 13%

Product development 11%

Administrative support 14%

Survey Data Low organizational commitment 49%

Moderate organizational commitment 15%

High organizational commitment 8%

099-67811_ch14_4P.indd 700 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 701

analy sis must be supplemented with a careful consideration of the other costs and benefits to arrive at a reasonable estimate of the total costs and benefits of turnover. It may very well be that the nonfinancial costs and benefits outweigh the financial ones in importance and impact for the development of retention strategies and tactics.

Voluntary Turnover Voluntary turnover can be extremely expensive for organ izations. Research consis- tently shows that organ izations with high turnover have a low stock price, a low return on investment, low revenues, and other low financial returns.8 Exhibit 14.6 shows the major types of costs and benefits that can occur when an employee leaves the organ ization. An assessment of these costs and benefits will help determine whether a retention attempt should be made, and if so, how far the organ ization is willing to go in that attempt. Alternatively, at the aggregate level, the costs and benefits assessment could be developed for the work or business unit, division, or total organ ization. The results could be used to communicate with top management about the nature and severity of employee turnover and to help develop retention strategies and tactics.

Exhibit 14.6 shows that on the cost side there are separation, replacement, and training costs. The financial costs mainly involve the cost of people’s time, the cost of materials and equipment, cash outlays, and productivity losses. The other costs are harder to estimate but may entail large negative impacts on orga nizational effec- tiveness. These other costs include loss of clients, lower customer satisfaction, and reduced efficiency. A number of benefits may result from turnover, however, including finding a higher- quality, less expensive replacement for the departing employee.

Materials and equipment costs are likely to be most prevalent in replacement and training costs. Recruitment brochures and testing materials, orientation pro- gram materials, and induction materials such as benefits enrollment forms all add to staffing costs. Formal training may involve the use of both materials and equipment that must be accounted for. Cash outlays include paying for (1) the departing employee’s accrued but unused paid time off, (2) pos si ble temporary coverage for the departing employee, and (3) hiring inducements for the replace- ment employee.

On the benefits side, the primary immediate benefit is the labor cost savings from not having the departing employee on the payroll. This will save the organ ization labor costs until a permanent replacement is hired (if ever). The organ ization will also save on labor costs if a temporary replacement at a lower pay rate can fill the position until a permanent replacement is acquired. The permanent replacement may be hired at a lower wage or salary than the departing employee, resulting in additional pay and benefit savings. The other benefits shown in Exhibit 14.6 are less tangible but potentially very impor tant in a longer- run sense of improved work- unit and orga nizational effectiveness.

099-67811_ch14_4P.indd 701 11/17/17 1:06 PM

702 PART SIX Staffing System and Retention Management

Exhibit 14.7 shows the cost estimates for a single incident of voluntary turnover in a hy po thet i cal industrial supplies organ ization that employs 40 salespeople who receive $20/hour on average and bring in approximately $8 million in total annual sales. The three categories of the turnover and replacement pro cess (separation, replacement, and training) are described in terms of their time costs, materials and equipment costs, and other costs.

EXHIBIT 14.6 Voluntary Turnover: Costs and Benefits

I. Separation Costs A. Financial Costs

• HR sta� time (e.g., exit interview, payroll, benefits) • Manager’s time (e.g., retention attempts, exit interview) • Accrued paid time o� (e.g., vacation, sick pay) • Temporary coverage (e.g., temporary employee, overtime pay for current employees)

B. Other Costs • Production and customer service delays or quality decreases • Lost or unacquired clients • Employee goes to competitor or forms competitive business • Contagion—other employees decide to leave • Teamwork disruptions • Loss of workforce diversity

II. Replacement Costs • Staffing costs for new hire (e.g., cost-per-hire calculations) • Hiring inducements (e.g., bonus, relocation, perks) • Hiring manager and work-unit employee time • Orientation program time and materials • HR sta�nduction costs (e.g., payroll, benefits enrollment)

III. Training Costs • Formal training (trainee and instruction time, materials, equipment) • On-the-job training (supervisor and employee time) • Mentoring (mentor’s time) • Socialization (time of other employees, travel) • Productivity loss (loss of production until full proficient employee)

IV. Benefits • Replacement employee better performer and organization citizen than last employee

• New KSAO and motivation infusion to organization • Opportunity to restructure work unit • Savings from not replacing employee • Vacancy creates transfer or promotion opportunity for others • Replacement less expensive in salary and seniority-based benefits

1259756556_ch14_p687_742.indd 702 12/8/17 6:46 PM

Chapter Fourteen Retention Management 703

e X

h IB

It 1

4 .7

e

xa m

p le

o f

F in

a n

ci a

l C o

st e

st im

a te

s fo

r o

n e

V o

lu n

ta ry

t u

rn o

ve r

T im

e

H o u rs

C o st

($ )

M a te ri a ls

a n d E q u ip m e n t ($ )

O th e r C o st s ($ )

A . S e p a ra ti o n C o st s

5 2

1 S

ta �

n g

m an

ag e

r 5

1 1

H R

s ta

� E

m p

lo ye

e ’s

m an

ag e

r 3

12 0

A cc

ru e

d p

ai d

tim e

o �

16

0 2

,4 0

0 0

3 P

ro ce

ss in

g

B .R

e p la ce

m e n t C o st s

T e

m p

o ra

ry re

p la

ce m

e n

t C

o m

p e

n sa

tio n

d i�

e re

n ce

16 0

(8 0

0 )

S ta

ffi n

g m

an ag

e r

1 2

5 E

m p

lo ye

e ’s

m an

ag e

r 1

4 0

S ta

ffi n

g fir

m fe

e (m

ar ku

p )

8 0

0 P

e rm

an e

n t

re p

la ce

m e

n t

C o

m p

e n

sa tio

n d

i� e

re n

ce 9

6 0

(4 ,8

0 0

) C

o st

-p e

r- h

ir e

4 ,5

0 0

H ir

in g

b o

n u

s 3

,0 0

0 La

p to

p co

m p

u te

r 2

,0 0

0 E

m p

lo ye

e ’s

m an

ag e

r 3

12 0 0

61 8

O ri

e n

ta tio

n

C . T ra in in g C o st s

0 0

0, 1

T ra

in in

g p

ro g

ra m

0 0

2,1 0

8 T

ra in

e e

0 0

6,1 0

0 1

In st

ru ct

o r

0 4

0,1 2

5 M

e n

to r

P ro

d u

ct iv

ity /s

al e

s lo

ss P

e rm

an e

n t

re p

la ce

m e

n t

5 0

,0 0

0 T

e m

p o

ra ry

re p

la ce

m e

n t

2 ,0

0 0

D . T o ta l C o st s

1, 14

5 1,

0 3

0 6

2 ,3

0 0

9781259756559_ch14_p687_742.indd 703 12/17/17 7:26 PM

704 PART SIX Staffing System and Retention Management

While individual turnover cost estimates require considerable judgment and guesstimates, this example illustrates some expected costs that are “hidden” in (1) the time demands placed on the many employees who must handle the separation, replacement, and training activities, and (2) the sales or productivity losses expe- rienced. Such costs might be offset, at least in part, through the acquisition of less expensive temporary and permanent replacement employees, at least for a while. Also note that when turnover costs for a single employee loss are aggregated to an annual level for multiple losses, the costs can be substantial. In this example, if the sales unit experienced just a 20% annual voluntary turnover rate, it would lose eight employees at a total cost of $519,000, or 6.5% of annual sales.

While this illustration shows significant financial costs from individual turn- over for a specific job, some recent research suggests that there may be even more substantial system- wide effects. Interruptions in productivity due to vacancies can be quite substantial, and the productivity of the business unit as a whole can be impacted for a long time.9 One study showed how the turnover of a single employee in a bank branch led to immediate and negative per for mance for the branch as a whole. These effects were especially dramatic when turnover occurred among man- ag ers. Branch- level per for mance did recover over time after a lower- level employee departed, but when higher- level employees left, the downturn in per for mance lasted for many months. Other studies demonstrate that turnover reduces innovation and per for mance by increasing conflict, disrupting proj ects, and creating holes in com- munication networks. The implication is clear: turnover of key employees can have long- term operational effects far beyond the immediately apparent costs associated with recruiting, se lection, and training.

Discharge In the case of an employee discharge, some of the costs and benefits are the same as for voluntary turnover. However, at the aggregate level, there is not a relationship between involuntary turnover rates and firm per for mance.10

Exhibit 14.8 shows that separation, replacement, and training costs are still incurred. There may be an additional separation cost for a contract buyout of guar- antees (salary, benefits, and perks) made in a fixed- term contract. Such buyouts are common for high- level executives and public sector leaders such as school super- intendents. These guarantees are negotiated and used to make the hiring package more attractive and to reduce the financial risk of failure for the new hire. Such guarantees can drive up the costs of discharge substantially, reinforcing the need for careful se lection decisions followed by support to help the new hire become a suc- cessful performer who will remain with the organ ization for at least the full term of the contract.

A discharge is usually preceded by the man ag er and others spending considerable time, often unpleasant and acrimonious, with the employee, seeking to change the

099-67811_ch14_4P.indd 704 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 705

person’s be hav ior through progressive discipline or per for mance management activi- ties. Moreover, discharge can erode relationships with remaining employees if they feel the procedure was unfair. The discharge may be followed by a lawsuit, such as a claim that the discharge was tainted by discrimination or represents a breach of con- tract. The time costs for handling the matter, and the potential cash outlays required in a settlement or court- imposed remedy, can be substantial.11 In short, compared with voluntary turnover, discharge turnover is costlier and more unpleasant.

Accompanying these often substantial costs are many potential benefits that may offset them. First and foremost is that the organ ization will be rid of a truly low- value employee whose presence has caused considerable disruption, in effec- tive per for mance, and pos si ble declines in orga nizational effectiveness. Another benefit is the opportunity to replace this person with a high- quality new hire who will hopefully turn out to be a high- value employee.

I. Separation Costs

A. Financial Costs

• Same as for voluntary turnover plus possible contract buyout (salary, benefits, perks)

B. Other Costs

• Manager and HR staff time handling problem employee • Grievance, alternative dispute resolution • Possibility of lawsuit, loss of lawsuit, settlement or remedy • Damage to labor–management relations

II. Replacement Costs

• Same as for voluntary turnover III. Training Costs

• Same as for voluntary turnover IV. Benefits

• Departure of low- value employee • High-value employee replacement possibility • Reduced disruption for manager and work unit • Improved performance management and disciplinary skills

EXHIBIT 14.8 Discharge: Costs and Benefits

099-67811_ch14_4P.indd 705 11/17/17 1:06 PM

706 PART SIX Staffing System and Retention Management

Downsizing Downsizing costs are concentrated in separation costs for a permanent RIF since there will presumably be no replacement hiring and training. These costs are shown in Exhibit 14.9, along with potential benefits.12 The major economic cost areas are

I. Separation Costs

A. Financial Costs

• HR staff time in planning and implementing layoff • Managers’ time in handling layoff • Accrued paid time off (e.g., vacation, sick pay) • Early retirement package • Voluntary severance package (e.g., one week’s pay/year of service, continued health

insurance, outplacement assistance) • Involuntary severance package • Contract buyouts for fulfillment of guarantees • Higher unemployment insurance premiums • Change in control (CIC) guarantees for key executives during a merger or acquisition

B. Other Costs

• Shareholder value (stock price) may not improve • Loss of critical employees and KSAOs • Inability to respond quickly to surges in product and service demand; restaffing

delays and costs • Contagion—other employees leave • Threat to harmonious labor–management relations • Possibility of lawsuit, loss of lawsuit, costly settlement or remedy • Decreased morale, increased feelings of job insecurity • Difficulty in attracting new employees

II. Benefits

• Lower payroll and benefits costs • Increased production and staffing flexibility • Ability to relocate facilities • Improved promotion and transfer opportunities for stayers • Focus on core businesses, eliminate peripheral ones • Spread risk by outsourcing activities to other organizations • Flatten organization hierarchy—especially among managers • Increase productivity

EXHIBIT 14.9 Downsizing: Costs and Benefits

099-67811_ch14_4P.indd 706 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 707

time costs, cash outlays for vari ous severance and buyout packages, and increased unemployment compensation insurance premiums. The time costs involve both HR staff and man ag ers’ time in planning, implementing, and handling the RIF. RIF turnover has an especially strong negative relationship with orga nizational per for- mance relative to other forms of involuntary turnover.13

Severance costs may take numerous forms. First, employees can be paid for accrued time off. Second, early retirement packages may be offered to employees as an inducement to leave early. Third, employees who are ineligible for early retirement may be offered a voluntary severance package as an inducement to leave without being laid off. A typical severance package includes one week’s pay for each year of ser vice, continued health insurance coverage and premium payment, and outplacement assistance. A danger with both early retirement and voluntary severance packages is that their provisions may turn out to be so attractive that more employees take them and leave than had been planned for in the RIF.

Other costs of downsizing shown in Exhibit 14.9 may also be considerable. Shareholder value (stock price) may not improve, since downsizing can signal poor financial and operational health. There will be a critical talent loss and an inabil- ity to respond quickly to the need for workforce additions to cover new demand surges. A reputation for job instability will create added difficulties in attracting new employees. Terminated employees may pursue legal ave nues, claiming, for example, that decisions about whom to lay off were tainted by age discrimination. Employees who survive the job cuts may have damaged morale and may fear even more cuts, which may harm per for mance and cause them to look for another job with a more secure organ ization.

Against this backdrop of heavy costs are many potential benefits. One such ben- efit will be lower payroll and benefits costs. The organ ization may gain production and staffing flexibility, an ability to outsource parts of the business that are not mis- sion critical, and opportunities to redesign and relocate facilities. The restructuring may also entail a flattening of the orga nizational hierarchy by eliminating layers of management, leading to increased speed in decision making as well as boosts in productivity.

RETENTION INITIATIVES: VOLUNTARY TURNOVER

For most organ izations, of the three types of turnover, voluntary turnover is the most prevalent and the one they choose to focus on in the continual “war for talent.” Based on the causes of turnover model (Exhibit 14.2), ways to influence the three primary drivers of turnover— desirability of leaving, ease of leaving, and alternatives— are suggested for retention initiatives. After this broader discussion, we outline some typical examples of larger, organization- wide initiatives to retain employees.

099-67811_ch14_4P.indd 707 11/17/17 1:06 PM

708 PART SIX Staffing System and Retention Management

Desirability of Leaving

Employees’ desire to leave is influenced by their job satisfaction, shocks they experience, and personal (nonjob) reasons. Of these, only job satisfaction can usu- ally be meaningfully influenced by the organ ization. Therefore, the first strategy for improving retention is to improve job satisfaction. The myriad examples of retention initiatives described above mostly represent attempts to improve job sat- isfaction through the delivery of vari ous rewards to employees.

It is critical to understand that merely throwing more or new rewards at employ- ees is not a sound retention initiative. Which rewards are chosen, and how they are delivered to employees, will determine how effective they are in improving job sat- isfaction. Accordingly, guidelines for reward choice and delivery are also described here. Exhibit 14.10 summarizes the guidelines for increasing job satisfaction and retention.

As discussed in Chapter 4, a variety of extrinsic and intrinsic rewards can be offered to potentially improve job satisfaction. One impor tant point must be kept in mind for both intrinsic and extrinsic rewards. The person/job match model empha- sizes that job satisfaction results from a match between the rewards desired by the employee and the rewards provided by the job. Employee reward preferences may be assessed at all stages of the staffing pro cess by (1) asking applicants what attracted them to the organ ization, (2) asking current employees about the most impor tant sources of job satisfaction, and (3) assessing reasons for turnover during exit interviews.

Extrinsic Rewards To have attraction and retention power, extrinsic rewards must be unique and unlikely to be offered by competitors. Surveys of employees consistently show that inadequate compensation and benefits are extremely power ful drivers of employee

A. Extrinsic Rewards • Make rewards meaningful and unique • Provide fair reward allocation systems • Link rewards to retention behaviors • Link rewards to performance

B. Intrinsic Rewards • Create work characteristics that meet employee preferences • Provide employees with organizational support • Ensure supervisors and coworkers provide a positive social environment • Enhance work/life balance

EXHIBIT 14.10 Guidelines for Increasing Job Satisfaction and Retention

099-67811_ch14_4P.indd 708 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 709

turnover decisions.14 The organ ization must benchmark against its competitors to determine what others are offering. A survey of 1,223 employed adults also revealed that employee benefits are a key driver of employee retention. In par tic u lar, 40% of respondents indicated that 401(k) matching decreased their desire to leave; health care coverage and a competitive salary also topped the list.15 Surveys also suggest that in a down economy, many employees see benefits like health insurance as a vital part of their personal safety net.16

Fair Allocation of Rewards. If reward systems are to increase satisfaction, employees must know why the system was developed, the mechanics of the system, and the payouts to be expected. Such knowledge and understanding require con- tinuous communication. Research shows that a very common form of employee dissatisfaction with reward systems is the failure to understand the under lying purpose or pro cess.17 Distributive justice requires that there be a rational and pref- erably mea sur able basis for reward decisions. Objective mea sures of job per for- mance, such as sales figures, are likely to be accepted as legitimate. Rewards based on managerial per for mance reviews may be problematic if employees question the legitimacy of the per for mance mea sure ment system, or if they believe these rewards create divisive comparisons among employees. The importance of system fairness has been demonstrated in many contexts. Although much of the research on justice has been conducted in the United States and Canada, studies from China, Korea, Japan, and Pakistan have also shown that perceived justice increases job satisfaction and decreases turnover intentions.18

Rewards for Retention. Rewards can be even more powerfully attached to employee retention if they explic itly take se niority into account. For example, employees who have been with the organ ization longer may receive more vacation hours, career advancement opportunities, and increased job security. A subtler way of rewarding employee retention is to make the reward contingent on the person’s base pay level. Base pay levels typically increase over time through a combination of promotions and merit pay increases. Specific retention bonuses are also used to encourage longer- term relationships.

Rewards for Per for mance. Rewards can also be linked to employee job per for- mance as a way to increase the retention of high performers. Organ izations with a strong per for mance management culture thrive on high per for mance expectations, coupled with large base- pay raises, bonuses, commissions, and stock options for high performers. Because lesser performers receive lower wages in these organ- izations, they are more likely to leave, whereas superior performers are more likely to stay.19 It should be noted, however, that many of these positive effects of dif- ferential pay have been investigated in individualistic countries. Individuals who have a more collectivistic orientation may be less positively disposed to differen- tial rates of pay.

099-67811_ch14_4P.indd 709 11/17/17 1:06 PM

710 PART SIX Staffing System and Retention Management

Intrinsic Rewards The intrinsic rewards listed in Exhibit 14.10 should not be overlooked. There is consistent evidence that employees’ dissatisfaction with the intrinsic quality of their jobs is strongly related to turnover.20

Work Characteristics. A very large number of studies have shown that most people prefer work that contributes to an identifiable end product that is useful for someone else. When employees work on small, repetitive tasks that do not have a clear relationship with a finished product, they are not as intrinsically satisfied with their work. An automobile manufacturing employee will be more satisfied if she can see how her efforts lead to a finished car that is useful for a family, just as a customer ser vice representative at a wireless Internet provider will be more satis- fied if he can see how his efforts help a customer resolve a prob lem with a home connection.

Job redesign can improve the work environment. Man ag ers might broaden the scope of tasks and responsibilities, allowing for personal growth on the job. Employees should be shown how their work contributes to the well- being of others. Job rotation programs help reduce perceived monotony and give employees a broader sense of the organ ization’s purpose as a whole. Enhancing job autonomy might be facilitated by establishing formal per for mance goals for the job while giving employees minimal direction or oversight as to the methods required to achieve these goals. A survey of over 700 nursing man ag ers found that higher levels of training and development opportunities were associated with lower levels of establishment- level turnover.21 Similar methods for improving task identity, task significance, and feedback should also be considered.

Improving the work environment also involves assigning employees to jobs that better meet their intrinsic- reward preferences. For example, employees with high needs for skill variety could be assigned to more complex proj ects, or employees with high autonomy needs could be assigned to supervisors with a very hands- off style of leadership.

Orga nizational Support. One of the closest correlates of employee commitment is the perception that the organ ization treats its employees fairly and provides them with support. Clear and honest communication is a vital component of support. Communication must begin early in the staffing pro cess by providing employees with honest information about their job conditions. Evidence suggests that employees who receive adequate information regarding job conditions perceive their employers as more honest and may be less likely to leave.22 Other actions that can increase support from employers include provision of constructive feedback, benefits linked to health and well- being, and development.

On a broader level, communication regarding the organ ization’s strategic direc- tion can also reduce turnover. Surveys at SAP Amer i ca indicated that employees

099-67811_ch14_4P.indd 710 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 711

who felt the organ ization had a clear vision for the future and believed that top management supported them were more likely to report that they were engaged in their work.23 Support offered to one’s coworkers can also create a sense of support for workers in general, demonstrating the importance of a comprehensive system that addresses the entire workforce.

Social Environment. It is said that employees don’t quit their jobs, they quit their bosses. Thus, interpersonal compatibility or chemistry between the employee and the supervisor can be a critical part of the employee’s decision to stay or leave. The same could be said for coworkers. Employees who believe they fit with the social environ- ment in which they work are more likely to see their job as a source of significant social rewards.24 The resultant sense of camaraderie with the supervisor and cowork- ers may make them reluctant to leave the organ ization. In fact, among high- turnover employees, like servers in chain restaurants, social relationships with coworkers have been shown to be among the strongest deterrents of turnover. Research confirms that individuals whose coworkers are searching for alternative jobs will also increase their own job search efforts.

The supervisor is also a source of perceptions of justice because of his or her role as a direct source of reward or punishment.25 This is because the supervisor decides the pro cess for assessing employees, as well as the amount of rewards to be provided based on these assessments. Supervisors have a key role to play in describ- ing the purpose of an employee’s job and giving the employee the resources to meet the job requirements. If supervisors communicate the purpose and mechan- ics of the per for mance evaluation system, employees will be able to understand the pro cess of reward distribution and what they need to do to meet expectations. Supervisors who treat subordinates with re spect and concern can also help reduce turnover. There are diversity implications for a positive social environment as well. Employees who are isolated from others in their racial, ethnic, or gender group are more likely to leave, whereas pro- diversity workplace climates tend to reduce turnover intentions.

Supervisors and coworkers in the social setting can engage in abusive or harass- ing be hav iors that are threatening or discomforting to an employee. Research sug- gests that employees who believe their supervisors are abusive are more likely to leave.26 Examples of abusive supervisor be hav ior that are frequently cited in surveys include “tells me my thoughts and feelings are stupid,” “puts me down in front of others,” and “tells me I’m incompetent.” More extreme be hav iors, such as sexual harassment, have an even stronger negative impact on an employee’s desire to remain on the job. Turnover due to interpersonal conflict at work tends to come especially quickly; many employees who have such conflict will bypass the pro- cess of searching for and considering alternative jobs and will instead quit imme- diately. Subjects of abusive be hav ior may not just quit quietly. Employees who feel abused at work are more likely to resign in a public manner that calls out supervisors

099-67811_ch14_4P.indd 711 11/17/17 1:06 PM

712 PART SIX Staffing System and Retention Management

for their negative be hav ior, deliberately interrupt the workplace during their termi- nation event, or initiate lawsuits soon after leaving.

Work/Life Balance. For many employees, trying to balance their work lives with their personal lives contributes to stress, dissatisfaction, and a desire to leave.27 In an effort to reduce turnover, many organ izations have developed programs to help employees integrate their work and nonwork lives. These work/life balance pro- grams allow employees to take time off from work if needed, create flexible sched- uling options, and facilitate opportunities to work from remote locations. Many organ izations have made family- friendly benefits and flexible work arrangements centerpieces of their retention strategies, and surveys suggest that making efforts to help employees balance their work and family lives can pay off in terms of lower turnover. Data from 2,769 individuals who responded to the National Study of the Changing Workforce revealed that employees who had access to family- friendly work benefits experienced less stress and had lower turnover intentions relative to employees who did not have access to these benefits.28 In a survey of over 200 HR professionals, 67% of respondents said that they believe flexible work arrangements have a positive impact on employee retention.29 Despite evidence supporting their use, it should be remembered that work/life programs do not come without costs. Restructuring the workforce can disrupt productivity and may require investments in new technology to facilitate off- site work. Some employees who choose not to take advantage of telecommuting options resent their coworkers who are not in the office regularly, and this resentment can lead to increased inten- tion to leave.30

Individual Dispositions Although organ izations often try to influence turnover rates by providing intrinsi- cally and extrinsically satisfying working conditions, a growing body of evidence suggests that some employees are more likely to quit because of their personality dispositions. In other words, some people are just more prone to quit than others. We have already noted that a variety of tools like standardized tests and interviews can be used to identify the characteristics of job applicants. Organ izations that are especially concerned about turnover might consider assessing applicants’ propen- sity to quit voluntarily as part of their se lection system.

One approach to identifying individuals who are likely to quit is to explic itly ask applicants how often they have changed jobs, whether they have any friends or relatives working at the organ ization, and whether they have been referred by a current employee. Although the effects are not large, these types of biodata ques- tions are related to turnover rates.31 Another approach to identifying employees with high turnover propensity is to assess conscientiousness, agreeableness, and emotional stability, as some research has shown that individuals with these traits are less likely to quit.32

099-67811_ch14_4P.indd 712 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 713

Ease of Leaving

Ease of leaving may be reduced in two ways— providing organization- specific training and increasing the cost of leaving. A third factor, labor market conditions, cannot be influenced and represents a variable that will continuously influence the organ ization’s voluntary turnover.

Organization- Specific Training and Development Training and development activities provide KSAOs to employees that they did not possess when they entered the organ ization as new hires. Training and devel- opment seek to increase labor quality in ways that enhance employees’ effective- ness. As shown previously, training represents a substantial investment (cost) that evaporates when an employee leaves the organ ization.

The organ ization may invest in training to provide KSAOs that vary along a continuum of general to organization- specific. The more general the KSAOs, the more transferable they are to other organ izations, thus increasing the likelihood of improving the employee’s marketability and raising the probability of leaving. Organization- specific KSAOs are not transferable, and possession of them does not improve employee marketability. Hence, it is pos si ble to lower the employee’s ease of leaving by providing, as much as pos si ble, only organization- specific training content that has value only as long as the employee remains with the organ ization.

This strategy needs to be coupled with a se lection strategy in which any general KSAOs required for the job are assessed and used in se lection decisions so that they will not have to be invested in once the employee is on the job. For example, applicants for an entry- level sales job might be assessed and selected for general sales competencies such as written and verbal communication and interpersonal skills. Those hired may then receive more specialized training in such areas as product knowledge, specific software, and knowledge of territories. To the extent that such organization- specific KSAOs become an increasingly large proportion of the employee’s total KSAO package over time, they help restrict the employee’s mobility.

Once employees have gone through training and development programs, replace- ment and succession plans should be developed that take advantage of these enhanced KSAO levels. As we noted in the internal recruiting chapter, talent management sys- tems that help employees learn about what KSAOs are needed to advance can be mutually beneficial. The organ ization naturally benefits from having employees who are efficient and effective in their jobs. Employees gain the ability to chart out their own pro gress within the organ ization and will have more incentive to remain when these growth opportunities are made explicit.

Increased Cost of Leaving Driving up the cost of leaving is another way to make it harder to leave. Providing above- market pay and benefits is one way to do this, since employees will have a

099-67811_ch14_4P.indd 713 11/17/17 1:06 PM

714 PART SIX Staffing System and Retention Management

hard time finding better- paying jobs elsewhere. Any form of deferred compensation, such as deferred bonuses, will also raise the cost of leaving, since the compensation will be lost if the employee leaves before becoming eligible to receive it.

Retention bonuses might also be used. Normally, these are keyed to high- value employees whose loss would wreak orga nizational havoc. Such may be the case during mergers and acquisitions, when retention of key man ag ers is essential to a smooth transition.

Another long- term way to make leaving costly is to locate the organ ization’s facil- ities in an area where it is the dominant employer and other amenities (housing, schools, and health care) are accessible and affordable. This may entail location in the outer rings of suburban areas or relatively small and rural communities. Once employees move to and settle into these locations, the cost of leaving is high because of the lack of alternative jobs within the area and the need to make a costly geographic move in order to obtain a new job.

Alternatives

In confronting outside alternatives available to employees, the organ ization must fashion ways to make even better internal alternatives available and desirable. Two key ways to do this involve internal staffing and responding to outside job offers.

Internal Staffing The nature and operation of internal staffing systems have already been explored. It is impor tant to reiterate that open systems serve as a safety valve, retention- wise, in that employees are encouraged to look internally for new job opportunities, and man ag ers benefit by seeking internal candidates rather than going outside the organ- ization. The organ ization should also think of ways outside the realm of its traditional internal staffing systems to provide attractive internal alternatives to its employees.

For example, Mercer Management Consulting has developed a rotational externship program for some of its con sul tants. These con sul tants are allowed to take on a full- time operational role for a client for 6–24 months, rather than handle multiple clients. The con sul tant gets the satisfaction of seeing a proj ect through to completion and gains valuable operating experience. In the spirit of the “if you love something, set it free” saying, it is hoped that these con sul tants will return to Mercer at the end of the proj ect. Another example is a temporary inter- nal transfer system used by Interbrand Group, a unit of Omnicom Group. Certain high- performing employees are offered short- term transfers to any of its 26 offices worldwide. The lateral moves can last from three months to one year. The trans- fers allow employees to make a change in their lives without quitting their jobs.33 Illustrating this point, a study of 205 individuals employed in diverse work settings found that those who were unhappy with their work environments did not translate this dissatisfaction into an intention to leave if they believed that there were oppor- tunities for mobility within their organ ization. In a sense, one could say that these

099-67811_ch14_4P.indd 714 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 715

dissatisfied individuals saw internal transfers as a way to quit a disliked job, but without the costs to the employer that typically come with turnover.34

Response to Job Offers When employees receive an outside job offer or are on the verge of receiving one, they clearly have a solid job alternative in hand. How should the organ ization respond, if at all, in order to make itself the preferred alternative?

The organ ization should confront this dilemma with a policy that has been care- fully thought through in advance. This will help prevent impulsive, potentially regrettable actions being taken on the spot when an employee brings forth a job offer and wants to use it for leverage.

The organ ization should decide whether it will respond to job offers. Some organ- izations choose not to, thereby avoiding bidding wars and counteroffer games. Even if the organ ization successfully retains the employee, the employee may lack com- mitment to the organ ization, and other employees may resent the special retention deal that was cut. Other organ izations choose to respond to job offers, not wanting to automatically close out an opportunity to at least respond to, and hopefully retain, the employee. The price for such openness to outside offers is that it may encour- age employees to actively solicit them in order to try to squeeze a counteroffer out of the organ ization, thus improving the “deal.”

Current Practices and Deciding to Act

Turnover analy sis does not end with the collection and analy sis of data. These activities are merely a precursor to the critical decision of whether to act to solve a perceived turnover prob lem. If the organ ization chooses to act, it must decide how to intervene to attack the prob lem and ultimately assess how effective the interven- tion was. Presented first are some examples of organ ization retention initiatives that illustrate the breadth and depth of attempts to address retention concerns. Then a systematic decision pro cess for retention initiatives is provided as a framework to help with deciding whether to act. Such decision guidance is necessary given the complexity of the retention issue and the lack of demonstrated best practices for improving retention.

Decision Pro cess Exhibit 14.11 provides a suggested decision pro cess that can help organ izations navigate the complex trade- offs inherent in developing retention initiatives.

The first question— Do we think turnover is a prob lem?— requires the consider- ation and analy sis of several types of data. The organ ization must judge whether turnover rates are increasing and/or high relative to internal and external bench- marks such as industry or direct competitor data. Man ag ers complaining about retention prob lems, high- value employees leaving, and demographic disparities among those who leave are impor tant signals that actions to reduce turnover are

099-67811_ch14_4P.indd 715 11/17/17 1:06 PM

716 PART SIX Staffing System and Retention Management

EXHIBIT 14.11 Decision Process for Retention Initiatives

Do We Think Turnover Is a Problem?

How Might We Attack the Problem?

What Do We Need to Decide?

How Should We Evaluate the Initiatives?

• Turnover high or increasing relative to internal and external benchmarks

• Managers complain about retention problems

• High-value employees are leaving

• Demographic disparities among those who leave

• Overall costs exceed benefits of turnover

• Lower desirability of leaving?

Increase job satisfaction—yes

Decrease shocks—no

Personal reasons—no

Improve organizational justice—yes

Improve social environment at work—yes

• Lower ease of leaving?

Change market conditions—no

Decrease provision of general KSAOs—yes

Make leaving more costly—yes

• Change alternatives?

Promotion and transfers—yes

Respond to outside job offers—yes

• Turnover goals • Targeted to units

and groups

• High-value employees

• General and targeted retention initiatives

• Lead, match, or lag the market

• Supplement or supplant

• HR and managers’ roles

• Lower proportion of turnover if avoidable

• Turnover low or decreasing compared with benchmarks

• Fewer complaints about retention problems

• Fewer high- value employees leaving

• Reduced demographic disparities

• Lower turnover costs relative to benefits

needed. The final analy sis should involve the type of cost/benefit analy sis described earlier. Even though turnover may be high, it is only a prob lem if its costs are judged to exceed its benefits in the final analy sis.

The second question— How might we attack the prob lem?— requires consider- ation of the desirability of leaving, ease of leaving, and alternatives available to the

099-67811_ch14_4P.indd 716 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 717

employee. In addition, within each of these areas, which specific factors are pos si- ble to change? In Exhibit 14.11, factors such as increasing job satisfaction, improv- ing orga nizational justice, and improving the social environment might reduce the desirability of leaving, but it is likely not pos si ble to change personal shocks or personal reasons for leaving. Likewise, it is pos si ble to avoid providing general KSAOs and to increase the cost of leaving for the employee in order to reduce the ease of leaving.

Question three asks, “What do we need to decide?” This requires choosing retention initiatives and making plans for implementation. First, develop specific numerical turnover (retention) goals in the form of desired turnover rates. Then decide whether retention programs will be applied across the board, targeted to specific orga nizational units and employee groups, or applied to both. Examples of targeted groups include job categories in which turnover is particularly trouble- some, underrepresented demographic groups, and recently hired individuals. Next, consider if and how high- value employees will be treated. Many organ izations develop special retention initiatives for high- value employees on top of other reten- tion programs.35

Having established retention goals for orga nizational units, targeted groups, and high- value employees, retention program specifics must be designed. These may be general initiatives applicable to all employees, or they may be targeted. It must then be deci ded how to position the organ ization’s initiatives relative to the mar- ketplace. For example, will base pay on average be higher than the market average (lead), be the same as the market average (match), or be lower than the market average (lag)? Likewise, will new variable pay plans try to outdo competitors’ plans (e.g., a more favorable stock option plan) or simply match them?

Adding to the complexity of the decision pro cess is the delicate issue of whether new retention initiatives will supplement (add on to) or supplant (replace) existing rewards and programs. If the latter, the organ ization should be prepared for the pos- sibility of employee backlash against what employees may perceive as “take backs” of rewards they currently have and must give up.

Fi nally, the respective roles of executives, HR, and individual man ag ers will have to be worked out, and this may vary among the retention initiatives. Initia- tives that involve wholesale work and compensation system redesign will involve action by top executives. If the initiative involves responding to outside job offers, for example, line man ag ers may demand a heavy or even exclusive hand in this pro cess. Alternatively, some initiatives may be HR driven; examples here include hours of work and variable pay plans.

The final question— How should we evaluate the initiatives?— should be consid- ered before any plan is implemented. Answers will lend focus to the design of the intervention and agreed- upon criteria on which to later judge intervention effective- ness. Ideally, the same criteria that led to the conclusion that turnover is a prob lem (question one) will be used to determine whether the chosen solution actually works (question four).

099-67811_ch14_4P.indd 717 11/17/17 1:06 PM

718 PART SIX Staffing System and Retention Management

What Do Organ izations Do? Several descriptive surveys provide glimpses into the actions that organ izations take to address retention. These examples come mostly from relatively large organ- izations, so what happens in small organ izations is less known. Nonetheless, the data provide in ter est ing illustrations of orga nizational tenacity and ingenuity, along with the willingness of organ izations to commit resources, in vari ous approaches, to retention.

Review of Orga nizational Practices. Although there are many anecdotal sto- ries about which retention practices are or are not effective, the most compelling evidence on this topic comes from a comprehensive examination of the effects of vari ous orga nizational practices on orga nizational turnover rates across thousands of workplaces.36 The results of this study showed that some practices were clearly more effective than others. The most and least effective retention initiatives are listed in Exhibit 14.12. We discuss the specific components of retention bundles in greater detail later in this chapter, but for now, it should be emphasized that these initiatives included not just single, isolated practices but a combined sys- tem of practices that worked together to encourage employees to remain. It is also in ter est ing to note that increased investment in training as a stand- alone practice was actually associated with increases in turnover. This is consistent with our ear- lier discussion proposing that higher levels of general, transferable KSAOs can increase the ease of leaving.

WorldatWork Survey. WorldatWork conducts regular surveys of HR man ag ers regarding the implementation and success of retention initiatives. A survey conducted with a sample of 526 respondents in 2012 focused on the role of rewards in retain-

Most Effective Retention Initiatives

• Retention bundles (high-commitment HR systems) • Benefits • Dispute resolution • Participation-enhancing work design

Least Effective Retention Initiatives

• Relative pay • Sophisticated selection system • Variable pay • Training

EXHIBIT 14.12 Most and Least Effective Retention Initiatives

099-67811_ch14_4P.indd 718 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 719

ing key talent.37 The great majority of respondents indicated that their organ izations identified their key talent and focused their retention efforts on those individuals. Discussing future opportunities, creating succession plans, providing meaningful and enriching job designs, and paying key employees above the market rate were all identified as particularly effective retention methods. One of the least effective methods was providing tuition reimbursement and other educational opportunities. Such activities can actually increase the level of general human capital possessed by employees, thereby making it easier for them to find jobs elsewhere. Most man ag ers also felt that simply tracking employee satisfaction was not particularly useful, per- haps because the tracking activities often were not accompanied by tangible efforts to improve prob lem situations.

The 100 Best Companies. Each year Fortune magazine publishes the report “The 100 Best Companies to Work For.”38 Organ izations apply to be on the list, and their score is based on randomly chosen employees’ responses to the Great Place to Work Trust Index survey and an evaluation of a Culture Audit. Winners are ranked according to their final score, and brief descriptions are provided about the number of US employees (including the percentages of women and minorities), job growth, annual number of job applicants and voluntary turnover rate, average number of employee training hours, entry- level salary for production and profes- sional employees, revenues, and what makes the organ ization stand out.

Unfortunately, the study does not provide specific information on patterns of usage and effectiveness of retention initiatives among the 100 organ izations. How- ever, comments about what makes the organ ization stand out provide intriguing tidbits as to special practices that might enhance retention. Google, the top- rated organ ization for 2013, was highlighted for having a particularly appealing array of perks, including a gourmet cafeteria, swimming pools, volleyball courts, laundry facilities, on- site physicians, and language classes. The com pany also emphasizes a culture of employee collaboration, learning, and development, which increases employees’ intrinsic enjoyment of the work they do. Also, Google engineers are required to spend one day per week developing their own ideas for proj ects that can be implemented. For individuals eager to pursue new and exciting ideas, this might be the most valuable perk of all. Fortune also profiled the candy maker Mars. As you might expect, there are vending machines that dispense free M&Ms to employees, and there are additional programs that further sweeten the deal. Rather than invest- ing in luxurious offices, the com pany concentrates its efforts on providing employees with long- term proj ect development and development plans that help them envision spending their career within the com pany. Mars boasts an annual turnover rate of 5%, which is exceptionally low. It is not uncommon for individuals from multiple generations of the same family to be employees. This suggests that investing in employees and their futures can lower turnover and attract new employees who are well acquainted with the com pany’s culture and values.

099-67811_ch14_4P.indd 719 11/17/17 1:06 PM

720 PART SIX Staffing System and Retention Management

Retention Bundles. The retention initiatives up to this point have been described in terms of individual practices, such as providing rewards linked to tenure or matching offers from other organ izations. This should not be taken to suggest that retention initiatives should be offered in isolation. To be effective, retention practices need to be integrated into a comprehensive system, or as a “bundle” of practices.

As an example, research has shown that the best performers are least likely to quit when an organ ization both rewards per for mance with higher compensation and widely communicates its compensation practices. Focusing on only compensa- tion or communication in isolation does not have these effects— the procedures are much more effective as a bundle.39 Other research found that the level of both voluntary and involuntary turnover is lower in organ izations that make long- term investments in employees through a combination of employment security, internal mobility opportunities, and pensions for long- term employees.40 Bundles appear to be effective in part because they demonstrate orga nizational support, which fits with our earlier discussion of employee commitment.41 In summary, large- scale reviews of orga nizational practices and turnover rates clearly indicate that the most effec- tive tool for improving retention is to provide integrated systems that involve careful se lection, adequate training, satisfying work conditions, and rewards for retention.42

In practical terms, man ag ers need to examine all the characteristics in the work environment that might lead to turnover and address them in a comprehensive manner. Organ izations with strong investments in their staffing methods may find their investments are lost if they do not support this strategy with an equally strong commitment to providing newcomers with sufficient orientation material to adjust to their new jobs. Organ izations that provide numerous benefits in a poorly inte- grated fashion may similarly find that the intended effects are lost if man ag ers and employees believe that the programs fail to address their needs.

Specific Retention Initiatives. To further illustrate policies that organ izations might adopt to control turnover, Exhibit 14.13 summarizes practices from a num- ber of organ izations that have been able to significantly improve retention out- comes.43 One noteworthy feature of these programs is the use of both extrinsic and intrinsic rewards.

RETENTION INITIATIVES: DISCHARGE

Per for mance Management

Many organ izations use per for mance management to help ensure that the initial person/job match made during staffing yields an effectively performing employee,

099-67811_ch14_4P.indd 720 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 721

to facilitate employee per for mance improvement and competency growth.44 Having a per for mance management system in place, however, also allows the organ ization to systematically detect and treat per for mance prob lems that employees exhibit before those prob lems become so harmful and intractable that discharge is the only recourse. A sound per for mance management system can be very useful in helping an organ ization successfully defend itself against legal challenges to discharges.

EXHIBIT 14.13 Retention Initiative Examples

Organization Initiative Results

Cendant Offer a flexible work working schedule and work/life balance program designed around employee survey feedback

Annual turnover decreased from approximately 30% to less than 10%

Deloitte Develop “mass career customization,” which allows employees to customize their workload to suit their needs

Dramatic reduction in turnover of top-performing employees

Fleet Bank Provide career growth opportunities and ensure that employees are able to establish long-term relationships with their managers

Turnover fell by 40% among salaried employees and by 25% among hourly employees

Outback Steakhouse

Provide adequate information on job characteristics prior to hiring, extensive opportunities for employee voice

Turnover rates at approximately half of industry norms

SAP America Increase communication regarding the organization’s strategic direction and goals, provide rewards for retention, improve supervisor–employee relationship

Voluntary annual turnover rates fell from 14.9% to 6.1%

UPS Provide well-above-market wages, ample vacation time, free health insurance, and pension

Typical annual turnover rate of 1.8%

Wegmans Provide a comprehensive menu of health care benefits far above industry norms

Turnover rates at approximately 60% of industry norms

099-67811_ch14_4P.indd 721 11/17/17 1:06 PM

722 PART SIX Staffing System and Retention Management

Exhibit 14.14 portrays the per for mance management pro cess. Organ ization strategy drives work- unit plans, which in turn become operational for employees through a four- stage pro cess:

• Stage one— performance planning— involves setting per for mance goals for each employee and identifying the specific competencies the employee will be evaluated on.

• Stage two— performance execution— focuses on actually performing the job. Resources to aid in job per for mance should be coupled with coaching and feedback from the employee’s man ag er, peers, and others. Per for mance feed- back should be provided frequently, accompanied by specific suggestions for improvement.

• Stage three— performance appraisal— establishes a per for mance review at the end of the per for mance period, such as after a quarter or a year, usually

EXHIBIT 14.14 Performance Management Process

Organization Strategy

Work-Unit Plans

(1) Performance Planning

Goals Competencies

(2) Performance Execution

Resources Coaching Feedback

(4) Performance Decisions

Pay Training/career plans Performance problems Retention

(3) Performance Appraisal

Goal attainment Competency ratings Written comments Feedback

099-67811_ch14_4P.indd 722 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 723

conducted by the man ag er. The employee’s success in reaching established goals is assessed, ratings of the employee’s competencies are made, written comments are developed to explain ratings and provide suggestions for per- for mance improvement, and feedback from the assessment is provided to the employee.

• Stage four— performance decisions— takes the information collected during the per for mance review and uses it to help make decisions related to the employee’s per for mance. These decisions will likely pertain to pay raises, training, and career plans. They may also pertain to formal identification of per for mance prob lems, where the employee has shown, or is headed toward, unacceptable per for mance.

During stage four, it may be deci ded that an employee has severe per for mance prob lems, which can set in motion a focused performance- improvement pro cess through the next per for mance management cycle. The pro cess of per for mance coun- seling and discipline can be conceptualized in six stages, as shown in Exhibit 14.15. It is impor tant for man ag ers to consider dif fer ent types of per for mance prob lems when developing a counseling and disciplinary plan, because each dimension requires dif fer ent responses.

The model in Exhibit 14.15 breaks down job per for mance into three categories.45 Task per for mance includes the completion of job tasks that are specifically included in the job description. Citizenship reflects the psychological and social environ- ment of work created by employees, which might be only indirectly reflected in written job descriptions but is impor tant for maintaining a smoothly functioning work group. Counterproductivity represents actions that directly violate orga ni za- tional rules or undermine per for mance.

The first imperative for man ag ers is to continually monitor employee per for- mance and identify prob lems. Next, man ag ers should determine why employee per for mance has become unacceptable. This pro cess should involve the employee’s input as well. If prob lems are occurring because of a lack of knowledge or skills, it may be pos si ble to use corrective action based on training or counseling. Prob lems involving a lack of motivation or a negative attitude require the use of rewards and punishments, while prob lems involving personality or lack of ability may require reassignment to a dif fer ent job. Regardless of which corrective actions are taken, employees need to be clearly informed about the consequences of continued failure to perform adequately, and the entire counseling and disciplinary pro cess needs to be documented. It is hoped that per for mance will improve, but if it does not, the organ ization will need to consider terminating employment.

Man ag er Training A successful per for mance management system requires many components. Prob- ably none is more critical than training the man ag ers who will use the per for mance management system with employees in their work units.46

099-67811_ch14_4P.indd 723 11/17/17 1:06 PM

724 PART SIX Staffing System and Retention Management

EXHIBIT 14.15 Performance Counseling and Disciplinary Processes

Counterproductivity

Counterproductivity

Counterproductivity

Lack of ability, knowledge, skills, or motivation

Policy violations, theft, sabotage, substance abuse

Complaints, uncooperative, unhelpful

Boredom, employee personality, lack of cohesion

Poor work ethic, stress, ignorance of policies

Team-building exercises, transfer, coaching

Training, job redesign or transfer, incentives

Explain policies clearly, reprimands, suspensions

Task performance

Task performance

Task performance

Low quality, ine�ciency, customer complaints

Citizenship

Citizenship

Citizenship

(4) Develop and discuss clear consequences for continued problems

(6) Terminate if problems not resolved

(3) Develop corrective actions

(2) Assess causes

(1) Identify performance problems

(5) Document incident, corrective actions, and consequences of continued problems

099-67811_ch14_4P.indd 724 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 725

Per for mance management requires man ag ers to possess a complex set of skills and knowledge. Examples of training content include purposes of per for mance management, policies and procedures of the per for mance management system, appraisal forms and how to complete them, keeping rec ords of employee per- for mance incidents, rating accuracy, coaching techniques, finding and providing resources, methods of providing feedback, goal setting, and legal compliance requirements. It is especially impor tant to stress exactly why and how per for mance management is to be used as a retention initiative that seeks to prevent discharge through intensive per for mance improvement attempts.

Another impor tant part of training should be concerned with employee termi- nation. Here, man ag ers must come to understand that a decision to discharge an employee for per for mance prob lems falls outside the normal per for mance man- agement pro cess (Exhibit 14.14) and is not a decision that can or should be made by the individual man ag er alone. Terminations require separate procedural and decision- making pro cesses.47 These could also be covered as part of a regular per- for mance management training program, or a separate program devoted to termi- nation could be conducted.

Progressive Discipline

Employee discipline pertains to behavioral conduct prob lems that violate rules, procedures, laws, and professional and moral standards.48 Discipline may also come into play for employees with per for mance prob lems. Progressive discipline involves a series of penalties for misconduct that increase in severity if the mis- conduct is repeated, starting with an informal warning and proceeding all the way up to termination. In progressive discipline, employees are given notice of their misconduct and are provided the opportunity (and often the assistance) to change their be hav ior; termination is a last resort.

Progressive discipline systems are rooted in major princi ples of fairness and justice that can be summarized in the following five requirements for a progres- sive discipline system: (1) give employees notice of the rules of conduct and mis- conduct, (2) give employees notice of the consequences of violating the rules, (3) provide equal treatment for all employees, (4) allow for full investigation of the alleged misconduct and defense by the employee, and (5) provide employees the right to appeal a decision.49

Actions to Take Several actions can be taken to address these fairness requirements. First, estab- lish what constitutes misconduct and the penalties for misconduct. The penalties start with an oral warning and pro gress through a written warning, suspension, and termination. Second, provide training to employees and man ag ers so that they are aware of the types of misconduct, penalties, investigation and documentation requirements, and appeal rights. Third, work with man ag ers to ensure that there is

099-67811_ch14_4P.indd 725 11/17/17 1:06 PM

726 PART SIX Staffing System and Retention Management

consistency in the treatment of employees, meaning that similar misconduct results in similar penalties for all employees. Fi nally, establish an appeals procedure, if one is not already in place, in which employees may challenge disciplinary actions.

Documentation by the man ag er is critical in all but the least severe instances of misconduct (e.g., first- time minor offense with an oral warning).50 Thus, the man ag er must investigate allegations of misconduct, gather evidence, write down what happened, and keep rec ords of what was learned. Allegations of tardiness, for example, might involve inspection of time cards and interviews with other employees.

Per for mance prob lems could be incorporated into, or dovetailed with, the pro- gressive discipline system.51 Here, it would be wise (if pos si ble) to first adhere to the normal per for mance management cycle so that correction of per for mance defi- ciencies is done in a consultative way between the employee and the man ag er, and the man ag er assumes major responsibility for providing resources to the employee, as well as for attentive coaching and feedback. If per for mance improvement is not forthcoming, then shifting to the progressive discipline system will be necessary.

Employee termination is the final step in progressive discipline. In an ideal world, it would never be necessary, but rarely, if ever, is this the case. The organ- ization thus must be prepared for the necessity of conducting terminations. Termi- nation pro cesses, guidelines, training for man ag ers, and so forth must be developed and implemented. Considerable guidance is available to help the organ ization in this regard.52

RETENTION INITIATIVES: DOWNSIZING

Downsizing involves reducing the organ ization’s staffing levels through layoffs or elimination of job categories. Many factors contribute to layoff occurrences: decline in profits, restructuring of the organ ization, substitution of the core workforce with a flexible workforce, an obsolete job or work unit, mergers and acquisitions, loss of contracts and clients, technological advances, productivity improvements, shortened product life cycles, and financial markets that favor downsizing as a positive orga nizational action.53 While downsizing obviously involves the elimina- tion of jobs, it also encompasses several retention matters that involve balancing the advantages and disadvantages of downsizing, staffing levels and quality, alter- natives to layoffs, and dealing with employees who remain after downsizing.

Weighing Advantages and Disadvantages

Downsizing has multiple benefits and costs (as can be seen in Exhibit 14.9). For one, research suggests that the presumed and hoped- for benefits of downsizing might not be as great as they seem.54 For example, one study looked at how employment

099-67811_ch14_4P.indd 726 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 727

level changes affected the profitability and stock returns of 537 organ izations over a 14- year period. Downsizing did not significantly improve profitability, though it did produce somewhat better stock returns. In fact, organ izations that combined downsizing with asset restructuring fared better.55 Additional research has found that downsizing has negative impacts on employee morale and health, workgroup creativity and communication, and workforce quality.56

In short, downsizing is not a panacea for poor financial health. It has many negative impacts on employees and should be combined with a well- planned total restructuring if it is to be effective. Such conclusions suggest the organ ization should carefully ponder whether it should downsize, and if so, by how much, and which employees it should seek to retain.

Staffing Levels and Quality

Reductions in staffing levels should be mindful of retention in at least two ways. First, enthusiasm for a financial quick fix needs to be tempered by a realization that, once let go, many downsized employees may be unlikely to return later if economic circumstances improve. The organ ization will then have to engage in costly re- staffing as opposed to potentially less costly and quicker retention initiatives. At a minimum, the organ ization should consider alternatives to downsizing si mul ta- neously with downsizing planning. Such an exercise may well lead to less down- sizing and greater retention.

Second, staffing level reductions should be thought of in selective or targeted terms, rather than across the board. Such an approach is a logical outgrowth of HR planning, through which it is invariably discovered that the forecasted labor demand and supply figures lead to differing HR head- count requirements across orga nizational units and job categories. Indeed, it is pos si ble that some units or job categories will be confronting layoffs while others are actually hiring.

If cuts are to be made, who should be retained? Staffing quality and employee ac cep tance concerns combine to produce some options to choose from. The first choice would be to retain the most se nior employees in each work unit. Such an approach signals job security commitments to long- term employees. On the down- side, the most se nior employees may not be the best performers, and looking ahead, the most se nior employees may not have the necessary qualifications for job require- ment changes that will occur as part of the restructuring pro cess.

An alternative plan would be to make performance- based retention decisions.57 Employees’ current and possibly past per for mance appraisals would be consulted in each work unit. The lowest- performing employees would be designated for lay- off. This approach assumes that the current crop of best performers will continue to be so in the future, even though job requirements might change. It also assumes that the evaluation of who is or is not a high- quality employee is accurate. Legal challenges may also arise, as discussed later.

099-67811_ch14_4P.indd 727 11/17/17 1:06 PM

728 PART SIX Staffing System and Retention Management

Alternatives to Downsizing

A no- layoff or guaranteed employment policy as an organ ization strategy is the most dramatic alternative to downsizing. A no- layoff strategy requires considerable organ- ization and HR planning, along with a commitment to a set of programs necessary for successfully implementing the strategy. This strategy also requires a gamble and a bet that, if lost, could severely damage employee loyalty and trust. During the deep recession of 2007–2009, many employers that had previously pursued a no- layoff strategy abandoned this policy and significantly reduced their workforces.58

Some organ izations are unwilling to make a no- layoff guarantee but pursue layoff minimization through many dif fer ent programs. Exhibit 14.16 provides an example based on a survey of 633 organ izations. It can be seen that multiple steps were taken as alternatives to layoffs, headed by attrition (not replacing employees who leave), hiring freezes, and nonrenewal of contract workers. A series of direct and indirect pay changes (e.g., salary reduction, early retirement) also played a role in their layoff minimization. Other actions are also pos si ble, such as a temporary layoff with some proportion of pay and benefits continued, substitution of stock options for bonuses, conversion of regular employees to in de pen dent contractors, temporary assignments at a reduced time (and pay) commitment, and off- site employees who temporarily work at home on a reduced time (and pay) basis.59

Employees Who Remain

Employees who remain either in their pre- layoff job or in a redeployed job after a downsizing must not be ignored. Doing other wise creates a new retention prob lem— survivors who are stressed and critical of the downsizing pro cess. One survey of workers employed at 318 companies found that 81% reported customer ser- vice had declined, 77% reported more errors and mistakes being made, and 64% reported that their coworkers’ productivity had declined.60 The survey authors attributed these negative results to layoff survivor stress, which was heightened by the loss of coworkers and friends, a heavier workload, new locations and work hours, new and/or more responsibilities, and fear of job loss just around the corner.

These examples of “survivor sickness” suggest a need to anticipate and attack it directly in downsizing planning. Experts recommend that organ izations take active steps to reduce survivor stress. This can include active communication, involving the current workforce in redesigning jobs to accommodate lower staffing levels, and discussing career- related issues.61 Unless steps are taken to help survivors plan for and adjust to the new realities they will confront, heightened job dissatisfaction seems inevitable. In turn, voluntary turnover may spike, further increasing the cost of downsizing.62

There are numerous examples of organ izations that took steps to either help laid- off employees find new work or avoid layoffs altogether. When Cir cuit City announced plans to liquidate all of its stores in 2009, the organ ization took extraor-

099-67811_ch14_4P.indd 728 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 729

dinary steps to ensure that employees had assistance in their search for new jobs. Staff members established contacts with other organ izations to help downsized employees find new jobs.63 The organ ization also hosted résumé- writing and inter- viewing workshops for former associates. When HOK had to lay off a portion of its workforce, it offered transfers to other locations and held multiple training ses- sions with man ag ers to teach them how to openly communicate about the layoffs with their employees.64 As another example, following a steep drop in demand for its products during the recession, Piper Aircraft moved to a four- day workweek, which reduced employee compensation by 20%.65

EXHIBIT 14.16 Alternative Methods for Cost Minimization

Source: Society for Human Resource Management, The Impact of 2008 U.S. Economy on Businesses (Alexandria, VA: author, 2008). Used by permission.

Measures taken to cut sta�ng costs (n = 633)

Attrition Key 1

Layo�2 Hiring freeze3 Not renewing contract4 Reducing work hours5 Hiring contingent workers6 Retraining7

Reducing workweek8 Temporary shutdown9 Early retirement10 Job sharing1 1 Reducing salaries12 Freezing salaries13 Reducing/eliminating overtime14

0% 1 141312111098765432

10%

20%

30%

40%

50%

60%

70%

80%

099-67811_ch14_4P.indd 729 11/17/17 1:06 PM

730 PART SIX Staffing System and Retention Management

LEGAL ISSUES

Retention initiatives are closely entwined with the occurrence of employee sepa- rations, since the result of an unsuccessful retention initiative is the voluntary or involuntary separation of the employee from the organ ization. The organ ization’s retention initiatives thus must be guided in part by the laws and regulations govern- ing separations. A brief overview of these is provided. Then a detailed look at the role of per for mance appraisal in separation is presented, since performance- based retention is a thrust of this chapter.

Separation Laws and Regulations

A desire to provide protection and safeguards to employees leaving an organ ization, especially as a result of discharge or downsizing, has led to myriad laws and regu- lations governing the separation pro cess.66 These include the following:

• Public policy restrictions on employment- at- will • Employment discrimination laws and regulations • Affirmative action requirements • Employment contract princi ples • Labor contract provisions • Civil ser vice laws and regulations • Negligent supervision and retention • Advanced warning about plant closings • Severance agreements

A basic tenet under lying restrictions on employee separation is the need for fair and consistent treatment of employees. Included here are concerns for ensuring procedural fairness and having a legitimate basis for separations, such as merit, se niority, or per for mance. The organ ization should be thoroughly familiar with these numerous laws and regulations, and their under lying princi ples, as it designs and administers its separation initiatives.67

Per for mance Appraisal

Organ izations often favor retention and separation systems and decisions that are driven by employee per for mance. Laws and regulations generally uphold or even encourage such a role for per for mance. However, the law as interpreted also insists that per for mance appraisals, and the per for mance appraisal system generally, be fairly and equitably applied to employees undergoing separation. Interpretations come about from a combination of court decisions and governmental regulations that have evolved around the issue of per for mance appraisal in practice.

099-67811_ch14_4P.indd 730 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 731

Based on these decisions and regulations, numerous specific suggestions have been put forth to guide the organ ization in the design and use of its per for mance appraisal (or management) system:68

• Appraisal criteria should be job related, specific, and communicated in advance to the employee.

• The man ag er (rater) should receive training in the overall per for mance appraisal pro cess and in how to avoid common rating errors.

• The man ag er should be familiar with the employee’s job description and actual per for mance.

• There should be agreement among dif fer ent raters in their evaluation of the employee’s per for mance.

• Evaluations should be in writing, with supporting documentation. • The employee should be able to review the evaluation and comment on it before

it becomes final. • The employee should receive timely feedback about the evaluation and an

explanation for any outcome decision (e.g., retention or separation). • There should be an upward review of the employee’s appraisal. • There should be an appeals system for employees who are dissatisfied with

their evaluation.

Conforming to these recommendations will help provide (but not guarantee) a fair evaluation pro cess and help defend decisions pertaining to retention and separa- tion. If the organ ization wants to manage a performance- driven retention system, it would do well to ensure the adequacy of its per for mance appraisal system relative to the above recommendations.

SUMMARY

Retention management seeks to control the numbers and types of employees who leave the organ ization and those who remain with the organ ization. Employee loss occurs through voluntary turnover or involuntary turnover in the form of discharge or downsizing. Voluntary turnover is caused by a combination of perceived desir- ability of leaving, ease of leaving, and alternatives to one’s current job. Some of these reasons are avoidable, but others are not. Avoidable turnover can also be said to occur among high- and low- value employees. Discharge occurs for performance- and discipline- related prob lems. Downsizing or RIF occurs because the organ ization is, or is projected to be, overstaffed in head- count terms.

It is impor tant for the organ ization to conduct thorough analyses of its turnover. Using a simple formula, turnover rates can be calculated, both overall and broken down by types of turnover, types of employees, job categories, and geographic

099-67811_ch14_4P.indd 731 11/17/17 1:06 PM

732 PART SIX Staffing System and Retention Management

location. It is also useful to benchmark the organ ization’s turnover rates internally and externally. Another form of analy sis is determining reasons that people leave. This can be done through exit interviews, post- exit surveys, and employee satisfac- tion surveys. Analy sis of the costs and benefits of each of the three types of turnover should also be done. The three major cost categories are separation, replacement, and training. Within each category, numerous costs, both financial and nonfinancial, may be estimated. Likewise, each type of turnover has both financial and nonfi- nancial benefits associated with it that must be weighed against the many costs. A thorough understanding of costs and benefits will help the organ ization determine where and among whom turnover is the most worrisome, and how to fashion reten- tion strategies and tactics.

To reduce voluntary turnover, organ izations engage in numerous retention ini- tiatives centered on direct and variable pay programs, benefits, work schedules, and training and development. Little is known about attempts to increase intrinsic rewards. A decision pro cess may be followed to help decide which, if any, reten- tion initiatives to undertake. The pro cess is guided by four basic questions: Do we think turnover is a prob lem? How might we attack the prob lem? What do we need to decide? How should we evaluate the programs? To influence the desirabil- ity of leaving, the organ ization must raise job satisfaction by providing both extrin- sic and intrinsic rewards. Ease of leaving can possibly be reduced by providing organization- specific training and increasing the cost of leaving. Fi nally, retention might be improved by providing more internal job alternatives to employees and by responding intentionally to other job offers they receive.

Discharges might be reduced through formal per for mance management and progressive discipline systems. The per for mance management system involves four stages— performance planning, per for mance execution, per for mance appraisal, and per for mance decisions about the employee. Use of this system helps prevent and cor- rect per for mance prob lems. A progressive discipline system addresses behavioral conduct prob lems that violate rules, procedures, laws, and professional and moral standards. It has a series of penalties for misconduct that pro gress up to termination, which the system seeks to prevent if at all pos si ble.

While downsizing seems to have some obvious benefits, research indicates that there are many costs as well, so the organ ization should carefully consider whether it really wants to downsize, and if so, by how much in terms of employee numbers and quality. Staffing levels should be achieved in a targeted way rather than across the board. From a staffing quality perspective, cuts could be based on se niority, job per for mance, or a more holistic assessment of who the high- value employees are that the organ ization wishes to retain. There are many alternatives to downsizing that could be pursued. Attention must be paid to employees who survive a downsiz- ing, or they might create a new retention prob lem for the organ ization by starting to leave.

099-67811_ch14_4P.indd 732 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 733

Legally, employee separation from the organ ization, especially on an involun- tary basis, is subject to myriad laws and regulations that the organ ization must be aware of and incorporate into its retention strategy and tactics. If the organ ization wishes to base retention decisions on employees’ job per for mance, it should rec- ognize that laws and regulations require per for mance management systems to be fair and equitable to employees during separation. Based on regulations and court decisions, numerous recommendations must be followed in order for a per for- mance management system to have a chance of withstanding legal challenges and scrutiny.

DISCUSSION QUESTIONS

1. For the three primary causes of voluntary turnover (desirability of leaving, ease of leaving, alternatives), might their relative importance depend on the type of employee or type of job? Explain.

2. Which of the costs and benefits of voluntary turnover are most likely to vary according to type of job? Give examples.

3. If someone said to you, “It’s easy to reduce turnover— just pay people more money,” what would your response be?

4. Why should an organ ization seek to retain employees with per for mance or discipline prob lems? Why not just fire them?

5. Discuss some potential prob lems with downsizing as an organ ization’s first response to a need to cut labor costs.

ETHICAL ISSUES

1. Imagine your organ ization is doing exit interviews and has promised con- fidentiality to all who respond. You are responsible for conducting the exit interviews. Your supervisor has asked you to give her the name of each respon- dent so she can assess the information in conjunction with the person’s super- visor. What obligation do corporate HR employees have to keep information confidential in such circumstances?

2. Firing an employee has numerous potential negative orga nizational conse- quences, including the discomfort of the supervisor who delivers the termina- tion information, conflict or sabotage from the departing employee, and the filing of a lawsuit. To avoid this, many supervisors give prob lem employees unpleasant work tasks, reduce their working hours, or other wise negatively modify their jobs in hopes that they will simply quit. What are the ethical issues raised by this strategy?

099-67811_ch14_4P.indd 733 11/17/17 1:06 PM

734 PART SIX Staffing System and Retention Management

APPLICATIONS

Managerial Turnover: A Prob lem?

HealthCareLaunderCare (HCLC) is a com pany that specializes in picking up, cleaning, and delivering laundry for health care providers, especially hospitals, nursing homes, and assisted care facilities. Basically, these health care providers have outsourced their total laundry operations to HCLC. In this very competitive business, a typical contract between HCLC and a health care provider is only two years, and HCLC experiences a contract nonrenewal rate of 10%. Most nonrenew- als occur because of dissatisfaction with ser vice costs and especially quality (e.g., surgical garb that is not completely sterilized).

HCLC has 20 laundry facilities throughout the country, mostly in large metro- politan areas. Each laundry fa cil i ty is headed by a site man ag er, and there are unit supervisors for the intake, washing, drying, inspection and repair, and delivery areas. An average of 100 nonexempt employees are employed at each site.

The operation of the facilities is technologically sophisticated and very health- and safety- sensitive. In the intake area, for example, employees wear protective clothing, gloves, and eyewear because of all the blood, tissue, and germs on laundry that comes in. The washing area is composed of huge washers in 35- foot stainless steel tunnels with screws that move the laundry through vari ous wash cycles. Workers in this area are exposed to high temperatures and must be proficient in the operation of the computer control systems. Laundry is lifted out of the tunnels by robots and moved to the drying room area, where it is dried, ironed, and folded by machines tended by employees. In the inspection and repair area, quality inspection and assur- ance occurs. Laundry is inspected for germs and pinholes (pinholes in surgical garb could allow blood and fluids to come into contact with the surgeon), and employees complete repairs on torn clothing and sheets. In the delivery area, the laundry is hermetically sealed in packages and placed in delivery vans for transport.

HCLC’s vice president of operations, Tyrone Williams, manages the sites— and site and unit man ag ers— with an iron fist. Williams monitors each site with weekly reports on a set of cost, quality, and safety indicators for each of the five areas. When he spots what he thinks are prob lems or undesirable trends, he has a conference call with both the site man ag er and the unit supervisor. In the decid- edly one- way conversation, marching orders are delivered and are expected to be fulfilled. If a turnaround in the “numbers” does not show up in the next weekly report, Williams gives the man ag er and the supervisor one more week to improve. If sufficient improvement is not forthcoming, vari ous punitive actions are taken, including base pay cuts, demotions, reassignments, and terminations. Williams feels such quick and harsh justice is necessary to keep HCLC competitive and to continually drive home to all employees the importance of working “by the num- bers.” Fed up with this management system, many man ag ers have opted to say “Bye- bye, numbers!” and leave HCLC.

099-67811_ch14_4P.indd 734 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 735

Recently, the issue of site and unit man ag er retention came up on the radar screen of HCLC’s president, Roman Dublinski. Dublinski glanced at a payroll report showing that 30 of 120 site and unit man ag ers had left HCLC in the past year, though no reasons for leaving were given. In addition, Dublinski received copies of a few angry resignation letters written to Williams. Having never confronted or thought about pos si ble employee retention prob lems or how to deal with them, Dublinski calls to ask you (the corporate man ag er of staffing) to prepare a brief written analy sis that will then be used as the basis for a meeting between the two of you and the vice president of HR, Debra Angle ( Angle recommended this). Address the following questions in your report:

1. Is the loss of 30 man ag ers out of 120 in one year cause for concern? 2. What additional data should be gathered to learn more about managerial

turnover? 3. What are the costs of this turnover? Might there be any benefits? 4. Are there any lurking legal prob lems? 5. If retention is a serious prob lem for HCLC, what are the main ways we might

address it?

Retention: Deciding to Act

Wally’s Won der Wash (WWW) is a full- service, high- tech, high- touch car wash com pany owned solely by Wally Wheelspoke. Located in a midwestern city of 200,000 people (with another 100,000 in suburbs and more rural towns through- out the county), WWW currently has four facilities within the city. Wally plans to add four more facilities within the city in the next two years, and later on he plans to begin placing facilities in suburban locations and rural towns. Major competitors in the city include two other full- service car washes (dif fer ent owners), plus three touchless automatic facilities (same own er).

Wally’s critical strategy is to provide the very best to customers who want and relish extremely clean and “spiffy” vehicles and to ensure they have a positive expe- rience each time they come to WWW. To do this, WWW seeks to provide high- quality car washes and car detailing and to generate considerable repeat business through competitive prices combined with attention to customers. To make itself accessible to customers, WWW is open seven days a week, 8:00 a.m. to 8:00 p.m. Peak periods, volume- wise, are after 1:00 p.m. on weekdays and from 10:00 a.m. to 5:00 p.m. on weekends. In addition, Wally uses his workforce to drive his strategy. Though untrained in HR, Wally knows that he must recruit and retain a stable, high- quality workforce if his current facilities, let alone his ambitious expansion plans, are to succeed.

WWW has a strong preference for full- time employees, who work either 7:30 a.m. to 4:00 p.m. or 11:00 a.m. to 8:00 p.m. Part- timers are used occasionally during

099-67811_ch14_4P.indd 735 11/17/17 1:06 PM

736 PART SIX Staffing System and Retention Management

peak demand times and during the summer when full- timers are on vacation. There are two major jobs at WWW: attendant (washer) and custom ser vice spe- cialist (detailer). Practicing promotion from within, WWW promotes all special- ists from the attendant ranks. There are currently 70 attendants and 20 custom ser vice specialists at WWW. In addition, each fa cil i ty has a man ag er. Wally has filled the man ag er jobs by promotion from within (from either the attendant or custom ser vice specialist ranks), but he is unsure if he will be able to continue doing this as he expands.

The job of attendant is a demanding one. Attendants vacuum vehicles from front to rear (and trunk if requested by the customer), wash and dry win dows and mirrors, dry vehicles with hand towels, apply special cleaning compounds to tires, wipe down the vehicle’s interior, and wash or vacuum floor mats. In addition, atten- dants wash and fold towels, lift heavy barrels of cleaning compounds and waxes, and perform light maintenance and repair work on the machinery. Fi nally, and very impor tant, attendants consistently provide customer ser vice by asking customers if they have special requests and by making small talk with them. A unique feature of customer ser vice at WWW is that the attendant must ask the customer to person- ally inspect the vehicle before leaving to ensure that the vehicle has been satisfac- torily cleaned (attendants also correct any mistakes pointed out by the customer). The attendants work as a team, with each attendant expected to be able to perform all of the above tasks.

Attendants start at a base wage of $8.00/hour, with automatic $.50 raises at six months and one year. They receive brief training from the man ag er before start- ing work. Custom ser vice specialists start at $9.00/hour, with $.50 raises after six months and one year. Neither attendants nor custom ser vice specialists receive per for mance reviews. Man ag ers receive a salary of $27,000, plus an annual “merit” raise based on a very casual per for mance review conducted by Wally (whenever he gets around to it). All attendants share equally in a customer tip pool; custom ser vice specialists receive individual tips. The benefits package is composed of the following: (1) major medical health insurance with a 20% employee co- pay on the premium, (2) paid holidays for Christmas, Easter, July 4, and Martin Luther King Jr.’s birthday, and (3) a generous paid sick- pay plan of two days per month (in recognition of high illness rates due to extreme working conditions).

In terms of turnover, Wally has spotty and general data only. In the past year WWW experienced an overall turnover rate of 65% for attendants and 20% for custom ser vice specialists; no man ag ers left the com pany. Though lacking data further back, Wally thinks the turnover rate for attendants has been increasing. WWW’s man ag ers constantly complain to Wally about the high level of turnover among attendants and the prob lems it creates, especially in fulfilling the strong customer ser vice orientation for WWW. Though the man ag ers have not con- ducted exit interviews, the major complaints they hear from attendants are (1) the pay is not competitive relative to the other full- service car washes and many other entry- level jobs in the area, (2) the training is hit- or- miss at best, (3) promotion

099-67811_ch14_4P.indd 736 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 737

opportunities are limited, (4) man ag ers provide no feedback or coaching, and (5) customer complaints and mistreatment of attendants by customers are on the rise.

Wally is frustrated by attendant turnover and its threat to his customer ser vice and expansion strategies. He calls on you for assistance in figuring out what to do about the prob lem. Use the decision pro cess shown in Exhibit 14.11 to help develop a retention initiative for WWW. Address each of the questions in the pro cess:

1. Do we think turnover is a prob lem? 2. How might we attack the prob lem? 3. What do we need to decide? 4. How should we evaluate the initiatives?

ENDNOTES

1. US Department of Labor, “Employee Tenure in 2012,” TED: The Economics Daily, Sept. 20, 2012; US Department of Labor, “Number of Jobs Held, Labor Market Activity, and Earnings Growth Among the Youn gest Baby Boomers: Results From a Longitudinal Survey” (USDL-10- 1243), BLS News Release, Sept. 10, 2010.

2. D. G. Allen and P. C. Bryant, Managing Employee Turnover: Dispelling Myths and Fostering Evidence- Based Retention Strategies (New York: Business Expert Press, 2012).

3. R. W. Griffeth, P. W. Hom, and S. Gaertner, “A Meta- Analysis of Antecedents and Correlates of Employee Turnover,” Journal of Management, 2000, 26, pp. 463–488; Allen and Bryant, Managing Employee Turnover; J. D. Kammeyer- Mueller, C. R. Wanberg, T. M. Glomb, and D. A. Ahlburg, “Turnover Pro cesses in a Temporal Context: It’s About Time,” Journal of Applied Psy chol ogy, 2005, 90, pp. 644–658; R. P. Steel and J. W. Lounsbury, “Turnover Pro cess Models: Review and Synthe- sis of a Conceptual Lit er a ture,” Human Resource Management Review, 2009, 19, pp. 271–282; P. W. Hom, L. Roberson, and A. D. Ellis, “Challenging Conventional Wisdom About Who Quits: Revelations From Corporate Amer i ca,” Journal of Applied Psy chol ogy, 2008, 93, pp. 1–34; J. G. March and H. A. Simon, Organ izations (New York: Wiley, 1958); C. O. Trevor, “Interactions Among Actual Ease of Movement Determinants and Job Satisfaction in the Prediction of Voluntary Turnover,” Acad emy of Management Journal, 2001, 44, pp. 621–638.

4. C. D. Crossley, R. J. Bennett, S. M. Jex, and L. Burnfield, “Development of a Global Mea sure of Job Embeddedness and Integration Into a Traditional Model of Voluntary Turnover,” Journal of Applied Psy chol ogy, 2007, 92, pp. 1031–1042; K. Jiang, D. Liu, P. F. McKay, T. W. Lee, and T. R. Mitchell, “When and How Is Job Embeddedness Predictive of Turnover? A Meta- Analytic Investigation,” Journal of Applied Psy chol ogy, 2012, 97, pp. 1077–1096; K. Kiazad, B. C. Holtom, P. W. Hom, and A. Newman, “Job Embeddedness: A Mutlifoci Theoretical Extension,” Journal of Applied Psy chol ogy, 2015, 100, pp. 641–659.

5. R. W. Griffeth and P. W. Hom, Retaining Valued Employees (Cincinnati, OH: South- Western, 2001), pp. 203–222; K. Fernandez, “Tie Up Loose Ends,” Staffing Management, Jan. 2007 (www . shrm . org); E. Agnvall, “Exit Interviews With the Click of a Mouse: Exit Interviews Go High- Tech,” SHRM Online HR Technology Focus Area, Oct. 2006 (www . shrm . org).

6 . M . A. Campion, “Meaning and Mea sure ment of Turnover: Comparison and Recommendations for Research,” Journal of Applied Psy chol ogy, 1991, 76, pp. 199–212; H. R. Nalbantian and

099-67811_ch14_4P.indd 737 11/17/17 1:06 PM

738 PART SIX Staffing System and Retention Management

A. Szostak, “How Fleet Bank Fought Employee Flight,” Harvard Business Review, Apr. 2004, pp. 116–125; S. Wescott, “Goodbye and Good Luck,” Inc., Apr. 2006, pp. 40–41.

7. D. Zielinski, “New HR Analytics Tools Help Mine Big Data,” HR Magazine, Nov. 1, 2014 (www . shrm . org); J. H. Dulebohn and R. D. Johnson, “ Human Resource Metrics and Decision Support: A Classification Framework,” Human Resource Management Review, 2013, 13, pp. 71–83; D. L. Stone, D. L. Deadrick, K. M. Lukaszewski, and R. Johnson, “The Influence of Technology on the Future of Human Resource Management,” Human Resource Management Review, 2015, 25, pp. 216–231.

8. J. P. Hausknecht, C. O. Trevor, and M. J. Howard, “Unit Level Voluntary Turnover Rates and Customer Ser vice Quality Implications of Group Cohesiveness, Newcomer Concentration, and Size,” Journal of Applied Psy chol ogy, 2009, 94, pp. 1068–1075; T.- Y. Park and J. D. Shaw, “Turnover Rates and Orga nizational Per for mance: A Meta- Analysis,” Journal of Applied Psy- chol ogy, 2013, 98, pp. 268–309; R. Williams and L. Arnett, “Retaining Employees by Sticking to the Basics,” Workforce Management, Dec. 2008 (www . workforce . com).

9 . D. Hale, R. E. Ployhart, and W. Shepherd, “A Two- Phase Longitudinal Model of a Turnover Event: Disruption, Recovery Rates, and Moderators of Collective Per for mance,” Acad emy of Management Journal, 2016, 59, pp. 906–929; T. Wang, B. Zhao, and S. Thornhill, “Pay Disper- sion and Orga nizational Innovation: The Mediation Effects of Employee Participation and Volun- tary Turnover,” Human Relations, 2015, 68, pp. 1155–1181; T. Kuypers, H. Guenter, and H. van Emmerik, “Team Turnover and Task Conflict: A Longitudinal Study on the Moderating Effects of Collective Experience,” Journal of Management, 2015, online first (jom . sagepub . com).

10 . Park and Shaw, “Turnover Rates and Orga nizational Per for mance: A Meta- Analysis.” 11. W. F. Cascio, Costing Human Resources: The Financial Impact of Be hav ior in Organ izations,

4th ed. (Nashville, TN: South- Western College Publishing, 1999), pp. 83–105; L. B. Rassas, Employment Law: A Guide to Hiring, Managing, and Firing for Employers and Employees (Austin, TX: Aspen Publishers, 2011).

12. J. N. Barron and D. M. Kreps, Strategic Human Resources (New York: Wiley, 1999), pp. 421–445; Cascio, Costing Human Resources, pp. 23–57; L. Uchitelle, The Disposable American: Layoffs and Their Consequences (New York: Vintage Books, 2007).

13. Park and Shaw, “Turnover Rates and Orga nizational Per for mance.” 14. S. Miller, “What Do Employees Want? Not Always What Employers Think,” Mar. 2007 (www

. shrm . org); Williams and Arnett, “Retaining Employees by Sticking to the Basics.” 15. Harris Interactive, Working in Amer i ca: The Key to Employee Satisfaction (Rochester, NY:

author, 2007). 16. M. Schoeff, “Retention Edges Cost Reduction as Benefits Objective,” Workforce Management

Online, Mar. 24, 2009 (www . workforce . com). 17 . N . E. Day, “Perceived Pay Communication, Justice, and Pay Satisfaction,” Employee Relations,

2011, 33, pp. 476–497; D. Pohler and J. A. Schmidt, “Does Pay- for- Performance Strain the Employment Relationship? The Effect of Man ag er Bonus Eligibility on Nonmanager Employee Turnover,” Personnel Psy chol ogy, 2016, 69(2), pp. 395–429.

18. J. Choi and C. C. Chen, “The Relationships of Distributive Justice and Compensation System Fairness to Employee Attitudes in International Joint Ventures,” Journal of Orga nizational Be hav- ior, 2007, 28, pp. 687–703; A. A. Chughtai and S. Zafar, “Antecedents and Consequences of Orga nizational Commitment Among Pakistani University Teachers,” Applied H.R.M. Research, 2006, 11, pp. 39–64; T. Kim and K. Leung, “Forming and Reacting to Overall Fairness: A Cross- Cultural Comparison,” Orga nizational Be hav ior and Human Decision Pro cesses, 2007, 104, pp. 83–95; D. G. Allen, R. W. Griffeth, J. M. Vardaman, K. Aquino, S. Gaertner, and M. Lee, “Structural Validity and Generalizability of a Referent Cognitions Model of Turnover Decisions,” Applied Psy chol ogy: An International Review, 2009, 58, pp. 709–728.

099-67811_ch14_4P.indd 738 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 739

19. J. D. Shaw, B. R. Dineen, R. Fang, and R. F. Vellella, “Employee- Organization Exchange Rela- tionships, HRM Practices, and Quit Rates of Good and Poor Performers,” Acad emy of Manage- ment Journal, 2009, 52, pp. 1016–1033; S. J. Peterson and F. Luthans, “The Impact of Financial and Nonfinancial Incentives on Business- Unit Outcomes Over Time,” Journal of Applied Psy- chol ogy, 2006, 91, pp. 156–165; W. He, L. Long, and B. Kuzaas, “Workgroup Salary Dispersion and Turnover Intention in China: A Contingent Examination of Individual Differences and the Dual Deprivation Path Explanation,” Human Resource Management, 2016, 55, pp. 301–320.

20. S. L. Peterson, “Managerial Turnover in U.S. Retail Organ izations,” Journal of Management Development, 2007, 26, pp. 770–789; Griffeth and Hom, Retaining Valued Employees, pp. 31–45; Kammeyer- Mueller, Wanberg, Glomb, and Ahlburg, “Turnover Pro cesses in a Temporal Context: It’s About Time”; W. S. Harman, T. W. Lee, T. R. Mitchell, W. Felps, and B. P. Owens, “The Psy chol ogy of Voluntary Employee Turnover,” Current Directions in Psychological Science, 2007, 16(1), pp. 51–54; F. Niederman, M. Sumner, and C. P. Maertz, Jr., “Testing and Extending the Unfolding Model of Voluntary Turnover to IT Professionals,” Human Resource Management, 2007, 46(3), pp. 331–347.

21. K. V. Rondeau, E. S. Williams, and T. H. Wagar, “Developing Human Capital: What Is the Impact on Nurse Turnover?” Journal of Nursing Management, 2009, 17, pp. 739–748.

22. R. A. Postuma, C. P. Maertz, Jr., and J. B. Dworkin, “Procedural Justice’s Relationship With Turnover: Explaining Past Inconsistent Findings,” Journal of Orga nizational Be hav ior, 2007, 28, pp. 381–398; G. Paré and M. Tremblay, “The Influence of High- Involvement Human Resources Practices, Procedural Justice, Orga nizational Commitment, and Citizenship Be hav- iors on Information Technology Professionals’ Turnover Intentions,” Group & Organ ization Management, 2007, 32, pp. 326–357; N. P. Podsakoff, J. A. LePine, and M. A. LePine, “Differ- ential Challenge Stressor- Hindrance Stressor Relationships With Job Attitudes, Turnover Inten- tions, Turnover, and Withdrawal Be hav ior: A Meta- Analysis,” Journal of Applied Psy chol ogy, 2007, 92, pp. 438–454.

23. T. Rutigliano, “Tuning Up Your Talent Engine,” Gallup Management Journal, Fall 2001, pp. 12–14. 24. J. E. Ellingson, M. J. Tews, and A. M. Dachner, “Constituent Attachment and Voluntary Turnover

in Low- Wage/Low- Skill Ser vice Work,” Journal of Applied Psy chol ogy, 2016, 101, pp. 129–140; W. Felps, T. R. Mitchell, D. R. Hekman, T. W. Lee, B. C. Holtom, and W. S. Harman, “Turnover Contagion: How Coworkers, Job Embeddedness and Job Search Be hav iors Influence Quitting,” Acad emy of Management Journal, 2009, 52, pp. 545–561.

25. J. Mayfield and M. Mayfield, “The Effects of Leader Communication on a Worker’s Intent to Stay: An Investigation Using Structural Equation Modeling,” Human Per for mance, 2007, 20, pp. 85–102; C. Donoghue and N. G. Castle, “Leadership Styles of Nursing Home Administra- tors and Their Association With Staff Turnover,” The Gerontologist, 2009, 49, pp. 166–174; L. H. Nishii and D. M. Mayer, “Do Inclusive Leaders Help to Reduce Turnover in Diverse Groups?” Journal of Applied Psy chol ogy, 2009, 94, pp. 1412–1426; J. S. Leonard and D. I. Levine, “The Effect of Diversity on Turnover: A Large Case Study,” Industrial and Labor Relations Review, 2006, 59, pp. 547–572; P. F. McKay, D. R. Avery, S. Tonidandel, M. A. Morris, M. Hernandez, and M. R. Hebl, “Racial Differences in Employee Retention: Are Diversity Climate Perceptions the Key?” Personnel Psy chol ogy, 2007, 60, pp. 35–62.

26. B. J. Tepper, “Consequences of Abusive Supervision,” Acad emy of Management Journal, 2000, 43, pp. 178–190; A. C. Klotz and M. Bolino, “Saying Goodbye: The Nature, Causes, and Consequences of Employee Resignation Styles,” Journal of Applied Psy chol ogy, 2016, 101, pp. 1386–1404.

27. C. A. Thompson and D. J. Prottas, “Relationships Among Orga nizational Family Support, Job Autonomy, Perceived Control, and Employee Well- Being,” Journal of Occupational Health Psy chol ogy, 2006, 11, pp. 100–118; Podsakoff, LePine, and LePine, “Differential Challenge

099-67811_ch14_4P.indd 739 11/17/17 1:06 PM

740 PART SIX Staffing System and Retention Management

Stressor- Hindrance Stressor Relationships With Job Attitudes, Turnover Intentions, Turnover, and Withdrawal Be hav ior: A Meta- Analysis”; L. B. Hammer, E. E. Kossek, W. K. Anger, T. Bodner, and K. L. Zimmerman, “Clarifying Work- Family Intervention Pro cesses: The Roles of Work- Family Conflict and Family- Supportive Supervisor Be hav iors,” Journal of Applied Psy chol ogy, 2011, 96, pp. 134–150; T. D. Golden, “Avoiding Depletion in Virtual Work: Telework and the Intervening Impact of Work Exhaustion on Commitment and Turnover Intentions,” Journal of Vocational Be hav ior, 2006, 69, pp. 176–187; Society for Human Resource Management, Work- place Flexibility in the 21st Century (Alexandria, VA: author, 2008).

28. K. Aumann and E. Galinsky, The State of Health in the American Workforce (New York: Families and Work Institute, 2009).

29. Society for Human Resource Management, Workplace Flexibility in the 21st Century. 30. B. A. Lautsch, E. E. Kossek, and S. C. Eaton, “Supervisory Approaches and Paradoxes in Manag-

ing Telecommuting Implementation,” Human Relations, 2009, 62, pp. 795–827. 31. M. R. Barrick and R. D. Zimmerman, “Reducing Voluntary, Avoidable Turnover Through

Se lection,” Journal of Applied Psy chol ogy, 2005, 90, pp. 159–166; J. B. Becton, M. C. Mat- thews, D. L. Hartley, and D. H. Whitaker, “Using Biodata to Predict Turnover, Orga nizational Commitment, and Job Per for mance in Healthcare,” International Journal of Se lection and Assessment, 2009, 17, pp. 189–202.

32. R. D. Zimmerman, “Understanding the Impact of Personality Traits on Individuals’ Turnover Decisions: A Meta- Analytic Path Model,” Personnel Psy chol ogy, 2008, 61, pp. 309–348; M. R. Barrick and R. D. Zimmerman, “Hiring for Retention and Per for mance,” Human Resource Man- agement, 2009, 48, pp. 183–206.

33. E. R. Silverman, “Mercer Tries to Keep Its Employees Through Its ‘Externship’ Program,” Wall Street Journal, Nov. 7, 2000, p. B18.

34. A. R. Wheeler, V. C. Gallagher, R. L. Brover, and C. J. Sablynski, “When Person- Organization (Mis)Fit and (Dis)Satisfaction Lead to Turnover: The Moderating Role of Perceived Job Mobil- ity,” Journal of Managerial Psy chol ogy, 2007, 22, pp. 203–219.

35. P. Cappelli, “A Market- Driven Approach to Retaining Talent,” Harvard Business Review, Jan.– Feb. 2000, pp. 103–111; P. K. Zingheim and J. R. Schuster, “Retaining Scarce, Critical Talent,” HR Pulse, Fall 2008, pp. 38–44.

36. A. L. Heavey, J. A. Holwerda, and J. P. Hausknecht, “ Causes and Consequences of Collective Turnover: A Meta- Analytic Review,” Journal of Applied Psy chol ogy, 2013, 98, pp. 412–453.

37. WorldatWork, Retention of Key Talent and the Role of Rewards (Scottsdale, AZ: author, 2012). 38. Fortune, “100 Best Companies to Work For,” 2013 (http:// money . cnn . com / magazines / fortune / best

- companies / ); D. A. Kaplan, “Mars Incorporated: A Pretty Sweet Place to Work,” Fortune, Jan. 17, 2013 (http:// fortune . com / 2013 / 01 / 17 / mars - incorporated - a - pretty - sweet - place - to - work / ).

39 . J . D. Shaw and N. Gupta, “Pay System Characteristics and Quit Patterns of Good, Average, and Poor Performers,” Personnel Psy chol ogy, 2007, 60, pp. 903–928.

40. R. Batt and A. J. S. Colvin, “An Employment Systems Approach to Turnover: Human Resources Practices, Quits, Dismissals, and Per for mance,” Acad emy of Management Journal, 2011, 54, pp. 695–717.

41. T. M. Gardner, P. M. Wright, and L. M. Moynihan, “The Impact of Motivation, Empowerment, and Skill- Enhancing Practices on Aggregate Voluntary Turnover: The Mediating Effect of Col- lective Affective Commitment,” Personnel Psy chol ogy, 2011, 64, pp. 315–350.

42. Heavey, Holwerda, and Hausknecht, “ Causes and Consequences of Collective Turnover: A Meta- Analytic Review.”

43. E. R. Demby, “The Insider: Benefits,” Workforce Management, Feb. 2004, pp. 57–59; Nalbantian and Szostak, “How Fleet Bank Fought Employee Flight”; S. Overman, “Outback Steak house

099-67811_ch14_4P.indd 740 11/17/17 1:06 PM

CHAPTER FOURTEEN Retention Management 741

Grills Applicants, Caters to Employees to Keep Turnover Low,” SHRM News Online, Oct. 2004 (www . shrm . org); T. Rutigliano, “Tuning Up Your Talent Engine,” Gallup Management Journal, Fall 2001, pp. 12–14; G. Strauss, “UPS’ Pay, Perks Make It a Destination Job for Many,” Wall Street Journal, Oct. 14, 2003, pp. B1– B2; E. Zimmerman, “The Joy of Flex,” The Workforce Management 2004 Optimas Awards, pp. 4–5; J. T. Marquez, “Tailor- Made Careers,” Workforce Management, Jan. 2010, pp. 16–21.

44. M. Armstrong, Per for mance Management, 2nd ed. (London: Kogan- Page, 2000); D. Grote, The Complete Guide to Per for mance Appraisal (New York: AMACOM, 1996); G. P. Latham and K. N. Wexley, Increasing Productivity Through Per for mance Appraisal, 2nd ed. (Reading, MA: Addison- Wesley, 1994); E. E. Schuttauf, Per for mance Management Manual for Man ag ers and Supervisors (Chicago: Commerce Clearing House, 1997).

45. M. Rotundo and P. R. Sackett, “The Relative Importance of Task, Citizenship, and Counterproduc- tive Per for mance to Global Ratings of Job Per for mance: A Policy Capturing Approach,” Journal of Applied Psy chol ogy, 2002, 87, pp. 66–80; P. R. Sackett, C. M. Berry, S. A. Wiemann, and R. M. Laczo, “Citizenship and Counterproductive Be hav ior: Clarifying Relations Between the Two Domains,” Human Per for mance, 2006, 19, pp. 441–464; F. Lievens, J. M. Conway, and W. De Corte, “The Relative Importance of Task, Citizenship, and Counterproductive Per for mance to Job Per for mance Ratings: Do Rater Source and Team- Based Culture Matter?” Journal of Occu- pational and Orga nizational Psy chol ogy, 2008, 81, pp. 11–27.

46. K. Tyler, “Train Man ag ers, Maximize Appraisals,” HR Magazine, December 2012, pp. 68–69. 47. F. T. Coleman, Ending the Employment Relationship Without Ending Up in Court (Alexandria,

VA: Society for Human Resource Management, 2001); P. C. Gibson and K. S. Piscitelli, Basic Employment Law Manual for Man ag ers and Supervisors (Chicago: Commerce Clearing House, 1997).

48. Gibson and Piscitelli, Basic Employment Law Manual for Man ag ers and Supervisors, pp. 51–53. 49. R. R. Hastings, “Designing a Progressive Discipline Policy,” 2010 (www . shrm . org); R. R. Hast-

ings, “Is Progressive Discipline a Thing of the Past?” 2010 (www . shrm . org). 50 . Schuttauf, Per for mance Management Manual for Man ag ers and Supervisors, pp. 43–45. 51. Gibson and Piscitelli, Basic Employment Law Manual for Man ag ers and Supervisors, pp. 48–53;

Hastings, “Is Progressive Discipline a Thing of the Past?” 52. Coleman, Ending the Employment Relationship Without Ending Up in Court, pp. 51–84. 53. D. K. Datta, J. P. Guthrie, D. Basuil, and A. Pandey, “ Causes and Effects of Employee Downsizing:

A Review and Synthesis,” Journal of Management, 2010, 36, pp. 281–348. 54. J. P. Guthrie and D. K. Datta, “Dumb and Dumber: The Impact of Downsizing on Firm Per for mance

as Moderated by Industry Conditions,” Organ ization Science, 2008, 19, pp. 108–123. 55. W. F. Cascio, C. E. Young, and J. R. Morris, “Financial Consequences of Employment-

Change Decisions in Major US Corporations,” Acad emy of Management Journal, 1997, 40, pp. 1175–1189.

56. Datta, Guthrie, Basuil, and Pandey, “ Causes and Effects of Employee Downsizing: A Review and Synthesis”; D. van Dierendonck and G. Jacobs, “Survivors and Victims, a Meta- Analytical Review of Fairness and Orga nizational Commitment After Downsizing,” British Journal of Man- agement, 2012, pp. 96–109.

57. A. Fox, “Prune Employees Carefully,” HR Magazine, Apr. 2008 (www . shrm . org). 58 . C. Tuna, “No- Layoff Policies Crumble,” Wall Street Journal, Dec. 29, 2008, p. B1. 59. B. Mirza, “Look at Alternatives to Layoffs,” HR News, Dec. 29, 2008 (www . shrm . org). 60 . K. Gurchiek, “Layoffs Pack Punch to ‘Surviving’ Employees,” HR News, Dec. 22, 2008 (www

. shrm . org). 61 . Gurchiek, “Layoffs Pack Punch to ‘Surviving’ Employees.”

099-67811_ch14_4P.indd 741 11/17/17 1:06 PM

742 PART SIX Staffing System and Retention Management

62. C. O. Trevor and A. J. Nyberg, “Keeping Your Headcount When All About You Are Losing Theirs: Downsizing, Voluntary Turnover Rates, and the Moderating Role of HR Practices,” Acad emy of Management Journal, 2008, 51, pp. 259–276; A. K. Mishra, K. E. Mishra, and G. M. Spreitzer, “Downsizing the Com pany Without Downsizing Morale,” MIT Sloan Management Review, 2009, 50(3), pp. 39–44; E. Andreeva, L. L. Magnusson Hanson, H. Westerlund, T. Theorell, and M. H. Brenner, “Depressive Symptoms as a Cause and Effect of Job Loss in Men and Women: Evidence in the Context of Organisational Downsizing From the Swedish Longitudinal Occupa- tional Survey of Health,” BMC Public Health, 2015, 15, p. 1045.

63. A. Fox, “Pulling the Plug on Cir cuit City,” HR Magazine, June 1, 2009 (www . shrm . org). 64 . J . T. Marquez, “How HOK Builds Engagement Despite the Downturn,” Workforce Management

Online, Dec. 2009 (www . workforce . com). 65 . R. Zeidner, “Cutting Hours Without Increasing Risk,” HR Magazine, Apr. 1, 2009 (www . shrm

. org). 66 . Coleman, Ending the Employment Relationship Without Ending Up in Court; J. G. Frierson, Pre-

venting Employment Lawsuits (Washington, DC: Bureau of National Affairs, 1997); S. C. Kahn, B. B. Brown, and M. Lanzarone, Legal Guide to Human Resources (Boston: Warren, Gorham and Lamont, 2001), pp. 9-3 to 9-82; D. P. Twomey, Labor and Employment Law, 11th ed. (Cin- cinnati, OH: South- Western, 2001); E. Lipsig, M. E. Dollarhide, and B. K. Seifert, Reductions in Force in Employment Law, 2nd ed. (Washington, DC: BNA Books, 2010).

67. D. J. Walsh, Employment Law for Human Resource Practice, 5th ed. (Boston: Cengage Learning, 2016), pp. 663–672.

68. Kahn, Brown, and Lanzarone, Legal Guide to Human Resources, pp. 6-2 to 6-58; J. M. Wer- ner and M. C. Bolino, “Explaining U.S. Courts of Appeals Decisions Involving Per for mance Appraisals: Accuracy, Fairness, and Validation,” Personnel Psy chol ogy, 1997, 50, pp. 1–24; J. Marquez, “Is G.E.’s Ranking System Broken?” Workforce Management, June 25, 2007, pp. 1–3; M. Orey, “Fear of Firing,” BusinessWeek, Apr. 23, 2007, pp. 52–62; Walsh, Employment Law for Human Resource Practice, pp. 589–621; J. A. Segal, “Documentation Dangers,” HR Magazine, Oct. 2014, pp. 64–66.

099-67811_ch14_4P.indd 742 11/17/17 1:06 PM

743

N A M E I N D E X

Aamodt, M. G., 370, 430, 507 Aberman, D., 267 Abraham, J. D., 367 Abueva, J. E., 550 Adams, S., 509 Adelson, R., 507 Adler, S., 368 Agnvall, E., 737 Aguinis, H., 370, 500, 592 Ahlburg, D. A., 737, 739 Alarcon, G. M., 501, 502 Alexander, D., 9 Alexander, R. A., 591 Allen, D. G., 265, 266, 737, 738 Allen, J., 148, 592, 684 Alliger, G. M., 201 Alonso, A., 150, 264 Altizer, C., 14 Anand, S., 642 Anders, G., 9 Anderson, D., 426 Anderson, N., 427, 429, 503, 505, 550 Andersson, F., 641–642 Andreeva, E., 742 Ang, D., 548 Ang, S., 507 Ángel, P. O., 263 Anger, W. K., 740 Angerer, P., 642 Angoff, W. H., 591 Angrave, D., 367 Annen, H., 550 Anseel, F., 305 Antoine, R. L., 148, 685 Aquinis, H., 511 Aquino, K., 738 Ardichvili, A., 43 Ariely, D., 314 Armenakis, A. A., 266 Armour, S., 268 Armstrong, M., 741 Armstrong, T., 267 Arnett, L., 738 Arnold, J., 268 Arnulf, J. K., 425 Arthur, W., Jr., 504, 506, 507, 548 Arvey, R. D., 368, 424 Aryee, S., 684

Ash, R. A., 200, 426, 429 Ash, S. R., 264 Asher, J. J., 506 Ashford, S. J., 149 Ashkenas, R., 306 Ashton, M. C., 501, 508 Assouline, M., 508 Atchley, E. K., 548 Athavaley, A., 428 Atwater, D., 427 Auerbach, M. A., 591 Aumann, K., 740 Avery, D. R., 150, 264, 267, 428, 739

Babcock, L., 642 Babcock, P., 149, 267, 685 Bagdasarov, Z., 265 Bagozzi, R. P., 369 Baker, E., 266 Baker, T. A., 505 Bakker, A. B., 510, 550 Bakker, P., 510 Baldwin, S. P., 368 Baldwin, T. T., 426 Banks, G. C., 369, 501, 502 Barnes, C. M., 548 Barney, J. B., 42 Barney, M., 369 Barrett, G. V., 369, 501, 506, 591 Barrett, J., 426 Barrett, P., 503 Barrett, R. S., 369 Barrick, M., 199, 200 Barrick, M. R., 263, 429, 499, 500, 501,

503, 509, 510, 740 Barron, J. N., 738 Barthiaume, J., 641 Bartram, D., 200 Bartram, T., 592 Bassi, L. J., 268 Basuil, D., 741 Bateman, T. S., 511 Bates, S., 268, 305, 429 Batt, R., 740 Battista, M., 200 Bauer, T. N., 305, 429, 592, 643, 644, 684 Baur, J. E., 265 Baxter, J. C., 428

Beatty, J. E., 424 Beatty, R. W., 685 Beaty, J., 500 Beaubien, J. M., 200 Beauregard, T. A., 150 Bechtoldt, M. N., 547 Becker, B. E., 685 Becker, W. J., 643 Becton, J. B., 427, 740 Beehr, T. A., 305 Beenen, G., 263, 268 Begalla, M. E., 424 Beier, M. E., 507 Belau, L., 150 Bell, C. B., 502 Bell, M. P., 150 Bell, S. T., 150 Bendels, H., 507 Bennett, J., 591 Bennett, M. W., 90, 641 Bennett, R. J., 737 Bennett, W. J., 426 Bennett-Alexander, D. D., 89, 90, 151,

429, 430, 512, 593, 644 Benson, P. G., 368 Bentson, C., 548 Berkshire, J. C., 685 Bernardin, H. J., 548 Bernerth, J. B., 265, 266, 428 Berry, C. M., 370, 500, 503, 504, 508, 741 Berry, M. W., 505 Bersin, J., 547 Bertolino, M., 429 Bertrand, M., 509 Bertrand, O., 150 Bertua, C., 503 BeVier, C. A., 426 Bezos, J., 9 Biddle, R. E., 591 Billington, A. Q., 427 Billsberry, J., 42 Bing, M. N., 502 Binning, J. F., 369 Birkeland, S. A., 502 Björkman, I., 641 Blacksmith, N., 369, 503 Blackwell, K., 486 Blair, C. A., 548, 549

1259756556_ch15_index_p743_764.indd 743 12/8/17 1:08 PM

744 NAME INDEX

Blakley, B. R., 505 Blancero, D., 505 Blatt, R., 149 Bledow, R., 507 Bliese, P. D., 504 Bliss, W., 147 Blumberg, R., 430 Bobko, P., 370, 426, 427, 504, 506,

506–507, 592 Bodner, T., 643, 740 Bodner, T. E., 429 Bohner, R. J., Jr., 90 Bolander, P., 591 Bolino, M., 644, 739 Bolino, M. C., 742 Bommer, W. H., 368, 426 Bono, J. E., 439, 501 Boos, A. L., 510 Borman, W. C., 199, 368, 511 Born, M. P., 424, 425, 503, 510 Borzo, J., 266 Boswell, W. R., 264, 266 Boudreau, J. W., 148, 591, 685 Bowen, D. E., 683 Bower, D. G., 685 Bowers, C., 43 Bowling, N. A., 501, 502 Boyce, A. S., 500 Boyd, S. L., 369 Braddy, P. W., 234, 266 Bradley, J. C., 507, 549 Brändli, M., 549 Brannick, M. T., 199, 200, 502 Bratko, D., 500 Bray, D. W., 547 Breaugh, J. S., 427 Brenner, M. H., 742 Breslin, M. M., 641 Bretz, R. D., Jr., 42, 265 Briggs, A. L., 150 Brock, B., 428 Brockbank, W., 147, 148, 592, 683, 684,

685 Brooks, M. E., 265 Brover, R. L., 740 Brown, A., 200 Brown, A. K., 42 Brown, B. B., 742 Brown, D. J., 266 Brown, F. G., 367 Brown, K. G., 368 Brown, M., 200 Brush, C. G., 42 Brusso, R. C., 367 Bryant, P. C., 737 Buboltz, C. B., 200 Buckley, M. R., 265 Bullard, P., 508 Bunce, L. W., 684 Burbach, R., 547

Burke, M. E., 428, 429 Burkholder, N. C., 9, 267, 268 Burnfield, J. L., 510 Burns, M., 504 Busch, B., 267 Buster, M. A., 506 Byham, W. C., 510

Cable, D. M., 264, 266, 267, 268, 505, 508 Cadrain, D., 267, 641 Caldwell, D. F., 42 Caligiuri, P., 550 Callan, V. J., 305 Campbell, C. A., 200 Campbell, J. P., 368, 369, 424, 508 Campion, E. D., 369 Campion, J. E., 509, 591 Campion, M., 368 Campion, M. A., 199, 200, 369, 427, 476,

501, 505, 509, 510, 511, 683, 684, 737

Campion, M. C., 369 Cappelli, P., 31, 642, 740 Caputo, P. M., 427 Carette, B., 505 Carless, S. A., 264, 510 Carlson, K. D., 426, 427 Carmines, E. G., 368 Carr, L., 200 Carroll, S. A., 250, 263, 264, 424, 429, 503 Carswell, J. J., 368 Carter, G. W., 199, 506 Carter, N. T., 500, 501, 502 Caruso, D. R., 505 Cascio, W., 506 Cascio, W. F., 41, 368, 504, 511, 550, 591,

592, 738, 741 Casper, W. J., 265 Castel, S., 428 Castellano, W. G., 265 Castle, N. G., 739 Catano, V. M., 200 Catanzaro, D., 264 Cavanaugh, K. J., 367 Chadwick, C., 592 Chaker, A. M., 263 Chamberlain, A., 352 Chamorro-Premuzic, T., 41 Chan, D., 370 Chang, C., 642 Chang, C.-H. D., 502 Chang, L., 502 Chao, G. T., 427, 643 Chapman, D. S., 42, 250, 263, 264, 424,

429, 509, 510, 643 Charles, J. E., 504 Charlwood, A., 367 Chasteen, C. S., 549 Chatman, J., 42 Chen, C. C., 510

Chen, C.-C., 738 Chen, E. E., 367 Chen, G., 644 Chen, Z., 547 Chermack, T. J., 149 Cherniss, C., 506 Chernyshenko, O. S., 502 Cheung, G. W., 428 Chi, N.-W., 425 Chiaburu, D. S., 499, 500, 501 Cho, E., 503 Choi, D., 500 Choi, J., 738 Choi, S., 506 Christian, M. S., 507, 549 Christiansen, N. D., 549, 550 Chuang, C., 305 Chughtai, A. A., 738 Chung, Y., 150 Clark, B. B., 41 Clark, K. E., 547 Clark, M. A., 504 Clark, M. B., 547 Clarke, J., 149 Cleveland, J. M., 548 Clevenger, J., 507 Click, J., 428 Coats, G., 509 Cober, R. T., 266 Cohen, D. B., 370 Cohen, J., 89 Colakoglu, S., 150 Colarelli, S. M., 510 Colbert, A. E., 500 Cole, M. S., 425 Coleman, F. T., 741, 742 Collings, D. G., 305 Collins, C. J., 265 Collins, M., 200 Collis, A., 684 Collmus, A. B., 367 Colquitt, A., 368 Colquitt, J. A., 305, 684 Colvin, A. J. S., 740 Conlon, D. E., 305, 684 Conlon, P., 549 Connelly, B. L., 304 Connelly, B. S., 502, 503, 548–549 Connelly, C. E., 424 Connerley, M. L., 264, 426, 505 Connolly, T., 643 Conurey, J. N., 509 Conway, J. M., 741 Conyon, M. J., 642 Coombs, J., 150 Cooper, A., 451 Cooper, C. L., 683 Cooper, M. A., 348 Cornelius, E. T., III, 199 Cortina, J., 506

1259756556_ch15_index_p743_764.indd 744 12/8/17 1:08 PM

NAME INDEX 745

Cortina, J. M., 367, 368, 500 Costa, P. T., Jr., 500, 508 Côté, S., 505, 506 Cote, T., 267 Courtright, S. H., 305, 505 Craig, S., 42 Cranny, C. J., 42, 199, 201 Crant, J. M., 511 Crawford, E. R., 501 Crawford, M. S., 505 Credé, M., 425 Crockett, M. P., 151 Cromheeke, S., 266 Cronbach, L. J., 368 Cronin, B. E., 505 Crook, T. R., 304 Crossley, C. D., 737 Cucina, J. M., 427 Culbertson, S. S., 509 Cullen, M. J., 504 Culpepper, L., 641 Culpepper, S. A., 370 Curhan, J. R., 643 Custer, H., 507

Dachner, A. M., 739 Dahl, D., 263 Dainis, A., 369 Dalal, D. K., 500 Danaher, M. G., 429 D’Angelo, N. C., 426 Daniel, C., 511 Darr, W., 200 Datta, D. K., 741 Davenport, T. H., 683 Davis, G. M., 268 Davis, M., 95–96 Davis, M. L., 148 Davis, R. V., 201 Dawes, R. M., 591 Dawis, R. V., 42 Dawkins, F., 643 Day, D. V., 429, 503, 505, 508, 510 Day, E. A., 548, 549 Day, N. E., 738 Deadrick, D. L., 41, 738 Dean, M. A., 427 De Corte, W., 201, 370, 424, 591, 592, 741 De Fruyt, F., 503 DeGrassi, S. W., 509 DeGroot, T., 506 De Kock, F. S., 510 De La Merced, M. J., 424 Delaney-Klinger, K., 199 Delgado, K. M., 500 Dell, D., 685 Deller, J., 500, 502 DelVecchio, W. F., 500 Demain, P., 401 Demby, E. R., 740

Demps, J., 266 Deng, H., 42 De Paepe, A., 510 De Pater, I. E., 547 Derous, E., 41, 424, 425 Deschenaux, J., 89 De Shon, R., 368 Dessler, G., 263 Devine, D., 377 Devlin, S. E., 427 De Vries, R. E., 501 Dewberry, C., 549 Dharmasiri, A. S., 265 Diab, D. L., 591 Dierdorff, E. C., 199, 305, 368 Dilchert, S., 499, 500, 501, 502, 548 Dill, K., 42 Dimotakis, N., 503 Dineen, B. R., 264, 266, 739 Dipboye, R. L., 151, 501 Dixon, G. R., 510 Dobins, F., 151 Doherty, L. Q., 267 Doherty, M. E., 199 Dollarhide, M. E., 742 Donoghue, C., 739 Donovan, J. J., 503 Doverspike, D., 506 Doyle, A., 500 Drasgow, F., 369, 500, 502, 508 Dreazen, Y. J., 642 Dries, N., 305 Drummond, H., 428 Duarte, P., 149 Dudley, N. M., 500 Dugas, C., 151 Dulebohn, J. H., 738 Dumaine, B., 511 Dunham, K. J., 642 Dunleavy, E. M., 370 Dunn, K., 264 Dunnette, M. D., 506 Dwight, S. A., 503 Dworkin, J. B., 739 Dye, D. M., 199, 505 Dyer, L., 368, 369

Earles, J. A., 504 Earnest, D. R., 265 Eaton, S. C., 740 Edens, P. S., 548 Eder, R. W., 509 Edmondson, D. J., 381 Edwards, B. D., 504, 507, 549, 592 Edwards, J. R., 369 Edwards, P. J., Jr., 9 Edwards, P. J., Sr., 267, 268 Eidelson, J., 89 Elfenbein, H. A., 643 Ellin, A., 424

Ellingson, J. E., 502, 503, 592, 739 Ellis, A. D., 737 Ellram, L. M., 150 Engelhard, F., 426 England, G. W., 426, 427 Erdogan, B., 592, 643 Erez, A., 501 Erhardt, N. L., 150 Erwin, F., 427 Eschleman, K. J., 501, 502 Esen, E., 619, 685 Essen, E., 191 Euwema, M. C., 550 Everitt, L., 428 Ewoh, A. I. E., 512 Eyde, L. D., 200

Fairbank, R., 9 Fairchild, Z., 264 Fan, J., 503 Fang, R., 739 Farndale, E., 641 Farr, J. L., 500, 505 Fassina, N. E., 264, 424, 429, 641, 684 Fegley, S., 149 Feild, H. S., 199, 200, 265, 266, 425 Feldman, D. C., 151, 264, 425, 547 Feliu, A. G., 641 Felps, W., 739 Fenty, A., 526–527 Fernandez, K., 737 Ferrara, P., 199 Ferris, D. L., 502 Ferris, G. R., 509, 593 Fiester, M., 147, 684 Fillingham, L., 31 Finch, D. M., 592 Fine, S., 508 Fink, A. A., 200 Finkin, M. W., 685 Firth, B. M., 644 Fisher, A., 42, 426 Fisher, R., 305 Fisher, W. P., Jr., 369 Fitz-Enz, J., 591, 685 Fitzsimmons, S. R., 150 Fitzsimmons, T. W., 305 Flato, J., 267 Fleck, S. E., 148 Fleenor, J. W., 266 Fleisher, M. S., 548 Fleishman, E. A., 199, 503, 511 Fliegel, R., 430 Floren, J., 267 Fong, C. T., 426 Ford, D. K., 305 Ford, J. K., 548 Forsyth, D. R., 501, 502 Fossum, J. A., 368, 369 Fox, A., 150, 741, 742

1259756556_ch15_index_p743_764.indd 745 12/8/17 1:08 PM

746 NAME INDEX

Fraefel, L., 549 Franklin, G. M., 90, 151, 593, 644 Franks, P. J., 268 Frauenheim, E., 149, 266, 267, 305, 684 Freedman, M., 641–642 Frese, M., 502, 507 Frierson, J. G., 742 Froelich, K., 305 Fulmer, I. S., 591 Furlong, J. S., 642 Furnham, A., 427

Gael, S., 176, 199 Gaertner, S., 737, 738 Gainey, T., 684 Gakovic, A., 305 Gale, S. F., 267 Galinsky, E., 740 Gallagher, V. C., 740 Gangloff, K. A., 304 Gantt, J., 512 Ganzach, Y., 591 Gao, D., 503 García-Izquierdo, A. L., 305 Gardner, P. D., 643 Gardner, R. G., 500 Gardner, T. M., 740 Gates, B., 384 Gatewood, R. D., 199, 200, 266 Gauck, B. Q., 149 Gaughan, P. A., 68 Gaugler, B. B., 548 Gavin, M. B., 264, 684 Geeza, A. A., 502 Gelens, J., 305 Gentry, W., 547, 548 George, E., 149 Ghiselli, E. E., 369, 505 Ghosh, R., 547 Giacalone, R. A., 425 Gibbons, A. M., 548 Gibson, C., 150 Gibson, P. C., 741 Gibson, W. M., 500 Gilbert, B. A., 592 Giles, W. F., 265, 266, 425 Gillespie, M. A., 427 Gillespie, T. L., 509 Gilliland, S., 377 Gilmore, D. C., 547, 548 Glaser, J., 642 Glass, J. L., 148 Glaze, R. M., 507 Glick, M. B., 149 Glomb, T. M., 737, 739 Glover, R. H., 268 Glube, N., 305 Goff, M., 549, 550 Goffin, R. D., 500, 502, 549, 550 Gogus, C. I., 643

Golden, D., 424 Golden, T. D., 740 Goldstein, H. W., 508 Goldstein, I. L., 426, 592 Goltsi, V., 550 Gomes, L., 267 Gonzalez-Mulé, E., 504 Goos, M., 148 Göriz, A. S., 149 Gorman, C. A., 548 Gowen, M. A., 266 Gowing, M. K., 199 Grazi, J., 549 Green, J., 306 Greenberg, J., 642 Greene, P. G., 42 Greengard, S., 267 Greenhouse, S., 641 Greenstone Miller, J., 149 Greenwald, J., 430 Greenwald, N., 90 Greguras, G., 265 Greguras, G. J., 264 Grelle, D., 369 Grensing-Pophal, L., 547, 684 Grewal, D., 505 Griepentrog, B., 591 Griffeth, R. W., 737, 738, 739 Grossman, R. J., 263, 267 Grote, D., 741 Grubb, A., 368 Grubb, W. L., 507 Gruman, J. A., 643 Guan, L., 501 Guan, Y., 42 Guenter, H., 738 Gully, S. M., 505 Gunnigle, P., 547 Gupta, A. K., 265 Gupta, N., 740 Gurchiek, K., 43, 150, 424, 643, 741 Guseh, J. S., 512 Guterman, H. A., 549 Guthrie, J. P., 741

Haaland, S., 549 Hable, S. Z., 429 Hagan, C. M., 548 Hagen, M., 384 Hajro, A., 150 Hale, D., 738 Haltiwanger, J., 641–642 Hamel, G., 42 Hammer, L. B., 740 Hammers, M., 644 Hammond, M. M., 500 Hampton, S. A., 41 Han, K., 265 Hananel, S., 428 Handel, M. J., 148

Handler, L., 369 Hanges, P. J., 151 Hanisch, K. A., 507 Hansell, S., 427 Hansen, F., 149, 263, 267, 430, 643, 644 Harding, M., 429 Hardtke, D., 424 Hargis, M. B., 591 Hargreaves, S., 148 Harman, W. S., 739 Harold, C. M., 427 Harrick, E. J., 345 Harrigan, T. A., 305 Harrington, T. F., 305 Harris, J., 683 Harris, M., 509, 510 Harris, S. G., 425 Harris, T. B., 429 Hart, M. M., 42 Harter, J. K., 201 Hartley, D. L., 427, 740 Hartman, C. P., 429, 430 Hartman, L. P., 89, 90, 151, 512, 593, 644 Hartman, N. S., 507 Hartwell, C. J., 509 Harvey, V. S., 507 Hastie, R., 591 Hastings, R. R., 150, 741 Hausdorf, P., 549 Hauser, J. A., 550 Hausknecht, J. P., 429, 503, 505, 508, 510,

738, 740 Hausmann, R., 306 Hayes, T. L., 199, 201 He, W., 739 Heavey, A. L., 740 Hebl, M. R., 150, 425, 428, 739 Heffner, T. S., 510 Heggestad, E. D., 502 Hekman, D. R., 739 Helliker, K., 511 Henderson, N., 505 Heneman, H. G., III, 149, 368, 369 Heneman, R. L., 368 Henle, C. A., 592 Henneman, T., 592 Hermelin, E., 548 Hernandez, M., 150, 739 Hertel, G., 507 Hesketh, B., 200 Hiemstra, A. M. F., 424, 425 Higgins, C. A., 428 Highhouse, S., 265, 591 Hill, P. C., 428 Himmelberg, M., 643 Hitt, M. A., 592, 684 Ho, V. T., 642 Hoffman, B. J., 368, 548, 549 Hoffman, V. J., 268 Hofmans, J., 305

1259756556_ch15_index_p743_764.indd 746 12/8/17 1:08 PM

NAME INDEX 747

Hogan, A., 148 Hogan, J., 500, 503, 505 Hogan, R., 41, 500, 503 Holland, E., 502 Hollenbeck, J. R., 501 Hollinger, R. C., 508 Holtbrügge, D., 426 Holtom, B. C., 267, 737, 739 Holtz, B. C., 369, 370, 504, 592 Holwerda, J. A., 740 Hom, P. W., 737, 739 Hong, Y., 684 Hooijberg, R., 305 Hornung, S., 642 Horovitz, B., 424 Horwitz, I. B., 150 Horwitz, S. K., 150 Hosoda, M., 509 Hough, L. M., 499, 501, 505 Hout, M., 641 Howard, A., 425, 547 Howard, M. J., 738 Hsu, A.-J., 425 Hu, J., 684 Huang, T.-C., 425 Hudson, J. P., Jr., 591 Huffcutt, A. I., 200, 368, 509, 510 Hüffmeier, J., 507 Hugg, J., 367 Hughes, W., 348 Hulin, C. L., 507 Hull, R., 548 Hülsheger, U. R., 427, 429, 502, 503, 504 Hunt, S. T., 683 Hunter, J., 369 Hunter, J. E., 426, 427, 503, 504, 506,

508, 548 Hunter, R. F., 426, 427, 506, 508 Hurd, J. M., 501 Hurtz, G. M., 591 Huselid, M. A., 685 Huxtable, J., 305 Hyland, M. M., 263 Hyland-Savage, G., 9 Hymes, R. W., 424 Hymowitz, C., 268

Idalski, A. A., 89 Ilgen, D., 199 Ilies, R., 500, 502, 503 Illingworth, A. J., 369 Imber, A., 264, 510 Ingold, P. V., 549 Ireland, R. D., 592 Iyer, A., 268

Jackson, D. J. R., 549 Jackson, S. E., 150, 305 Jacobs, G., 741 Jacobs, M. A., 642

Jacobs, R., 504 Jacobs, R. R., 426, 548 Jago, I. A., 505 Janich, D. N., 642 Janove, J. W., 685 Jansen, A., 549 Jarrett, S. M., 507 Jaschik, S., 426 Jayne, M. E. A., 151 Jeanneret, P. R., 199 Jenkins, A., 503 Jennings, D., 370 Jex, S. M., 737 Jiang, K., 684, 737 Jiang, Y., 150, 305 Jin, J., 506 John, O. P., 499 Johnson, D. E., 505 Johnson, G. J., 592 Johnson, J. L., 368 Johnson, J. W., 199 Johnson, R., 41, 738 Johnson, R. D., 738 Johnson, R. E., 502, 503, 642 Johnson, T. R., 424 Johnson, W. R., 592 Johnston, D. W., 644 Johnston, K., 642 Joiner, D. A., 548 Joinson, C., 267 Jondle, D., 43 Jones, B., 642 Jones, C., 507 Jones, D., 265 Jones, D. A., 42, 250, 263, 264, 424, 429 Jones, M., 381 Jones, R., 430 Jones, R. G., 200 Joseph, D. L., 506, 592 Joseph, T. A., 592 Joshi, A., 150 Judge, T. A., 42, 265, 267, 428, 439, 499,

500, 501, 503, 505, 510, 547

Kabin, M. B., 592 Kahn, S. C., 742 Kahneman, D., 591 Kalev, A., 151 Kalish, Y., 547 Kammeyer-Mueller, J. D., 200, 547, 643,

737, 739 Kane, J. J., 547 Kano, N., 565 Kantrowitz, T., 369 Kaplan, D. A., 740 Kaplan, S., 506 Kapoor, A., 266 Karren, R. J., 508 Kaufman, G., 348 Keen, G., 549

Keeney, J., 427 Keeney, M. J., 200 Kehoe, J., 200 Kehoe, R. R., 41 Kelley, E., 151 Kemp, C., 369 Kemp, S., 547 Kennedy, C. L., 548 Kepes, S., 369 Kersting, M., 504 Kesner, I. F., 149 Keynes, J. M., 31 Kiazad, K., 737 Kieszczynska, U., 368 Kiger, P. J., 148, 151, 265 Kilduff, G. J., 643 Kim, A., 265 Kim, B. H., 427 Kim, K., 644 Kim, N., 502 Kim, T., 738 Kim, Y.-J., 549 King, D. D., 369 King, E. B., 367 King, J., 234 Kirkman, B. L., 644 Kirkpatrick, I., 367 Kisamore, J. L., 502 Klaas, B. S., 264, 684 Klaff, L. G., 642, 643 Klayman, N., 591 Klehe, U., 509, 547 Klehe, U.-C., 549 Klein, H. J., 643 Kleinmann, M., 549, 550 Klimoski, R., 199 Klimoski, R. J., 368 Kline, R. B., 591 Klinger, R. L., 501 Klotz, A. C., 264, 739 Kluemper, D. H., 502, 506 Kluger, A. N., 591 Klutz, L., 685 Knouse, S. B., 425 Kochevar, R. J., 428 Kohli, C., 266 Koles, K. L. K., 505 König, C. J., 502, 549 Konopaske, R., 548 Kossek, E. E., 740 Kraichy, D., 264, 424, 429, 641, 684 Kraimer, M., 644 Kranz, G., 265 Krause, D. E., 550 Kreps, D. M., 738 Kriska, S. D., 264 Kristal, T., 148 Kristl Davison, H., 502 Kristof, A. L., 42 Kroustalis, C. M., 234

1259756556_ch15_index_p743_764.indd 747 12/8/17 1:08 PM

748 NAME INDEX

Krumm, S., 507 Kuhn, K. M., 424, 428 Kuncel, N. R., 425, 428, 549 Kung, M.-C., 500 Kuypers, T., 738 Kuzaas, B., 739 Kwon, K., 592 Kwon, S., 643

Laczo, R. M., 199, 741 Ladd, R. T., 549 Lahiri, S., 150 Lai, Y., 683 Lalé, E., 148 Lally, R., 430 Lamare, R., 547 Lan, S., 512 Lancaster, A. R., 199 Lance, C. E., 548 Landers, R. N., 367 Landis, R. S., 265, 377 Landy, F. J., 368, 506 Lane, J., 642 Lane, N., 305 Lang, J., 504 Lang, J. W. B., 504 Lanzarone, M., 742 LaPolice, C. C., 199 La Roche, J., 42 Larssen, Ø., 425 Laschever, S., 642 Latack, J., 523 Latham, G. P., 429, 509, 741 Lautenschlager, G., 266 Lautsch, B. A., 149, 740 Lawler, E. E., 547 Lawler, E. E., III, 547, 684 Lawrence, M., 367, 507 Le, H., 502 Lebiecki, J. E., 500 LeBlanc, P., 201 LeBreton, J. M., 591 Ledford, E. E., 201 Ledford, G., 201 Lee, K., 501, 508 Lee, K.-F., 614 Lee, M., 738 Lee, T. W., 737, 739 Lee, W., 644 Leeson, N., 400 Leggat, S. G., 592 Leonard, B., 43 Leonard, J. S., 739 Lepak, D. P., 234 LePine, J. A., 739–740 LePine, M. A., 264, 739 Leslie, J. B., 547, 548 Leung, K., 42, 738 Levashina, J., 427, 509

Levesque, L. L., 42 Levin, A., 428 Levin, K. Y., 199 Levine, D. I., 739 Levine, E. L., 199, 200, 429 Levinson, M., 511 Levy, P. E., 266 Lewis, K. R., 43 Li, N., 499, 500, 501 Liao, H., 150, 684 Libbrecht, N., 505 Liden, R. C., 642 Lieber, L., 150, 151 Lievens, F., 200, 201, 265, 266, 305, 370,

424, 505, 507, 510, 548, 549, 591, 741 Lin, W.-C., 510 Lipnevich, A. A., 507 Lipsig, E., 742 Liu, D., 737 Locke, E. A., 506 Lockwood, N. R., 149 Lofquist, L. H., 42 London, M., 644 Long, D. M., 305, 684 Long, L., 739 Lopez, D., 68 Lopez, F. J., 503 LoPilato, A. C., 548 Lorentz, A., 367 Lounsbury, J. W., 737 Lublin, J. S., 642, 643, 644 Luckel, H., 149 Luckerson, V., 424 Lucy, M. I., 201 Ludwig, J., 268 Lueke, S. B., 501 Lukasik, M. A., 150 Lukaszewski, K. M., 41, 738 Luksyte, A., 150 Luria, G., 547 Luthans, F., 739 Lyer, A., 512 Lykken, D., 507 Lyness, K. L., 306 Lyon, J. S., 151, 504 Lyons, B. D., 200

MacCann, C., 505 Maclane, C. N., 427 Madera, J. M., 428 Madey, S., 265 Mael, F. A., 427 Maertz, C. P., Jr., 739 Magnusson Hanson, L. L., 742 Maher, K., 264, 425, 428 Mahoney, J. J., 511 Mahto, R. V., 266 Malic, T., 505 Mallozzi, V. M., 501

Maltarich, M. A., 503–504 Manegold, J. G., 265 Manning, A., 148 Manson, T. M., 502 Maples, J. L., 501 March, J. G., 737 Marcus, B., 508, 509 Margolis, A., 369 Marquez, J., 42, 643, 742 Marquez, J. T., 741, 742 Marshall, T. R., 264 Martin, R. C., 428 Martinez, L. R., 425 Martinez, M. N., 263 Mashing, S., 512 Masimova, M., 683 Masling, S., 268 Matiaske, W., 267 Matthews, D., 426 Matthews, G., 506 Matthews, M. C., 427, 740 Mattioli, D., 425 Mattox, J. R., 591 Mattson, J., 427 Mauer, R., 305 Mauer, T. J., 644 Maurath, D. T., 424 Maurer, R., 149, 306, 430, 641 Maurer, S. D., 509 Mayer, D. M., 739 Mayer, J. D., 505 Mayer, M., 12 Mayes, B. T., 509 Mayfield, J., 739 Mayfield, M., 739 Mayfield, M. S., 199 Mayhew, R., 641 Maynard, A. M., 592 Maynard, D. C., 592 Maynes, T. D., 511 Mazin, R., 684 McAuslan, P., 424 McClave, J. T., 368 McClendon, J. A., 684 McClough, A. C., 510 McCloy, R. A., 502 McClure, T. K., 504 McCormick, B. W., 505 McCoy, J., 9 McCrae, R. R., 500, 508 McDaniel, M., 369 McDaniel, M. A., 426, 501, 502, 505,

507, 509 McDonnell, A., 547 McFarland, L. A., 264, 266, 427, 506 McGrath, R. E., 591 McIlvaine, A. R., 151 McKay, P. F., 150, 264, 267, 737, 739 McKee, G., 305

1259756556_ch15_index_p743_764.indd 748 12/8/17 1:08 PM

NAME INDEX 749

McKenzie, S. B., 368 McKillip, J., 426 McKinney, A. E., 426 McKinney, J., 380 McKinnon, P., 148, 685 McLain, D. L., 267 McLarnon, M. J. W., 368 McNamera, K., 430 McNelly, T. L., 548 McPhail, R., 305 Meachum, R. L., 426 Mead, B., 644 Meade, A. W., 234, 266 Meir, E. I., 508 Melchers, K. G., 549, 550 Mellahi, K., 305 Mellewigt, T., 267 Meng, H., 503 Meriac, J. P., 548 Merkulova, N., 550 Merritt, J., 426 Merritt-Halston, R., 425 Meskanik, P., 684 Messick, S., 368 Meyer, J. M., 504 Meyers, J. J., 642 Micco, L., 685 Michael, J. J., 266 Michaelides, G., 549 Miguel, R. F., 501 Miller, D., 424 Miller, J. D., 501 Miller, M., 149 Miller, R., 506 Miller, S., 738 Millsap, R. E., 424, 505 Minton-Eversole, T., 306, 428 Mirza, B., 741 Mishra, A. K., 742 Mishra, K. E., 742 Mishra, V., 368 Mitchell, K. E., 201 Mitchell, T. R., 737, 739 Mohrman, A. A., 684 Mol, M. J., 150 Monahan, E. L., 548 Monarth, H., 306 Moncarz, R. J., 149 Mones, K., 430 Montealegre, R., 41 Mook, J. R., 90 Mooney, C. H., 149 Moore, H., 264 Morelli, N. A., 369 Morgeson, F. P., 199, 200, 367, 426, 427,

429, 501, 509, 510 Morgfopoulos, R., 201 Morris, D. M., 548 Morris, J. R., 741

Morris, M. A., 739 Morris, S. S., 641 Morrison, J. D., Jr., 367 Morrison, M., 502 Morrow, P. C., 592 Morsch, L., 642 Moscoso, S., 305, 503, 505 Motowidlo, S. J., 506, 507, 511 Motta Veiga, S. P., 264 Mount, M. K., 500, 501, 504, 505 Moynihan, L. M., 264, 740 Mukuda, M., 550 Mullainathan, S., 509 Mullich, J., 267, 644 Mulvey, P., 201 Mumford, M. D., 199 Mumford, T. V., 510 Murphy, K., 368, 501 Murphy, K. R., 368, 369, 505, 511, 548,

592 Murray, C., 425 Myors, B., 592

Nagele-Piazza, L., 512 Naglieri, J. A., 369 Nah, F. F-H, 234 Nahrgang, J. D., 367, 426 Nalbantian, H. R., 737 Nancherla, A., 151 Naumann, L. P., 499 Neff, N. L., 500 Neustel, S., 426 Newman, A., 737 Newman, D. A., 151, 504, 506, 592 Ng, K.-Y., 507 Ng, T. W. H., 151, 425, 547 Nguyen, H. D., 425 Nguyen, N. T., 507 Nicewander, A., 592 Niederman, F., 739 Nieß, C., 549 Nieto, M., 150 Nifadkar, S. S., 644 Nilsen, E. R., 266 Nimps, T., 200 Nishii, L. H., 150, 739 Noe, R. A., 264, 266 Noonan, M. C., 148 Normand, J., 511 Norton, S. M., 547 Novicevic, M., 502 Nowicki, M. D., 592 Nyberg, A. J., 504, 742 Nye, C. D., 508 Nyman, M., 148, 592, 684

Oakes, K., 305 O’Boyle, E. H., 506 O’Boyle, E. H., Jr., 501, 502

Ock, J., 501 O’Connell, M. S., 500, 507 Odle-Dusseau, H. N., 508 Odman, R. B., 200 O’Donnell, L. E., 90 Oh, I., 502, 503, 504 Oh, I.-S., 500, 504 Olafsen, A. H., 266 O’Leary-Kelly, A. M., 643 Oliver, C., 508 Oliver, T., 549 Ollander-Krane, R., 368 O’Neill, H., 642 O’Neill, T. A., 368 Ones, D. S., 428, 499, 500, 501, 502, 508,

548, 549 Opdyke, J. D., 426 O’Reilly, C. A., III, 42 Orenstein, J., 234 Orey, M., 742 Orgel, M., 643 Orvis, K. A., 500 Osten, K., 592 Ostroff, C., 683 Oswald, F. L., 427, 501, 502, 591 Otaye, L. E., 684 Otondo, R. F., 266 Outerbridge, A. N., 548 Outtz, J., 592 Outtz, J. L., 504 Overman, S., 149, 267, 500, 511, 685, 740 Overstreet, B., 548 Owens, B. P., 739 Owens, J., 426 Özbilgin, M. F., 150

Paauwe, J., 641 Pace, D. A., 148, 685 Page, E., 263 Paik, L., 511 Pajo, K., 428 Palmer, D. K., 509 Panaro, G. P., 268, 512, 641 Pandey, A., 741 Parameswaran, G., 200 Paré, G., 739 Park, T.-Y., 738 Paronto, M. E., 200, 684 Pathak, S., 42 Patton, C., 264, 547, 550, 642 Payne, S. C., 505 Pearlman, K., 199, 200, 424, 500, 505 Pepermans, R., 305 Pereira, G. M., 507 Perkins, B., 267 Perrewé, P. L., 509 Pervin, L. A., 500 Peter, L. J., 548 Peterson, N. G., 199

1259756556_ch15_index_p743_764.indd 749 12/8/17 1:08 PM

750 NAME INDEX

Peterson, S. J., 739 Peterson, S. L., 739 Petkova, A. P., 265 Petrides, K. V., 451 Pfeffer, J., 426 Phelps, J., 200 Phillips, G. M., 200 Phillips, J. M., 265 Phillips, L. W., 369 Phillips, W., 506 Piasentin, K. A., 250, 263, 264, 424, 429 Pichler, S., 263, 425 Pieper, J. R., 267 Pierce, C. A., 370 Pierce, J. R., 500 Pirak, M., 508 Piscitelli, K. S., 741 Pleskac, T. J., 427 Ployhart, R. E., 266, 369, 370, 504, 591,

592, 738 Podsakoff, N. P., 739 Podsakoff, P. M., 368 Poeppelman, T., 369 Pohler, D., 738 Pokorny, M., 641 Polden, D. J., 90 Polden, H. J., 641 Polin, B., 643 Pollard, H., 425 Pomeroy, A., 306 Pommerich, M., 369 Pont, J., 266 Posthuma, R. A., 683 Postlethwaite, B. E., 500, 502, 505 Postuma, R. A., 739 Potosky, D., 370, 427, 504 Powell, C., 9 Power, C., 9 Power, S., 370 Prien, E. P., 200, 547 Prifitera, A., 369 Prottas, D. J., 739 Pudelko, M., 150 Pui, S.-Y., 591 Pulakos, E. D., 368 Purkiss, S. L., 509 Pursell, E. D., 509 Putka, D. J., 508, 548 Pynes, J. E., 345

Quinones, M. A., 505, 548

Radack, D. V., 642 Ramesh, A., 549 Ramirez, J. C., 685 Ramos-Villagrasa, P. J., 305 Ramsay, L. J., 427 Rasmussen, T., 367 Rassas, L. B., 738

Rau, B. L., 263 Raymark, P. H., 508 Raymond, M. R., 426 Reb, J., 548 Reck, M., 505 Ree, M. J., 504 Reeve, C. L., 502, 503, 504 Reeves, C. J., 505 Reider, M. H., 369 Reilly, G. A., 504 Reilly, M. E., 503 Reilly, R. R., 424, 427, 505 Reio, T. G., Jr., 547 Reisel, L., 641 Reiter-Palmon, R., 200 Reynolds, D., 268 Reynolds, D. H., 200, 511 Rhee, M., 526–527 Rich, G. A., 368 Rich, M., 148 Rindova, V. P., 265 Ritter, H., 304 Robbins, S. B., 502 Robbins, S. P., 510 Roberson, L., 737 Robert, C., 41 Roberts, B., 148, 684, 685 Roberts, B. W., 500 Roberts, D., 42 Roberts, R. D., 505, 506 Robertson, D. U., 369 Robertson, I. T., 548 Robin, R. S., 426 Robins, R. W., 499 Robinson, R. K., 90, 593, 644 Robinson, R. U., 151 Roch, S. G., 368 Rockstuhl, T., 507 Rodell, J. B., 305, 501, 684 Rodopman, O. B., 503 Rodríguez, A., 150 Rodriguez, M., 639–640 Roehling, M. V., 264 Rogelberg, S. G., 510 Rogers, W., 370 Rolland, J. P., 503 Rondeau, K. V., 739 Rosen, C. C., 502 Rosen, L., 429 Rosen, L. S., 268, 429 Rosenthal, B. E., 684 Rosenthal, D. B., 548 Rosse, J. G., 592 Roth, P. L., 370, 426, 427, 504, 506,

506–507, 508, 509, 510, 592 Rothstein, H., 427 Rothstein, M. G., 500, 502 Rothwell, W. J., 149 Rotundo, M., 741

Rounds, J., 508 Rousseau, D. M., 268, 642 Royle, T., 547 Rozelle, R. M., 428 Ruark, G. A., 506 Rubenstein, A. L., 643 Rubin, H. J., 90, 641 Rubin, R. S., 425 Rubis, L., 149 Ruggeberg, B. J., 200 Ruiz, G., 266, 267 Rupp, D. E., 548 Russell, C., 523–524 Russell, C. J., 427, 547 Russell, J. T., 562 Rutigliano, T., 739, 741 Ryan, A. M., 41, 151, 264, 369, 425, 429 Ryan, L., 263 Rynes, S. L., 505

Saari, L. M., 509 Sablynski, C. J., 740 Sacco, J. M., 151, 264 Sackett, P. R., 199, 370, 429, 500, 502,

503, 504, 507, 508, 549, 591, 592, 741

Sager, C. E., 510 Saks, A. M., 264, 643 Salasko, E. R., 90 Salgado, J. F., 427, 429, 503, 505 Salovey, P., 505 Salyards, S. D., 511 Sammer, J., 643 Sanchez, J. I., 199, 200, 201 Sánchez, L. S., 263 Sandall, D. L., 200 Sandberg, J., 591 Sandler, D. R., 642 Sandver, M. H., 149 Saridakis, G., 683 Sartain, E., 148, 685 Sartain, L., 9, 267, 268 Scarpello, V., 265 Schaefer, D., 345 Scheu, C. R., 151 Schinkel, S., 684 Schippman, J. S., 200, 426, 547 Schmidt, F., 369 Schmidt, F. L., 199, 201, 426, 427, 503,

504, 508, 509, 548 Schmidt, J., 503 Schmidt, J. A., 42, 738 Schmit, M., 369 Schmitt, N., 151, 368, 369, 377, 427, 501,

502, 507, 508, 511, 591, 592 Schmitt, N. W., 368 Schneider, B., 508 Schoeff, M., 738 Schollaert, E., 549

1259756556_ch15_index_p743_764.indd 750 12/8/17 1:08 PM

NAME INDEX 751

Schramm, J., 102, 150, 512 Schumpeter, P., 149 Schurig, I., 507 Schuster, J. R., 740 Schuttauf, E. E., 741 Schwab, D. P., 368, 369 Schwall, A. R., 500 Schwarz, L., 428 Schweitzer, D., 15 Schwinger, R. A., 268 Sciarrino, J. A., 506 Scott, B. A., 305, 684 Scott, J. C., 200, 369 Sculten, S., 427 Segal, J. A., 268, 429, 550, 641, 685, 742 Segall, D. O., 369, 500 Seibert, S. E., 305 Seidu, E. Y. M., 684 Seifert, B. K., 742 Selden, S., 234 Semadeni, M., 149 Serlie, A. W., 424, 425 Shaffer, J. A., 500, 502, 509 Shafiro, M., 508 Shalhoop, J. H., 266 Shapiro, J., 683 Shapiro, J. R., 425 Shaw, J. D., 738, 739, 740 Shaw, K., 642 Shellenbarger, S., 306 Shen, W., 504 Shepherd, W., 500, 738 Sheppard, L., 370 Sherman, R. A., 41 Shop-taught, C., 200 Shuffler, M. L., 547, 548 Shuster, S., 13 Sikora, D. M., 593 Silva, J., 504 Silver, M. B., 199 Silverman, E. R., 685, 740 Simon, H. A., 737 Simon, L. S., 501 Simon, R., 642 Sims, E. N., 267 Singletary, M., 425 Sinha, R., 369, 427 Sirmon, D. G., 592, 684 Sivertzen, A. M., 266 Skonberg, J., 430 Slater, D. J., 642 Slaughter, J. E., 264, 265, 643 Small, B., 509, 510 Smith, A., 643, 685 Smith, D. B., 502, 508 Smith, D. E., 149 Smith, M. A., 502, 592 Smith, N., 510 Smith, P. C., 42, 201

Smith, S., 644 Smith, S. A., 684 Smither, J. W., 424, 505 Smith-Jentsch, K. A., 549 Soltis, C., 425 Song, Z., 643 Soto, C. J., 499 Speer, A. B., 549, 550 Speizer, I., 306 Spencer, J., 367 Spitz-Oener, A., 148 Spreitzer, G. M., 742 Stahl, G., 641 Stalder, B. V., 176 Stanard, A., 305 Stanton, E., 425 Stanton, P., 592 Stark, S., 502 Staubus, M., 642 Steel, P. D. G., 200 Steel, R. P., 737 Stefanik, T., 643 Stetz, T. A., 200 Stevens, C. K., 265 Stevens, G. W., 200 Stevens, M. J., 476, 510 Stewart, G. L., 429, 510 Stewart, R. W., 150 Stiles, P., 641 Stivarius, T. B., 430 Stoffey, R. W., 424, 505 Stone, D. L., 41, 738 Stone, E. F., 42, 201, 367 Stone, N. J., 509 Stone-Romero, E. F., 509 Story, P. A., 502 Strauss, E., 381 Strauss, G., 741 Strauss, R., 424 Stringer, K., 428 Stringfield, P., 428 Stuart, J., Jr., 41 Stuart, M., 367 Su, R., 508 Subramony, M., 150 Sullivan, J., 263, 685 Sulzer, J. L., 200 Sumanth, J. J., 505 Sumner, M., 739 Super, J. F., 592 Surface, E. A., 305, 368 Sürgevil, O., 150 Suri, R., 266 Sussmann, M., 369 Sutton, A. W., 368 Sutton, K. L., 643 Swider, B. W., 263, 266, 429, 510 Switzer, F. S., 426 Szostak, A., 738

Tai, B., 149 Tam, A. P., 505 Tan, J. A., 501, 502 Tate, W. L., 150 Taylor, H. C., 562 Taylor, J. E., 507 Taylor, P. J., 428, 509, 510 Taylor, S., 502 Taylor, S. G., 428 Teachout, M. S., 548 Tegner, L., 425 Tepper, B. J., 739 Tesluk, P. E., 426, 548 Tett, R. P., 549 Tews, M. J., 739 Thelen, J. B., 151 Theorell, T., 742 Thibodeaux, H. F., 427 Thomas, J. C., 508 Thomas, J. P., 501 Thomas, K. M., 265 Thomas, L. L., 425 Thomas, P., 506 Thomas, S. C., 429, 503, 505, 508, 510 Thompson, C. A., 739 Thompson, D. E., 201, 306 Thompson, T. A., 201 Thoresen, C. J., 439, 501 Thorndike, R. L., 591 Thornhill, S., 738 Thornton, G. C., III, 511, 548, 550 Thrutchley, C. S., 685 Tian, T. S., 503 Tihanyi, L., 304 Tippins, N. T., 41, 500 Tobares, V., 503 Tolentino, A. L., 503 Tomsho, R., 426 Tonidandel, S., 367, 428, 739 Toossi, M., 43, 148 Tornau, K., 502 Trammell, J., 9 Tremblay, M., 739 Tresch, T. S., 550 Trevor, C. O., 505, 738, 742 Trevor, J., 641 Triana, M., 503 Truxillo, D. M., 200, 305, 429, 643, 684 Tsai, W.-C., 425 Tucker, J. S., 643 Tuna, C., 741 Turner, W. K., 685 Turque, B., 547 Twomey, D. P., 742 Tyler, K., 90, 741

Uchitelle, L., 738 Uggerslev, K. L., 250, 263, 264, 424, 429,

641, 684

1259756556_ch15_index_p743_764.indd 751 12/8/17 1:08 PM

752 NAME INDEX

Ulrich, D., 147, 148, 367, 592, 683, 684, 685

Ulrich, M., 147, 148, 683, 685 Ulrigg, J., 401

Vadanovich, S. J., 430 Vance, R. J., 199, 201 Vandenberg, R. J., 265 Van der Zee, K. I., 510 Van De Vort, D. M., 176 Van Dierendonck, D., 684, 741 Van Dijk, H., 150 Van Dyne, L., 507 Van Emmerik, I. J., 550, 738 Van Engen, M. L., 150 Van Hooft, E. A. J., 503 Van Hoye, G., 266 Van Iddekinge, C. H., 508, 510 Van Keer, E., 549 Van Knippenberg, D., 150 Van Rooy, D. L., 264, 505 Van Slyke, E., 684 Van Vianen, A. E. M., 547, 684 Vardaman, J. M., 738 Varma, A., 425 Vayner, A., 380 Velasquez, R., 369 Vellella, R. F., 739 Vick, J. M., 642 Vidyarthi, P. R., 642 Villado, A. J., 150 Villano, M., 424 Viswesvaran, C., 499, 500, 501, 502, 505,

508 Volckaert, E., 549 Volpone, S. D., 150, 265, 428 Vukasović, T., 500

Wagar, T. H., 739 Wagner, U., 509 Walker, H. J., 265, 266, 428 Wallace, J. C., 430, 592 Walsh, D., 593 Walsh, D. J., 89, 90, 151, 268, 306, 430,

512, 550, 644, 742 Walumbwa, F. O., 684 Wanberg, C. R., 643, 737, 739 Wanberg, C. W., 684 Wanek, J. E., 508 Wang, G., 305 Wang, T., 738 Wanous, J. P., 250 Waung, M., 424 Wayland, R. F., 90, 151, 593, 644 Wayne, J. H., 265 Weatherly, L. A., 429 Weaver, P., 267 Webster, J., 643

Webster, J. R., 305 Wee, S., 592 Weekley, J. A., 369, 427, 507 Weigel, M., 642 Weikamp, J. G., 149 Weil, D., 149 Weiner, L. J., 305 Weingart, L. R., 643 Weir, T., 425 Weiss, D. J., 42 Welch, S. B., 151 Wellens, R. S., 510 Weller, I., 267 Wells, S. J., 267, 306, 592 Werner, J. M., 742 Wernimont, P. F., 424 Wescott, S., 738 Wessels, K., 512 Wesson, A. D., 643 Wesson, M. J., 305, 684 Westerlund, H., 742 Westerveld, L., 424 Westrick, P., 502 Wexley, K. N., 425, 741 Weyhrauch, W. S., 509 Wheeler, A. R., 740 Wheeler, M. A., 642 Whetzel, D. L., 369, 502, 507, 509 Whitaker, D. H., 427, 740 White, C. D., 425, 502, 507 White, E., 506 White, S., 149, 200 Whiting, S. W., 511 Whitman, D. S., 428, 501, 505 Whitman, J., 263 Whyte, A., 369 Whyte, G., 429 Wiechmann, D., 507 Wiemann, S., 508 Wiemann, S. A., 741 Wiernik, B. M., 368 Wilcin, C. L., 149 Wilezol, D., 426 Williamson, I. O., 234 Wilk, S. L., 592 Wilkie, D., 685 Wilkin, C. L., 424 Williams, E. S., 739 Williams, H., 684 Williams, M., 200 Williams, N., 547 Williams, R., 738 Williams, S. K., 685 Williamson, R. L., 501 Willis, S. G., 643 Willman, S. K., 491 Willness, C., 265 Winkler, C., 369, 506

Winsborough, D., 41 Winstein, K. J., 424 Wisnefski, S., 43 Wisniewski, M., 266 Wittorp, D. E., 424 Woehr, D. J., 368, 509, 548 Wojcik, S. P., 367 Wolf, A., 503 Wolf, M. G., 149 Wolf, S., 643 Wonderlic, C. F., Jr., 503 Wood, L., 368 Wright, A. D., 429, 643 Wright, B., 149 Wright, C. W., 424 Wright, P., 641 Wright, P. M., 41, 42, 148, 685, 740 Wu, C.-H., 42 Wyatt, I., 31

Yang, H., 684 Yang, I. W.-F., 510 Yankelevich, M., 591 Yao, L., 369 Yardley, K., 305 Yenerall, P. M., 642 Yi, Y., 369 Yonce, C. A., 429 Yoo, T., 427 Yost, A. P., 502 Young, C. E., 741 Young, S., 592 Younger, J., 147, 148, 592, 683, 684, 685 Yu, K. Y. T., 264, 266, 267, 268

Zacharias, L., 508 Zafar, S., 738 Zapata, C. P., 305, 501, 684 Zedeck, S., 199, 369 Zeidner, M., 506 Zeidner, R., 266, 742 Zeller, R. A., 368 Zhao, B., 738 Zhao, X., 500 Ziegert, J. C., 151 Zielinski, D., 683, 738 Zimmerman, A., 428 Zimmerman, E., 264, 741 Zimmerman, K. L., 740 Zimmerman, R. D., 263, 266, 499, 501,

503, 509, 740 Zingheim, P. K., 740 Zorzie, M., 427 Zottoli, M. A., 250 Zuckerberg, M., 384 Zulbert, B., 382 Zweig, D. I., 509, 510 Zwitski, J., 40

1259756556_ch15_index_p743_764.indd 752 12/8/17 1:08 PM

753

Abilities, 165, 166 Ability tests

adverse impact and, 446–447, 480–481 cognitive ability tests, 443–448 discrimination and, 71 external selection and, 442–450 job knowledge tests, 449–450 physical ability tests, 448–449 psychomotor ability tests, 448 sensory/perceptual ability tests, 449

Accenture Consulting, 382, 627 Access to computers, 254, 256 Accuracy

of measurement, 337–338 of prediction, 338–339

Acquisition staffing strategy, 27–28 ADA. See Americans With Disabilities

Act (ADA) (1990) Adaptive devices, 74, 256, 490 ADEA. See Age Discrimination in

Employment Act (ADEA) (1967) ADP, 400 Adverse impact

ability tests and, 446–447, 480–481 applicant flow statistics, 64–65,

355–357 applicant stock statistics, 64–65, 357 claims of, 64 concentration statistics, 64–65 differential prediction of selection

measures, 357–358 drug tests and, 487 initial assessment methods and, 409 interviews and, 480–481 litigation process and, 66–67, 70 predictors and, 560 preemployment inquiry and, 415–416 résumés and, 383 selection procedures and, 584–585 substantive assessment methods and,

480–481 UGESP on, 356, 414, 488–489,

541–542, 584–585 See also Discrimination

Advertisements BFOQ and, 257 depiction of diversity in, 222–223 discrimination and, 71 legal issues, 257

older workers and, 73, 257 recruitment messages in, 229–232

Affirmative action plans (AAPs) action-oriented programs, 139–140 annual placement goals, 139 availability determination, 136, 139 constitutionality of, 139, 141–142 elements of, 135–139 examples of, 138, 300 hiring decisions and, 56, 585–586 for individuals with disabilities, 142,

254 job group analysis, 135 niche employment websites and,

238–239 organization display, 135 protections for women/minorities, 67,

69, 134–139 recruitment and, 254 in staffing planning, 134–139 for veterans, 142 See also Diversity; EEO/AA laws;

Office of Federal Contract Compliance Programs (OFCCP)

Age advertisements and, 257 as BFOQ, 72 labor force trends and, 99, 133–134 millennial generation, 242 See also Older workers

Age Discrimination in Employment Act (ADEA) (1967), 72–73

BFOQs and, 296, 417–419 overseas US employers and, 61 provisions of, 58–61, 72–73 staffing firms and, 54, 144

Air Line Pilots Association, 401 Alcohol tests, 486 Alternative dispute resolution (ADR),

678–680 Amazon, 12 American Psychiatric Association, 492 American Psychological Association

(APA), 34, 354, 443 American Psychological Society, 443 Americans With Disabilities Act (ADA)

(1990) confidentiality of medical information,

675

disability, defined, 73–75 employee selection, 76, 489–493 essential job functions, 75, 194–195 overseas US employers and, 61 preemployment inquiry, 416–417 provisions of, 58–61, 73–77 reasonable accommodation, 75–76,

254, 256, 296, 490 seniority systems, 296 staffing firms and, 54, 144 veterans with service-connected

disability, 77 See also Individuals with disabilities

Angoff method, 575–576 Aon Consulting, 455 Apple Inc., 224 Applicant flow statistics, 64–65, 355–357 Applicants

employment websites, 237–239 hard-copy applicants, 252–253 Internet applicants, 253–254, 379–383 legal definition of, 252–254 medical exams, 490–493 mobile device applicants, 253

Applicants (cont.) record keeping and, 252–254 truthfulness/deceit of, 618 written authorization for reference

checks, 410 Applicant stock statistics, 64–65, 357 Applicant tracking systems, 217–219,

239–240 Applications

disclaimer statements, 384 educational requirements, 384, 387–388 examples of, 385–386 in external selection, 383–391 job knowledge requirements, 389–390 licensing and certification

requirements, 389–390 online applications, 218–219, 237–239,

254, 256 résumés vs., 383 training and experience requirements,

388 unsolicited, 236–237

Application service providers (ASPs), 659

Asian Americans, in labor force, 99

S U B J E C T I N D E X

1259756556_ch15_index_p743_764.indd 753 12/8/17 1:08 PM

754 SUBJECT INDEX

Assessment. See Measurement; Testing and assessment

Assessment Center Exercises (AC-ESX), 537

Assessment centers (ACs), 531–538 Assistive technologies, 74, 256–257, 490 Association of International Graduate

Admissions Consultants, 396 Audits, 69, 675, 677 Availability forecasts, 111–119

Background checks, 381, 398–402, 412–415

Banding, 577–578 Banner ads, 230–231 Barings Bank, 400 Base rate, 561 Bed Bath & Beyond, 400 Benchmarks, 351, 406, 668, 696–697

See also Measurement Benefits, 610, 708–709 Bennett Mechanical Comprehension Test,

449 Best Buy, 353 Big-data paradigm, 314 Big Five personality traits, 433–440, 461 Biodata, 391–395, 712 Blood tests, 483–484 BNSF Railway, 231 Bona fide occupational qualification

(BFOQ) advertisements and, 257 age as, 72 legal issues, 296, 417–419 protected characteristic as, 70 seniority/merit systems and, 71, 296

Bonuses employee referral programs and, 239 hiring bonuses, 610–611 retention bonuses, 709, 714 See also Compensation

Brand messages, 223–224, 227–228, 284 BrassRing (software), 237, 659 Breach of contract claims, 598, 599 Brochures, 232, 285 Budgets, for recruitment, 215–217, 280 Bureau of Labor Statistics (BLS), 31,

98–99, 101 Bureau of National Affairs (BNA), 406 Business necessity, 70, 76

Campus recruitment. See Colleges, recruitment at

CareerBuilder, 238 Career development centers, 291–292,

293, 294 CDW, 403 Cedant, 721 Central tendency in scores, 319–320

CEOs, succession planning for, 290–291 Chequed, 662–663 ChoiceAnalyst (software), 569 ChoicePoint, 400 Chrysler, 453 Circuit City, 728–729 Citizenship behavior, 723 Civil Rights Acts (1964/1978/1991), 69–72 Civil Rights Acts (Title VII)

BFOQs and, 417–419 EEO annual reports, 675–676 litigation process under, 66–67 overseas US employers and, 61 provisions of, 56, 58–61, 69–72 staffing firms and, 54, 144

Civil service, 83 Classified advertisements, 230 Cleveland Clinic, 486 Clinical prediction, 567–568 Closed internal recruitment system,

276–277, 279 Coaches, 521–523 Coca-Cola, 224 Code of Federal Regulations (CFR), 58 Coding competitions, 455 Coefficient alpha calculation, 332 Cognitive ability tests, 443–448 College Board, 384 College of American Pathologists, 484 Colleges, recruitment at, 242–243 Combined model, of hiring decisions,

571, 572 Committee/task force, in job analysis,

172, 173 Common law, 56–57 Communication in recruitment messages.

See Recruitment messages Company websites, 224, 232–233, 234,

237–239 See also specific companies and websites

Compensation benefits, 610, 708–709 bonuses, 239, 610–611, 709, 714 differential rates, 608–609 flat rates, 607–608 geographic pay differentials, 608 incentive pay, 609–610 job offers and, 607–612 relocation assistance, 611 retention management, 707–709, 714 severance packages, 611–612, 707 starting pay policies, 608–609 stock options, 609–610, 709 variable pay, 609–610

Compensatory damages, 68, 598 Compensatory model, 566–570 Competencies, defined, 179–180 Competency-based job analysis, 156–157,

177–184

Concentration statistics, 64–65 Conciliation, 65–66, 69 Concurrent validation studies, 342–344 Confidentiality, 66, 76 Confidentiality clauses, in job offers, 614 Consent decree, 67–68 Consideration, in enforceable contracts,

599 Constitutional law, 57 Construct validation studies, 340 Consulting Psychologists Press, 354 Consumer Financial Protection Bureau,

81, 413 Consumer reports, 81, 412–413 Contamination error, 331–332 Content validation studies, 346–348 Contingencies, in contracts, 603 Contingent assessment methods,

432–433, 481–488 Contingent employees, 101 Continuous hiring, 215, 580, 672 Contract firms, 101 Contracts, 598–603

acceptance, 599, 615, 623–624 breach of contract claims, 598, 599 consideration, 599 contingencies, 603 disclaimer statements, 602–603 duration of, 606–607 employee handbooks and, 602 enforceability of, 598–599 fixed-term contracts, 606–607, 704 with independent contractors, 599–

600 learning contracts, 247 offers, 598–599 oral contracts, 601–602 oral statements and, 601–602 parties to, 599–600 with third parties, 600 types of, 50–51 written contracts, 600–601 See also Job offers

Convergys Corp., 614 Co-op assignments, 246–247 Core Self-Evaluations Scale, 438, 439 Core staffing activities, 25–26 Core workforce, 28–29, 124–125

See also Flexible workforce Correlation coefficient, 322–327 Cost-benefit analysis

of downsizing, 726–727 of drug testing, 487 of employee turnover, 700–707, 729

Costs of assessment centers, 536–537 of classified display ads, 230 of employment agencies, 243–244 of hiring, 672–673

1259756556_ch15_index_p743_764.indd 754 12/8/17 1:08 PM

SUBJECT INDEX 755

of initial assessment methods, 405, 407–408

of internal recruitment, 294 of recruitment methods, 248–251 of substantive assessment methods, 479 of turnover, 701–704, 729

Counterproductivity, as job performance criteria, 723

Cover letters, 379–383 Craigslist, 230 Credibility, of online applications,

237–238 Credit checks, 412–413 Criminal background checks, 413–415 Criterion-related validation studies,

340–345 Customer preferences, as job requirement,

417 Cut scores, 571–578

banding, 577–578 consequences of, 573–574 differential weighting and multi-stage

selection, 578 minimum competency method,

574–576 process of, 572 top-down method, 576–577 See also Scores

Cyber slamming, 411

Decision making, in staffing process affirmative action plans, 585–586 choice of assessment method,

558–565 continuous hiring, 580, 672 correlation with other predictors, 560 cut scores and, 571–578 diversity and, 585–586 employee participation, 583 final choice methods, 579–580 grouping, 580 hiring success gain, 560–563 human resource professionals and,

582–583 legal issues, 560, 584–586 managers and, 583 predictors and assessment scores,

566–571 random selection, 579 ranking, 579–580 Taylor-Russell tables, 561–563 validity coefficient, 558–559

Deficiency error, 331 Dell Computer, 351 Deloitte, 721 Deployment, defined, 10 Development staffing strategy, 27–28 Diagnostic and Statistical Manual of Mental

Disorders (APA), 492

Direct contact, 233–235 Disability, ADA defined, 73–75

See also Americans With Disabilities Act (ADA) (1990); Individuals with disabilities

Discharge turnover, 694, 704–709 Disciplinary process, 724, 725–726 Disclaimer statements, 384, 410, 602–603,

634 Discretionary assessment methods,

432–433, 481, 541 Discrimination

ability tests and, 71 advertisements and, 71 age-related, 61, 72–73, 417 bona fide occupational qualification,

70 disparate treatment, 61, 63–64 employee selection, 76 genetic information, 77 glass ceiling and, 295, 298–300,

542–543 interview invitations and, 467 preferential treatment, 72 pregnancy-related, 69, 71, 417, 419 quotas, 72 résumés and, 383 seniority/merit systems and, 71 testing and, 71, 76 See also Adverse impact; EEOC

(Equal Employment Opportunity Commission); specific legislation

DISH Network, 403 Disney, 224 Disparate impact, 61, 64–65

See also Adverse impact Disparate treatment

claims of business necessity and, 70 factors of, 61, 63–64 litigation process and, 66–67

Display ads, 231 Dispute resolution, 678–680 Distributive justice, 709, 725–726 Diversity

in advertisements, 222–223 business case for, 131–132 constitutionality of AAPs, 139, 141–142 hiring decisions and, 585–586 niche employment websites and,

238–239 open recruitment and, 211 Retail Leadership Development

program (Safeway), 300 staffing strategies for, 32–33, 130–134 turnover reduction, 711 workforce demographics and, 99,

130–131 See also Minorities; Women

DOL. See Labor Department (DOL)

Downsizing turnover, 694–695, 706–707, 726–729

Drug tests, 482–488, 493 Duties. See Task dimensions

Early retirement, 16, 119, 707 E-commerce, 102 Economic gain formula, 563–565 Education

on application forms, 384, 387–388 labor demand and, 98, 102 labor supply deficiencies and, 100 of women, 130 See also Training

EEO-1 form, 135, 675–676 EEO/AA laws

conciliation, 65–66, 69 enforcement of, 61–67 litigation process, 66–67 provisions of, 58–61, 69–79 See also specific laws

EEOC (Equal Employment Opportunity Commission), 58

consent decree, 67–68 on conviction records, 414 dispute resolution, 678–680 employer annual reports, 675–676 enforcement of laws, 61–67 on hiring decision making, 585–586 mediation program, 66 on permissibility of diversity programs,

141 on preemployment inquiry, 415–416 prohibited employment practices, 63 on promotional systems, 542 protected classes, 62 provisions of, 58–61 recruitment best practices, 255, 297 on RFOA rules, 72–73 settlements with, 66 on staffing firms, 54 on testing and selection, 358–359 See also Uniform Guidelines on

Employee Selection Procedures (UGESP)

Efficiency ratio, 672–673 Electronic recruitment. See Internet

recruitment; Social networking websites

Eli Lilly, 519 E-mail

external recruitment and, 233–235 Internet applicants and, 253 as written contract, 601

Embezzlement, 81 Emotional intelligence (EI), 450–453 Employee Aptitude Survey, 443 Employee eligibility verification, 79–80 Employee handbooks, 602

1259756556_ch15_index_p743_764.indd 755 12/8/17 1:08 PM

756 SUBJECT INDEX

Employee Polygraph Protection Act (1988), 80–81

Employee referral programs, 239–240 Employees

abusive supervisors and, 711–712 disciplinary process, 724, 725–726 engagement of, 158–159, 710–711 head count, 107 in-house temporary, 289–290, 293 legal protection of, 55–56 medical exams, 492–493 new employee orientations, 626–633, 659 participation in hiring decisions, 583 recruitment referrals by, 239–240 socialization of, 628–631 See also Workforce

Employee satisfaction surveys, 698–699 Employee turnover. See Turnover Employee value proposition (EVP),

185–186, 187, 604–606 Employer Credit Privacy Act (Illinois),

413 Employer-employee relationship, 50–53 Employers

AAPs for small employers, 134–139 EEO annual reports, 675–676 EEOC mediation program for, 66 legal protection of, 56 US employers based overseas, 61 See also specific companies

Employment advertising. See Advertisements

Employment agencies, 243–244, 600 Employment-at-will, 51, 56, 602–603,

606–607, 635 Employment contracts. See Contracts Employment eligibility verification,

633–634 Employment projections, 99–100 Employment relationship

employer-employee, 50–53 employment contracts, 598–603 independent contractors, 52–54 interns and trainees, 55 job offers, 603–625 legal issues, 633–635 new employee orientation, 626–633,

659 temporary employees, 54 See also specific aspects

Employment websites. See Internet recruitment

Engagement of employees, 158–159, 710–711

Enterprise Rent-A-Car, 14–15, 22, 518 Epic (software), 528 Equal employment opportunity laws. See

EEO/AA laws; specific laws Equal Pay Act (1963), 143

Error in measurement, 330–331, 335–336 Essential job functions, 75, 194–195 EtG tests, 486 Ethical issues

SHRM code of ethics, 34 staffing practices, 33–36

Ethnic minorities. See Minorities E-Verify, 80, 633 EVP. See Employee value proposition

(EVP) Executive Order 11246 (1965), 60, 69, 78 Executive search firms, 244–245 Exit interviews, 697–698 Experience, 388, 526–527 External recruitment, 205–268

applicant reactions, 219–223 applicant tracking systems, 217–219,

239–240 budgets, 215–217 centralized vs. decentralized, 214–215 EEOC best practices, 255 individual recruitment sources,

236–239 in-house vs. external recruitment

agencies, 213–214 legal issues, 241, 252–258 open vs. targeted strategy, 211–213 organizational culture and, 96 organizational recruitment sources,

242–247 recruitment guides, 217, 218 recruitment messages, 223–236 recruitment metrics, 248–251 recruitment planning, 208–219 strategic goals of, 209–210 strategy implementation, 236–251 timing issues, 215 transition to selection, 251–252 See also Internal recruitment; specific

recruitment sources External selection, 371–512

overview, 28 ability tests, 71, 442–450, 480–481 applicant flow stages, 376, 378 applicant reactions, 409, 442, 463, 480 application blanks, 383–391 background checks, 381, 398–402,

412–415 biodata, 391–395 contingent assessment methods,

432–433, 481–488 cover letters, 379–383 discretionary assessment methods,

432–433, 481 emotional intelligence tests, 450–453 evaluation of methods, 404–409 initial assessment methods, 372,

379–409 initial interviews, 402–403

integrity tests, 459–463, 484 interest/values/preferences inventories,

464–466 legal issues, 384, 401, 409–419,

488–494 licensing and certification

requirements, 389–390 logic of prediction, 373–374 medical exams, 488, 490–493 performance tests and work samples,

453–456 personality tests, 433–442, 461 plan development, 376–378 predictors, 374–375, 405–409 preemployment inquiry, 415–417 reference checks, 398, 401–402, 410–411 résumés, 379–383 situational judgment tests, 456–459, 472 structured interviews, 466–475 substantive assessment methods,

432–481 See also Internal selection

Externships, 714 Extrinsic rewards, 185, 708–710

Facebook, 235, 240, 398 Fact-finding interview simulations, 538 Fair Credit Reporting Act (FCRA)

(1970), 81, 412–414 Fair enforcement practice (FEP) laws, 65 Fairness, 283–284, 374, 446, 725–726 Faking

in biodata answers, 395 integrity tests and, 462–463 on personality tests, 440–442 on psychological drug tests, 487

False statement warnings, 258–259, 410, 602

Faquier Health, 662 FCRA. See Fair Credit Reporting Act

(FCRA) (1970) Federal Contractor Compliance Manual,

135 Federal contractors, 78, 80, 253–254

See also Office of Federal Contract Compliance Programs (OFCCP)

Federal Express, 52 Federal Glass Ceiling Commission,

298–299 Federal laws. See specific laws Federal Register, 58 FedEx, 400 Fetal protection policies, 417, 419 Final match stage. See Compensation;

Contracts; Job offers First Advantage, 400 Fixed-term contracts, 606–607, 704 Fleet Bank, 721 Flexible shift work, 101–102, 712

1259756556_ch15_index_p743_764.indd 756 12/8/17 1:08 PM

SUBJECT INDEX 757

Flexible workforce core workforce vs., 28–29, 124–128 independent contractors and, 101, 128 outsourcing and, 128–130 in staffing planning, 101–102, 125–128 See also Core workforce

Ford Motor Company, 624–625 Forecasting requirements in HRP,

108–111 Foreign workers, 58, 80 Fortune, 100 Best Companies to Work For

report, 719 Fraud and misrepresentation, 257–258, 598 Full-time equivalents (FTEs), 107

General Electric (GE), 224 General Foods, 475 General mental ability, 443

See also Cognitive ability tests General Mills, 95–96 General Motors (GM), 214 Genetic Information Nondiscrimination

Act (GINA) (2008), 59, 77 Glass ceiling, 295, 298–300, 542–543 Glassdoor, 235, 352 Global assignments, 537–538 Golden handcuff, 614–615 Goldman Sachs, 224 Good Times Entertainment, 523 Google, 393, 583, 614, 719 Graduate Management Admission

Council, 387 Great Eight competencies, 182 Great Place to Work Trust Index survey,

719 Great Recession (2007–2009), 7, 12, 30,

134, 728–729 GreenJobInterview .com, 403 Group discussion/problem-solving, 533

H-1B visas, 80 H-2B visas, 80 Hair analysis tests, 484 Hand-eye coordination tests, 484 Harassment, 711–712 Hard-copy applicants, 252–253 Harris Interactive surveys, 626 Head count. See Workforce Headhunters, 244–245 Health care coverage, 709 Hierarchical job levels, 107 Hierarchical mobility paths, 272–273 Hierarchical staffing systems, 652–655 High-fidelity tests, 454–456 HireVue, 403 Hiring bonuses, 610–611 Hiring success gain, 560–563 Hispanic Americans, in labor force, 99 Hogan Assessment Systems, 354

Hogan Personality Inventory (HPI), 434 HOK, 729 Homeland Security Department, 58, 81 Homemaker role, 374 Honda, 245 HRsmart, 290 Human capital, 7, 668

See also Talent management systems Human resource information systems

(HRISs), 116 KSAO tracking, 288–289 recruitment planning and, 214–215 social networking applications, 659 staffing system management, 657–660 succession planning and, 290–291,

518–519 talent management and, 518–519

Human resource planning (HRP), 93, 103–121

availability forecasts, 111–119 elements of, 103 examples of, 104–105 forecasting requirements, 108–111 individual internal forecasts, 115–119 job categories/levels, 107 linkage to business strategy, 105–108 reconciliation and gap phase, 119–121 replacement planning, 115–116, 117 roles of HR staff, 107–108 succession planning, 116–119, 293 time frames, 106–107

Human resource professionals, 582–583 Hybrid internal recruitment system,

277–279 Hyundai, 453

IAT. See Implicit Association Test (IAT) IBM, 29 IdentityPi, 400 Identity theft, 238 Idiosyncratic job offer deals, 612–613 Immigrants, in labor force, 100 Immigration Reform and Control Act

(IRCA) (1986), 79–80, 603, 633–634

Implicit Association Test (IAT), 678 In-basket exercises, 533 Indeed (employment website), 238 Independent contractors (ICs), 52–54,

101, 128, 599–600 Indeterminate-term contracts, 606–607 Individuals with disabilities

ADA definition of, 73–77 affirmative action and, 142, 254 external selection procedures and,

489–493 labor force trends and, 100 See also Americans With Disabilities

Act (ADA) (1990)

Infomart, 400 In-house temporary employees, 289–290,

293 I-9 form (IRCA), 79, 633–634 Inland Steel, 477 Institute for Personality and Ability

Testing, 354 Integrity tests, 459–463, 484 I/N Tek, 477 Intel, 29, 243 Interbrand Group, Inc., 714–715 Interest inventories, 291–292, 464–466 Internal recruitment, 269–306

applicant reactions, 283–284 budgets, 280 closed system, 276–277, 279 EEOC best practices, 297 hybrid system, 277–279 legal issues, 295–300 mobility paths, 271–276 open system, 277–278, 279 organization and administration,

279–280 recruitment guides, 280, 281–282 recruitment messages and, 284–286 recruitment metrics, 292–294 recruitment sources, 286–292 recruitment strategy, 286–294 strategic planning, 271–283, 293 succession planning and, 290–291 timing issues, 280, 283 transition to selection, 295 See also External recruitment; specific

recruitment sources Internal Revenue Service (IRS), 52 Internal selection, 503–536

overview, 28 assessment centers, 531–538 discretionary assessment methods, 541 evaluation of methods, 524, 525, 540 experience, 526–527 initial assessment methods, 518–525 interview simulations, 538–539 job knowledge tests, 527–528 legal issues, 541–543 logic of prediction, 516–517 managerial sponsorship, 521–523 peer assessments, 519–521 performance appraisals, 528–530 plan development, 517–518 predictors, 517 promotability ratings, 530–531 promotion panels, 539 self-assessments, 521, 522 seniority systems, 526–527 situational judgment tests, 536 substantive assessment methods,

525–540 succession planning and, 518–519

1259756556_ch15_index_p743_764.indd 757 12/8/17 1:08 PM

758 SUBJECT INDEX

supervisor role in, 284–285, 289, 516–517, 521–523

talent management systems, 518–519 International Personality Item Pool (IPIP),

434 Internet applicants, defined, 253–254 Internet recruitment

best practices, 237–239 company websites, 237–239 continuous hiring capability via, 215 electronic résumés and, 379–383 e-mail and, 253 employment websites, 237–239 job fairs, 245–246 millennial generation and, 242 online applications, 218–219, 237–239,

255–257 user satisfaction, 222 website databases, 239, 243 See also Social networking websites

Interns, 55 Internships, 246–247 Interpersonal conflicts, 694, 711 Interpersonal relationships, in O*NET

system, 168 Interrater agreement, 332–334 Interval scales, 318 Interviews

exit interviews, 697–698 initial interviews, 402–403 integrity tests vs., 460 in job analysis, 171, 173 job rewards and, 187–188, 190 online computer-based, 403–404 simulations, 538–539 See also Structured interviews

Intranets, 286 Intrarater agreement, 335 Intrinsic rewards, 185, 710–712 Involuntary turnover

discharge turnover, 694, 704–705 downsizing turnover, 694–695,

706–707, 726–729 IQ, cognitive ability tests and, 443–448 Item banking, 435–436

Jackson Hewitt, 400 Jewel-Osco, 245 Job analysis, 153–201

competency-based, 156–157, 177–184 criterion-related validation, 340–345 essential job functions, 194–195 job design and, 157–159 job requirements approach, 157, 159–168 legal issues, 193–195 O*NET and, 164–168, 183 Position Analysis Questionnaire, 169 purpose of, 156–159 reward-based, 157, 185–192

types of, 156–157 in validation studies, 340–345

Job analysts, 174, 175 Job applicant, defined, 252–254 Job applicants. See Applicants Job autonomy, 710 Job context, in job analysis, 168 Job Corps program, 245 Job descriptions, 157–159, 168–169

See also O*NET (Occupational Information Network)

Job design, 157–159 Job dissatisfaction, 694, 698–699 Job fairs, 245–246 Job incumbents, 174, 175 Job knowledge tests, 449–450, 527–528 Job offers, 598–599, 603–625

acceptance terms, 615, 623–624 applicant truthfulness/deceit, 618 compensation, 607–612 confidentiality clauses, 614 contract duration, 606–607 hiring bonuses, 610–611 idiosyncratic deals, 612–613 knowledge of competitors, 617–618 legal issues, 633–635 negotiation policies, 619–622 noncompete agreements, 614 payback agreements, 614–615 presentation of, 622–623 rejections, 624 relocation assistance, 611 reneging of, 615, 624–625 retention counteroffers, 715 sample job offer letter, 615–616 strategic approach to, 604–606 timing of, 623 See also Contracts

Job Openings and Labor Turnover Survey (JOLTS), 696–697

Job posting systems, 286–288, 293 Job redesign, 710 Job relatedness, in court cases, 192 Job requirements job analysis, 157,

159–168 competency-based vs., 156–157 examples of, 178, 180–181 information collection methods,

169–177 internal vs. external analysts, 176 job context, 168 job descriptions, 152–159, 168–169 job requirements matrix, 175 job specifications, 168–169, 170 KSAOs and, 163–168 matrix, 160–168 process of, 175–177 task dimensions, 162–163, 164 task statements, 162

Job requirements matrix job analysis and, 160–168, 175, 340 peer assessments and, 520 structured interviews and, 470–471

Job rewards, 185–192 alternative mobility paths, 275 employee value proposition, 185–186,

187 extrinsic rewards, 185, 708–710 information collection methods,

186–192 interviews and, 187–188, 190 intrinsic rewards, 185, 710–712 retention management, 708–712 surveys, 187–192

Job satisfaction, 698–699, 708–712 Job Satisfaction survey (SHRM), 190–192 Job security, 602 Job seekers. See Applicants Job specifications, in job analysis,

168–169, 170 JP Morgan Chase, 12 Judgmental forecasting, 110 Justice, perception of, 711

Kano analysis, 565 Kmart, 353 Knowledge, defined, 164–165 KSAOs (knowledge, skill, ability, and

other characteristics) access to electronic recruitment

methods and, 256 assessment centers and, 531–532 career questionnaires and, 292 defined, 163 employment tests and discrimination,

76 in external selection, 373, 376–377 general vs. specific, 32 glass ceiling and, 542–543 hiring decisions and, 585–586 importance ratings, 167–168 job-related resume search terms, 256 job requirements job analysis and,

163–168 labor demand and, 98–100 labor supply and, 102 legal compliance and, 49 letters of recommendation scoring

and, 397 negligent hiring claims and, 634 organization-specific, 713 peer assessments and, 520–521 performance tests and work samples,

456 person/job match model, 16–18 structured interviews and, 470–471,

475–476 talent management and, 288–289, 519

1259756556_ch15_index_p743_764.indd 758 12/8/17 1:08 PM

SUBJECT INDEX 759

in targeted recruitment, 211–213 technological advances and, 102

Labor Department (DOL), 58 economic realities test, 52–53 employer penalties, 52 independent contractors, 52–53 Job Openings and Labor Turnover

Survey, 696–697 one-stop career centers, 245 reinstatement of veterans, 81–82 on retention and turnover, 690 See also Bureau of Labor Statistics

(BLS); Office of Federal Contract Compliance Programs (OFCCP)

Labor market conditions, 605, 695 Labor markets, 97–102

demand, 98 employment arrangements and, 101–102 KSAOs in demand, 98–100 shortages/surpluses, 31, 100–101 statistical information, 7–8 trends, 99–100, 102

Labor unions on background checks, 401 internal selection and, 525 organizational culture and, 95

Lateral track system, 273–275 Lattice track system, 273–275 Laws and regulations, 55–58

See also Legal compliance; Legal issues; specific laws and regulations

Layoffs, 728–729 See also Downsizing turnover

Leadership development, 11–12, 117–118, 290–291

Learning contracts, 247 Legal compliance, 47–90

civil service laws, 83 EEO/AA enforcement, 61–67 EEO/AA provisions, 58–61, 69–79 employment relationship, 50–55,

633–635 federal law overview, 79–82 laws and regulations, 55–58 state/local laws, 82–83 See also specific laws

Legal counsel, 128, 614, 679 Legal issues

AAPs and, 139–142, 254 advertisements, 257 audits, 675, 677 “Ban the Box” laws, 401, 414–415 bona fide occupational qualification

(BFOQ), 296, 417–419 breach of contract claims, 598, 599 compensatory damages, 67, 598 constitutionality of diversity programs,

139, 141–142

disclaimer statements, 384, 410, 602–603, 634

dispute resolution, 678–680 electronic recruitment, 254, 256–257 employment-at-will, 51, 56, 602–603,

635 employment contracts, 633–635 employment eligibility verification,

79–80 essential job functions, 75, 194–195 external recruitment, 252–258 external selection, 384, 409–419,

488–494 fraud and misrepresentation, 257–258 glass ceiling and, 295, 298–300,

542–543 hiring decisions and, 584–586 internal recruitment, 295–300 internal selection, 541–543 job analysis and, 193–195 job applicant, defined, 252–254 job offers and, 633–635 job relatedness, 192 measurement, 359–360 negligent hiring claims, 634–635 outsourcing and, 130 planning, 134–143 privacy, 674–675 promissory estoppel, 598 punitive damages, 67, 598 record keeping, 673–675 reference checks, 410–411 retention management, 730–731 seniority/merit systems, 296 social networking sites, 241, 411–412 staffing system management,

673–680 standardization of procedures, 358 testing and assessment, 359–360 workplace tort cases, 56, 257–258 See also Adverse impact; Statutory law;

specific laws Letters of recommendation, 396–397,

401–402 Licensing and certification requirements,

389–390 Lie detectors, 80–81 LinkedIn, 235, 240, 398 Litigation process

basis of, 49–50 consent decree, 67–68 remedies, 66–67 under Title VII, 66–67

Logic of prediction, 373–374, 516–517 Low-fidelity tests, 454–456

MacQuarrie Test for Mechanical Ability, 448

Major League Baseball, 401

Major life activities, defined, 74 Managers

availability forecasts, 111–112 employment law training, 677–678 hiring decisions and, 583 internal selection and, 521–523 performance management and,

720–725 role in HRP, 112–113 See also Supervisors

ManpowerGroup, 30 Markov Analysis, 112–115 Mars, 719 Measurement, 311–370

application blanks, 390–391 biodata, 392–395 central tendency, 319–320 coefficient alpha calculation, 332 collection of assessment data,

351–355 correlation between scores, 322–327 correlation coefficient, 322–327 defined, 315–316 error, 330–331, 335–336 examples of, 316 importance of, 314–315, 326–327 legal issues, 359–360 levels of, 317–318 objective vs. subjective measures,

318–319 reliability of, 327–336 scores, 319–327 staffing metrics and benchmarks, 351 standardization, 316–317 of turnover, 695–697 validation studies, 339–348 validity generalization, 348–351 validity of, 336–339 See also Testing and assessment

Mediation, 66, 678–680 Medical exams, 76, 488, 490–493 Medical records, 76 Mental impairments as disability, 73–75 Mentors, 521–523, 630–631 Mercer Management Consulting, 714 Merck, 224 Merico Hotels, 278 Merit principles, 83 Merit systems. See Seniority/merit

systems Metrics

recruitment metrics, 248–251, 292–294

staffing process, 351, 666–673 See also Measurement

Metropolitan Life, 668–669 Microsoft, 224, 614 Millennial generation, 242 Minnesota Clerical Test, 449

1259756556_ch15_index_p743_764.indd 759 12/8/17 1:08 PM

760 SUBJECT INDEX

Minorities advancement opportunities, 299 affirmative action and, 67, 134–139 availability determination, 136 cognitive ability tests and, 446–447 disparate treatment and impact, 64,

88–89 drug tests and, 487 See also Affirmative Action Plans

(AAPs); Diversity Misconduct, 35, 725–726 Mitsubishi, 453 Mixed motive defenses, 70 Mobile device applicants, 253 Mobility paths

alternative, 273–275 hierarchical, 272–273 internal recruitment and, 271–276 policies, 275–276

Monster, 238 Motorola, 29 Multiple hurdles model, 570–571 Multiple regression weighting, 569–570,

700 Myers-Briggs Type Inventory (MBTI), 464 MySpace, 398

National Career Readiness Certificate, 245 National City Corporation, 632–633 National Compensation Survey (BLS), 192 National Football League (NFL), 375,

438, 443 National Institute for Drug Abuse

(NIDA), 484 National Study of the Changing

Workforce, 712 National Transportation Safety Board

study, 482 National Work Readiness Credential, 245 Negligent hiring claims, 634–635 Negotiation policies, in job offers,

619–622 NEO Personality Inventory, 434 New employee orientations, 626–633, 659 Newspapers, online ads, 230 NextGen (software), 528 Niche employment websites, 238–239 Nippon Steel, 477 Nissan, 245 Nominal scales, 317 Nominations, for internal recruitment,

289, 293 Noncompete agreements, 614

O*NET (Occupational Information Network)

job analysis and, 164–168, 183 job context, 168 salary information, 617

Objective Inventory Questionnaire, 450 Observation, in job analysis, 171, 173 Offers. See Job offers Office of Federal Contract Compliance

Programs (OFCCP), 58 Affirmative Action Program

Regulations, 67, 69, 78, 135, 254, 295–296, 674, 675–676

conciliation process, 69 demographic applicant data, 254 enforcement of laws, 67, 69 Internet applicants, defined, 253–254 record maintenance, 674

Offshoring, 29–30, 128–130 See also Outsourcing

Ohio Civil Rights Commission, 418–419 Older workers

advertisements and, 73, 257 labor force trends and, 99 targeted messages and, 223, 225

On-call workers, 101 100 Best Companies to Work For report

(Fortune), 719 One-stop career centers, 245 Online ads, 229–230 Online application process.

See Internet recruitment Open internal recruitment system,

277–278, 279 Open recruitment, 211–213 Opportunistic hiring, 20 Oracle/Peoplesoft, 403, 519 Oral contracts, 601–602 Oral presentations, 538–539 Ordinal scales, 317 Oregon Liberal Arts Placement

Consortium, 242 Organizational culture, 95–96, 119 Organizational effectiveness, 11–12 Organizational leaders, 581–582

See also Managers; Supervisors Organizational strategy, 94–95 Orientations, 626–633, 659 Other characteristics, in O*NET system,

165, 166–167 Outback Steakhouse, 721 Outsourcing

overview, 28, 29–30 flexible workforce and, 128–130 of résumé-tracking services, 379 service-level agreements, 663 of staffing functions, 660–663

Parallel track system, 273–275 Participative staffing systems, 652–655 Part-time workers, 101–102 Passive candidates, 241 Patterned Behavior Description Interview,

468

Pay. See Compensation Payback agreements, 614–615 PDI Employment Survey, 460 Peer assessments, 519–521 Penalties, 81, 725–726 Pension plans, 720 PEO (Professional employer

organization), 662 Percentile scores, 320–321 Performance appraisals

downsizing turnover, 727 internal selection, 528–530 laws and regulations, 730–731 succession planning and, 119

Performance management disciplinary process, 724 managerial training and rewards, 709 performance counseling, 724 as retention initiative, 720–725

Performance tests and work samples, 453–456

Permatemps, 54 Personal Characteristics Inventory (PCI),

434 Personality, 375, 403 Personality tests, 433–442, 461, 538 Person/job match model

overview, 6, 16–18, 20, 32 career questionnaires and, 292 discharge turnover, 694 employment relationship and, 50–51

Personnel Decisions International, 538 Personnel files, 675 Personnel Reaction Blank, 460 Personnel Selection Inventory, 460 Person/organization match model, 6,

18–20, 32 Peter Principle, 529 Pfizer, 14 Physical ability tests, 448–449 Physical impairments as disability, 73–75 Physical work conditions, in O*NET

system, 168 PilatHR Solutions, 290 Piper Aircraft, 729 Planning, 92–151

AAPs in, 134–139, 142 core vs. f lexible workforce, 124–128 core workforce, 28–29 diversity planning, 130–134 employee shortages/surpluses,

122–124 for external recruitment, 208–219 flexible workforce, 101–102, 124–130 internal and external influences on,

94–102 for internal recruitment, 271–283 labor markets, 97–102 legal issues, 134–143

1259756556_ch15_index_p743_764.indd 760 12/8/17 1:08 PM

SUBJECT INDEX 761

organizational culture, 95–96, 119 organizational strategy, 94–95 outsourcing, 128–130 qualitative staffing objectives, 122 quantitative targets, 121–122 staffing planning, 121–130 technology and, 102 See also Human resource planning

(HRP); Succession planning Policies and procedures

fetal protection, 417, 419 job offer negotiations, 619–622 mobility paths, 275–276 staffing system management, 655–657 starting pay, 608–609

Politics in workplace, 516–517 Polygraph tests, 80–81, 460 Position Analysis Questionnaire (PAQ),

169 Postcard recruitment, 231 Post-exit surveys, 698 Power relationships, 55 Practical significance, 559 Prediction, logic of, 373–374, 516–517 Predictive analytics, 564–565, 699–700 Predictive validation studies, 342–344 Predictors

in external selection, 374–375, 405–409

hiring decisions and, 560, 566–571 in internal selection, 517

Preemployment inquiry (PI), 415–417 Preferential treatment, 72 Pregnancy

BFOQ exclusion and, 417, 419 discrimination based on, 69, 71, 417,

419 as protected class, 62

Presrite Corporation, 68 Principles for the Validation and Use of

Personnel Selection Procedures (SIOP), 354–355

Prior information, in job analysis, 169, 173 Privacy, as legal issue, 674–675 Privacy Act (1974), 675 Product-moment correlation coefficient,

325 Professional employer organization

(PEO), 662 Professional organizations, 241 Progressive discipline systems, 725–726 Promises and legal issues, 598, 599 Promissory estoppel, 598 Protected classes, under EEOC, 62 Psychological Assessment Resources, 354 Psychological Corporation, 443 Psychological Services, Inc., 354 Psychomotor ability tests, 448 Punitive damages, 67, 598

Pupillary reaction tests, 484 PWC, 12

Qualifications. See KSAOs (knowledge, skill, ability, and other characteristics)

Qualified individual, defined, 75 Quotas, 72

Race norming of test scores, 71 Racioethnic minorities. See Minorities Radio advertisements, 231 RadioShack, 381 Random selection, 579 Ranking, 579–580 Ratio analysis, 109–110 Rational weighting, 569 Ratio scales, 318 Realistic job preview (RJP), 225–228,

284–285 Reasonable accommodation, under ADA,

75–76, 254, 256, 296, 490 See also Americans With Disabilities

Act (ADA) (1990) Reasonable factors other than age

(RFOA), 72–73 Reconciliation and gaps in HRP,

119–121 Record keeping, 252–254, 673–675 Recovering substance abusers, 74 Recruiters

applicant reactions, 220–221 job offers and, 600

Recruitment. See External recruitment; Internal recruitment

Recruitment agencies, 213–214 Recruitment brochures, 232, 285 Recruitment guides, 217, 218, 280,

281–282 Recruitment messages, 223–236

in advertisements, 229–232 brand messages, 223–224, 227–228, 284 on company websites, 232–233, 234 comparison of, 227–228 direct contact and, 233–235 external recruitment and, 223–236 internal recruitment and, 284–286 realistic messages, 225–228, 284–285 in recruitment brochures, 232, 285 selection of communication media,

229–236 social networking sites, 235–236 targeted messages, 223, 224–225,

227–228, 284–285 in videos and videoconferencing, 233,

285 word of mouth referrals and, 235–236,

286 Red Frog Events, 605

Reduction in force (RIF), 692, 707 Reference checks, 398, 401–402, 410–411 Regression analysis, 109–110 Rehabilitation Act (1973), 60, 78, 142 Reid Report, 460 Rejections of job offers, 624 Reliability of measurement

calculation of estimates, 331–335 error component, 330–331 implications of, 335–336 of initial assessment methods, 408 of substantive assessment methods, 479 types of, 327–336 validity and, 336

Reliability Scale of the Hogan Employment Inventory, 460

Relocation assistance, 611 Reneging of job offers, 615, 624–625 REPeValuator test, 455 Replacement plans, 115–116, 117,

290–291, 293 Requisitions for job openings, 215 Responsibilities. See Task dimensions Résumé-Doctor, 381 Résumés

electronic submission of, 3 errors in, 382 in external selection, 379–383 fabrication/distortion in, 381 keywords in, 382 video presentation of, 380

Résumé-tracking services, 379 Retaliation, 35, 61 Retention management, 687–742

overview, 10–11, 18, 26, 29 anonymous post-exit surveys, 698 causes of turnover, 690–695 compensation, 707–709, 714 cost-benefits analysis of turnover,

700–707, 729 counteroffers, 715 decision process, 715–717 desirability of leaving, 693, 708–712 discharge initiatives, 705–709 downsizing initiatives, 726–729 ease of leaving, 693–694, 713–714 effectiveness of initiatives, 718 employee satisfaction surveys, 698–699 exit interviews, 697–698 internal transfers, 714–715 layoff survivors, 728–729 legal issues, 730–731 measurement of turnover, 695–697, 729 no-layoff guarantees, 728 performance management, 709,

720–725 predictive analytics, 699–700 progressive discipline, 724, 725–726 reasons for leaving, 697–699

1259756556_ch15_index_p743_764.indd 761 12/8/17 1:08 PM

762 SUBJECT INDEX

retention bonuses, 709, 714 retention bundles, 720 staffing levels and quality, 694–695,

727 types of turnover, 690–692 voluntary turnover initiatives, 707–720

Retraining, 102 Reuters, 351 Reward-based job analysis, 157 Rewards. See Job rewards RFOA. See Reasonable factors other than

age (RFOA) RIF (Reduction in force), 692, 707 The Rights and Responsibilities of Test

Takers (APA), 355 Right to sue letter, 65 Role-play, 538

Saba Succession, 290 Safeway, 300 Salary survey websites, 632 Sales approach, in job offers, 622–623 Same-sex personal contact, as job

requirement, 417, 419 SAP America, 710–711, 721 SAP Software, 519 SAS Institute, 29 Scatter diagrams, 322 Scenario planning, 111 Scores, 319–327

central tendency and variability, 319–320

correlations between, 322–327 defined, 319 percentiles, 320–321 scatter diagrams, 322 standard scores, 321–322 See also Cut scores

Screenr (software), 380 Selection ratio, 561 Self-assessment, 521, 522 Seniority/merit systems

BFOQs and, 71, 296 discrimination and, 71 internal selection, 526–527 legal issues, 296 principles of, 83 retention management, 709

Sensory/perceptual ability tests, 449 Sentence analysis technique, task

statements, 162 Separation costs, 701–704, 729 Separation laws and regulations, 730–731 Service-level agreements (SLAs), 663 Severance packages, 611–612, 707 Shareholder value, 707 SHRM. See Society for Human Resource

Management (SHRM)

Signing bonuses, 610–611 Silk Road Technology, 290 SIOP. See Society for Industrial and

Organizational Psychology (SIOP) Situational judgment tests, 456–459, 472,

536 Situational Test of Emotional

Understanding, 451 Situational Test of Emotion Management,

451 Skills, defined, 165, 166 Smoking, 486 Socialization of new employees, 628–631 Social networking websites

access to electronic recruitment methods and, 256

HRIS and, 659 protected group access to, 256 recruitment and, 240–241 recruitment messages, 235–236 in reference checks, 398, 411–412 See also Internet recruitment; specific

websites Social service agencies, 245 Society for Human Resource Management

(SHRM) Annual Benefits Survey, 192 on changing demographics, 131 code of ethics, 34 company benchmarks, 351 disclaimer statements, 602–603 on drug testing, 482 Job Negotiation Survey, 619 Job Satisfaction survey, 190–192 on KSAOs in labor supply, 100 on staffing metrics, 668 on strategic planning, 95 Testing Center, 354

Society for Industrial and Organizational Psychology (SIOP), 34, 354

Software-as-a-service (SaaS) providers, 659, 660

Sonesta Hotels, 632 Sony, 224 Southcoast Hospitals Group, 632 SparkHire .com, 380 Speed hiring, 672 Split sample analysis, 667–668 Sponsors, 521–523 Staffing, defined, 10–12, 50 Staffing firms

fees, 126 flexible workforce and, 101–102,

125–128 legal compliance, 142–143 selection of, 126–128 temporary employees, 54

Staffing flowcharts, 664–665

Staffing levels retention management, 694–695, 727 staffing strategy and, 27–31 workforce head count, 6, 15, 694–695,

727 Staffing models and strategy, 5–43

acquisition strategy, 27–28 attract staff vs. relocate, 30 core vs. flexible workforce, 28–29,

124–128 diversity, 32–33 ethical practices, 33–36 exceptional vs. acceptable workforce, 32 external vs. internal staffing, 28 importance of, 7–9 KSAOs, 16–18, 32 organizational effectiveness and, 11–12 outsourcing, 28, 29–30 overstaff vs. understaff, 30 person/job match, 6, 16–18, 20, 32 person/organization match, 6, 18–20, 32 as process/system, 11 retention management, 10–11, 26, 29 short-term vs. long-term focus, 31 staffing, defined, 10–12, 50 staffing levels, 15–16, 27–31 staffing organizations model, 23–26 staffing quality, 32–33 system components, 20–23

Staffing organizations model chart of, 23 core staffing activities, 25–26 retention management, 26 staffing strategy, 24–25 support activities, 25

Staffing planning. See Planning Staffing strategy. See Staffing models and

strategy Staffing system management, 649–686

components of, 20–23 effectiveness of technologies, 660 evaluation of, 663–673 HRIS, 657–660 legal issues, 673–680 mission, 651–652 organizational arrangements, 652–655 outsourcing, 660–663 policies and procedures, 655–657 staffing flowcharts, 664–665 staffing process metrics, 351, 666–673 standardization of processes, 663–664 training on employment law, 677–678 web-based systems, 659

Standard error of measurement (SEM), 335–336

Standardization of measurement, 316–317 of testing procedures, 353, 358

1259756556_ch15_index_p743_764.indd 762 12/8/17 1:08 PM

SUBJECT INDEX 763

Standard scores, 321–322 Stanton Survey, 460 Starting dates, in job offers, 606 State employment services, 245 State governments, 61

See also Statutory law Statistical evidence, 64–65 Statistical forecasting, 108–111 Statistical significance, 559 Statutory law

on advance notice when quitting, 607 on background checks, 413, 414–415 basis of, 57 EEO/AA laws, 82 fair enforcement practice (FEP) law, 65 noncompete agreements, 614 on preemployment inquiry, 417 on privacy rights, 674–675 on reference checks, 411 on tests for smoking habits, 486 transportation workers, 494

Sterling, 400 Stock options, 609–610, 709 Strong Vocational Interest Blank (SVIB),

464 Structural job characteristics, in O*Net

system, 168 Structured interviews, 466–475

adverse impact, 480 characteristics, 466, 467–469 error/bias in, 466–467 evaluation of, 469–474 external selection and, 466–475 job requirements matrix and, 470–471 KSAOs and, 470–471, 475–476 in team environments, 475–477 training of interviewers, 474–475 video interviews, 469 See also Interviews

Students, recruitment of, 225, 242–243, 246–247

Subject matter experts (SMEs), 175, 183 Substance abuse

alcohol tests, 486 drug tests, 482–488, 493 rights of recovering abusers, 74 types of detection tests, 483–484

Substantive assessment methods external selection, 432–481 internal selection, 525–540 validity of measurement, 479

Succession planning, 116–119, 290–291, 293, 518–519

Sun Microsystems, 626 Suntrust Bank, 455 Supervisors

abusive behavior by, 711–712 decentralized recruitment by, 214–215

internal recruitment and selection, 284–285, 289, 516–517, 521–523

interpersonal conflicts with, 694, 711 job analysis and, 175 justice perceptions and, 711 See also Managers

Surveys on downsizing, 711–712 employee satisfaction surveys, 698–699 Great Place to Work Trust Index

survey, 719 Harris Interactive surveys, 626 human capital benchmark surveys, 668 Job Openings and Labor Turnover

Survey, 696–697 job rewards and, 187–192 National Compensation Survey, 192 National Study of the Changing

Workforce, 712 online exit surveys, 699 salary survey websites, 617 SAP America, 710–711 on turnover, 708–709, 710 work/life balance, 712 WorldatWork surveys, 718–719 See also Society for Human Resource

Management (SHRM); specific assessment methods and tests

Survivor sickness, 728 Sweatshops, 130 SWOT analysis, 95

Talent management systems, 270–271, 288–289, 291–292, 293, 518–519

Targeted recruitment, 211–213, 223, 237 Task dimensions, 162–163, 164 Task questionnaires, 171–172, 173 Task statements, 162 Taylor-Russell tables, 561–563 Teams, 158, 275, 475–477, 583 Technology

assistive, 74, 256, 490 electronic recruitment, 254 staffing planning and, 102 See also specific tools and software

Telephone direct contact, 233–235 Television advertisements, 231 Telework, 75, 712 Temporary employees, 54, 142–143 Temporary employment agencies.

See Staffing firms Temporary worker visas, 80 Temp-to-perm workers, 126 Testing and assessment

ban on race norming, 71 best practices, 358–359 computer vs. paper/pencil, 455 discrimination and, 71, 76

faking and, 395, 440–442, 462–463, 487 Internet-based, 353–354 legal issues, 359–360 professional standards, 355 qualifications of test administrators,

352 reasonable accommodation under

ADA, 76, 490 security of tests, 352–353 standardization of procedures, 353, 358 See also specific assessment methods

and tests Test-retest reliability, 334–335 Test taker rights, 355 Thrivent, 668 Title inflation, 517 Title VII. See Civil Rights Acts

(Title VII) T-Mobile, 398 Tort law, 56–57, 257–258, 496 Trainees, 55 Training

to conduct structured interviews, 474–475

costs and turnover, 701–704 on employee termination, 725 on employment law, 677–678 organization-specific KSAOs, 713 on performance management, 723, 725 succession planning and, 118

Transportation Security Administration (TSA), 353–354, 494

Trend analysis, 108–110 Turnover

analysis of, 695–707 causes of, 690–695 discharge turnover, 694, 704–709 downsizing turnover, 694–695,

706–707, 726–729 measurement of, 672, 695–697, 729 mobility paths and, 275 RJPs and reduction of, 226 voluntary turnover, 690, 693–694,

701–704, 707–720 See also Retention management

Twitter, 240, 380

UBS, 380 Undue hardship, 75–76 Unicru, 353 Uniformed Services Employment

and Reemployment Rights Act (USERRA) (1994), 81–82

Uniform Guidelines on Employee Selection Procedures (UGESP)

applicant, defined, 252–254 on cut scores and adverse impact,

584–585

1259756556_ch15_index_p743_764.indd 763 12/8/17 1:08 PM

764 SUBJECT INDEX

explanation of, 71 on job analysis, 193 on selection and adverse impact, 356,

414, 488–489, 493, 541–542 Union Pacific Railroad, 486 United Parcel Service (UPS), 721 Unit weighting, 568–569 University of Louisville, 381 Urine tests, 483–484 US Army, recruitment methods, 231 US Citizenship and Immigration Services,

58, 79–80 USERRA. See Uniformed Services

Employment and Reemployment Rights Act (USERRA) (1994)

US Health and Human Services Department, 484

USIS, 400 US Marine Corps, branding strategy, 224 US Postal Service, 402, 486–487 Utility analysis, 408–409, 563–564, 635 Utilization analysis, 357

Vacancy time, 670, 672 Validation studies, 339–348

concurrent validation, 342–344 construct validation, 340 content validation, 346–348 criterion-related validation, 340–345 predictive validation, 342–345

Validity coefficient, 558–559 Validity generalization, 348–351 Validity of measurement

accuracy of measurement, 337–338 accuracy of prediction, 338–339

assessment centers and, 535–537 in assessment methods, 558–559 initial assessment methods, 408, 524,

525 personality tests, 437–440 reliability and, 336 substantive assessment methods, 479

Values inventories, 464–466 Veterans, 77, 81–82, 142 Veterans Employment and Training

Service (VETS), 81–82 Videos and videoconferencing

initial screening interviews, 403–404 in recruitment, 233, 285 résumé presentations, 380 structured interviews and selection,

469 Violence in workplace, 402 Visas, 80 Voluntary turnover, 690, 693–694,

701–704, 707–720

Wal-Mart, 400, 434 Wawa Inc., 669 Web-based recruitment. See Internet

recruitment Website design, 234 Wegmans, 721 Welfare-to-work programs, 143 Williams Insurance Service, 569 W. L. Gore & Associates, 13–14, 475 Women

advancement opportunities, 299 affirmative action and, 67, 69,

134–139

availability determination, 136 glass ceiling and, 295, 298–300,

542–543 in labor force demographics, 130 pay expectations and, 608 See also Affirmative Action Plans

(AAPs); Diversity Wonderlic, 354 Wonderlic Personnel Test, 354, 375, 443,

447 Workforce

aging of, 133–134 demographics of, 72, 130–131 head count, 6, 15, 107, 122, 694–695,

727 quality of, 7 trends, 102 See also Core workforce; Flexible

workforce Workforce planning software, 111 Work/life balance, 130, 712 Workplace violence, 402 Work teams. See Teams WorldatWork surveys, 718–719 Written employment contracts,

600–601 See also Contracts

Yahoo, 12

1259756556_ch15_index_p743_764.indd 764 12/8/17 1:08 PM

  • Cover
  • Staffing Organizations
  • Author Profiles
  • Preface
  • Contents
  • Part One The Nature of Staffing
    • Chapter One Staffing Models and Strategy
      • Learning Objectives and Introduction
        • Learning Objectives
        • Introduction
      • The Nature of Staffing
        • The Big Picture
        • Definition of Staffing
        • Implications of Definition
        • Staffing System Examples
      • Staffing Models
        • Staffing Quantity: Levels
        • Staffing Quality: Person/Job Match
        • Staffing Quality: Person/Organization Match
        • Staffing System Components
        • Staffing Organizations
      • Staffing Strategy
        • Staffing Levels
        • Staffing Quality
      • Staffing Ethics
      • Plan for the Book
      • Summary
      • Discussion Questions
      • Ethical Issues
      • Applications
        • Staffing for Your Own Job
        • Staffing Strategy for a New Plant
      • Endnotes
  • Part Two Support Activities
    • Chapter Two Legal Compliance
      • Learning Objectives and Introduction
        • Learning Objectives
        • Introduction
      • The Employment Relationship
        • Employer–Employee
        • Independent Contractors
        • Temporary Employees
        • Unpaid Interns and Trainees
      • Laws and Regulations
        • Need for Laws and Regulations
        • Sources of Laws and Regulations
      • EEO/AA Laws: General Provisions and Enforcement
        • General Provisions
        • Enforcement: EEOC
        • Enforcement: OFCCP
      • EEO/AA Laws: Specific Staffing Provisions
        • Civil Rights Acts (1964, 1978, 1991)
        • Age Discrimination in Employment Act (1967)
        • Americans With Disabilities Act (1990, 2008)
        • Genetic Information Nondiscrimination Act (2008)
        • Rehabilitation Act (1973)
        • Executive Order 11246 (1965, 1967, 2014)
      • Other Staffing Laws
        • Federal Laws
        • State and Local Laws
        • Civil Service Laws and Regulations
      • Legal Issues in Remainder of Book
      • Summary
      • Discussion Questions
      • Ethical Issues
      • Applications
        • Age Discrimination in a Promotion?
        • Disparate Impact: What Do the Statistics Mean?
      • Endnotes
    • Chapter Three Planning
      • Learning Objectives and Introduction
        • Learning Objectives
        • Introduction
      • Internal and External Influences
        • Organizational Strategy
        • Organizational Culture
        • Labor Markets
        • Technology
      • Human Resource Planning
        • Process and Example
        • Initial Decisions
        • Forecasting HR Requirements
        • Forecasting HR Availabilities
        • Reconciliation and Gaps
      • Staffing Planning
        • Staffing Planning Process
        • Core Workforce
        • Flexible Workforce
        • Outsourcing
      • Diversity Planning
        • Demography of the American Workforce
        • Business Case for Diversity
        • Planning for Diversity
      • Legal Issues
        • Affirmative Action Plans
        • Legality of AAPs and Diversity Programs
        • AAPs for Veterans and Individuals With Disabilities
        • EEO and Temporary Workers
      • Summary
      • Discussion Questions
      • Ethical Issues
      • Applications
        • Markov Analysis and Forecasting
        • Deciding Whether to Use Flexible Staffing
      • Endnotes
    • Chapter Four Job Analysis and Rewards
      • Learning Objectives and Introduction
        • Learning Objectives
        • Introduction
      • The Need for Job Analysis
        • Types of Job Analysis
        • The Changing Nature of Jobs
      • Job Requirements Job Analysis
        • Overview
        • Job Requirements Matrix
        • Job Descriptions and Job Specifications
        • Collecting Job Requirements Information
      • Competency-Based Job Analysis
        • Overview
        • Nature of Competencies
        • Collecting Competency Information
      • Job Rewards
        • Types of Rewards
        • Employee Value Proposition
        • Collecting Job Rewards Information
      • Legal Issues
        • Job Relatedness and Court Cases
        • Essential Job Functions
      • Summary
      • Discussion Questions
      • Ethical Issues
      • Applications
        • Conducting a Job Requirements or Job Rewards Job Analysis
        • Maintaining Job Descriptions
      • Endnotes
  • Part Three Staffing Activities: Recruitment
    • Chapter Five External Recruitment
      • Learning Objectives and Introduction
        • Learning Objectives
        • Introduction
      • Strategic Recruitment Planning
        • Defining Strategic External Recruitment Goals
        • Open Versus Targeted Recruitment
        • Organization and Administration
      • Applicant Reactions
        • Reactions to Job and Organizational Characteristics
        • Reactions to Recruiters
        • Reactions to the Recruitment Process
        • Reactions to Diversity Issues
      • Communication
        • Communication Message
        • Communication Media
      • Strategy Implementation
        • Individual Recruitment Sources
        • Social Recruitment Sources
        • Organizational Recruitment Sources
        • Recruitment Metrics
      • Transition to Selection
      • Legal Issues
        • Definition of a Job Applicant
        • Affirmative Action Programs
        • Electronic Recruitment
        • Job Advertisements
        • Fraud and Misrepresentation
      • Summary
      • Discussion Questions
      • Ethical Issues
      • Applications
        • Improving a College Recruitment Program
        • Internet Recruitment
      • Endnotes
    • Chapter Six Internal Recruitment
      • Learning Objectives and Introduction
        • Learning Objectives
        • Introduction
      • Strategic Recruitment Planning
        • Defining Strategic Internal Recruitment Goals
        • Mobility Paths and Policies
        • Closed, Open, and Hybrid Recruitment
        • Organization and Administration
        • Timing
      • Applicant Reactions
      • Communication
        • Communication Message
        • Communication Media
      • Strategy Implementation
        • Recruitment Sources
        • Recruitment Metrics
      • Transition to Selection
      • Legal Issues
        • Affirmative Action Programs
        • Bona Fide Seniority Systems
        • The Glass Ceiling
      • Summary
      • Discussion Questions
      • Ethical Issues
      • Applications
        • Recruitment in a Changing Internal Labor Market
        • Succession Planning for a CEO
      • Endnotes
  • Part Four Staffing Activities: Selection
    • Chapter Seven Measurement
      • Learning Objectives and Introduction
        • Learning Objectives
        • Introduction
      • Importance and Use of Measures
      • Key Concepts
        • Measurement
        • Scores
        • Correlation Between Scores
      • Quality of Measures
        • Reliability of Measures
        • Validity of Measures
        • Validation of Measures in Staffing
        • Validity Generalization
        • Staffing Metrics and Benchmarks
      • Collection of Assessment Data
        • Testing Procedures
        • Acquisition of Tests and Test Manuals
        • Professional Standards
      • Legal Issues
        • Determining Adverse Impact
        • Standardization
        • Best Practices
      • Summary
      • Discussion Questions
      • Ethical Issues
      • Applications
        • Evaluation of Two New Assessment Methods for Selecting Telephone Customer Service Representatives
        • Conducting Empirical Validation and Adverse Impact Analysis
      • Endnotes
    • Chapter Eight External Selection I
      • Learning Objectives and Introduction
        • Learning Objectives
        • Introduction
      • Preliminary Issues
        • The Logic of Prediction
        • The Nature of Predictors
        • Development of the Selection Plan
        • Selection Sequence
      • Initial Assessment Methods
        • Résumés and Cover Letters
        • Application Blanks
        • Biographical Information
        • Reference and Background Checks
        • Initial Interview
        • Choice of Initial Assessment Methods
      • Legal Issues
        • Disclaimers
        • Reference Checks
        • Social Media Screening
        • Background Checks: Credit and Criminal
        • Preemployment Inquiries
        • Bona Fide Occupational Qualifications
      • Summary
      • Discussion Questions
      • Ethical Issues
      • Applications
        • Reference Reports and Initial Assessment in a Start-Up Company
        • Developing a Lawful Application Blank
      • Endnotes
    • Chapter Nine External Selection II
      • Learning Objectives and Introduction
        • Learning Objectives
        • Introduction
      • Substantive Assessment Methods
        • Personality Tests
        • Ability Tests
        • Emotional Intelligence Tests
        • Performance Tests and Work Samples
        • Situational Judgment Tests
        • Integrity Tests
        • Interest, Values, and Preference Inventories
        • Structured Interview
        • Selection for Team Environments
        • Choice of Substantive Assessment Methods
      • Discretionary Assessment Methods
      • Contingent Assessment Methods
        • Drug Testing
        • Medical Exams
      • Legal Issues
        • Uniform Guidelines on Employee Selection Procedures
        • Selection Under the Americans With Disabilities Act
        • Marijuana and Other Drug Testing
      • Summary
      • Discussion Questions
      • Ethical Issues
      • Applications
        • Assessment Methods for the Job of Human Resources Director
        • Choosing Among Finalists for the Job of Human Resources Director
      • Endnotes
    • Chapter Ten Internal Selection
      • Learning Objectives and Introduction
        • Learning Objectives
        • Introduction
      • Preliminary Issues
        • The Logic of Prediction
        • Types of Predictors
        • Selection Plan
      • Initial Assessment Methods
        • Talent Management/Succession Systems
        • Peer Assessments
        • Self-Assessments
        • Managerial Sponsorship
        • Informal Discussions and Recommendations
        • Choice of Initial Assessment Methods
      • Substantive Assessment Methods
        • Seniority and Experience
        • Job Knowledge Tests
        • Performance Appraisal
        • Promotability Ratings
        • Assessment Centers
        • Interview Simulations
        • Promotion Panels and Review Boards
        • Choice of Substantive Assessment Methods
      • Discretionary Assessment Methods
      • Legal Issues
        • Uniform Guidelines on Employee Selection Procedures
        • The Glass Ceiling
      • Summary
      • Discussion Questions
      • Ethical Issues
      • Applications
        • Changing a Promotion System
        • Promotion From Within at Citrus Glen
        • Questions
      • Endnotes
  • Part Five Staffing Activities: Employment
    • Chapter Eleven Decision Making
      • Learning Objectives and Introduction
        • Learning Objectives
        • Introduction
      • Choice of Assessment Method
        • Validity Coefficient
        • Correlation With Other Predictors
        • Adverse Impact
        • Hiring Success Gain
        • Economic Gain
      • Determining Assessment Scores
        • Single Predictor
        • Multiple Predictors
      • Hiring Standards and Cut Scores
        • Description of the Process
        • Consequences of Cut Scores
        • Methods to Determine Cut Scores
      • Methods of Final Choice
        • Random Selection
        • Ranking
        • Grouping
        • Ongoing Hiring
      • Decision Makers
        • Organizational Leaders
        • Human Resource Professionals
        • Managers
        • Coworkers
      • Legal Issues
        • Uniform Guidelines on Employee Selection Procedures
        • Diversity and Hiring Decisions
      • Summary
      • Discussion Questions
      • Ethical Issues
      • Applications
        • Utility Concerns in Choosing an Assessment Method
        • Choosing Entrants Into a Management Training Program
      • Endnotes
    • Chapter Twelve Final Match
      • Learning Objectives and Introduction
        • Learning Objectives
        • Introduction
      • Employment Contracts
        • Requirements for an Enforceable Contract
        • Parties to the Contract
        • Form of the Contract
        • Disclaimers
        • Contingencies
      • Job Offers
        • Strategic Approach to Job Offers
        • Job Offer Content
      • Job Offer Process
        • Formulation of the Job Offer
        • Presentation of the Job Offer
        • Timing of the Offer
        • Job Offer Acceptance and Rejection
        • Reneging
      • New Employee Orientation and Socialization
        • Orientation
        • Socialization
        • Long-Term Adjustment
        • Examples of Programs
      • Legal Issues
        • Employment Eligibility Verification
        • Negligent Hiring
        • Employment-at-Will
      • Summary
      • Discussion Questions
      • Ethical Issues
      • Applications
        • Making a Job Offer
        • Evaluating a Hiring and Variable-Pay Plan
      • Endnotes
  • Part Six Staffing System and Retention Management
    • Chapter Thirteen Staffing System Management
      • Learning Objectives and Introduction
        • Learning Objectives
        • Introduction
      • Design and Administration of Staffing Systems
        • Defining the Mission of Staffing
        • Organizational Arrangements
        • Policies and Procedures
        • Human Resource Information Systems
        • Outsourcing
      • Evaluation of Staffing Systems
        • Staffing Process
        • Staffing Process Results
        • Calculating Staffing Metrics
      • Legal Issues
        • Record Keeping and Privacy
        • EEO Report
        • Legal Audits
        • Training for Managers and Employees
        • Dispute Resolution
      • Summary
      • Discussion Questions
      • Ethical Issues
      • Applications
        • Learning About Jobs in Staffing
        • Evaluating Staffing Process Results
      • Endnotes
    • Chapter Fourteen Retention Management
      • Learning Objectives and Introduction
        • Learning Objectives
        • Introduction
      • Turnover and Its Causes
        • Nature of the Problem
        • Types of Turnover
        • Causes of Turnover
      • Analysis of Turnover
        • Measurement
        • Reasons for Leaving: Self-Report
        • Reasons for Leaving: Predictive Analytics
        • Costs and Benefits
      • Retention Initiatives: Voluntary Turnover
        • Desirability of Leaving
        • Ease of Leaving
        • Alternatives
        • Current Practices and Deciding to Act
      • Retention Initiatives: Discharge
        • Performance Management
        • Progressive Discipline
      • Retention Initiatives: Downsizing
        • Weighing Advantages and Disadvantages
        • Staffing Levels and Quality
        • Alternatives to Downsizing
        • Employees Who Remain
      • Legal Issues
        • Separation Laws and Regulations
        • Performance Appraisal
      • Summary
      • Discussion Questions
      • Ethical Issues
      • Applications
        • Managerial Turnover: A Problem?
        • Retention: Deciding to Act
      • Endnotes
  • Name Index
  • Subject Index
    1. 2018-02-28T15:54:53+0000
    2. Preflight Ticket Signature